ISLAMABAD, Nov 10: Pakistan is currently facing an acute energy deficit, although its long-term resource potential is enormous in the shape of large lignite deposits, abundant hydroelectric potential, significant natural gas reserves, and excellent solar irradiation rates.

This was stated by Chief Executive Officer (CEO) of Alternative Energy Development Board (AEDB) Arif Alauddin in his inaugural address at the two-day stakeholders consultative workshop on ‘Development of Medium Term Renewable Energy Policy for Pakistan held here on Monday.

The CEO said Pakistan needed technology, human capacity and financial consultancy for the development of renewable energy policy and achieve its targets by 2015. He said the AEDB required whole-hearted support from all stakeholders and government departments to present a pragmatic and target-oriented renewable policy to the government.

In the medium term, renewable energy sources such as small hydro, wind, solar and biomass would help meet deficits and supplement available supplies, while in the longer term they could provide an alternative to achieving a more sustainable and secure energy future for Pakistan, the CEO said.

The renewable energy, he added, could also help meet Pakistans socioeconomic development objectives of providing modern energy services, particularly electricity, to a large segment of the population not yet electrified, and would help accelerate the government’s rural electrification goals.

Importantly, by creating a market for decentralised renewable power generation, the existing low per capita consumption of electricity can be raised from the current 500 kwh, which is essential for Pakistan to meet its Millennium Development Goals and for improving the conditions of the poorest half of the population, he said.

For this reason, he added, the government fully supported the efforts of the Alternative Energy Development Board in promoting renewable energy use in the country, especially by attracting private industry and the civil society’s active involvement in its development.

He appreciated the Asian Development Bank (ADB)’s significant technical and financial assistance to Pakistan’s renewable energy initiative, and in particular for providing a detailed assessment of the policy and regulatory framework that the government needed to put in place to attract greater investments in that increasingly important sector.

He said the government had committed its full support to the process, and would seriously consider the policy recommendations being made under the Asian Development Bank-Technical Assistance (ADB-TA), as well as the views of all stakeholders gathered at the workshop, in formulating its medium-term policies for both on-grid and off-grid renewable energy deployment.

While expressing its firm belief that Pakistan would be able to rapidly develop the precious indigenous resources of clean energy in a cost effective manner, which would not only positively impact its macro-economy, but also make a significant difference in the lives of all the country’s citizens, from improving the quality of life of the poorest and marginalised segments of the society to making Pakistan’s energy and industry sectors globally more competitive.

Country Director Pakistan of the Asian Development Bank Rune Stroem spoke of the bank’s extensive support to developing Pakistans energy sector, both in terms of its expansion as well as streamlining its management and operations along cost effective lines.

In this respect, he pointed out the $510 million multi-tranche financing the ADB had made available to Pakistan exclusively for renewable energy projects, under which the first and second tranche development of hydro schemes in the NWFP and the Northern Areas was well underway. Besides this, ADB is providing significant assistance towards upgrading Pakistan’s electricity transmission and distribution infrastructure, and has started major technical assistance projects in integrated energy modeling and for developing a national energy efficiently and conservation initiative, which will be followed by concessional financing of related investments by the bank.

He said the medium-term renewable energy policy development process was a very important step in establishing a workable and attractive framework for future investments in this important source of clean energy, which can also benefit from carbon credits under the Clean Development Mechanism (CDM) that the ADB can help facilitate.

The workshop, jointly organised by AEDB and ADB, was largely participated by representatives of the government and non-governmental agencies and the private sector.