PM directs further reduction in electricity tariffs

ISLAMABAD: Prime Minister of Pakistan Shehbaz Sharif has directed further reduction in electricity tariffs for consumers and immediate closure of outdated and inefficient power plants, ARY News reported.

During a review meeting on future electricity generation projects and the transmission system, the prime minister emphasised prioritizing low-cost energy projects using local resources in Pakistan.

The premier was briefed on ongoing hydropower projects across Pakistan, to which he stated that hydropower provides low-cost, environmentally friendly energy. He also stressed the need to shift existing energy capacity to solar power, leveraging Pakistan’s abundant solar energy potential.

PM Shehbaz ordered the immediate shutdown of power plants that consume excessive fuel but generate minimal electricity, stating that this would save valuable foreign exchange and reduce costs for consumers in Pakistan.

Shehbaz Sharif instructed officials to expedite reforms in the electricity transmission system and ensure compliance with international standards using modern technology. He also called for strict action against officers deliberately hindering these reforms.

The PM of Pakistan further directed the completion of all power sector reform measures within the stipulated timeframe.

The National Electric Power Regulatory Authority (NEPRA) concluded the hearing of K-Electric’s bid evaluation report for 150 MW renewable energy projects on December 11.

“K-Electric (KE) has made remarkable progress in its journey toward renewable energy with the submission of the Bid Evaluation Report for its 150 MW solar projects at Winder and Bela, Balochistan, to NEPRA”, the statement added.

The regulator today concluded the hearing on the subject marking a critical step towards finalization of these projects.

KE underscored that after getting a nod of approval from NEPRA earlier this year, KE initiated the industry’s first competitive bidding process to launch renewable energy projects.

KE said that “the 150 MW Winder and Bela projects are a part of a cumulative 640 MW renewables ambition reflecting the first trench of the company’s long-term goal to add 1300 MW of sustainable energy into the generation mix”.

This milestone is part of KE’s broader renewable energy roadmap, which aims to integrate 30% renewables into its generation portfolio by 2030.

Over the past year, KE attracted significant investor interest in its renewable initiatives, including 15 bids for the Winder and Bela projects and subsequently seven bids for its pioneering 220 MW hybrid solar-wind project in Dhabeji, Sindh.

Establishing a new precedent in the Pakistani renewable space, KE has received highly competitive tariff bids for its 100 MW Bela and 50 MW Winder projects, 220 MW hybrid solar-wind projects.