An update on renewables

The only major source of renewable energy that has been making it to the country’s energy mix is hydro power. Other sources like solar and wind have just recently entered the power stream. According to a recent report by International Renewable Energy Agency (IREA), the renewable sources contribute less than 12 percent to the total primary energy supply of which hydro power occupies almost the entire share.

While the theoretical, technical or feasible potential of the renewables have been highlighted time and again, the key features of the new report by the IREA prepared in cooperation with the Government of Pakistan are the solutions that it proposes for the deployment of renewable resource while shedding light on the support policies and initiatives at the federal and provincial levels, and grid infrastructure facilities in the last three to four years.

According to the report, titled “Renewables Readiness Assessment”, some prominent initiatives have been taken at the federal level in line with the Alternative and Renewable Energy Policy 2006 guidelines. AEDB has initiated upfront tariffs for wind, biomass and solar PV technologies, which not only avoids drawn-out individual tariff negotiations with NEPRA, but will also assist in fast-tracking the financial closure of projects. The shift towards competitive bidding for determination of energy tariffs is to encourage competition in the power sector and ultimately reduce the cost of electricity for the end consumer.

Published in Business Recorder, 16th April, 2018