Pakistani Government to Establish Renewable Energy Plants

Islamabad: The Government of Pakistan has decided to establish renewable energy plants through GtG (government-to-government arrangements).

Multiple factors including the challenges in the country’s power and oil and gas sector have led to a request for an open-ended tariff from the power Division to initiate the project, the officials from the Energy Ministry highlighted.

Moreover, Muhammad Ali, the Energy Minister, announced that the government has plans to establish solar and wind power plants under GtG arrangements inviting interests from Saudi Arabia and other Middle Eastern countries interested in investing in renewable energy. Therefore, the government has canceled the international Competitive Bidding (ICB) mechanism for getting bids from investors for 2,400 MW renewable energy plants.

The officials further revealed that a negotiating committee would be formed for GtF commercial agreement and price discovery. However, the final price discovery mechanism formed by the transaction advisor is currently in progress to estimate project costs and tariffs.

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