Renewable projects receive a severe blow

Pakistan’s renewable power projects have received a severe blow due to the government’s failure to pursue Energy Policy 2006 discouraging future potential investors in the country.
About two dozen renewable energy projects are in a sleep mode as the National Transmission Despatch Company (NTDC) has stopped evacuating power pushing these projects into a state of uncertainty.
Unlike thermal power projects, these projects are not knitted in capacity charges of 17 percent in power purchase agreements. However, they are supposed to get charges on 13 percent of the total capacity that is also connected with the generation of units. If the power project is in sleep mode, it means it would get nothing on such an account, sources say. As a result, all renewable energy initiatives that successive governments would claim are supporting to is doomed to be a failure.
An official privy to these affairs says if the government fails to evacuate power as per the agreement, it is liable to pay penalty to the power producers. Also connected is a drawback for the governments in this case as the government is supposed to pay to the power producers the amount with an interest rate of 13 percent if it delays in payments. All this adds to circular debt, he says.
In the current circumstances, it is almost impossible for renewable power producers to sustain in the country, says an official.
Along with these power projects, there are yet another 12 wind projects which are under construction in Jhimpir (Sindh) have been stopped by NTDC notifying ‘Force Majeure Event’ as a consequence of Coronavirus Outbreak in China.
National Transmission and Despatch Company (NTDC) has stopped evacuation of power from Wind Power Projects (WPPs) in Jhimpir, Wind Cluster. The evacuation month for these power projects is June 2021.
Interestingly enough, no other works in the country on which Chinese companies are working have been affected in the wake of the Coronavirus Outbreak. These works include being executed by WAPDA and other federal organizations.
The company has notified Force Majeure Event’ as a consequence of Coronavirus Outbreak for the evacuation of power from Wind Power Projects (WPPs) in Jhimpir, Thatta in Sindh.