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March 23, 2023
The Government of Sindh for the very first time held an interactive session, participated by the relevant stakeholders, to showcase the massive potential of the province to produce clean electricity by combining wind and solar renewable sources that are abundantly available in the provincial territory.
The Sindh government’s Energy Department teamed up with the Energy Update to present to the concerned stakeholders its proposed plan for the wind-solar hybrid project under a B2B arrangement with greater participation of the private sector.
The Sindh government initially aimed to generate 350 Megawatts of clean electricity under the hybrid arrangement with 250 MWs based on wind power and solar energy generating 100 MWs. The hybrid project is expected to generate 940 GW of clean power per year. The proposed B2B arrangement stands for transmitting clean electricity produced by private hybrid projects to businesses and industries in urban areas through the transmission network of Sindh Transmission & Dispatch Company (STDC).
The audience at the workshop was informed that the per unit cost of clean electricity produced by the hybrid generation project would be around Rs 18.45 as this consumer-end tariff would further be decreased with gradual scaling up of the project’s generation capacity.
he B2B arrangements for clean energy projects stand for providing liberty to the businesses and industries to choose among more than one distributor of electricity by opting for the electricity provider with the lowest tariff. Such an arrangement will ultimately lead to the scenario where the existing monopoly of three power distribution companies in Sindh, two in the public sector and one privatized, will come to an end under the regime of a proposed provincial power sector regulator. The consumers in the province would one day get a choice similar to the case of the telecom sector where the subscribers could switch to any cellular phone network with much ease offering the lowest call rates. Senior clean energy expert, Iran Ahmed, who conducted the workshop, informed the audience that Pakistan could generate about 3300 GW of clean electricity based on its abundant wind and solar energy sources. He said the solar and wind energy projects so far installed in the country had a generation capacity of 45 GW.
He said that so far 36 renewable projects installed in the wind corridor of Sindh had been producing 1845 MW of clean electricity. He emphasized that the government should decrease its footprint in the energy sector as public-private partnerships should be the preferred way to launch new power projects.
Sindh Minister for Energy and Planning & Development, Syed Nasir Hussain Shah, was the chief guest at the workshop. Speaking on the occasion, the Sindh Energy Minister said the electricity prices for domestic and industrial consumers in the province would significantly be reduced with the Sindh Electric Power Regulatory Authority (SEPRA) likely becoming functional by the end of next month to take over tariff determination affairs in Sindh.
The Energy Minister hoped that the federal government would fully support SEPRA becoming functional in the province to provide due economic relief to the consumers by reducing power tariffs
He said the solar parks being established under the public-private partnership and their renewable electricity supplied through the STDC were two key pillars of the plan of the Sindh government being executed to reduce the consumer-end tariff.
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