PM hopes new policy will cut energy costs

SAPM on energy says ratio of renewable energy in the energy mix will be increased to 20% by 2025 from current 6%

ISLAMABAD: Prime Minister Imran Khan has appreciated the steps taken for promotion of renewable energy under the new policy, saying the country has a lot of potential in this sector, which has not yet been utilised.

“This vital sector had been ignored in the past resulting in escalation in energy cost and pollution,” said the prime minister while chairing a high-level meeting regarding the new policy being formulated on renewable energy on Friday.

The meeting was attended by Minister of Economic Affairs Division Muhammad Hamad Azhar, Minister for Energy Omar Ayub Khan, Special Assistant to the PM on Energy Nadeem Babar, Special Assistant to the PM on Information Dr Firdous Ashiq Awan, SAPM Shahzad Qasim, Power Division Secretary Irfan Ali and senior officials.

PM Imran hoped that the new policy would prove fruitful for the country as soon the problem of supplying costly electricity would be overcome using the wide availability of renewable energy resources.

PM's Special Assistant on Energy Nadeem Babar presented the proposed draft of the new policy of renewable energy to the prime minister.

He said, “The ratio of renewable energy in the energy mix is only 6% and the new policy is aimed to increase this ratio up to 20% by 2025 and 30% by 2030.”

He said electricity generation from renewable energy was the main purpose under the new policy where provision of cheapest electricity to the people could be made possible.

Briefing the prime minister about main features of the new policy, Babar said, “All hurdles in the way of promotion of renewable energy have been removed.”

He said under the new policy, investors interested in investment in the sector would be able to make bids in the annual auctions pertaining to renewable energy projects particularly aimed at increasing “our capacity”.

He said it was also the focus of the government that all machinery and its parts were manufactured locally, adding that all projects under the new policy would be installed through open auction with full transparency.

The special assistant informed the meeting that efforts were being made to utilise solar, wind, municipal waste, hydrogen, biogas and waves of ocean like renewable resources to produce energy, adding that new methods would also be used for storage of this energy.

Babar said, “All relevant federal and provincial departments, international departments, professional organisations, lawyers, bankers and all stakeholders related to the energy sector have been consulted in formulation of the new policy.”

He said after approval of the prime minister, the proposed draft policy would be presented before the Alternate Energy Development Board and after that it would be presented before the cabinet and Council of Common Interests (CCI) for approval.

The prime minister appreciated the efforts of Babar, Minister for Energy Omar Ayub Khan, Secretary Power and his team for formulating such a comprehensive policy.