Energy Department set up to help launch power projects

[Salman]

Energy Department set up to help launch power projects

* Fund proposed for 6 power projects to produce 1,000MW electricity

* Public-private partnership urged

LAHORE: An Energy Department has been set up in the province that is extending necessary assistance for launch of new power generation projects, Punjab Chief Minister (CM) Shahbaz Sharif said on Monday.

He informed that the establishment of a Power Generation Development Fund had also been proposed for launching six power projects aimed at producing 1,000 megawatt (MW) electricity for the province. He said the fund would be completely autonomous and will provide required technical assistance and help in setting up new projects of power generation.

Presiding over a meeting on Monday regarding formulation of a comprehensive policy for launch of new power generation projects, the CM said that in order to cope with this problem, the Punjab government was fully encouraging the private sector to help in the generation of power so that the country could be rid of the load shedding menace.

He said that the country was facing serious energy crisis, which had caused huge loss to industrial and agriculture sectors, while poverty and unemployment had also increased.

The meeting reviewed in detail the existing power crisis in the province. It was noted that power consumption in Punjab – province that constituted 50 percent population of the country and contributed 65 percent to the GDP – stood at 68 percent.

Moreover, due to favourable business conditions available to investors and businessmen in the province, 60 percent of the country’s industries were operating in Punjab and yet the province was being subjected to extremely long hours of power outages.

The CM further said that the province had the best track record in the country with regard to power consumption and payment of the dues, adding that performance of all the five distribution companies of the province was much better than other federal units in controlling power theft and recovery of dues.

He said that small projects could be initiated for supply of power to small industrial estates set up across the province for which investment from private sector was welcomed and being encouraged.

Giving detail of the six power projects aimed at producing 1,000MW electricity for the province, Shahbaz said that 250 to 300MW power generation project would be established in Muzaffargarh, 300MW project in Rahim Yar Khan, 250 to 300MW project in Faisalabad Industrial Estate and 120MW project in Taunsa, 80MW project in Cholistan and 30MW project in Lodhran.

The CM announced that a sum of Rs 150 million would also be provided for the capacity building of the Energy Department.

Shifting focus towards far-flung areas in southern Punjab, he said that solar panels could be provided and installed in these areas to facilitate the farmers. This would help the farming community to meet its irrigational needs by running water on solar energy. He said it would also save heavy expenditure on tube wells run on diesel and electricity. He directed that a scheme be devised to provide solar panels to the farmers on the pattern of Green Tractor scheme.

The CM informed that the provincial government was also launching mega projects of drip and sprinkle irrigation at a cost of Rs 32 billion which would help in economical use of water for agricultural purposes.

Earlier, Uch Power Private Limited Chief Executive Officer Pervaiz Afzal Khan gave a detailed briefing regarding roadmap of new projects of power generation with the collaboration of private sector. He said that upto 5000MW power could be produced with investment of five billion dollars in energy sector during the next five years.