Karachi (PR) Mian Nasser Hyatt Maggo, President Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has demanded that the Federal Government amend the decision of the Cabinet Committee on Energy (CCOE) dated April 4th 2019 paving the way for foreign investor’s Renewable Energy Projects worth US$ 500 Million to move forward.
Maggo stated that high cost of energy coupled with circular debt is hindering the industrial growth and with rising oil prices; it is imperative to bring down the energy cost for sustainable economic growth, and in line with the vision of Honorable Prime Minister Imran Khan to increase Renewable Energy share in the power mix to 20 by 2025; cheap renewable energy projects must be inducted.
He stated that NEPRA recently awarded Pakistan’s lowest Wind & Solar power tariff’s at an average of Rs. 5.95/kwh to twelve projects of 670 MWs and if elapsed; they would deprive the consumers of Rs. 20 Billion / annum savings in energy cost as they will displace the expensive energy being produced by GENCO’s which are inefficient and near retirement
He further stated that there is a shortage of approximately 3000 MW in peak demand based on current energy mix and taking into consideration the efficiencies’ and line losses; there is an urgent need to install additional capacity of 5,000 MW to meet only the current demand; let alone the expected growth in population and economy.
He expressed frustration at the slow pace of decision making by the Federal Government as these projects; sponsored by foreign investors; have been waiting and willing to invest in the R.E power sector of Pakistan for last several years. Abrupt policy changes and lack of timely decisions have hampered the FDI and driven away investors to other attractive destinations.
He further stated that it is in the supreme national interest to amend the CCOE decision as it will not result in any subsidy, grant or concession on the contrary it will pave the way for not only reducing the energy cost of the country, it’s import bill and circular debt; but will also bring in much needed foreign investment to the tune of US$ 500 Million within next six (06) months; besides saving Rs. 20 Billion /anum to the national exchequer.