Chairman, NEPRA, Tauseef H. Farooqui said that, “In order to promote renewable energy (RE) in the country, Competitive Trading Bilateral Contracts Market (CTBCM) model is under trial and will be launched in December, 2022.” He was speaking at the 2nd day of the Annual State of Renewable Energy Conference organized by Sustainable Development Policy Institute in Karachi on Friday. He further said that, input and output data is being consolidated by connecting transmission and dispatch companies, DISCOs, private and public power plants and 239 consumer meters. He apprised that CTBCM is a market competitive model for inexpensive clean renewable energy which enables sellers to provide electricity to bulk consumers without any geographical limitation. He emphasized on market liberalization, removing preferential subsidies, and developing competition from technology and price point of view. He further expressed that DISCOs are apprehensive because CTBCM will dismantle status quo by attracting private sector. He suggested that DISCO must modernize as “it will be survival of strongest”. However, he said it is crucial to bring down cost for consumer through private companies and startups.
MD, NEECA, Dr. Sardar Mohazzam informed the audience that, “National Energy Efficiency and Conservation Policy has been approved which will open areas for investment. He highlighted that RE offers promising employment generation prospects across diversified regions and have profound socio-economic impacts.”
Deputy Managing Director, NTDC, Muhammad Ayub, informed the audience that in order to meet 60% RE target, NTDC has purchased site to add 500MW wind and 1000MW solar energy to the national grid annually. He stressed that DISCOs must be apprised on the need to modernize for surviving in the current market. Shedding light on CSR activities undertaken by NTDC, he mentioned that trees are planted on vacant areas on each NTDC property and the coal power generation is based on indigenous coal only.
Country Manager Pakistan, GoodWe, Salman Mohiuddin suggested that 17% GST and 3.6% additional tax should be reconsidered and waived off for RE technology imports to reduce financial cost not just for businesses and bulk consumers, but also for the residential consumers.
Partner, Stimulus, Hira Wajahat stressed on engaging entrepreneurs and stakeholders from the energy sector to make across the line, comprehensive policy changes. She suggested exploring technological upgradation through innovative business modeling between distributors and technology innovators due to fiscal constraints in Pakistan.
CEO, Linkedthings, Sophia Husnain stressed addressing demand side inefficiency in technology and replacing old appliances at residential and industrial level to reduce transmission losses and improve conservation.
Project Director, Sindh Solar Energy Project, Mehfooz Ahmed Qazi apprised the participants on various initiatives including 15MW solarization of public buildings and 400MW on grid added through solar powerplants. He stressed that NEPRA must initiate competitive bidding which is a major challenge for IPPs.
VP Supply Chain, Unilever Pakistan, Abdul Hannan pointed out that Unilever had initiated RE projects to reach 50% RE target which has reached its ceiling. However, now a new site and the technology is needed which requires financial resources. He stressed that CTBCM can resolve this issue for MNCs which is essential for decarbonizing their operations.
CEO Shams Power, Omer Malik appreciated NEPRA’s CTBCM model for creating possibilities for the power companies to inject renewable power into the grid and facilitating MNCs who are committed to meet carbon reduction targets to attract green investments.
MD, SOWITEC Pakistan, Zeeshan Ashfaq credited inconsistency of policies on RE as a major obstacle in enhancing its share in Pakistan. He suggested that government should focus on adding capacity to the grid under a unified policy rather than presenting new policies.
Head of Strategy and Power Market Development, CPPA, Omar Haroon, suggested that DISCOs need new consideration for planning and operations to upgrade with RE’s penetration in the power system.
Head of Plant, FFC Energy Ltd, Assadullah Qureshi said that FFC Energy is pioneer in operating and managing its powerplant completely through its own staff, as they have developed skilled capacity and also trained engineers and technicians from the local community. He also mentioned that FFC Energy prioritizes conserving biodiversity, and conserves and recycles water from its sites.
Research Fellow, SAARC Energy Centre, Ahsan Javed stressed on tracking the impact of CSR activities from gender perspective, as women proactively reach out for soft loans. He also suggested developing technical and educational capacity of local communities to actively incorporate them in operational capacity in these projects.