ISLAMABAD: The Cabinet Committee on Energy (CCoE) headed by Prime Minister Shahid Khaqan Abbasi has decided that only those power projects will be implemented out of the current list where either Implementation Agreement (IA) or Energy Purchase Agreement (EPA) have already been signed, sources close to Managing Director PPIB told Business Recorder.

The CCoE in its meeting held on December 12, 2017 also approved amendments to the Renewable Energy Policy 2006 (Framework 2013) as submitted by the Power Division and directed the Power Division to submit final draft policy with the proposed amendments to the Cabinet.

According to sources, the CCoE further decided that all projects based on wind, solar, small hydel and baggasse energy will be awarded through competitive bidding. Risks of hydrology, wind speed and solar radiation will be borne by the power seller.

The balance 600 MW projects space available in Quaid-e-Azam solar park in Punjab for solar based power projects would be selected through competitive bidding without exception. The space available in the current evacuation scheme in the wind corridors will be awarded through competitive bidding without exception.

The CCoE was of the view that all further baggasse based power plants should be awarded through competitive bidding and there will be no up-front tariff.

The induction of all new small hydel power projects will be through competitive bidding whereas all contracts arising out of competitive bidding would be for a term of 15 years.

The CCoE directed the Power Division that the draft policy on Renewable Energy be prepared with clearly and exclusively mention time lines for all actions required by all parties to complete each process.—MUSHTAQ GHUMMAN