Is Islamabad not reaping the benefits of AER in Sindh?

on 22/06/2023

Islamabad’s competitive bidding process for renewable power projects—wind and solar—under category three has surprised Sindh’s Energy Department because only one project from a series of its ready projects has been picked up for the bidding.  Since its 1875 MW wind and 1400 MW solar power generation projects are ready, Sindh feels the federal government is unable to tap the benefits for the country which it believes cannot afford expensive energy in the wake of the current national fiscal situation.   In a letter to Khurram Dastagir, the Federal Minister for Energy, Imtiaz Shaikh, Sindh Minister for Energy writes that “the AEDB has picked and chosen 22 wind and 27 solar power projects from the list without mentioning any criteria. It is also surprising that only one solar project from 25 solar projects of the Government of Sindh has been chosen for competitive bidding.”  The letter invites the attention of Mr. Dastagir on the AEDB’s recently issued letter No.B/3/1CBwind/17 dated 16th January in which AEDB has referred CCOE decision dated 4th April 2019 and CCl approved ARE Policy 2019 wherein category-Ill projects are allowed to go ahead, subject to be successful in the competitive bidding process to be undertaken by AEDB for each technology based on (i) the quantum ascertained by the IGCEP and (ii) confirmation of the interconnection ready zones (IRZs) by NTDCL. The IGCEP 2021 approved by NEPRA allocated a quantum of 1000 MW each for the induction of wind power capacity through competitive bidding by the year 2024. The category-Ill includes thirty-one (31) wind projects with a cumulative capacity of 2139 MW and sixty-nine (69) solar PV projects of 4193 MW. The AEDB has picked and chosen 22 wind and 27 solar power projects from the list without mentioning any criteria. It is also surprising that only one solar project from 25 solar projects of GOS has been chosen for competitive bidding.Furthermore; instead of taking a quantum of 1000 MW each for induction from which wind and solar as approved IGCEP 2021, only 322 MW capacity from wind and 392 MW capacity from solar has been proposed for procurement in upcoming competitive bidding without mentioning any clear criteria.It is an injustice that only a meager capacity is proposed to be procured from clean, cheap, and affordable energy resources which is one of the core initiatives of the current government to replace the expensive fuel plants.The letter writes that there is huge potential for Alternative and Renewable Energy Resources in Sindh Province. The Sindh government initiated 29 wind projects with a cumulative capacity of 1875 MW and 25 solar projects with a cumulative capacity of 1400 MW under category-Ill are waiting for competitive bidding for many years.Mentioning Variable RE locational study conducted by World Bank, the letter writes only minor upgradation or reinforcement and enhancement of transmission and distribution network in Sindh province will enable to evacuate 6,765 MW till 2025 and a further 10,035 MW till 2030 from wind and solar projects.Shaikh has written that it will be an injustice to Sindh province for ignoring its projects despite having huge potential and large numbers of valid LOIs holders in this competitive bidding. He has requested that a complete quantum of 1000 MW each for wind & solar projects as approved in IGCEP of 2021 may be considered for bidding and all wind and solar projects of GOS may be included for fair competition. I hope that our request will be considered and cheap and clean energy will be procured for the betterment of the country.