‘Faulty planning at Centre has slowed down renewable energy expansion across provinces’

Responding to recent criticism of the Sindh Energy Department’s performance, a handout issued by the department lists the proactive measures taken by the department despite the challenging realities of Pakistan’s energy governance.

Pakistan’s electricity market operates under a single-buyer model, where the Central Power Purchasing Agency controls the procurement of electricity from producers on behalf of distribution companies. This restricts Sindh from independently selling power generated from its projects, limiting its ability to develop large-scale grid-connected renewable energy projects.

Faulty planning at the Centre has slowed down renewable energy expansion across provinces, including Sindh. Despite these barriers, the Sindh Energy Department has initiated an alternative provision of free solar energy to the consumers having electricity consumption of up to 300 units.

Despite systemic barriers, Sindh leads Pakistan in energy production and resource utilisation. The province is home to Thar coal reserves, which contain 175 billion tonnes of lignite coal, the largest untapped coal reserves in the world. These reserves are producing 2,640 MW of electricity, with plans for further expansion.

Sindh is providing cheapest electricity of 100 MW electricity from Noori Abad to the K-Electric grid system. Sindh has achieved Pakistan’s lowest tariff of 3.4 cents through international competitive bidding for its Karachi sites developed in the Malir and West districts with the support of the World Bank.

Sindh contributes 50 per cent of Pakistan’s total gas production and a significant share of oil production, making it a crucial player in the national energy mix, and the highest wind energy capacity in Pakistan, accounting for over 75 per cent of the country’s total wind energy generation.

Sindh is also the first province in the country to successfully initiate hybrid (wind plus solar) energy projects with battery storage technology and lowest-ever costs.

Forty-five public sector buildings, mostly district-level hospitals, are now running on 28 MW of solar energy, while 656 schools and 211 rural health centres are currently being solarised.

Additional 310 public buildings, including all 24 district-level libraries and all 67 autism centres under the department of disabled persons, are being solarised in the current financial year.

The procurement process of 200,000 home solar system kits, including battery, charge controller, DC fan and three LED lights, has been completed expeditiously, and the delivery of 100,000 home solar systems has been received during the current financial year.

The distribution to poor households under the Benazir Income Support Programme criteria has been started throughout the province under the WB-funded Sindh Solar Energy Project (SSEP).

An additional procurement of 250,000 home solar systems has been started under the provincial development budget for benefiting over additional 1.2 million people in electricity unprivileged areas.

Development of projects under private sector investments include a 50 MW waste-to-energy project in Karachi, a 500 MW green hydrogen project in Jhimpir, a 500 MW floating solar project at the Keenjhar Lake, and a 4 MW floating solar project at the Hyderabad Water Filtration Plant.

MoUs of 350 MW Solar Wind Hybrid with Battery Storage for Korangi Industrial Area Karachi, and 75 MW Solar Wind Project for Kotri Industrial Area Hyderabad were signed with international firms under B2B arrangements during the visit of Pakistan’s president to China this February.

Sindh has successfully developed Thar Coal Block-II and Block-I, producing 2,640 MW of electricity, significantly reducing reliance on imported coal. The Thar Energy Limited and Thal Nova plants have added 660 MW each to the grid.

The Pakistan Railways Link is under construction to transport Thar coal nationwide, reducing reliance on expensive imported coal. The government has partnered with Chinese investors under the China Pakistan Economic Corridor to accelerate coal-based power projects.

Sindh’s indigenous gas production accounts for nearly 50 per cent of Pakistan’s total gas output, supplying major industrial and domestic consumers. Efforts are under way to expand gas pipeline infrastructure to ensure equitable distribution across Sindh. The provincial government has electrified thousands of villages, and plans to continue expanding electricity access under village electrification programmes and augmentation of the existing overloaded transformers.

In the past decade, 90.4 per cent development budget was utilised against the releases, while the expenditure of the allocated budget was recorded at 62.8 per cent. The actual CSR activities from these projects as of today is more than double of the 2.87 per cent expenditure reported in the media.

The handout also mentions the allocation for the foreign-funded project of the SSEP, and the special budget allocated for green energy solar projects during the current financial year.

The energy department is solarising 656 schools and 211 primary health facilities in rural areas, with an allocation of Rs2.6 billion, during the current financial year. The handout highlights Sindh’s dominance in Pakistan’s renewable energy production, particularly in wind and solar power.

It mentions key infrastructure investments, such as Thar Coal’s $4 billion development for 2,640 MW power generation to the national grid, and $2.4 billion in the Jhimpir wind corridor for 1,835 MW wind power generation during the past decade, ensuring Pakistan’s energy security from indigenous resources.

The up-to-date expenditure during the past eight months on renewable energy projects is more than Rs7 billion. The handout also mentions the construction of boundary walls in Karachi solar parks.

It also mentions the establishment of the Thar airport, the Thar lodges and the road infrastructure to the Thar mines, the wide range distribution of home solar system kits and the installation of solar systems at public sector buildings.

The handout stresses that Sindh should not be blamed for energy issues that fall under federal jurisdiction, particularly the centralised electricity procurement system, which limits provincial autonomy.

The Sindh Energy Department has demonstrated consistent progress in energy generation through renewable resources in different aspects, such as the development of 1,835 MW wind energy during the past decade, in addition to the allocation of 57,200 acres of state land for green energy projects.

The department also mentions the distribution of 500,000 home solar systems to poor and unprivileged sectors of society, facilitating private sector investments in waste-to-energy and solar wind hybrid projects, and green hydrogen initiatives in line with best international practices through private investments.

It points out the landmark success of the provincial government to overcome the persisting energy crisis created through the induction of imported fuel projects by the federal government.

Highlighting the significant contributions Sindh has made in strengthening Pakistan’s energy security, the provincial energy department reiterates its commitment towards the sustainable solutions of energy supply for socio-economic development of people.

It points out that Sindh remains a leader in renewable energy and resource utilisation, and its initiatives set a strong foundation for a more sustainable and energy-secure future for Pakistan.