ISLAMABAD: A meeting of the Cabinet Committee on Energy (CCoE) approved a summary to include all new Renewable Energy (RE) projects in the open competitive bidding process to ensure the least cost procurement of renewable electricity.
The CCoE met with Federal Minister for Planning, Development and Special Initiatives in the chair at P-Block Secretariat on Thursday. The CCoE approved the summary and recommended expediting the bidding process.
The committee also considered the summary presented by the Power Division on the implementation of the CCoE decisions. It was informed in the meeting that all new RE projects will participate in the open competitive bidding process to ensure the least cost procurement of renewable electricity.
The chair further directed the Power Division to inform the CCoE in the next meeting of a detailed roadmap with milestones for the establishment of RE projects, including the potential locations and details of the competitive process be presented.
The Petroleum Division presented the projected natural gas supply in the country for the winter. During the meeting, the Petroleum Division presented various policy options for management of the gas supply side during winter 2021-22.
The meeting was informed about the efforts to enhance the natural gas supply during the meeting. The CCoE directed the Petroleum Division to ensure maximum supply while ensuring implementation of a demand management plan as already approved by the Cabinet.
The CCoE also reviewed the Circular Debt Report October 2021 submitted by the Power Division. The committee appreciated the sustained reduction in the accumulation of circular debt. It was informed in the meeting that the performance of the DISCOs is continually improving.
The sector is also adjusting to the post-Covid scenario where a collection of dues had dropped significantly. The government has been releasing the budget subsidy amount as per the plan in order to ensure the sustainability of the sector.
The meeting was attended by Minister for Finance, Minister for Energy, Minister for Maritime Affairs, Advisor to PM on Commerce and Industries, chairman Ogra, chairman Nepra, representatives of regulatory authorities, and senior officials of the ministries/divisions also participated in the meeting.
Copyright Business Recorder, 2021