ISLAMABAD: Amid provincial concerns, the Cabinet Committee on Energy (CCoE) on Thursday approved the Indicative Production Capacity Expansion Plan (IGCEP) 2021-30 with an emphasis on the continuation of energy projects. renewable and nuclear energy.
A meeting of the CCoC, chaired by Planning Minister Asad Umar, prevailed over restless provincial representatives while approving IGCEP for submission to the Council of Common Interests (CCI) with the promise that provincial projects currently underway. implementation would be completed in accordance with the commitments.
The electricity division said that if projects supported by provincial governments, especially Sindh and Khyber Pakhtunkhwa, and the Strategic Plan Division (SPD) were included in the 10-year plan, the federal chessboard would have to support an additional charge of Rs 1.353 trillion and the electricity tariff is expected to be increased by approximately Rs 1.30 per unit.
It was therefore agreed by consensus to follow “the principle of adding capacity based on least cost” as originally advocated by the National Transmission and Dispatch Company and accepted by the federal cabinet in April of this year. “Such planning will target the optimal addition of future capacity at the most affordable cost, ensuring the cheapest electricity for consumers,” said an official statement.
Emphasis will be placed on pursuing renewable nuclear energy projects
He said IGCEP was considering “commissioning a portfolio of next-generation projects comprising numerous hydropower projects, Thar coal projects, a K-3 nuclear power plant and more than 4,000 MW of solar and wind renewable energy projects “.
Knowledgeable sources said the SPD is advocating three new nuclear power plants for the future as part of a government-to-government deal with China, but these could not be completed in this round except of K-3 currently under implementation. The division of power insisted that the original IGCEP set of assumptions approved by the federal cabinet on April 27 should form the basis for its approval by the ICC.
The Planning Commission said the IGCEP approved on Thursday would mean 88% of the total capacity addition from 2022 to 2030 will come from indigenous fuel and the remaining 12pc of those projects that were committed before Pakistan came to power. Tehreek-i-Insaf. . “Fossil fuels currently represent more than 50% of the production capacity, however, during the period 2022-2030, the share of fossil fuels will be only 25%,” said the Planning Commission, adding that all new project commitments were based on indigenous fuels.
Under the approved IGCEP, the 2022 generation mix, which is dominated by fossil fuels, will switch to clean energy (hydro, solar, wind, nuclear) by 2030. In addition, over the course of the same period, domestic fuel-based production versus imported fuel-based production will increase from 69% to 87% of total fuel-based production.
Informed sources said that Khyber Pakhtunkhwa’s finance minister Taimoor Jhagra protested until the end of the meeting that KP’s hydropower projects were not considered, but representatives of the Sindh then said their province had relaxed its stance in the wider interest and that KP should not be pushing for the project either. specific debates.
Minister Asad Umar told the KP finance minister that the federal government has facilitated his province to the maximum possible level.
The meeting was informed that IGCEP would now be an annual iterative process and that provinces’ concerns regarding their projects would continue to be discussed for the next iteration of IGCEP. ready next month. It was also explained that the methodology and criteria of the strategic projects would be finalized in consultation with the provinces as part of the national electricity policy within two months.
The CCoE also decided that in addition to the principle of least cost, projects only approved by the Executive Committee of the National Economic Council would now be included in the rolling IGCEP. This was based on the firm position of the electricity division that “provincial public sector projects with guaranteed funding must be included in initiated projects subject to the agreement of the planning commission”.
Posted in Dawn, le 27 August 2021