President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Atif Ikram Sheikh, has voiced deep concerns over the apparent disregard for the Renewable Energy Policy of 2006. Despite the attractive tariff of Rs 14.7/kWh for wind power projects, Sheikh highlights a troubling trend where obsolete and expensive power projects continue to receive preference over renewable energy initiatives. Sheikh underscores the economic irrationality of purchasing power from costly plants, especially amidst challenges like stagflation, mounting circular debt, and dwindling foreign exchange reserves due to reliance on imported furnace oil.
Such practices not only deter foreign direct investment (FDI) in the energy sector but also inflict financial losses on existing wind power plants. The FPCCI Chief emphasizes that this trend not only compromises the return on investment (ROI) for stakeholders but also results in operational losses due to curtailment and lack of off-take by the national grid. Additionally, it casts uncertainty on future investments, joint ventures, and expansion plans in the renewable energy sector.
Atif Ikram Sheikh urges the establishment of a special investment facilitation council (SIFC), with energy as one of its primary focus areas. He stresses the importance of creating an enabling and protective environment to support renewable energy initiatives, a cause that enjoys unanimity among all stakeholders, including the private sector. Fawad Jawed, Convener of FPCCI’s Central Standing Committee on Renewable Energy, echoes Sheikh’s sentiments, highlighting the cost-effectiveness and environmental benefits of renewable energy, particularly wind power. With a competitive tariff of Rs 14.7 per kWh, wind power presents a viable alternative to expensive RLNG, RFO, and coal-fired power plants, promoting a cleaner and greener energy future for Pakistan.
