The Federal Minister for Water and Power Syed Naveed Qamar has said that the new Alternative and Renewable Energy policy (ARE 2011) will supplement government’s open door initiatives for attracting investors in this sector, a statement said on Friday.
“The government is targeting fast track development of renewable energy projects through private investment,” Qamar said, while presiding over the 21st board meeting of Alternative Energy Development Board (AEDB) the statement said.
The alternative energy sector would strengthen and improve the power supply position of the country and fuel environmentally sustainable economic growth, particularly in the rural areas, he said.
The government has also decided to announce upfront tariff for the wind projects, keeping in view the success of this practice globally, he said.
The upfront tariff recently determined by NEPRA would be announced soon, he said.
He said that upfront tariff for wind power projects was a step forward towards cheap and clean energy generation in Pakistan and changing the current energy mix.
The minister also directed the AEDB to process the pending issues of wind power projects and give go ahead to the sponsors so that they may start setting up their projects.
He also asked to finalize the standard of Energy Purchase Agreement for wind power projects.
Earlier, the meeting was given presentation on ARE 2011 and upfront tariff. It was informed that the draft of the ARE 2011 has been submitted to the Council of Common Interest (CCI) for approval. The upfront tariff was initially for the first 1500 MW and would be examined after the target capacity was booked or after December 2012, whichever comes first.