LAHORE, Sept 10: The Punjab government released the draft of its power policy 2005 on Saturday for setting up in the private sector small hydel stations at canals with a total potential of generating 600 megawatts of power Punjab Power Minister Armaghan Subhani, while releasing the draft at a seminar attended by representatives of various power companies and government officials at a hotel, appealed to the private investors to come forward and invest in setting up the power stations. He said that the government would extend all possible cooperation, facilities and incentives to the private sector in this connection. Wapda chairman Tariq Hameed who also attended the meeting gave assurance to the investors that the authority was prepared to purchase all the electricity that would be produced by them. However, he said, the power rates should be less than the thermal rates charged by the IPPs. Irrigation and Power secretary Arif Nadeem said that the provincial governments had also been authorized to undertake activities in the power sector and the provincial government had also set up the Punjab Power Development Board (PPDB) in 1995.

Wapda has assessed in 1992 hydel power generation potential of 600 MW at 316 locations on the canals and run-of rivers in addition to other resources for the development of generation projects based on indigenous fuel such as oil, coal, gas and nuclear etc.

To exploit the potential, the Punjab government has framed ‘Punjab Power Policy, 2005’ for implementation through the PPDB. He said that the PPDB would maintain liaison with PPIB of the Federal Government on the related matters and NEPRA on the power regulation, NTDC and DISCOs in the province for sale and purchase of power. He said that the Punjab government would give all assurance to the investors for the smooth supply of canal water required for hydel power plants. He said that there were what he called ‘raw’ sites and those for which feasibility studies had been made

Irrigation and Power Chief Engineer Dr Bagh Ali Shahid, explaining the salient features of the draft power policy, said that the power demand was increasing every year.

According to Wapda, the demand was increasing at the rate of about 1000 to 1100 MW per year which called for increasing the power generation to meet the power increasing demand. He said that the government had estimated there would be a shortage of about 500 MW during the coming winter months. He said that under the power policy, 1994, the government of Pakistan had invited the IPPs to produce thermal power to meet the power shortage.

In view of unfavourable balance of payments position at that time the government had no choice but to accept the IPPs terms. Two more policies were announced in 1998 and 2002 to provide incentives to the private sector for power production. He said that the government wanted that the power tariff should be the minimum as the people could not afford high tariff.