Pakistan may incentivize renewable energy

ISLAMABAD: A new policy awaiting approval would bring Pakistan among the few countries that give incentives for developing alternative and renewable energy.

The Minister for Water and Power, Raja Pervez Ashraf, said the new policy was ready for implementation and just needed to be approved by the federal cabinet. Ashraf met a 17-member delegation comprising top executives from leading German companies in the energy sector here on Monday.

The Ambassador of Germany, Dr Michael Koch, said that German companies were very eager to invest in the energy sector in Pakistan to meet its future electricity needs.

The delegation is currently on a three-day visit of Pakistan on the invitation of Alternative Energy Development Board (AEDB) to explore possibilities of investment in the alternative/ renewable energy (ARE) sector.

“Four 50-megawatt wind farms are expected to see their financial closure by the end of this year,” said the CEO of AEDB. This number would increase in subsequent years, he said. He said that with the support of AEDB, more than eight hydropower plants (110MW) were under implementation while 14 others were at advanced stages of preparation.

“Pakistan is currently passing through a critical phase of power shortages,” said Ashraf.

It possesses great potential for power generation, especially in the field of alternative and renewable energy like wind and solar power.

The government was looking for some immediate steps to overcome energy shortages to provide relief to its people, said Ashraf.

He further said that Germans had always helped Pakistan in different sectors and the current visit of top German companies would certainly strengthen relations between the two countries.

He invited German companies to develop their businesses in Pakistan through direct investments, joint ventures or by providing technical assistance for machinery and equipment.

Ashraf assured the German companies of full support from the government in their future investments in Pakistan in the alternative energy sector. He added that Pakistan was already offering attractive incentives for investments in the ARE sector.