Federal Minister for Water and Power Syed Naveed Qamar has said that new Alternative and Renewable Energy (ARE) policy to supplement government’s open door initiatives for private investment and attract investors in this sector.
He made these observations while presiding over 21st board meeting of Alternative Energy Development Board (AEDB) held here on Friday.
He said that development of alternative energy sector will share the burden of conventional sources of energy by strengthening and improving the power supply position of the country and fueling rapid and environmentally sustainable economic growth particularly in rural areas. The Government of Pakistan is targeting fast track development of renewable energy power projects through private investment. Keeping in view the success of upfront tariff globally, Government has also decided to announce upfront tariff for the wind projects. The upfront tariff recently determined by Nepra, will be announced soon after completing formal procedures will also facilitate fast tracking the Wind Energy projects. He said that upfront tariff for wind power projects is a step forward towards generation of cheap and clean energy in Pakistan and to change the current energy mix.
The Minister also directed the AEDB to early process the pending issues of wind power projects and give go ahead to the sponsors so that they move forward for setting up their projects. The Minister also asked to finalize the standard of Energy Purchase Agreement for wind power projects.
Earlier, the meeting was given presentation on ARE 2011 and upfront tariff. It was informed that the draft of the ARE policy 2011 has been submitted to the Council of Common Interest (CCI) for approval. Policy draft has been prepared in consultation with the all relevant stakeholders and the provincial governments.
The upfront tariff is initially for the first 1500 MW and will be examined after the target capacity is booked or after December 2012, whichever comes first. Another benefit of the upfront tariff is to induce efficiencies starting from best sites, state of the art technology and accelerated project execution. The upfront tariff regime will lead to market based mechanism after induction of 1500 MWs with the option to auction licenses for Wind Power projects.
He made these observations while presiding over 21st board meeting of Alternative Energy Development Board (AEDB) held here on Friday.
He said that development of alternative energy sector will share the burden of conventional sources of energy by strengthening and improving the power supply position of the country and fueling rapid and environmentally sustainable economic growth particularly in rural areas. The Government of Pakistan is targeting fast track development of renewable energy power projects through private investment. Keeping in view the success of upfront tariff globally, Government has also decided to announce upfront tariff for the wind projects. The upfront tariff recently determined by Nepra, will be announced soon after completing formal procedures will also facilitate fast tracking the Wind Energy projects. He said that upfront tariff for wind power projects is a step forward towards generation of cheap and clean energy in Pakistan and to change the current energy mix.
The Minister also directed the AEDB to early process the pending issues of wind power projects and give go ahead to the sponsors so that they move forward for setting up their projects. The Minister also asked to finalize the standard of Energy Purchase Agreement for wind power projects.
Earlier, the meeting was given presentation on ARE 2011 and upfront tariff. It was informed that the draft of the ARE policy 2011 has been submitted to the Council of Common Interest (CCI) for approval. Policy draft has been prepared in consultation with the all relevant stakeholders and the provincial governments.
The upfront tariff is initially for the first 1500 MW and will be examined after the target capacity is booked or after December 2012, whichever comes first. Another benefit of the upfront tariff is to induce efficiencies starting from best sites, state of the art technology and accelerated project execution. The upfront tariff regime will lead to market based mechanism after induction of 1500 MWs with the option to auction licenses for Wind Power projects.
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