ISLAMABAD: As the government has shifted its focus from imported fuel power projects to indigenous resources, Pakistan Army has decided to shift Cantonments from expensive system energy to cheaper solar power, sources in AEDB told Business Recorder.
In letters to CEO, AEDB, Shah Jahan Mirza, Secretary Finance, Secretary Power Division, Secretary Defence, Governor State Bank of Pakistan (SBP), Farhan Anwar Ali, Bank Al-Falah, Imtiaz Saithna, Habib Bank Limited and M/s Nisam Energy, Colonel Mansoor Mustafa, for Director General Works & Chief Engineer (Army), has apprised that Pakistan Army intends to play its role in eradicating current energy crisis by generating energy from solar for self-consumption in Army cantonments nationwide.
The projects are already approved by the GoP while having approval, support and guidance of Alternative Energy Development Board (AEDB), National Electric Power Regulatory (Nepra) and State Bank of Pakistan.
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Pak Army, through Competitive bidding had awarded projects to the successful vendors (M/s Nizam Energy, M/s Solis Energy Solutions & M/s Foundation Solar Energy).
According to the letter, currently, Military Engineering Services is executing projects of a cumulative 54-MWp at various cantonments across Pakistan. In some projects work executed exceeds over 70% progress on ground.
However, vendors are facing issues with respect to import of offshore components. Therefore, General Headquarters (GHQ) has requested AEDB and other authorities involved in Prime Minister’s Initiative on “Clean and Green Energy” and working on multiple solar initiatives launched under the leadership of Prime Minister, to align its vendors with the same facility which may be provided to Build-Own- Operate -Transfer (BOOT) providers under the scheme so that it may complete Pak Army’s pending projects which are delayed for the past 6 months.
Military Engineering Services, in collaboration with the contractors, has already put in a lot of effort to make these projects successful. Pakistan Army wants to utilize the support from AEDB to complete these projects and make use of cleaner and cheaper electricity from solar energy.
After explaining the background, Army has requested AEDB to extend help in LCs opening and import process for the mentioned project which are halted for more than 6 months.
The Government of Pakistan intends to establish solar power plants of 10,000-MW at different locations in the country aimed at minimizing generation cost of electricity which is now unaffordable for the industrial, commercial and domestic consumers.
The government has already decided to shift federal government’s buildings from system energy to solar system. Some departments are ready to shift their buildings immediately as they have sufficient funds in current fiscal year whereas some departments are thinking to start solarization of their buildings from next fiscal year.
The country’s power sector Regulator, Nepra, is of the view that neither the power companies have reduced losses, nor improved recovery, which are key reasons of higher electricity tariff.
The Regulator has also proposed to the government to privatise Discos. The government wants to handover at least one Disco to each province which can handle them in a better way.
According to Secretary Power, Rashid Mehmood Langrial, power sector’s losses are higher than the country’s annual defence budget.
Copyright Business Recorder, 2023