Businessmen slam wind power curtailment

Say expensive, obsolete power sources being preferred

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KARACHI:

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh has aired concern over the ongoing curtailment of 12 low-tariff wind power projects.

"This is happening despite their cost effectiveness and alignment with the national energy goals," he said while criticising the continued preference for expensive, obsolete power sources. He urged the government to adhere to the Renewable Energy Policy 2006.

In a statement, Sheikh said the current situation was causing significant curtailments, leading to substantial financial losses for wind energy project developers. This scenario is impacting their ability to service debt, continue operations and also compromises their return on investment (ROI), which is jeopardising future expansion as well.

Owing to the curtailment challenges, the confidence among foreign investors will be severely affected and it will directly impact any future foreign direct investment in the renewable energy sector. Ultimately, it could lead to project defaults and financial instability, he said.

The FPCCI president called for creating a stable, consistent and supportive environment for renewable energy in alignment with the Special Investment Facilitation Council's (SIFC) focus on the energy sector.

In the interest of the national economy and power consumers, the FPCCI demanded an immediate and lasting end to the curtailment for the 12 wind power projects having low tariffs. It also stressed that the existing energy purchase agreements should be honoured.