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Business Recorder
3 days ago
- Business
- Business Recorder
Govt to discuss issues facing businesspeople at every level: Sindh energy minister
KARACHI: Sindh Energy Minister Syed Nasir Shah stated that the government is standing with the business community. It has already established SEPRA for the provincial electricity matters and planning to discuss business communities' issues at the provincial and federal levels. He was speaking at a multi-stakeholder conference on Competitive Electricity Market organised by Renewables First and the Pakistan Business Forum (PBF), with the support of the Private Power & Infrastructure Board (PPIB), aimed at to set out a clear goal: to move beyond the monopolistic, single-buyer model towards a transparent, multi-stakeholder competitive regime, where electricity can be directly traded between producers and consumers. The conference began with a keynote speech from Chief Organiser PBF, Ahmad Jawad, CEO Renewables First, Zeeshan Ashfaq and Tauseef H Farooqi, ex-chairman NEPRA who highlighted the significance of moving towards a competitive electricity market for affordable electricity and Pakistan's economy. The Competitive Trading Bilateral Contracts Market (CTBCM) is a thirty year old reform program which has been approved by the Economic Coordination Committee and Nepra; however, remains to be operationalized. In the conference, Salman Amin, member Competition Commission of Pakistan highlighted that the monopolistic structure of Pakistan's power sector remains a major concern, saying with the help of CTBCM, we can finally move towards competition and efficiency. Abdul Rehman, Associate at Renewables First, explained the elements and history of the CTBCM reform, noting that the government has decided to launch the competitive electricity market with an initial 800MW, to be increased in the future. Other speakers including Tahir Basharat Cheema and Amjad Ali Raja emphasised the need to open the market for bilateral electricity trade to ensure fair competition and transparency. However, Junaid Naqi, President Korangi Association of Trade and Industry, Mujtaba Khan CEO Reon, Rehan Javed FPCCI, Saleha Hassan and others stated that without serious reforms, the national electricity grid was headed for collapse, and the government must consult industrial stakeholders to figure out the way forward. Highlighting the importance of clean, cheap, and reliable supply of electricity for the industries, they said that over 80 percent of the proposed wheeling is composed of stranded costs and cross-subsidies, making open access prohibitively expensive. Instead, the government must opt for a phased and transparent recovery mechanism which does not burden the ordinary consumers while at the same time making the wheeling charges attractive for industrial stakeholders. The moot demanded that the government provide a clear, consistent, and long-term plan for the recovery of stranded assets and ensure market growth under CTBCM. It also demanded that the government not limit the market size to 800 MW which was too small. The market appetite is much larger, and if provided fairness in wheeling and facilitation, the industry would happily participate. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business
- Business Recorder
Multi-stakeholder moot: Call to dismantle single-buyer power procurement model
KARACHI: Business leaders, energy experts, and policymakers on Tuesday called for dismantling Pakistan's monopolistic single-buyer power procurement model in favor of a transparent and competitive electricity market, warning that without urgent reforms, the national grid faces mounting inefficiencies and rising costs. The demand came during a Multi-Stakeholder Conference on Competitive Electricity Market in Pakistan, jointly organized by the Pakistan Business Forum (PBF) and Renewables First, with support from the Private Power & Infrastructure Board (PPIB). The event gathered senior government officials, former energy regulators, industrial representatives, and researchers to discuss the operationalisation of the Competitive Trading Bilateral Contracts Market (CTBCM) — a reform framework approved decades ago but yet to be implemented. Sindh Energy Minister Syed Nasir Shah, speaking at the conference, assured the business community of the provincial government's support, noting that the Sindh Electricity Regulatory Authority (SEPRA) had been established to handle provincial electricity matters. He pledged to raise industry concerns at both provincial and federal levels. PBF Chief Organiser Ahmad Jawad, Renewables First CEO Zeeshan Ashfaq, and former NEPRA chairman Tauseef H. Farooqi underscored the CTBCM's potential to reduce electricity costs and improve economic competitiveness. 'We have a thirty-year-old reform program approved by the ECC and NEPRA, but it remains unimplemented,' Farooqi said, adding that private sector participation could unlock investment and efficiency. Competition Commission of Pakistan member Salman Amin warned that the current monopolistic setup hampers efficiency, stressing that CTBCM could pave the way for fairer market dynamics. Abdul Rehman, Associate at Renewables First, said the government planned to launch the market with an initial 800MW — a figure many participants criticized as too small for meaningful impact. In the first panel discussion, former PEPCO MD Tahir Basharat Cheema, Thar Energy CEO Amjad Ali Raja, and an Independent System and Market Operator (ISMO) representative stressed the need to allow bilateral electricity trade. Cheema blamed 'poor institutional decisions' for crippling the sector, while Farooqi noted that the government failed to attract bids for a 600MW solar project even as K-Electric completed a 640MW auction. The second panel — featuring industrial leaders including Korangi Association President Junaid Naqi, Reon CEO Mujtaba Khan, FPCCI's Rehan Javed, and PBF's Saleha Hassan — warned of systemic risk to the grid without structural reforms. Khan said poor-performing distribution companies were pushing consumers off-grid. Energy researcher Ramsha Panhwar highlighted that over 80% of proposed wheeling costs are tied to stranded costs and cross-subsidies, making open access prohibitively expensive. She urged a phased, transparent cost-recovery plan to avoid burdening consumers while encouraging industrial uptake. Participants collectively demanded a clear, long-term roadmap for stranded asset recovery, expansion of market capacity beyond the proposed 800MW, and transparency in government planning. 'The market appetite is far greater,' said industrialist Mujtaba Haider. 'Given fair wheeling terms and facilitation, industry will eagerly participate.' Closing the conference, PBF Karachi President Malik Khuda Bakhsh lauded the organizers and stakeholders for addressing critical reforms in the power sector. Copyright Business Recorder, 2025
South China Morning Post
05-06-2025
- Business
- South China Morning Post
Are Chinese solar panels the answer for Global South, or do costs not add up?
The rise of decentralised solar power has prompted a Pakistani think tank to call for China to play a leading role in Pakistan's energy transition, creating a model for other countries in the Global South. However, a Chinese energy scholar has questioned whether its vision is too expensive to be true. Advertisement An increasing flow of cheap Chinese solar panels to the South Asian nation is undercutting demand for power from coal-fired plants that China helped finance and leading to a vicious cycle of stranded assets, according to a report by Renewables First, a think tank based in the Pakistani capital, Islamabad. 'China's solar panels are outcompeting China's power plants,' said Muhammad Basit Ghauri, lead author of the report. 'What we are seeing is an unintentional but profound strategic contradiction. And Pakistan is ground zero for this global experiment in energy disruption.' Pakistan had witnessed a rapid transition to 'distributed' solar power generation on people's rooftops over the past five years, with 39 gigawatts of solar panels imported over that time, mostly from China, the report said, adding that was roughly the equivalent of three-quarters of Pakistan's total installed power generation capacity. With a zero tax rate for solar power imports, Pakistan has emerged as the second-largest destination for Chinese solar panels, behind only Brazil. Advertisement According to data from the Pakistani government's Finance Division, thermal power generation accounted for 59.4 per cent of the country's installed capacity at the end of March last year, followed by hydroelectricity on 25.4 per cent, nuclear on 8.4 per cent and renewables on 6.8 per cent.
Business Recorder
04-06-2025
- Business
- Business Recorder
China exports more solar panels to Pakistan than to many G20 nations in 5 years: report
China exported more solar panels to Pakistan than to many G20 nations, with over 16 gigawatts (GW) imported in 2024 alone, a research report stated on Wednesday. The report titled 'Leader of One or Leader of None - China's Choice for Clean over Coal in Pakistan' published by think tank Renewables First said more than 39GW of solar panels, nearly all from China, entered Pakistan in just five years. These solar panels are 'enough to exceed three-quarters of Pakistan's installed national generation capacity', the report said. The report unpacked this transformation, highlighting China's role in the Global South. 'The exit of the United States from the Paris Agreements threw international climate action into a state of frenzy, with the world left speculating who, if anyone, might step in to lead the efforts against climate change,' it said. From crisis to clean energy: Pakistan emerges as top solar market in 2024 China is now a global powerhouse in clean energy manufacturing. It is supplying tools in the form of renewable energy technologies that much of the world is using to fight climate change, according to the report. There has been an energy shift in Pakistan in the form of what the think tank called a 'Solar Rush', which is driven 'not by government declarations or boardroom decisions, but by rooftops, farms, and factory sheds'. The report demystified the 'Solar Rush', dissecting how one of the world's fastest-growing, people-led solar markets materialised not through grand strategy, but through open competition, favorable trade policy, and a flood of low-priced technology. Yet as solar thrived, coal investments began turning into high-risk assets, with the country still hosting billions of dollars in Chinese-financed coal-fired power plants, the report said. As solar slashed grid demand and made self-generation more viable, these legacy plants, once seen as anchors of energy security, have began to sink. 'Utilisation of these power plants fell to as low as 4% in some projects by 2024. Capacity payments ballooned. And electricity from the grid grew more expensive for those still reliant on it,' the report. 'China's solar panels are outcompeting China's power plants,' said Muhammad Basit Ghauri, lead author of the report. 'What we are seeing is an unintentional but profound strategic contradiction. And Pakistan is ground zero for this global experiment in energy disruption.' Pakistan's solar revolution leaves its middle class behind With distributed solar now displacing centralised generation, Pakistan does not just need panels. It needs storage systems, grid upgrades, local manufacturing, financing tools, and a pathway to move away from stranded coal assets, the report said. 'Pakistan may be the first to experience this clash between legacy coal and democratised solar at this scale, but it will not be the last. If China gets this right, it will not just lead to Pakistan's energy transition. It will prove itself as the architect of a new Global South energy paradigm, one that is fast, fair, and truly transformative,' the report envisaged.
Business Recorder
10-05-2025
- Business
- Business Recorder
Pakistan Electricity Review 2025 launched
ISLAMABAD: The Pakistan Electricity Review 2025, recently launched by Renewables First, an Islamabad-based energy think tank — presents a comprehensive analysis of key trends and challenges that shaped Pakistan's power sector during the fiscal year 2024 (FY24). The report identifies FY24 as a transformative year, marked by record imports of solar PV panels from China. This surge in imports spurred rapid growth in rooftop solar installations across the country, both net-metered and behind-the-meter. By March 2025, Pakistan had installed 4.9 GW of net-metered solar capacity, signaling strong momentum in distributed renewable energy. However, a substantial number of behind-the-meter installations remain undocumented, suggesting that the actual installed capacity may be significantly higher. From crisis to clean energy: Pakistan emerges as top solar market in 2024 Pakistan's total installed power generation capacity reached 46.2 GW in FY24, following the addition of three new utility-scale solar plants. This marginally increased the share of utility-scale renewables in the generation mix from 6% to 7%. Despite these additions, the overall contribution of renewable sources (wind, solar, and bagasse) to electricity generation remained stagnant at 5%, well below projected targets and off-track from the 2030 goal of achieving a 30% renewable energy share. Total electricity generation in FY24 stood at 137 TWh. Transmission bottlenecks and overloaded grid infrastructure continued to impede efficient power transfer, particularly from the south to the energy-demanding north. These constraints forced the system operator to reduce dispatch from lower-cost plants, instead relying more heavily on expensive RLNG based generation. As a result, the energy purchase price ballooned to PKR 1.3 trillion, with RLNG generation alone accounting for PKR 568 billion, approximately 51% of the total energy purchases. RLNG-based plants generated 24 TWh during the year, nearly four times higher than the regulator's projections. The report also highlights a decline in electricity sales from the national grid, a continuation of a downward trend for the second consecutive year. Overall sales fell by 3%, with the industrial sector experiencing the sharpest drop. Industrial consumption declined from 31 TWh in FY23 to 28 TWh in FY24, reflecting an 11% year-on-year decrease. This drop underscores both ongoing economic challenges and the sector's gradual shift toward more competitive energy sources. On the financial front, capacity payments surged to PKR 1.9 trillion in FY24, marking a 46% year-on-year increase. This sharp rise is largely linked to the commissioning of new coal and RLNG power plants in FY23, which typically entail high fixed costs, especially during their initial debt repayment periods. When such plants operate below optimal capacity, the cost of unused capacity is still borne by consumers through higher tariffs, further stressing the sector's financial sustainability. Conversely, the decline in electricity generation contributed to a 7% year-on-year reduction in the energy purchase price—offering a modest reprieve amid rising sectoral costs. Despite timely implementation of fuel cost adjustments (FCAs) and quarterly tariff adjustments (QTAs) by Nepra, the sector's circular debt continued to climb. By the end of FY24, it had reached PKR 2.4 trillion, a 3.6% increase over the previous year, adding PKR 83 billion to the existing stock, compared to a 2.6% rise (PKR 58 billion) in FY23. Overall, the Pakistan Electricity Review 2025 offers a sobering assessment of the sector's ongoing structural issues, while also highlighting areas of progress. It serves as both a reality check and a policy prompt for stakeholders navigating the country's complex energy transition. Copyright Business Recorder, 2025
