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Business Recorder

Published Date: Apr 1, 2021

Govt eyes to increase share of green energy to 30 per cent: NEPRA chairman

ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) Chairman Tauseef H Farooqi has said that the government is eying to increase the share of renewable energy from the existing 5% to 30% under the umbrella of Alternative and Renewable Energy Policy.

“Overall, the target of increasing the share of clean renewable energy including hydropower in the country is 60% in the next 10 years,” he said this while sharing his view with the participants of webinar ‘Impact of COVID on Energy Sector of Pakistan: Opportunities and Challenges,’ held by Sustainable Development Policy Institute (SDPI) here on Wednesday.

While highlighting the impacts of Covid-19 on the sector, he informed the participants that the pandemic has affected investment in the energy sector globally from 20-30% and in Renewable Energy sector by 15%. He added further that there have been several challenges on the demand side as commercial activities were ceased for a while leaving a bad impact on the country economy.

Therefore, the government provided 25% and 50% discount in power tariff to the Industrial Sector and the SMEs respectively. Anne Sackville-West, Economic Officer US Embassy, Islamabad, informed the participants that the United States and Pakistan have been working on Renewable Energy for the last many years.

Besides, USAID has recently made investment in several clean energy projects within the country.

In the context of Pakistan, she said, the structural changes were expected in tariff and thus, the energy would be getting expensive in coming days. She added further that the price of the electricity would ensure that Pakistan moves out of the current situation regarding circular debts.

Financial incentives were the key for market to come up with appropriate solutions. Therefore, long term integrated conversation approach was required, she added.

Khurram Lalani, the expert in energy sector, was of view that a key learning from Covid-19 was that the scientific economic diversity should be accepted in policy making process.

General Manager Engro Energy Limited, Dr Fatima Khushnud, highlighted that slow economic activity was observed after Covid-19 occurrence.

She opined that many industries were now aware of the Renewable Energy, especially in the textile industry and steel industry and it was also moving towards green energy for a better financing.

She added further that we need to move towards electrification of the transport sector and better financing opportunities exist if we were inclined towards green energy.

Dr Sajjad Amin, Research Fellow SDPI, earlier highlighted the importance of fiscal stimulus.

He said that the demand for green energy needs to be explored.

Dr Hina Aslam of SDPI also highlighted various aspects of the topic, especially in the context of Pakistan’s transition towards the green energy.