ISLAMABAD: Danish investors have made a firm commitment to participating in the bidding process for renewable energy projects in Pakistan, which the government is planning to conduct in the third or fourth quarter of the current year after approval of the renewable energy policy.
The assurance came in a meeting between a delegation of Danish renewable energy investors, led by Denmark Ambassador to Pakistan Rolf Michael Hay Pereira Holmobe, and Minister for Power Omar Ayub Khan at the latter’s office on Thursday. Prime Minister’s Task Force on Energy Chairman Nadeem Babar also participated in the meeting.
The Danish ambassador expressed satisfaction over Pakistan government’s plans, saying investors of Denmark were closely and keenly following the growing power sector of Pakistan. “Danish companies will participate in the bidding for renewable energy projects since Danish technologies are amongst the top most in the world in such areas,” the envoy said.
The minister for power, while welcoming the interest of Danish investors in renewable energy, told the delegation that Pakistan’s upcoming renewable energy policy was aimed at implementing affordable energy projects on a massive scale to increase its share in the overall energy mix by 20% till 2025 and 30% till 2030 from the existing 4%.
He said the Power Division was also working on a proposal for consideration of the cabinet in a bid to pave the way for the clearance of renewable energy projects that were stalled due to a previous government’s decision. It would help “gain confidence of investors in the sector”.
He pointed out that Pakistan government was also working on opening the power sector to turn it into a multi-buyer and multi-seller market, which would offer huge investment opportunities in all related areas.
PM Task Force Chairman Babar highlighted that the task force was in the process of finalising the country’s energy demand scenario for the longer duration of 25 years, with a full-fledged energy plan for transparent transactions at all levels.
He apprised the Danish delegation that the government’s policy in that regard would be based on three principles – energy availability, affordability and security.
The power minister emphasised that only utilisation of domestic resources like hydel, solar, wind and Thar coal could ensure affordability of electricity since other sources largely depended on fluctuations in international markets.
Published in The Express Tribune, January 25th, 2019.