The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) on Tuesday demanded that government explain the rationale behind approving the 1,263MW power plant being set up by Punjab Thermal Power Ltd in Jhang which is based on imported regasified liquefied natural gas (RLNG).
In a statement, FPCCI President Mian Nasser Hyatt Magoo said the new plant will cost six cents USD/Kwh, when producing electricity on imported RLNG and as high as 11 cents USD/Kwh when producing energy on high speed diesel.
On the other hand, the government is not allowing setting up of environment-friendly renewable energy power plants based on wind and solar which will cost merely 3.5 cents USD/Kwh, he said.
This step would further add to the already unmanageable circular debt, increase import bill and will result in production of expensive energy, resulting in increasing cost of doing business, the FPCCI president said in the statement.
Wind and solar plants require no imported fuel and cause no burden on import bill or exchange rate, the FPCCI chief said while referring to the blocking and discouraging of wind and solar projects which were recently awarded Pakistan’s lowest power tariff by Nepra at an average of 3.5 cents USD/Kwh to 12 projects totaling 670 MWs and also result in up to $470 million FDI.