Latest news with #IntegratedGenerationCapacityExpansionPlan
Express Tribune
24-05-2025
- Business
- Express Tribune
Indigenisation policy yielding results: Leghari
Listen to article The National Grid Company of Pakistan (NGC), formerly the National Transmission and Despatch Company (NTDC), in collaboration with the LUMS Energy Institute, convened the National Consultative Workshop on the Power Sector Indigenisation Roadmap at the Lahore University of Management Sciences (LUMS). The high-profile event brought together senior leadership from the power sector, manufacturing industry, regulatory bodies, policymakers and academia to chart a cohesive national strategy for accelerating the localisation of Pakistan's electric power equipment manufacturing ecosystem. Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari addressed the workshop through video link and commended the joint initiative, stating, "NGC is the first national entity to implement an approved indigenisation policy and its strategic procurement model is already delivering tangible results." He urged the Water and Power Development Authority (Wapda), distribution companies (DISCOs), K-Electric and state-owned and private power generation plants to adopt indigenisation as a strategic imperative and not as a corporate social responsibility, but as a core procurement principle aligned with the National Electricity Plan 2023-27. The minister noted that the independent system and market operator had been made fully functional and the Energy Infrastructure Development and Management Company would also be made functional soon. A key milestone of the workshop was the launch of Pakistan's first Power Equipment Manufacturing Dashboard, developed by the LUMS Energy Institute with input from power sector stakeholders. This real-time digital tool will monitor localisation progress, assess vendor capacity and identify strategic investment opportunities under the power sector indigenisation plan. About the dashboard, the federal minister said that its launch was a welcome step and it would help in power sector indigenisation. NGC Board of Directors Chairman and LUMS Energy Institute's Senior Adviser Dr Fiaz Ahmad Chaudhry stated, "NGC's indigenisation strategy – anchored in policy reform and targeted educational orders – has already saved over $10 million in foreign exchange through import substitution." He added, "Pakistan's market for static transmission and sub-stations is currently valued at around $8 million. This figure, however, does not reflect the true scale of our potential. We must work to expand this market at least threefold through strategic development, innovation and local industrial growth." At the same time, he said, "we should set a clear target of achieving no less than $16 million in exports from this sector. That is the level of ambition we must embrace to position ourselves competitively on the global stage." He said that under the 10-year Integrated Generation Capacity Expansion Plan (IGCEP) and the Transmission Exposition Plan, an investment of $8 billion would be needed in the transmission sector. NGC Managing Director Engineer Muhammad Waseem Younas outlined the tangible progress under the indigenisation policy. Since 2022, NGC has placed over Rs2 billion in local orders, including Rs781 million in educational orders aimed at building the industrial capacity.
Business Recorder
20-05-2025
- Business
- Business Recorder
PM Shehbaz approves 10-year roadmap for Pakistan's power sector
ISLAMABAD: Prime Minister Shehbaz Sharif has directed the Power Division to continue efforts aimed at reducing electricity prices, eliminating circular debt and controlling line losses and theft, sources told Business Recorder. These directives were issued as the Prime Minister approved the Integrated Generation Capacity Expansion Plan (IGCEP) 2024–34, a long-awaited 10-year roadmap for Pakistan's power sector. The plan is expected to save $17 billion through rescheduling and cancellation of 7,967 MW of planned projects. The core objective of the IGCEP is to ensure the availability of affordable and reliable electricity. All new projects included in the plan have been selected based on the minimum-cost principle. PM approves 10-year IGCEP 2025–35 According to official estimates, the revised strategy is expected to reduce the national economic burden by Rs 474.3 billion and yield savings of approximately $10 billion (Rs 2,790 billion) by adjusting project timelines. An additional $7 billion (Rs 1,953 billion) in savings is projected by scrapping 7,967 MW of proposed projects. These changes are also expected to bring down electricity tariffs, with estimated average savings of more than Rs 2 per unit. Officials assert that — for the first time — electricity projects have been chosen purely on merit and in full transparency. Costly and unnecessary projects have been removed, with national interest prioritized over individual or political gain. 'The Power Division, through structural reforms, shall make continuous efforts to reduce the price of electricity, eliminate circular debt, control line losses and theft, and eradicate corruption in Discos,' the Prime Minister was quoted as saying. 'Renewable energy must be promoted to protect the climate and save foreign exchange currently spent on imported fossil fuels,' he added. Under the original IGCEP, 14,984 MW of new projects were planned. This has now been trimmed to 18 projects totaling 7,017 MW, including strategic hydropower projects such as Dasu and Mohmand Dams. Priority has been given to 7,987 MW of projects based on indigenous resources —hydropower, solar, nuclear, and wind — to reduce dependency on imported fuels like coal and natural gas, thereby saving billions in foreign exchange annually. The Ministry of Water Resources has been tasked with ensuring timely completion of strategic hydropower projects according to the Prime Minister's approved timelines. The Ministry must also ensure financial close of these projects and prevent any cost overruns. The Chairman of WAPDA has been directed to submit regular progress reports to the Prime Minister. Additionally, the Secretary Power, Secretary Petroleum, and Chairman of the Task Force have been instructed to resolve inter-ministerial and cross-cutting issues to ensure smooth operations and timely implementation. A high-level committee has also been constituted to oversee reforms in the petroleum sector. This committee will develop strategies to synchronize LNG demand with the power sector's requirements, address cargo diversion issues, and tackle circular debt and tariff challenges in the gas sector. The committee comprises: (i) Minister for Petroleum (Convener); (ii) Advisor to Prime Minister on Privatisation (Co-Convener); (iii) Lt. Gen. Muhammad Zafar Iqbal (Member); (iv) Secretary, Power Division (Member); and (v) Secretary, Petroleum Division (Member) The committee's Terms of Reference (ToRs) include: (i) developing a proposal to align LNG demand of the power sector with supply availability to prevent abrupt demand fluctuations; (ii) identifying causes and solutions for sudden changes in LNG demand that lead to diversion of cargoes; (iii) recommending measures to reduce circular debt in the gas sector; (iv) proposing a rationalized LNG tariff structure, revisiting terminal charges, importer margins, LNG service agreement fees; and (v) enhancing efficiency and transparency in domestic gas tariffs, including UFG (Unaccounted-for Gas) losses, especially with the growing share of LNG in the national gas system. The Power Division and the National Coordinator of the Task Force will deliver a detailed presentation on these issues to the Prime Minister. Separately, the Prime Minister has given the Power Division three months to complete a feasibility study on imported coal-fired power projects. Copyright Business Recorder, 2025
Business Recorder
20-05-2025
- Business
- Business Recorder
10-year power roadmap approved
ISLAMABAD: Prime Minister Shehbaz Sharif has directed the Power Division to continue efforts aimed at reducing electricity prices, eliminating circular debt and controlling line losses and theft, sources told Business Recorder. These directives were issued as the Prime Minister approved the Integrated Generation Capacity Expansion Plan (IGCEP) 2024–34, a long-awaited 10-year roadmap for Pakistan's power sector. The plan is expected to save $17 billion through rescheduling and cancellation of 7,967 MW of planned projects. The core objective of the IGCEP is to ensure the availability of affordable and reliable electricity. All new projects included in the plan have been selected based on the minimum-cost principle. PM approves 10-year IGCEP 2025–35 According to official estimates, the revised strategy is expected to reduce the national economic burden by Rs 474.3 billion and yield savings of approximately $10 billion (Rs 2,790 billion) by adjusting project timelines. An additional $7 billion (Rs 1,953 billion) in savings is projected by scrapping 7,967 MW of proposed projects. These changes are also expected to bring down electricity tariffs, with estimated average savings of more than Rs 2 per unit. Officials assert that — for the first time — electricity projects have been chosen purely on merit and in full transparency. Costly and unnecessary projects have been removed, with national interest prioritized over individual or political gain. 'The Power Division, through structural reforms, shall make continuous efforts to reduce the price of electricity, eliminate circular debt, control line losses and theft, and eradicate corruption in Discos,' the Prime Minister was quoted as saying. 'Renewable energy must be promoted to protect the climate and save foreign exchange currently spent on imported fossil fuels,' he added. Under the original IGCEP, 14,984 MW of new projects were planned. This has now been trimmed to 18 projects totaling 7,017 MW, including strategic hydropower projects such as Dasu and Mohmand Dams. Priority has been given to 7,987 MW of projects based on indigenous resources —hydropower, solar, nuclear, and wind — to reduce dependency on imported fuels like coal and natural gas, thereby saving billions in foreign exchange annually. The Ministry of Water Resources has been tasked with ensuring timely completion of strategic hydropower projects according to the Prime Minister's approved timelines. The Ministry must also ensure financial close of these projects and prevent any cost overruns. The Chairman of WAPDA has been directed to submit regular progress reports to the Prime Minister. Additionally, the Secretary Power, Secretary Petroleum, and Chairman of the Task Force have been instructed to resolve inter-ministerial and cross-cutting issues to ensure smooth operations and timely implementation. A high-level committee has also been constituted to oversee reforms in the petroleum sector. This committee will develop strategies to synchronize LNG demand with the power sector's requirements, address cargo diversion issues, and tackle circular debt and tariff challenges in the gas sector. The committee comprises: (i) Minister for Petroleum (Convener); (ii) Advisor to Prime Minister on Privatisation (Co-Convener); (iii) Lt. Gen. Muhammad Zafar Iqbal (Member); (iv) Secretary, Power Division (Member); and (v) Secretary, Petroleum Division (Member) The committee's Terms of Reference (ToRs) include: (i) developing a proposal to align LNG demand of the power sector with supply availability to prevent abrupt demand fluctuations; (ii) identifying causes and solutions for sudden changes in LNG demand that lead to diversion of cargoes; (iii) recommending measures to reduce circular debt in the gas sector; (iv) proposing a rationalized LNG tariff structure, revisiting terminal charges, importer margins, LNG service agreement fees; and (v) enhancing efficiency and transparency in domestic gas tariffs, including UFG (Unaccounted-for Gas) losses, especially with the growing share of LNG in the national gas system. The Power Division and the National Coordinator of the Task Force will deliver a detailed presentation on these issues to the Prime Minister. Separately, the Prime Minister has given the Power Division three months to complete a feasibility study on imported coal-fired power projects. Copyright Business Recorder, 2025
Business Recorder
05-05-2025
- Business
- Business Recorder
KP govt urges SIFC: Projects backed by Korean state-owned co must be added to IGCEP iteration
ISLAMABAD: The Khyber Pakhtunkhwa government has approached the Special Investment Facilitation Council (SIFC), urging it to ensure that proposed hydropower projects — backed by a Korean state-owned company — are included in the upcoming iteration of the Integrated Generation Capacity Expansion Plan (IGCEP) 2025–35. In a letter addressed to the Secretary of SIFC, Secretary Power Division, and the Chairman of Nepra, Shehryar Mehmood, Chief of the Public-Private Partnership Unit in KP's Planning & Development Department, emphasized the strategic importance of the 470 MW Lower Spat Gah Hydropower Project. The project, developed in partnership with Korea Hydro & Nuclear Power Co. Ltd. (KHNP), was initiated under the KP Hydropower Policy 2016 and aligned with the Federal Government's Power Generation Policy 2015. KHNP conducted a bankable feasibility study through internationally reputed consultants, received approval from PEDO's Panel of Experts (PoEs), and secured various regulatory NOCs from agencies including the Environmental Protection Agency, Forest Department, and IRSA. The company also established Special Purpose Companies (SPCs), deployed Korean expatriate staff, and applied for a generation license and feasibility-stage tariff from NEPRA. However, NEPRA returned both applications, citing that the project was not included in the currently approved IGCEP 2021–31. Despite NEPRA's earlier direction to the National Transmission & Despatch Company (NTDC) to consider the Lower Spat Gah HPP in the next IGCEP iteration, it was not included. The KP government noted that, despite SIFC's efforts to coordinate with the Power Division and NEPRA over the past several months, progress was hindered by investigations initiated by committees within the Power Division. Compounding the issue, the forthcoming IGCEP 2024–25 is reportedly being developed based on a low-demand scenario, and only public sector federal projects (WAPDA, GENCOs, PAEC) are being listed as 'committed,' sidelining private and provincial ventures regardless of their cost-effectiveness. 'The current approach fails to apply the least-cost planning principle and sets unrealistic COD targets for federal projects without proper due diligence,' stated the KP government in the letter. The provincial government underscored the strategic and economic value of the Lower Spat Gah project, which represents over $1 billion in foreign direct investment. The project, designed to generate energy below the national basket price, promises no additional burden on consumers and is in line with seasonal energy demand. Its clean, renewable output would not add to the country's idle generation capacity and aligns with national goals under the Sustainable Development Goals (SDGs) and Nationally Determined Contributions (NDCs). Given the project's remote, flood-prone location, the KP government argues that such investment would catalyze infrastructure development, create jobs, and contribute to energy security by serving as a peaking power plant that complements intermittent solar and wind sources. Moreover, retiring expensive thermal power plants in the coming years increases the urgency for base-load renewable energy options. KP officials also highlighted that the sponsors have invested considerable time, effort, and capital since 2018 under prevailing policy frameworks. Abruptly shelving the project at this advanced stage—without adherence to policy commitments—would send a negative signal to international investors and damage Pakistan's credibility. The KP government has formally requested SIFC's intervention to ensure that this foreign direct investment project is considered under applicable federal policies and included in the new IGCEP. 'This will not only benefit our province,' the letter concludes, 'but also significantly contribute to Pakistan's energy landscape.' Copyright Business Recorder, 2025
Express Tribune
01-05-2025
- Business
- Express Tribune
Govt shuns 7,967MW expensive power projects
Prime Minister Shehbaz Sharif on Wednesday emphasised that following the recent reduction of approximately Rs7.5 per unit in electricity tariffs, the government was now focused on ensuring long-term affordability and reliability in power generation. The prime minister chaired a high-level meeting to review the Integrated Generation Capacity Expansion Plan (IGCEP) 2024-2034, reaffirming the government's commitment to reducing electricity prices and implementing sustainable reforms in the energy sector, a Prime Minister's Office news release said. "After providing relief to the people with a significant tariff reduction, we are now implementing an effective strategy for sustainable energy sector reforms," said Prime Minister Shehbaz Sharif. The PM directed for the timely completion of strategic projects like the Diamer-Bhasha Dam, stressing the need for a robust system to harness the country's water and power resources. "Any delay in energy projects is unacceptable," he said, adding, "We are moving towards establishing a free electricity market in the country very soon, which will promote competition and lead to further reduction in power tariffs." The prime minister was briefed that the IGCEP had been thoroughly re-evaluated on his instructions, revealing room for improvement. The revised plan, prepared through dedicated efforts by the Ministry of Energy, aligns better with ground realities and future demands. The key highlights of the briefing included competitive bidding will now be used for upcoming power generation projects over the next ten years, expensive power projects amounting to 7,967MW are being removed from the plan, revised project timelines and the exclusion of costly ventures will result in estimated savings of $17 billion (Rs4,743 billion), indigenous resources and alternative energy sources.
