Government Aims to Save Billions Through Energy Plan Revisions

The government anticipates saving Rs4,743 billion (USD17 billion) by removing 7,967MW of costly energy ventures and modifying project timelines in the forthcoming Indicative Generation Capacity Expansion Plan (IGCEP) 2024-2034, the Prime Minister’s Office (PMO) announced.

According to a statement released by the PMO, this decision arose from a meeting led by Prime Minister Shehbaz Sharif in Islamabad. The discussion centered on lowering electricity costs and enacting long-term energy sector improvements, specifically focusing on the IGCEP.

The IGCEP prioritizes utilizing domestic resources and renewable energy sources like solar, nuclear, and hydropower instead of imported fuels. This shift is projected to yield substantial savings in foreign exchange reserves for Pakistan.

The announcement further stated that the government also intends to progressively eliminate capacity payments to power generation firms.

During the meeting, Prime Minister Shehbaz highlighted the government’s dedication to implementing an effective strategy for sustainable energy sector reforms to offer further relief to the populace, following a recent reduction of approximately Rs7.50 per unit in electricity prices.

Renewable Energy Projects and PM’s Support

The prime minister instructed the relevant authorities to expedite the completion of vital projects, including the Diamer Bhasha Dam, to guarantee efficient systems for energy generation and water conservation throughout the nation.

Emphasis on Timely Completion

“Any delay in the completion of energy projects is unacceptable,” he asserted.

The prime minister also revealed the imminent establishment of a free market for electricity generation. The statement quoted Shehbaz as saying that the creation of this market will foster competitive power supply, leading to more reliable electricity availability and additional tariff reductions.

The prime minister received a briefing on ongoing energy sector reforms during the meeting.

Following the Prime Minister’s directive, a reassessment of the IGCEP identified potential for additional enhancements. Subsequently, the Task Force revised the plan to better reflect current realities and future requirements.

The briefing highlighted that the IGCEP establishes a framework for awarding power projects through competitive bidding over the next decade, ensuring electricity is sold at the most competitive price.

The meeting saw the attendance of key figures, including the Minister for Power Sardar Awais Leghari, the Minister for Economic Affairs Ahad Khan Cheema, the Minister for Information Attaullah Tarar, and the Minister for Petroleum Ali Pervaiz Malik, along with senior officials from pertinent institutions.