Pakistan's businesses urge use of cheap wind power (Rs. 14.5/unit) for relief from summer heat and power outages.
- Relief for Struggling Consumers: FPCCI Pushes for Affordable Wind Power
Karachi, Pakistan – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has called for the immediate purchase of electricity from the country’s 12 cheapest wind power plants. This move aims to provide much-needed relief to citizens facing scorching summer heat and frequent power outages.
Atif Ikram Sheikh, President of FPCCI, emphasized that these wind farms generate electricity at a cost-effective rate of Rs. 14.5 per unit. Utilizing this clean and affordable energy source aligns perfectly with the Renewable Energy Policy 2006 and existing power purchase agreements (PPAs).
Prioritizing Renewable Energy for Lower Costs and Sustainability
Saquib Fayyaz Magoon, SVP FPCCI, highlighted K-Electric’s commitment to achieving 30% renewable energy usage by 2030. He urged authorities to dispatch electricity from these wind farms to the K-Electric network. The existing transmission infrastructure between NTDC’s Jhimpir-II grid station and KE’s KDA infrastructure makes this a viable solution. This approach would prevent the wastage of cheap electricity and significantly reduce the burden on consumers struggling with high electricity bills.
Addressing Concerns Over Curtailed Wind Power and Inefficiency
Asif Inam, VP FPCCI & Chairman APTMA, expressed concern about the disconnect between prioritizing expensive power generation and curtailing wind power production. He pointed out the inefficiency of purchasing electricity at higher rates from other sources while underutilizing clean and affordable wind energy (Rs. 14.5 per kWh). This mismanagement not only harms consumers but also discourages investment in renewable energy, a crucial step towards a sustainable future.
Focus on Evacuation and Long-Term Investment
Inam further criticized the National Transmission and Despatch Company’s (NTDC) failure to evacuate cheaper wind power from Jhimpir, Sindh, to Punjab’s load centers. This forces Punjab to rely on more expensive power plants, ultimately reflected in higher electricity bills for consumers through the monthly fuel adjustment mechanism.
Fawad Jawed, Convener of FPCCI’s Central Standing Committee on Renewable Energy, emphasized that curtailing cheaper renewable energy violates the Special Investment Facilitation Council’s (SIFC) clean energy policy. While appreciating SIFC’s efforts to attract investment in renewable projects, Jawed stressed the need to address the challenges faced by the existing 12 wind power plants. Their financial viability and sustainability are at risk due to curtailment.
Foreign Investment and the Future of Renewables
Jawed revealed that these wind projects were established with significant foreign investment from prominent institutions like the World Bank’s International Finance Corporation (IFC), UK Government’s British International Investments plc (BII), and Islamic Corporation for Development (ICD). This investment not only boosted Pakistan’s economy and energy sector but also created employment opportunities. He warned that failing to address curtailment issues could deter future domestic and foreign investment in Pakistan’s renewable energy sector.
The FPCCI’s call highlights the urgent need for Pakistan to prioritize utilizing its existing, cost-effective wind power resources. This shift will not only provide immediate relief to citizens during peak summer months but also contribute to a more sustainable and secure energy future.