AEDB suggests ‘liquid guarantee structure’ for RE projects

KARACHI: Alternate Energy Development Board (AEDB) has recommended “liquid guarantee structure” for renewable energy (RE) projects instead of government guarantee, The New learnt on Thursday.

“We are working on the mechanism for it and a consultative meeting with the stakeholders would be held soon,” said Shah Jahan Mirza, Chief Executive Officer AEDB, while speaking at first “Annual State of Renewable Conference 2022” organised by Sustainable Development Policy Institute (SDPI) in collaboration with Unilever here on Thursday.

He said that AEDB was working on the mega solar power project of 2,400MW, while the government had been requested to provide three sites for it. “We have recommended the government to exempt the goods equipment from taxes and duties,” he said.

He said AEDB aimed to increase renewable energy share to 60 percent by 2030 and 90 percent of it being indigenous to reduce pressure on foreign exchange reserves.

He informed that various projects and policies were being deliberated regarding solarisation of diesel-based tube wells, waiving of import duty and sales tax on solar technology, introducing single line tariffs for competitive bidding to increase renewable energy generation, etc.

Dr Shamshad Akhtar, Former Governor State Bank criticised the insufficient financial cooperation extended by leading greenhouse gas emitters to climate change vulnerable countries.

“Climate change mitigation and adaptation annually requires $7-14 billion, which is well beyond Pakistan’s financial constraints,” the former central bank governor said.

She stressed on the need to decarbonise energy generation and reforming policies to address high import dependence, removing low tariff and subsidies on energy supply to power plants and industries to reduce financial and environmental implications. Dr Abid Qaiyum Suleri, Executive Director, SDPI, called on the public and private sector and civil society organisations to collaborate for concerted actions to mitigate the effects of climate change.

Dr Suleri said it was imperative to speed up transition to renewable energy in Pakistan to address the energy crisis and expensive import-based energy generation.

“The devastating floods due to unprecedented monsoon in Pakistan are the manifestation of climate change and renewable energy mix can play a crucial role in emission reduction to mitigate these disastrous impacts,” he added.

Abu Bakar Ahmed, Secretary, Energy Department, Government of Sindh, talked about various initiatives being taken including solarisation of public buildings including schools, hospitals and 225 basic health clinics. He also shed light on the project to provide 200,000 solar home systems in 10 low energy access districts, and capacity building activities for domestic production of technology.

“A project to reduce waste to energy is under deliberation for Karachi which will be later expanded to the rest of Sindh,” he said.

Dr Sebastian Paust, Counsellor Head of Development Cooperation Embassy of the Federal Republic of Germany, said Germany's journey on climate change mitigation and energy transformation started in the 1990s based on just transition.

Dr Paust said to support Pakistan’s renewable energy transition Germany had provided 350 million euros for 16 projects and 30 million euros for technical co-operation in areas of energy transition, efficiency and electric vehicles.

Dr Ute Collier, Deputy Director, Knowledge, Policy, and Finance Centre, International Renewable Energy Agenda (IRENA), said half of emission reduction targets in the Paris Agreement could be achieved through energy conservation and scaling up renewable energy.

She pointed out that in Pakistan half of the population lacked access to clean cooking energy, while a quarter has no access to electricity which reinstates the necessity of clean renewable energy transition.

Yusuf Siddiqui, CEO, Engro Energy Pvt Ltd, said Engro Energy was planning to add 500MW renewable energy through Jhimpir power project by 2024 which would be scaled up to 1GW.

Ehsan Malik, CEO, Pakistan Business Council (PBC) highlighted that PBC was a follower of ‘Make in Pakistan’ policy to address high import crisis.

He slammed low tariffs on fossil fuel-based energy. Malik said these were slowing down the transition to renewables, especially solarisation by domestic consumers.