LAHORE – Punjab Minister for Energy Dr. Akhtar Malik has said that production of cheap electricity through all resources is the top priority of the government and various projects are well on way.
He was addressing a meeting at the Lahore Chamber of Commerce & Industry. The LCCI President Irfan Iqbal presided-over the meeting while Senior Vice President Ali Hussam Asghar, Vice President Mian Zahid Jawaid Ahmad, former President Sohail Lashari and former Senior Vice President Mian Nauman Kabir also spoke on the occasion. Executive Committee Members Aqib Asif, Fiaz Haider, Zeshan Sohail Malik, Nasrullah Mughal and Mian Sheheryar Ali also spoke on the occasion.
The Minister said that government is focusing renewable energy sector while no new fossil-fuel-run plant would be established now. He said that 7000 schools in Punjab have been shifted to solar while Memorandum of Understandings (MOUs) have been inked with 13 universities. Investors from private sector have been invited to produce cheap energy through solar that would be purchased by the universities according to their capacity.
Punjab Provincial Minister said that two villages, having 500 houses each, have also been shifted to bio-gas and solar energy. He said that two wind power plants have been established in Joharabad. He said that in the past governments had costly and long term agreements with IPPs to produce energy. He said that some agreements would be completed in the year 2023 while some would be expired in 2032. New agreements would be re-negotiated after expiration.
Dr. Akhtar Malik said various sites have been identified for mini hydel projects of 1 MW and above. While inviting the private sector to invest in these projects, he said that government would provide all facilities to the investors. They should come forward, invest and produce cheap electricity for the industrial sector.
He said that government is promoting net metering while front desks are also being established at all DISCOs to encourage people to produce their own electricity through solar. He said that a testing LAB has been established near Kala Shah Kaku for the testing of solar panel quality.
LCCI President Irfan Iqbal Sheikh said that Punjab has a vital importance in Pakistan’s Economy as it contributes around 55% to the national GDP and accounts for about 68% of electricity demand in the country.
He said that Energy is an important component of the investment climate in our province because of its role as an important input in the production process.
The LCCI President said that although Pakistan has enhanced its power generation capacity considerably in recent times, we are still far away from an optimal energy mix as a heavy percentage of our Energy is still derived from thermal sources while the share of renewables (including Solar and hydro power) in our energy mix is still strained.
He said that in addition to the environmental concerns, the increased dependence on expensive thermal power generation results in tariff hikes, subsidies, circular debt, inefficiencies which hamper the competitiveness of Industrial sector in Punjab.
Irfan Iqbal Sheikh said that in this scenario, we would like to know that what role the Government of Punjab is playing in improving our energy mix by increasing the share of renewable like Solar Power and Hydro Power so that our industry and businesses can have an affordable, sustainable and clean access to energy.
“We would especially like to focus on Solar Power as Punjab is endowed with vast potential of solar energy. The province has considerable sunshine available for more than 300 days (approximately) in a year. We recommend the installation of small solar power projects at all public sector buildings (including offices and education institutions). Industries should also be incentivized to install solar panels for self-consumption”, the LCCI President added.
He said that importance of Solar Energy is well understood around the world as global investments in solar power projects are well in excess of 100 billion dollars. Punjab also has abundance of resources in bagasse, biomass, cow dung and municipal waste, which can also be tapped for development of power generation projects in the province.
Irfan Iqbal Sheikh said that irrigation canals and barrages in the Punjab provide an opportunity for low-head hydro projects. We would like to know that what projects has Government of Punjab undertaken to develop small hydropower projects in the province.
He said that to fulfill the demand of households and industry through exploring potential of renewable resources, there is a need to attract Private Sector Investment in Renewable Energy. The Government of Punjab should make efforts to develop a mechanism for public private partnership and special financing models should be designed to increase the access to finance for private sector in this regard.–PRESS RELEASE
