NATIONAL
FPCCI Expresses Alarm at Failure to Enforce Renewable Energy Policy in Pakistan
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has raised serious concerns about the failure to implement the Renewable Energy Policy 2006. The federation criticizes the continued favoritism towards more expensive and outdated energy projects over the more cost-effective and sustainable options available through wind power. According to FPCCI, such practices deter foreign direct investment in the energy sector and cause financial harm to existing wind power projects, affecting their profitability and threatening future investments in the sector.
FPCCI's President, Mr. Atif Ikram Sheikh, expressed worries over the preference for high-cost energy sources like furnace oil imports, especially during economic challenges, including stagflation and increasing circular debt. This approach has led to financial difficulties for wind power plants due to reduced operations and limited purchases by the national grid, despite being designated as "must-run" under the 2006 policy.
Mr. Fawad Jawed, who leads the FPCCI's Central Standing Committee on Renewable Energy, highlighted the cost-effectiveness of wind energy in Pakistan, offering clean energy at a significantly lower cost than RLNG, RFO, and coal power. Despite the addition of 12 wind power projects in the Jhimpir Wind Corridor since 2021, totaling 610 MW, these facilities face discriminatory practices that result in a loss of affordable clean energy for the national grid and its consumers.
This situation not only increases electricity costs and fossil fuel dependence but also obstructs Pakistan's goals for sustainable energy, including reducing emissions by 50% by 2030 and raising renewable sources to 30% of the national energy mix as outlined in the Alternative and Renewable Energy Policy 2019.
FPCCI calls for the immediate and full utilization of power from operational wind projects, in line with the Renewable Energy Policy 2006 and existing Energy Purchase Agreements. Mr. Asif Inam, VP of FPCCI and Chairman of APTMA, emphasized the importance of optimizing the capacity of wind power plants, which could supply highly cost-efficient electricity to the grid, achieving a 38% capacity factor, and delivering savings to consumers. This statement from FPCCI, sourced directly from the organization, highlights the urgent need to adjust policies and practices to fully embrace renewable energy, ensuring the energy sector's economic and environmental sustainability in Pakistan.