The Government on Wednesday officially announced the Alternative and Renewable Energy (ARE) Policy 2020 that offersplentiful tax facilities to investorsand guarantees induction of power plants on open competitive bidding for lowest tariff and technology transfer.
Minister for Science and Technology Fawad Chaudhry with Minister for Energy Omar Ayub Khan disclosed the strategy in a news conference, which was approved in a recent meeting of the Council of Common Interests. The meeting decided to increase share of ARE in total power supply to 20 per cent by 2025 and 30pc by 2030 from about 5pc at present.
He said hydropower will also be ready to work as an ARE class category under which its share would increase to 60pc of power generation by 2030. Combined with Thar coal and nuclear power, the total shareof power generation from indigenous sources would arrive at 75pc, he said.
Mr Khan believed the induction of power plants on open competitive bidding would cut down solar and wind tariff to under four pennies for every unit and eventually advantage the business and domestic investmentin localization of solar panels, wind turbines and related equipment and material.
Special Assistant to the Prime Minister on Petroleum Nadeem Babar highlighted multiple features of ARE that were different from past policies. One is that it would be lowest in its cost. Second, there would be a meeting on annual or three-years terms, in which Federal government would decide the allocation of energy as per the requirement of the regions in the presence of all provinces, Azad Jammu & Kashmir and Gilgit-Baltistan. Third is its low tariff which would motivate the local entrepreneurs to work in this sector.
He said that the custom duty will also be exempted on the import of equipment, machinery and manufacturing material. According to FawadChaudaryChinese companies were interested in relocation of their factories to Pakistan because of US-China trade war and the country was set to take a major benefit in the shape of manufacturing growth.
