Power generation to be increased on low cost basis

The Federal government has decided to shape the increase in power generation in the country in such a way that priority is given only to competitive and least cost projects. This condition will be part of the new National Electricity Policy (NEP) 2021 to be submitted to the Cabinet Committee on Energy (CCoE), which in its meeting held on February 11, 2021 directed Power Division to revise the draft of the policy in light of the observations made by the CCoE members and re-submit it to the CCoE prior to submission to the Cabinet and Council of Common Interests (CCI).

The new guiding principles of the policy will be efficiency, transparency, competition, financial viability, indigenization, R&D and environmental responsibility.

The Federal Government will approve such projects on case- to -case basis. The share of renewable energy in total power supply will be increased to 20 per cent by 2025 and 30 per cent by 2030 from about just 5 per cent at present.

Emphasis will be given to reducing the dependence on imported fuel for energy generation and moving towards optimal utilization of local resources such as coal, hydro, renewable sources, local gas, and nuclear. This will lead to the development of a sustainable renewable energy market and self-reliance in power generation.

Furthermore the existing public sector thermal plants will also be reviewed again and assessed for privatisation, leasing or other options for their possible future integration in the wholesale electricity market or, if nothing else is viable, retirement.