11th South Asian Economic Summit

11th South Asian Economic Summit

IPPA in collaboration with SDPI organized a panel discussion on 7th Dec 2018 at Hotel Margala Islamabad titled, “Pakistan’s changing energy markets- transition to new realities” at 11th South Asian Economic Summit from 4th – 7th December 2018.

The discussion was attended by the sector stakeholders ( IPPs, Govt, regulator, development sector, mercantile exchange, and sector experts) and well received by the participants.

The highlight of the discussion was the insights given by Mr. Nadeem Babar (Head of PM Energy Task Force). Other panelists included Simon Nicholas (Energy Finance Analyst, IEEFA, Sydney, Australia), Mr. Khalid Mansoor (CEO Hub Power Company), Omer Haroon Malik (Director Strategy and Power Market Development, CPPA G) and Mr. Ashruff Hasan Rana (Founding Member Bridge Factor).

The key takeaways were:

  • The Integrated Energy plan has to be underpinned on 3 fundamental factors : Availability, Affordability and Sustainability

  • Financial balance is the key i.e. financially sustainable power industry is perhaps more critical than environmentally sustainable power system.

  • There is a dire need to change the mindset and start treating electricity like any other service that comes at a  cost.

  • On the energy mix side, Oil is out, renewables is the future and by 2040 the renewables share will definitely go up by 25% if not more renewables policy will be out by March 2019.

  • The merchant model and digitization of the energy market is the need of the hour.

  • As a sector we need to work together and work fast… now is the time to act.. while availability of generation capacity for the next few years has been assured through the projects already   implemented or CPEC projects in pipeline; complacency seems to be setting in, which if not checked will result in repeat of crisis in 5-7 years. This is the time we have the luxury to do proper planning on what plants to retire, what fuels to use in the future, where to locate the plants and how to utilize them in the most optimal manner.