Hammad Azhar says CCI passed it unanimously
Pakistan's National Electricity Policy 2021 has been unanimously passed by the Council of Common Interests, Energy Minister Hammad Azhar confirmed Monday.
The policy focuses on power expansion on "a competitive, least cost and transparent basis," he said in a tweet, adding that if Pakistan had implemented a policy like this 15 years ago, then it wouldn't have faced any power troubles.
Explaining the policy during a press conference in Islamabad, Azhar said that previously power projects were installed without giving any consideration to the location and other related costs. For instance, if you set up a coal project in the middle of the country, then you will have to take into account the cost of transporting it.
We want to make the bidding process competitive now. "It will be just like an auction after which projects will be approved or disapproved."
He said that special targets have been set for renewable energy, hydel power. "We have kept the long-term view in mind. This is a policy for 10 years." We want to produce cheap and environmental-friendly electricity. Generation is not the main problem in our power sector. It's money too. We import fuel and have to make payments which are often delayed. Then, there's a transmission bottleneck. In two years, we have increased our capacity by 4,000 Megawatts but we have to increase it by at least 10,000 Megawatts.
The policy will help the country set the basis for the National Electricity Plan, Azhar remarked. We have kept this a basis to solve day-to-day problems related to tariff setting, generation, provision, and transmission.