$3bn invested in renewable energy sector in one year: official

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$3bn invested in renewable energy sector in one year: official

APP Published December 7, 2015

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ISLAMABAD: An amount of $3 billion has been invested in the field of renewable energy over the past one year, indicating the investment potential and interest of investors in the sector.

This was said by Chief Executive Officer of the Alternative Energy Development Board (AEDB), Amjad Ali Awan, on Sunday.

He said that Pakistan had become a choice destination of investors because of the potential in this sector, robust policy framework, lucrative tariff structures and bankable security documents. “The government is taking steps to harness the potential of renewable energy, diversify energy mix and ensure energy security.”

Also read: Govt urged to consider alternative energy options

Talking to APP, he cited promotion and development of renewable energy technology as the main factor behind record investment in the sector in one year.

Mr Awan said that resource assessment of wind, solar and biomass had been carried out in the country with the assistance of the World Bank’s energy sector management assistance programme.

He said the AEDB had so far issued over 25 letters of interest (LoI) to solar energy projects having an accumulative capacity of 663 megawatts, adding that the projects would start commercial operation by 2018.

Published in Dawn, December 7th, 2015

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Darashikoh

Dec 07, 2015 07:03am

Good going.

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siddish

Dec 07, 2015 07:40am

Joke

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Aub

Dec 07, 2015 07:44am

And its open lie to the people of Pakistan.$3billion dolor on Renwable energy will produce atleast 2000Mw.and that to within one year.beacuse solar plant are less that 6 month project.

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khan

Dec 07, 2015 07:55am

dawn should take the data of energy capacity in may 2013 and now. there is no increase apart from advertisements.

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Aussie

Dec 07, 2015 08:02am

there is no electricity in half of the country. this is another tactic for more and more corruption.

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Dec 07, 2015 08:10am

How is it that the FDI number for the past 1 year at a low considering this USD 3 billion investment?

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Zia

Dec 07, 2015 08:14am

$3B ! Good going Nawaz League. You beat Zaradri's PP 5 years in just one year. That's why all government guys look so prosperous now and they know it is renewable meaning they will get it again and again. Darkness has a price.

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Suraab

Dec 07, 2015 08:44am

The reason Pakistan is popular among investors is the high electricity rates offered by the GoP. This matter came to light when the GoP decided to revise these rates downward and all the Chinese companies started complaining about that. 14 US cents per unit was the previous rate and now the GoP wants to bring it down to 9 cents per unit. Indians are saying that they give investors no more than 7 cents per unit so that probably makes our rates the highest in the region. Of course there is the added country risk of operating in Pakistan that investors have to be rewarded for.

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Fahad

Dec 07, 2015 08:44am

Two words ... "All lies." ... Every other day newspapers are reporting about Govt's billions dollars/rupees investments in Nandi Pur Project, Renenwable Energy etc. Where is the end result?

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Rejoice

Dec 07, 2015 08:57am

We want to see the results.

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Faizullah

Dec 07, 2015 09:09am

What's the outcome in terms of electricity generation after being in power for the last two years???!! Even the top technocrats connected with the projects would not dare to give statement on the matter!!!

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zafar

Dec 07, 2015 09:16am

$3Billion invested anywhere would show results. That is over 300B Rs. Where was that money invested. What are the outcomes?

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Aussie

Dec 07, 2015 09:30am

we dont need renewable energy.....just provide us normal electricity which was invested/discovered almost 150 years ago. thank you

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Dwaraka Nath

Dec 07, 2015 09:47am

Installation cost of 1 MW solar power is around 50000 dollars in India ,which means $ 3 billion can produce around 60000 MW and power can be generated with in one year .Further the cost of one unit of solar power is reduced from 15 to 5 (Indian rupee )and India will add 1,75000 MW solar power by 2022 to its national grid .

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Ahmad

Dec 07, 2015 09:59am

Its good for investors and we dont know how public can gain

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msadiq

Dec 07, 2015 10:18am

So many international experts here !

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Common Sense

Dec 07, 2015 10:26am

State bank says invest has decreased by 2/3 to $350 million in first quarter. Government says FDI is at all time high. Lies, lies and more lies.

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M Rafique

Dec 07, 2015 10:28am

"choice destination " thats why the PM's investment is out of the country

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Khwarezmi

Dec 07, 2015 10:33am

We hear lot of stories like Nandipur and solar parks in Bahawalpur going to the dogs.

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Tamza

Dec 07, 2015 10:34am

@Dwaraka Nath Mr Nath your math is not correct. Solar power is about USD1/W, so 1MW would be about USD 1M, INR 50k is about USD 1K - NOT possible. I know incredible things have been done by India, but even India cannot break some economic limits. The USD 3B should lead to peak capacity of 3000MW, at utilizatipn of about 25% - 750MW. Someone somewhere is taking money to the [personal] bank laughing.

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divend

Dec 07, 2015 10:45am

@Dwaraka Nath How is that relevant to this discussion?

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Dwaraka Nath

Dec 07, 2015 10:53am

@Tamza Please see I have mentioned $ 50000 and not INR 50000 .The power generation by wind will cost around $25000 per MW and the space required for this is very less compared to solar power panels where 5 acres of land is required for 1mw units .,Karnataka state government is paying rupees 10000 per acre as annual rent for solar panel installation ,which is good success where the land is barren or dry land where water for irrigation is not available .

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Sohail

Dec 07, 2015 11:05am

@Aub May be he didn't mention the Hydropower projects under PPIB in AJK and KPK. There are around dozens such projects ranging from 100 to 900MW under pipeline where foreign investors from China and South Korea are about to invest. 2,3 such projects are already under construction. Patrind Hydropower and Gulpur HPP are under construction while Kohala Hydropower, Karot, Sukhi Kinari, Azad Patan etc will hopefully begin with a year or two.

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Dwaraka Nath

Dec 07, 2015 11:06am

@divend If it is not relevant Dawn could not have published my comment .I am interested in prospering of all developing countries and should adopt the best technology at competitive prices whether it is India or Pakistan or Bangladesh .Do you still believe $3bn invested in renewable energy sector in one year as said by your govt without producing at least 20000 mw by this time ?

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Prashant Delhi

Dec 07, 2015 11:15am

@Tamza you are right Sir.. It is little more than 1 million USD per MW.. Even if you add land and grid costs, it should be at least 2000 MW..

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Prashant Delhi

Dec 07, 2015 11:21am

@Dwaraka Nath No Sir.. It is 6-7 Cr rs per MW for both wind and solar power .. No doubt we have made good progress by adding 24k MW wind power and 5k MW solar power.. But its not cheap

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msadiq

Dec 07, 2015 11:29am

@Dwaraka Nath where in this article is mentioned all this money has gone to the solar power. For your information most of these are wind plants in Sind. If you could produce 60000MW with 3 billion US dollars, you would be the richest person in India. According to your logic, India with installed capacity of around 300000 MW has Electric generating assets worth only US$ 15 billions ! I am not sure what electric project engineering and finance experience you have beyond newspapers, cost of equipment is only a fraction of the total project cost ! And by the way, I like your dream of India producing 175000 MW of solar by 2022 and your referencing of all your knowledge to this article !

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mir tariq yakub

Dec 07, 2015 11:54am

Why not individuals Pakistanis given loans on easy rate for installation of solar Electricity. This will reduce the government burden. mirtariq@yahoo.com

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A shah

Dec 07, 2015 12:00pm

Why does my light not work then?

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A shah

Dec 07, 2015 12:02pm

This has as much truth as the CPEC project

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Faisal

Dec 07, 2015 12:18pm

Nawaz already beaten Zardari within one year, even after so much criticism, Proud of our PM.

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Sohail

Dec 07, 2015 12:35pm

I urge the borad to create the resource pool to gather expertise from interested scientists around the world. Highlihting the challenges and progressing with international community.

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RANGERS

Dec 07, 2015 12:45pm

@Aussie You need to see the facts mate, 94% ppl in Pakistan have access to electricity as compared to 79% for india.

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Faisal

Dec 07, 2015 01:05pm

What a joke this government keeps repeating to it's people. Everything will be great come 2018.

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james

Dec 07, 2015 01:22pm

@Aussie most are foreign own company so they Cant do corruption here cuz it's private sector they can only do corruption in taxes no big deal there

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Truth

Dec 07, 2015 01:27pm

Pakistan has potential to be load-shedding free Solar nation in every household. Pakistan is blessed with plenty of sunshine. If every house roof-tops, night lamps, CCTVs, etc had solars fitted, All Pakistan could become county of lights. Our streets would be more safer and more forign investment would flow the nation. This will mainly benefit the poor and its cheap.

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Sourabh

Dec 07, 2015 01:57pm

Even as an Indian I must praise this good achievement by Pakistan. US$ 3 billion is not a joke. Its a commendable job. Sad this is that NS could not highlight this feat in Paris.

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Merchant

Dec 07, 2015 01:57pm

Unless we cut the corruption, the pockets of politicians will become fat and the ordinary Pakistani will feel depressed.

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Muhammad Arshad

Dec 07, 2015 02:24pm

Great News

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calypso

Dec 07, 2015 02:34pm

Atleast the terminology used is promissing: ....harness the potential of renewable energy, diversify energy mix and ensure energy security... I hope, also the results are promissing for our Country.

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haris

Dec 07, 2015 03:13pm

@mir tariq yakub and @Truth: In order to equip every household with Solar panels, first step Govt. has to take is either reduce the import duties and taxes on these Panels or establish an industry that can manufacture durable panels locally. So far, the duties and taxes on solar panels import is beyond imagination.

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sanjay

Dec 07, 2015 04:14pm

@RANGERS There is difference between access and availability. One can get a connection but no power supply. At least in India you get proper power supply.

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Reader

Dec 07, 2015 04:14pm

@haris . Exactly what are the Taxes and duties. How does one find out, and from whom.?,

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Secular Pathan

Dec 07, 2015 04:33pm

OK but we didnt get any jobs in these projects?

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Strange

Dec 07, 2015 05:04pm

Slogan by the government, "loot loo Pakistan ko"

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drdeen

Dec 07, 2015 05:22pm

GreaT

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tac

Dec 07, 2015 07:21pm

@Dwaraka Nath Solar power plant cost is around US $ 1 million per MW. Given the best suited sites in Pakistan and India, it can generate around 1.55 million KWh electricity. So, $3 billion investment means 2500 to 2700 MW capacity solar plants taking in account the overhead costs. $50000 per MW cost quoted by you means $50 per KW which is ridiculously unimaginable.

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Zain

Dec 07, 2015 07:30pm

Unit cost of electricity needs to be kept in check. If it exceeds more than the regional countries where, like India, ranging from Hydro to Solar, from 2 cent to 7 cent per unit of electricity. We are talking about giving foreign Chinese Companies 14 cents per unit. This will make electricity unaffordable for the common people and not viable for the Industry, and companies will not be able to export their products internationally at competitive prices if the cost of electricity is higher than cost of electricity even in developed countries like US, where it average 9 to 12 cents per unit. The cheapest way to produce electricity is thru Hydroelectric dams 1 to 2 cents per unit. Then Coal, 3 to 5 cents. The most expensive are these Imported Solar Panel and Imported Wind Power projects. If they make these solar panels and wind generators locally then the cost might go down considerably.

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Syed Ali

Dec 08, 2015 01:42am

This technology is not ready for prime time; this is money in the drain and in the pockets of few.

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Grace

Dec 08, 2015 01:53am

@Zia I finally installed solar but I have to credit the current government for encouraging energy development after so many years.

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Dr. Salaria, Aamir Ahmad

Dec 08, 2015 02:20am

Okay? How much of it was paid as bribes to the Ittefaq brothers and their cronies?

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