ISLAMABAD, Minister for Energy Omar Ayub Khan on Friday said the government would transform outlook of the country’s energy market under new Alternative Renewable Energy Policy (AREP).
He expressed these views during a meeting with Denmark Ambassador to Pakistan Ms. Lis Rosenholm, who called on him here. Special Assistant to the Prime Minister on Power Tabish Gauhar also attended the meeting, a Petroleum Division news release said.
During the meeting, the outlook of emerging market of energy sector and business opportunities in view of newly approved Alternative Energy Policy came under discussion.
Acknowledging the leading role of Denmark in clean and green energy at the global level, the minister said Pakistan too had embarked upon taping huge indigenous potential of renewable energy.
Omar Ayub said Pakistan’s new renewable energy policy would bring opportunities for investors due to transparent policies of the current government.
He said that the government had set ambitious targets to introduce 25 percent renewable energy by 2025, and 30 percent by end of 2030 including 45 percent share of hydel power generation and 10 percent of nuclear energy into energy mix of the country.
While explaining the investment potential in Pakistan’s power sector, the minister said the government would induct renewable energy-based power plants through open and transparent competitive bidding process, which would lower the cost of production of electricity.
He also apprised the envoy that the government had prepared Indicative Generation Capacity Expansion Plan (IGCEP) 2047 for competitive market structure, generation, up-gradation of transmission, Smart AMI and modernization of distribution system.
The minister apprised the envoy that reduced electricity cost for industries and establishment of Special Economic Zones (SEZs) would help boost economic activities in Pakistan besides creating thousands of new jobs.
The Danish ambassador while appreciating the government’s commitment to raise the share of renewable clean and green energy, said that the new policy was more transparent as it provided a level playing field for all.
She suggested setting up a joint energy platform to study the market, so that Danish companies could closely follow developments in the field of renewable energy and they could participate in the competitive process of renewable energy projects.