Awais Leghari announces competitive bidding for power generation through renewable resources

Federal Minister for Power Division, Sardar Awais Ahmad Khan Leghari announced the ending of upfront tariff policies and awarding contracts for power generation through renewable energy resources in all over the country for the first time in history; under a transparent competitive bidding process. He expressed these views in senate proceeding on Monday here in Islamabad.

While congratulating the nation on achieving this milestone, Federal Minister for Power Division shared with house that Government of Pakistan is taking serious measures to harness the available RE potential of the country to diversify its energy mix and ensure energy security and sustainable development in the country. In this regard, Competitive bidding to award generating 400 megawatt wind electricity and 600 MW solar power will be held after a period of eight weeks, which will have great impact to meet future energy needs of the country at affordable pieces.

Federal Minister for Power Division Sardar Awais Ahmad Khan Leghari expressed that Pakistan has now surplus electricity to facilitate our customers, and we do not need to award contract on upfront tariff basis. Renewable energy resources like wind, solar, biogas, small hydel plants will be carried under an open competitive bidding process.

He said that power generation companies were being given a specific profit for the power generation but now investors would be invited for the competitive bidding to get the lowest rates and pass on maximum benefits to consumers. Sardar Awais Ahmad Khan Leghari further shared that NEPRA determines the tariff for all power generation including solar and wind energy keeping into account the international prices, consumer interest and the overall impact of cost of different technologies on the basket price.

The share of renewable energy is about 5.8% in the energy mix at the moment which does not impact the basket price. Moreover, the costs and tariffs of RE technologies have declined significantly making them at par with conventional resources. In addition, there are no capacity payments involved in RE power projects and all payments are made only for delivered energy.

Therefore, wind and solar power plants do not have any negative impacts on the common people, exports and industrial production. Rather, wind and solar power are environment friendly and clean sources of power generation and do not have any negative environmental implications.