Govt bans new solar and wind projects in Pakistan

[wiqi21]

TribuneTaking a new line: Focusing on LNG, govt bans new solar and wind projects
Share Tweet
Taking a new line: Focusing on LNG, govt bans new solar and wind projects
By Zafar Bhutta
Published: April 22, 2015
0SHARES
Share Tweet Email
200MW is the capacity of three wind power projects initiated with the cooperation of China. PHOTO: REUTERS

ISLAMABAD:
As the focus rapidly shifts towards liquefied natural gas (LNG)-based power plants, the government has slapped a ban on new solar and wind energy projects, saying they are unfeasible because of being expensive compared to conventional electricity production projects.

The decision was taken in a meeting of the cabinet committee on energy on April 8. The government has admitted for the first time that these renewable energy sources were expensive compared to the conventional means.

Among the various sources of energy, hydroelectric power has the highest share of 34% in total electricity production, followed by furnace oil-based power generation that contributes 33%, gas 21%, diesel 1.8%, wind energy 0.63% and coal 0.31%.

Already three wind power projects with a combined generation capacity of 200 megawatts have been initiated in cooperation with China under the China-Pakistan Economic Corridor and one solar project of 900MW capacity. Apart from this, work is continuing on a 950MW solar plant.

The Ministry of Water and Power told the energy committee that power generation through solar and wind plants would be pricey because of their high tariffs compared to conventional energy projects. Therefore, no new solar and wind projects should be proposed and sponsored until a further decision on the issue, it suggested.

Following the deliberations, the energy committee, chaired by Prime Minister Nawaz Sharif, agreed that no new solar and wind power projects would be proposed and sponsored by the time a further decision was taken on the issue.

The committee also discussed in detail the use of LNG in power plants. Officials stressed that there was a dire need for improving the gas supply network in order to clear the way for LNG supply to planned 3,600MW power projects in Punjab.

They emphasised the need for establishing a capacity payment mechanism to make it abundantly clear who would make such payments in the absence of gas supply.

Water and power secretary briefed the meeting about the progress on building LNG-fuelled power plants.

The National Engineering Services of Pakistan (Nespak) has been engaged for preparing the project cycle (PC-1) for the proposed schemes. Preliminary studies for the selected sites have been completed and the Punjab government has been requested to facilitate the land acquisition efforts.

The water and power secretary also spoke about short- and medium-term measures aimed at energy conservation. In the short term, energy will be saved through enforcement of energy discipline in government offices, a public awareness campaign, daylight saving and enforcement of commercial operation timings.

It was proposed that strict energy-saving measures should be undertaken in offices of the federal and provincial governments to economise the consumption of electricity.

Published in The Express Tribune, April 22nd, 2015.

Taking a new line: Focusing on LNG, govt bans new solar and wind projects - The Express Tribune

 

[graphican]

World is moving towards sustainable energy projects and our leaders are banning them? Dur Fittay Moo!

 

[syedali73]

World is moving towards sustainable energy projects and our leaders are banning them? Dur Fittay Moo!

Not much commission in such projects. They want coal power projects instead.

 

[Jango]

In logon ka bhi koi deen iman nhn.

One day Shahbaz Sharif is honking about Solar energy, next day we see this.

 

[Al Bhatti]

Dur Fittay Moo!

These words have some self respect. In alfaaz ki bhi izzat hay

 

[OrionHunter]

World is moving towards sustainable energy projects and our leaders are banning them? Dur Fittay Moo!

That's being penny wise, pound foolish!

Within a couple of years the cost of power production through solar energy is going to halve and so too wind energy due to rapid technological advancements. Renewable energy facilities generally require less maintenance than traditional generators. Their fuel being derived from natural and available resources reduces the costs of operation.

Even more importantly, renewable energy produces little or no waste products such as carbon dioxide or other chemical pollutants, so has minimal impact on the environment.

Renewable energy projects can also bring economic benefits to many regional areas, as most projects are located away from large urban centres and suburbs of the capital cities.

One major advantage with the use of renewable energy is that as it is renewable it is therefore sustainable and so will never run out.

However, it also indicates that the best solution to our energy problems may be to have a balance of many different power sources.

 

[airmarshal]

World is moving towards sustainable energy projects and our leaders are banning them? Dur Fittay Moo!

THis LNG is a HUGE scam. A couple of billion dollars being made by ruling family and friends. So the ban on anything other than LNG is not that unexpected.

 

[tsinga]

Wrong decision. Cost of solar has fallen a lot and is continuing to fall rapidly.

 

[airmarshal]

That's being penny wise, pound foolish!

Within a couple of years the cost of power production through solar energy is going to halve and so too wind energy due to rapid technological advancements. Renewable energy facilities generally require less maintenance than traditional generators. Their fuel being derived from natural and available resources reduces the costs of operation.

Even more importantly, renewable energy produces little or no waste products such as carbon dioxide or other chemical pollutants, so has minimal impact on the environment.

Renewable energy projects can also bring economic benefits to many regional areas, as most projects are located away from large urban centres and suburbs of the capital cities.

One major advantage with the use of renewable energy is that as it is renewable it is therefore sustainable and so will never run out.

However, it also indicates that the best solution to our energy problems may be to have a balance of many different power sources.

Oh bhai jaan! You make a lot of sense. But all that sense goes to the trash can when the ruling family can make couple of billion dollars through dubious import and that too without tender. And that money is being made abroad, deposited in foreign accounts.

 

[wiqi21]

This will be disastrous for renewable energy investment in Pakistan......

 

[Shoonya]

Unbelievable !!!! just because China has sold their obsolete coal based Power Plants to Pakistan ???

 

[SBD-3]

That's being penny wise, pound foolish!

Within a couple of years the cost of power production through solar energy is going to halve and so too wind energy due to rapid technological advancements. Renewable energy facilities generally require less maintenance than traditional generators. Their fuel being derived from natural and available resources reduces the costs of operation.

Upfront tarrif is higher for wind and solar power projects. But even the upcoming hydro project of NJ would produce an electricity costing 14Rs/KWh.
The problem with these plants is that they would be located in areas where transmission lines to national grid or nearest DESCOs would be expensive. Plus given they are provided to low yielding DESCOs, their higher costs coupled with dismal collection would only intensify circular debt. The same reason was behind shelving the decision of establishing power plants at the wellheads. PSO,SSG and SNG were reluctant to enter into an agreement for LNG because of the same fears.
The current focus of government appears to be establishing power plants near to high collection descos to 1)minimize the need for distrubution infrastructure, 2)Ensure smooth operation of power generation due to consistent collection.

 

[salarsikander]

@Viper0011.

 

[ArsalanKhan21]

World is moving towards sustainable energy projects and our leaders are banning them?

They seem to have only banned the government funding for these projects. The private sector invest their own money and build as many they want.

 

[moisrar47]

You can't be serious