form the outlook of the country's energy market under the new Alternative and Renewable Energy Policy, said Minister for Energy Omar Ayub on Friday.
During a meeting with Denmark Ambassador to Pakistan Lis Rosenholm, the two sides discussed the emerging market in the energy sector and business opportunities in view of the newly approved alternative energy policy.
Acknowledging Denmark's leading role in clean and green energy at the global level, the minister said Pakistan too had embarked on a plan of tapping the huge domestic potential of renewable energy.
Ayub emphasised that Pakistan's new renewable energy policy would bring opportunities for investors due to transparent policies of the government. He said that the government had set ambitious targets to introduce 25% renewable energy by 2025 and 30% by the end of 2030.
The share of hydel power generation in the energy mix would be 45% and the share of nuclear energy would be 10%. Explaining the investment potential of Pakistan's power sector, the minister said that the government would induct renewable energy-based power plants through an open and transparent competitive bidding process, which would lower the cost of electricity production.
He told the envoy that the government had prepared the Indicative Generation Capacity Expansion Plan (IGCEP) 2047 for a competitive market structure, generation, transmission system upgrade, smart AMI and modernisation of the distribution system. The minister was of the view that reduced electricity cost for industries and establishment of Special Economic Zones (SEZs) would help boost economic activities in Pakistan besides creating thousands of new jobs.
The Danish ambassador, while appreciating the government's commitment to raising the share of renewable energy, said that the new policy was more transparent as it provided a level playing field for all.