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FPCCI urges government not to curtail wind power projects
FPCCI President Atif Ikram Sheikh has raised serious concerns
Updated On: Wed, 12 Mar 2025
21:30:27 PKT
LAHORE (Web Desk) – President Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Atif Ikram Sheikh has raised serious concerns regarding the ongoing curtailment on 12 wind power projects of low tariff, despite their cost-effectiveness and alignment with national energy goals.
He criticized the continued preference for expensive, obsolete power sources, urging the government to adhere to the Renewable Energy Policy 2006.
President FPCCI has emphasized that the current situation is causing significant curtailments, leading to substantial financial losses for wind energy project developers, impacting their ability to service debts, maintain operations and compromising their return on investment which is jeopardizing future expansion.
Due to curtailment issues, he said, confidence among foreign investors will be severely affected, which will directly be impacting Foreign Direct Investment (FDI) in the renewable energy sector.
Ultimately, it can lead to project defaults and financial instability, he added.
Ikram Sheikh stressed the importance of creating a stable and supportive environment for renewable energy, aligning with the Special Investment Facilitation Council’s (SIFC) focus on the energy sector.
Meanwhile, Mr. Fawad Jawed, convener of FPCCI’s central standing committee on renewable energy, highlighted the economic and environmental advantages of wind power.
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“Wind energy in Pakistan offers clean, affordable electricity at a tariff of PKR 13.8 per kWh, significantly lower than RLNG, RFO, and coal-fired plants,” he said.
He explained that 12 wind power projects in the Jhimpir Wind Corridor, with a combined capacity of 610 MW, have been commissioned since 2021. However, these “must-run” plants, as designated by the Renewable Energy Policy 2006, face frequent curtailment and reduced offtake.
“This is a loss of cheap electricity for our nation,” Mr. Fawad Jawed asserted. “It undermines our sustainable energy goals and hinders our progress towards achieving a 50 percent emissions reduction by 2030 and a 30 percent renewable energy share in the national grid by 2030, as outlined in the Alternative & Renewable Energy Policy 2019.”
The FPCCI calls for the immediate and full offtake of power from existing 12 operational wind projects, honoring the commitments made under the Renewable Energy Policy 2006 and existing Energy Purchase Agreements (EPAs).
Fawad further elaborated on the economic impact. “Wind power plants have the potential to deliver exceptionally cost-effective electricity once they reach their capacity factor of around 38%. However, underutilization prevents these cost savings from being passed on to consumers,” he added.
The FPCCI urges the government not to curtail the must-run wind power projects and to ensure the consistent offtake of wind power to achieve sustainable economic and environmental goals.
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