| Islamabad: The Pakistani Government has opted to establish renewable energy plants through Government-to-Government (GtG) arrangements, as claimed by a source on January 18.
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According to top officials from the Energy Ministry, multiple factors have led to a request for an open-ended tariff from the Power Division to initiate the project, including the challenges in the country’s power and oil and gas sector, citing its current unsustainable state.
Energy Minister Muhammad Ali announced that the government has abandoned the International Competitive Bidding (ICB) mechanism for seeking bids from investors for 2,400 MW renewable power plants. Instead, the government plans to establish solar and wind power plants under GtG arrangements, attracting interest from Saudi Arabia and other Middle East countries keen on investing in renewable energy.
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In response to inquiries about the price discovery mechanism for GtG arrangements, officials clarified that a negotiating committee would be constituted for GtG commercial agreements and price discovery. The finalisation of the price discovery mechanism, conducted by the transaction advisor, is currently in progress to determine project costs and tariffs. |
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