No takers?

Though no bids are coming for Muzaffargarh solar power project, land is still being acquired

The proposal for a 600 MW solar plant in Muzaffargarh was one of the main pillars of the green-power initiative by the previous Shehbaz Sharif government, but unfortunately it has found no takers. However, the seriousness with which the project is taken can be seen from the fact that despite not having a bidder for the construction, the National Transmission and Despatch Company Ltd, a wholly-owned state-owned enterprise, has acquired over 2500 acres of land for the project. The project was to have been part of an effort to build 6000 MW of solar power. However, the project could attract no bids from the time it was first launched, with an April 3023 cutoff date. That date was to forward five times, up to January, but getting no bids. The incentives, in terms of pricing, have been revised, but this has not been sufficient.

The project illustrates one of the problems with the Independent Power Producers. It was rightly pointed out that they were basically a steal, with investors getting an extremely good deal at the cost of the consumer, who is now picking up the bill, and the country is in trouble with the IMF, with the furnace oil being imported having caused circular debt to pile up while the country faces fuel import bills it cannot manage without borrowing heavily. Though solar power is the way to go, no government wants to give a rate of return which burdens the consumer with electricity he cannot pay for. After all, one of the pluses with renewables is that they are cheap.

The conversion of renewable sources is supposed to be the easiest. After all, Pakistan has abundant untapped sources of renewable sources of power in the shape of hydro-electricity. However, that requires the heavy investment of hydroelectric dams, for which the money is not available. Wind power is also abundant on the coast, but also requires a heavy investment. Solar power is a good option in that respect. However, apart from large solar projects like at Muzaffargarh, the government should also ease both consumer and WAPDA to converting existing domestic and commercial connections to solar energy. The plan included a component whereby government offices would convert to solar power. The government should focus on that, as it is likely to give quicker results that acquiring land for the Muzaffargarh project.

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The Editorial Department of Pakistan Today can be contacted at: [email protected].

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