KARACHI: Patron in Chief of the United Enterprise Group (UBG) and former caretaker provincial minister SM Tanveer has strongly criticized Pakistan’s proposed Indicative System Plan (ISP) 2025-35 vitality plan and urged Nationwide Electrical Energy Regulatory Authority (NEPRA) to reject and redesign it.
He known as the plan unrealistic and financially harmful for the nation’s financial system. In response to Tanveer, Pakistan already has round 40,000 MW of put in electrical energy technology capability, whereas the nation’s peak energy demand has dropped to almost 28,000 MW.
He stated electrical energy demand has been declining over the previous three years as a result of many customers and industries have shifted in direction of personal photo voltaic vitality techniques. He added that greater than 45 GW of photo voltaic panels have already been put in throughout the nation.
Regardless of the falling demand, the proposed plan suggests including one other 26,043 MW of technology capability. Tanveer questioned the logic behind investing billions of {dollars} into new energy tasks when current capability is already underused.
He warned that the proposed enlargement might place a large monetary burden on customers and additional improve electrical energy costs.Tanveer said that Pakistan’s energy sector is already dealing with critical strain as a result of excessive capability fees.
He defined that just about 52.6% of electrical energy payments at the moment encompass capability funds made to energy producers, even when electrical energy isn’t totally consumed. He stated the brand new plan might push tariffs to file ranges and make electrical energy unaffordable for households and industries.
He additionally highlighted main weaknesses within the nation’s transmission system. In response to him, Pakistan loses round 18% to twenty% of generated electrical energy as a result of outdated infrastructure and system inefficiencies.
He argued that lowering these losses to the worldwide customary of 10% might save practically Rs. 570 billion yearly with out requiring main new investments.Tanveer additional criticized the planning course of behind the challenge, particularly using the PLEXOS model.
He claimed that costly mega tasks like Diamer Bhasha and Dasu dams have been already included as necessary tasks, which restricted honest and price efficient planning. Referring to previous examples, he identified that tasks resembling Neelum-Jhelum confronted large value overruns, growing by hundreds of p.c over unique estimates.
Though he acknowledged the long-term significance of dams and nuclear vitality for nationwide vitality safety, he demanded strict controls over challenge prices.
He stated any further monetary burden must be lined by the federal government via improvement funds as an alternative of being transferred on to customers via electrical energy payments.Tanveer additionally warned that Pakistan’s industrial sector and exporters are dropping competitiveness in worldwide markets as a result of excessive vitality prices.
He urged the federal government to revise your entire energy plan with life like demand projections, clear pricing particulars, and strict limits on future challenge value will increase. “Pakistan can not afford a plan that results in its personal monetary destruction,” he concluded.
