Saturday, May 8, 2021

CCOE approves electricity production plan based on commercial viability

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Zain Zubair
Zain Zubair
Zain Zubair is a staff writer for World News Observer. He is studying ACCA in Pakistan. Besides Accountancy and writing pieces, he loves cooking and nature photography. Zain has attended various modern journalism workshops. Contact: [email protected]
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Cabinet Committee on Energy (CCOE), chaired by Minister for Planning, Development Asad Umar, approved the summaries presented by the Power Division of the National Electricity Plan 2021 and Indicative Generation Capacity Expansion Plan (IGCEP).

Asad Umar said that the policy and the plan would provide the basis for a sustainable competitive electricity market in the country.

The IGCEP is a 10-year plan updated on annual basis and required to be submitted by National Transmission and Despatch Company to the regulator by April 15 every year that limits the impact on end consumer tariffs by Central Power Purchasing Agency over the period of 10 years.


Since the preparation of the plan for 27 years till 2047 has not yet reached its final stages, it is proposed that the exercise should be abandoned and a new exercise for the year 2021 should be initiated.

An indicative generation capacity expansion plan envisages production based on commercial viability of various fuel categories.

Government planned to reduce carbon footprints by increasing the share of renewable energy in power generation to 30 percent by 2030 from the current four percent. With hydropower resources, the share of clean and green electricity generation is expected to cross 60 percent.

The installed power generation capacity of Pakistan as on 30th June, 2020 stood at 38,719MW as compared to 38,995MW on 30th June, 2019 showing a net decrease of 276MW, according to the National Electric Power Regulatory Authority. During FY2020, the total electricity generation in the country was 134,745.70 GWh compared to 136,532 GWh electricity generation during FY2019 showing a decrease of 1,786.30 GWh.

Further, 513.74 GWh has also been imported from Iran during FY2020 as compared to 486.80 GWh imports during FY 2018-19 showing an increase of 26.94 GWh.

Per capita energy consumption of Pakistan is around 500 kilowatts, which is almost 700kW less than the region, 2,400kW less than China and more than 7,000kW less than developed countries.

The per capita energy consumption pattern in the country is indicating high demand in the near future, offering huge investment opportunities in power generation, transmission and distribution with competitive return on investment.

These policy assumptions would be fed into the tool to be used for the generation of the plan and would serve as constraints while determining the prioritised list of power projects.

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