Pakistan considers developing a national policy for renewable energy
The World Wind Energy Association said this week that the Pakistani government cabinet energy committee will formally consider formulating a national policy for renewable energy to achieve dual goals.
Pakistani Minister of Electricity Omar Ayub Khan and the European Union Ambassador to Pakistan Jean-Fran?ois Cautain held a meeting and set a legislative process for the 2030 target one month later. Cautain’s tweet stated that “this goal is in full compliance with the Paris Agreement, Impressed."
In recent years, people in Pakistan have increased the proportion of renewable energy projects in Pakistan, which is currently 4%. Stefan Gs?nger, secretary general of the World Wind Energy Association, said this week that this highly acclaimed goal will not only ensure a reliable and safe domestic electricity supply, but also help address the “significant challenges” of rising prices in Pakistan.
Last October, comments from the Pakistan Alternative Energy Development Board through The Express Tribute showed that the 30% goal was to avoid the “only viable” strategy for the power crisis caused by over-reliance on rapidly decelerating natural gas reserves. For the Islamabad Chamber of Commerce and Industry, the Chamber of Commerce and Industry hopes to introduce an economic case to promote renewable energy projects in the same month.
Photovoltaic support grid parity era
A legislative debate around clean energy targets found that the Pakistani solar industry is in a period of growth.
This week, the annual report of the International Renewable Energy Agency listed Pakistan as a highlight of the photovoltaic industry. This year's figures mark that the photovoltaic data of the Pakistan Alternative Energy Development Council has increased from 100MW in 2015 to 400MW in 2016.
Over the years, the Commission has supported project development by promoting solar technology tax exemptions, standardizing documents and providing technical assistance to provincial governments. The committee also provides subsidies to IPP through a coordinated program with Pakistan's electricity regulator NEPRA and encourages other more market-based investment models.
As the cost of technology declines, the photovoltaic industry is expected to grow further, pushing photovoltaic projects to the edge of grid parity. In the past year alone, the new projects included Shunde's 400MW World Bank-supported PV project, Siddiqsons' 100MWduo, ENERTECH's 50MW project and Aasal's 49.5MW power plant.
At the same time, Bajista is working hard to develop a solar manufacturing ecosystem, and companies such as ACT Group have announced plans to build a 1GW PV module plant. Manufacturers welcomed the five-year exemption of income tax decisions passed in early 2019 and called on the government to consider other incentives.
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