GIZ, Power Division ink pact on energy project

The GIZ Pakistan and the energy ministry (Power Division) on Friday signed a new implementation agreement under which the former would conduct the Renewable Energy and Energy Efficiency (REEE II) project worth 8.1 million euros.

“Under the agreement, GIZ Pakistan will conduct the so-called Renewable Energy and Energy Efficiency (REEE II) project, that will provide technical support to the Ministry of Energy (Power Division) and its associated Alternative Energy Development Board (AEDB),” according to a press release.

 The aim of the project is to contribute effectively to the energy transition in Pakistan, it read, adding: “The 8.1 million EUR project is commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ).”

During the ceremony, Power Division Secretary Ali Raza Bhutta and GIZ Pakistan Country Director Tobias Becker reiterated the commitment to strengthen their cooperation. AEDB CEO Shah Jahan Mirza and other notables from both sides were in attendance.

Bhutta said: “A major milestone in the energy transition in Pakistan is the new Renewable Energy Policy approved by the Council of Common Interest in August 2020 the Alternative and Renewable Energy (ARE) Policy.”

The policy, he added aimed at a substantial shift in the power generation capacity to renewable energy (RE) sources, moving from a current 6 to 20 per cent by 2025 and 30 per cent by 2030. He emphasised on building the capacity of Pakistan’s RE & energy efficiency-related organisation.

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The power division secretary also appreciated the GIZ cooperation in adopting best energy efficiency practices while learning from the German experience. He expressed the desire that the current cooperation between the GIZ and the energy ministry would go a long way towards improving Pakistan’s utilisation of its great renewable energy potential.

GIZ Pakistan Country Director Becker said: “This intervention will support the increased deployment of clean energy technologies, it will promote distributed solar PV power plants connected to the electricity grid, as well as the rural electrification strategy of the country.”

He also emphasised the importance and contribution of the Pakistan-German Renewable Energy Forum (PGREF).

“The REEE II project responds to the national priority area of the Government of Pakistan, ie the Alternative and Renewable Policy 2019 and National Energy Policy 2021,” it read.

Through bilateral cooperation agreements, Germany and Pakistan have been working together to address the impacts of climate change and to ensure access to affordable and sustainable energy.

In line with this, the handout read the PGREF would continue to serve as a connecting bridge between both countries, implementing actions and providing technical advice to enhance collaboration.

“GIZ Pakistan shares a cordial relationship in development cooperation with the Government of Pakistan for over 60 years. It has been a key partner in supporting the government to achieve its national priority policies since the 1960s in different development sectors,” it added.