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Business Recorder
3 days ago
- Business
- Business Recorder
Energy wastage: Leghari seeks support from CMs, Ahsan
ISLAMABAD: Minister for Power Sardar Awais Leghari has sought support from the provincial chief ministers and the Federal Minister for Planning, Development and Special Initiatives, Ahsan Iqbal, for the implementation of building codes aimed at curbing energy wastage. In letters addressed to the minister for planning and provincial chief ministers, Leghari referred to his earlier communication dated January 1, 2025, regarding the 'Implementation of Energy Building Code–2023.' He emphasised that the building sector is a major contributor to the national energy crisis, accounting for over 60 per cent of total energy consumption. 'This demand peaks in the summer months due to high cooling loads resulting from conventional building designs that largely ignore energy efficiency during planning, construction, and operational phases.' Minister launches 'Energy Conservation Building Code 2023' Highlighting the urgency of the matter, Leghari recalled that the prime minister, during a strategic roadmap meeting on energy conservation held on February 1, 2023, had directed the National Energy Efficiency and Conservation Authority (NEECA) to revise the Building Code of Pakistan (Energy Provisions 2011). Accordingly, development authorities were instructed to amend their building by-laws to include energy efficiency measures. The revised Energy Conservation Building Code (ECBC-2023) was approved by the Federal Cabinet on August 9, 2023, and the National Economic Council (NEC) also directed all provinces to ensure its implementation. 'It is essential to recognize that both the public and private sectors play a pivotal role in shaping the energy landscape of the building sector,' the minister stated. 'Public sector investments under the Public Sector Development Programme (PSDP), and private developments regulated by municipalities and local governments, present a vital opportunity to promote energy efficiency.' Leghari has reiterated his proposal to integrate ECBC-2023 into PSDP projects by incorporating an energy efficiency analysis section into the Planning Commission's manuals (PC-1 to PC-5). He suggested that the approval of PSDP projects—particularly infrastructure schemes—should be contingent upon achieving at least 50 per cent energy savings compared to conventional designs. Copyright Business Recorder, 2025


Business Recorder
13-05-2025
- Business
- Business Recorder
Ministries, Divisions told: Proposals must contain expenditures break-up: ECC
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has directed all ministries/Divisions that in future the break-up of expenditures must be provided in the proposals submitted through summaries to take an informed decision, well-informed sources told Business Recorder. These directions were issued at a recent meeting of the ECC while discussing a summary of Power Division regarding PM's Fan Replacement Program. The ECC also expressed annoyance at the National Energy Efficiency and Conservation Authority (NEECA) for not kicking-off the project despite lapse of one year. The NEECA, established under the National Energy Efficiency and Conservation Act, 2016, is responsible for formulating and implementing policies to promote energy conservation across various sectors in Pakistan. It serves as a federal focal agency for driving national efforts toward efficient energy use. Fans replacement in Discos, KE: NEECA seeks PD's help on mode of financing The NEECA plays a key role in identifying priority areas for energy savings and developing practical solutions to reduce overall consumption. Under the directives of the Prime Minister of Pakistan, NEECA had developed a Nationwide Fan Replacement Program that aims to replace 88 million inefficient fans in the country. The program is expected to reduce peak electricity demand by 5,000 megawatts. To facilitate consumer convenience, the NEECA has designed the program as a digital credit product utilizing on bill financing mechanism, with the support of the Ministry of Energy (Power Division), State Bank of Pakistan(SBP), and Commercial Banks. The program will utilize an end-to-end digital platform where the entire process is automated via an online portal where the consumers, fan manufacturers, DISCOs, and banks will be in-sync on a single platform. The Power Division further noted that the budgeted allocation of Rs.2 billion for FY 2024-25 was made for the PM Fan Replacement Program. Rs.1.5 billion was earmarked for the 10% Risk Coverage Government guarantee mechanism by SBP, Rs.500 million was for the program implementation and awareness activities/campaign by NEECA. Power Division took up the case for release of funds with Finance Division which agreed to release funds amounting to Rs.242 million for the 1st & 2nd Quarter of current fiscal year 2024-25 vide their letter of January 31, 2025 to the Power Division. However, budgeted allocated funds for the Fan Replacement Program were placed under the Finance Division Demand No. 45 instead of Power Division's Demand No.33 Approval of the ECC was solicited for a Technical Supplementary Grant amounting to Rs.106 million from Rs.242 million under Demand No.45 of Finance Division to Demand 33 of Power Division keeping in view the time shortage during the Current Financial Year. During the ensuing discussion, the forum expressed concern that project could not kick-off despite the lapse of one year. It was explained that execution of the project had been delayed primarily due to non-finalization of modalities between the SBP and the Commercial Banks. It was further noted that the banks needed system upgrades to integrate the project requirements in their I.T infrastructure. The forum noted that the breakdown of the expenditure had not been provided in the summary. The Power Division explained that the requested funds would be utilized for meeting costs associated with the procurement of IT infrastructure, awareness campaigns, system integration and HR costs. The forum was also informed that the local fan manufacturers shall also be encouraged to bear the cost of awareness campaign. After discussion, the ECC approved the proposal Technical Supplementary Grant amounting to Rs.106 million from Rs.242 million under Demand No.45 of Finance Division to Demand 33 of Power Division keeping in view the time shortage during the Current Financial Year. The ECC also directed the Finance Division to facilitate the Power Division in finalising the modalities of the project by way of coordination with the SBP and Commercial Banks The ECC further directed that in future the break-up of expenditure must invariably be provided in the proposals submitted through summaries by sponsoring Divisions to enable the ECC to take an informed decision. Copyright Business Recorder, 2025


Express Tribune
14-02-2025
- Automotive
- Express Tribune
ICCI, NEECA unveil new charging rules
Listen to article ISLAMABAD: The Islamabad Chamber of Commerce and Industry (ICCI), in collaboration with the National Energy Efficiency and Conservation Authority (NEECA), hosted an awareness session titled 'Electric Vehicle Charging Infrastructure and Battery Swapping Regulations 2024' at the Chamber House. The event saw strong participation from the business community, highlighting growing interest in electric vehicles (EVs) and sustainable energy solutions in Pakistan, according to a press release issued Thursday. ICCI President Nasir Mansoor Qureshi welcomed attendees, underscoring the Chamber's commitment to fostering a business-friendly environment. He highlighted ICCI's role in bridging industry and academia, encouraging fresh graduates to pursue entrepreneurship rather than just seeking jobs. He stressed the need for Pakistan to embrace sustainable practices in line with global trends, calling for collaboration between policymakers, industry leaders, and stakeholders to ensure successful EV infrastructure implementation. Dr Sardar Mohazzam, Managing Director of NEECA, delivered the keynote address, outlining new regulations aimed at accelerating EV adoption through the establishment of charging and battery-swapping stations nationwide. Key initiatives include a one-window operation for ease of business, cost-effective electricity tariffs for EV charging, and public-private partnerships to expand the EV network. Mohazzam also highlighted the importance of ensuring grid readiness, supporting small-scale enterprises, and contributing to Pakistan's emission reduction efforts.


Express Tribune
29-01-2025
- Automotive
- Express Tribune
Renewable energy targets demand $100b investment
ISLAMABAD: Pakistan needed over $100 billion investment to shift its policy towards renewables to achieving a carbon neutral energy sector, climate ministry officials informed the Senate Standing Committee on Wednesday. They said that the country required $50 billion to achieve 60% renewable energy target by 2030, more investment to reduce emissions by 50%, besides $18 billion to fully operationalise the National Energy Efficiency and Conservation Authority (NEECA) Plan-2023-30. The committee met here with its chairperson Sherry Rehman in the chair. The meeting was informed that support from the Global Environmental Facility (GEF) and the Green Climate Fund (GCF) would play a crucial role in implementing the plans and achieving climate targets. The committee received a briefing from industries and production ministry officials on the electric vehicle (EV) policy. The officials said that he prime minister had formed a steering committee on the EV policy. During the meeting, the climate change secretary said that introducing EVs in public transport was crucial to reduce carbon emissions. He stated that transport had the greatest impact on air quality, adding that a proposal to subsidise two- and three-wheelers was currently under consideration. However, the chair noted that pollution from other sources was spreading more than vehicular emissions. She also criticised the industries ministry officials for lack of preparedness. "It is regrettable that the officials do not even know the exact number of local EV manufacturers," she said. Rehman asked the officials as to how they planned to operate EVs without a clear strategy. She emphasised that the government could not halt solarisation by modifying net metering regulations. She urged the climate change ministry to oppose any policies that discouraged solar energy. Energy Minister Awais Leghari told the committee that a solar revolution was already under way in the country. He reminded the committee that he had introduced net metering regulations in 2017 and assured that there was no plan to discourage solarisation. Leghari stated that solar investments were currently recovered within 18 months, but under the new regulations, this period would extend to four years. He noted that solar system owners were selling electricity at Rs22 per unit. However, he highlighted that the government was buying electricity from solar producers at high costs and selling it to the consumers at lower rates. Senator Zarqa Taimur urged the government to reduce transmission losses and emphasised that agreements under net metering should remain unchanged. Leghari warned that if the new regulations were not enforced, other consumers would bear an additional burden of Rs103 billion. Leghari revealed that the government had exited the business of direct purchase of electricity from the producers. He also disclosed that the plans were in hand to divide the National Transmission and Dispatch Company (NTDC) into three entities. The energy minister confirmed that talks with the International Monetary Fund (IMF) were under way for a three-year energy package, and assured that the government had plans to allocate electricity to industries at affordable rates. Leghari acknowledged that previous power plants were installed under various policies but under a new system, future power plants would be installed through a competitive bidding process. He emphasised the need for green finance to support the transition. According to Leghari, 2,500MW of thermal power plants had already been retired, and the government was actively working to accelerate the shift towards green energy. He added that the government was working to retire 200MW furnace-based power plants which required green financing. Leghari underscored the importance of attracting investment to successfully implement the EV policy. He argued that more charging stations would encourage the adoption of the EVs. "With more charging stations, people will be more inclined to switch to electric vehicles," he stated. The climate change secretary told the committee that the State Bank of Pakistan (SBP) was actively working on financing green energy projects. However, Rehman criticised a slow progress. "Even after five years, the authorities are still saying that the State Bank is working on it," she said. Senator Sherry Rehman called for availability of loans to the consumers for transitioning to EVs. The climate change ministry officials confirmed that the federal government had introduced a special tariff for the EVs charging stations.