Jatoi approves national policy on renewable energy
By Ali Imran

ISLAMABAD—Minister for Water and Power, Liaquat Ali Jatoi on Tuesday okayed the draft of first ever Renewable Energy Policy of Pakistan for submission to the Economic Coordination Committee of the Cabinet for final appeal which envisages mainstreaming of renewable energy employing small hydro, wind and solar technologies in the development plan of the country.
The draft of the policy was discussed and finalized during a meeting held here with Federal Minister for Water and Power Liaquat Ali Jatoi in the chair.
Jatoi said that the policy lays down very liberal and attractive incentives to attract investment to put Pakistan on the renewable energy map of the world.
Pakistan is blessed with abundance of renewable energy potential but so far its potential has not been harnessed except for large hydro electric projects, he added.
He said that the government has decided to use all other options to generate electricity to meet the growing demand of 10 to 12 percent annually in the country.
The policy is in line with the Presidents and Prime Minister's open arm policy for inviting the investment in the country.
He appreciated the role of Secretary of the Ministry, AEDB for preparing policy and hoped that it will go a long way in strengthening and improving power supply position of the country. Earlier, the Secretary Ministry of Water and Power and Chairman AEDB, Air Marshal (Retd) Shahid Hamid gave a detailed briefing on the policy and said that policy comprises of three phases, short term, medium term and long term.
Giving the salient features of the policy, the secretary said that it invites investment from private sector for four categories, Independent power projects (IPPs), Captive cum grid spillover power projects, Captive power projects and Isolated power projects.
To encourage generation through renewable resources, small projects for self use will not require any permission from the government and will be able to sell surplus power to DISCOS under the policy. NTDC and Central Power Purchase Agency will mandatory purchase electricity from Renewable Energy Resources projects.
The policy will allow an investor to avail the facility of delivering power on the existing infrastructure and receiving equivalent power for use at location of its own choice.
The small renewable energy projects will not require tariff determination for NEPRA.
It has been allowed that wind and solar projects irrespective of size of plants will be dealt by AEDB.
Giving the details of the financial incentives to the investors, he said that among other incentives it is also allowed that no custom duty or sale tax for machinery equipment and shares meant for the initial installation or for BMR or expansion after commissioning of projects for power generation utilization renewable energy resources.
Exemption has been allowed from income tax, including turnover rate tax and withholding tax on imports of machinery and equipments.
The investor is allowed to issue corporate registered bonds. Permission to issue shares has also been granted under the policy at discounted prices to enable venture capitalists to be provided higher rates of return proportionate to the risk.