Renewable energy growth attracts investors
Lahore: The event titled ‘Renewable Energy and Power – Managing Project Risk Finance’ was organised by local firms here on Thursday, which witnessed growth potential in renewable energy’s projects in Pakistan.
Insurance and risk management requirements for renewable energy projects were discussed thoroughly in a daylong seminar, featuring leading international project finance risk insurance specialists for the first time in the country.
A large number of local and international investors in renewable energy sector also attended the moot.
As significant growth potential is being witnessed in renewable energy projects in Pakistan, risk considerations are clearly moving higher up the agenda among investors and operators of renewable energy projects.
The event was organised by Lockton MENA, the world’s largest privately held insurance brokerage firm, providing insurance and risk management solutions, in conjunction with Fidelity Insurance Brokers (FIB) – Lockton’s network partner in Pakistan
Pakistan Board of Investment (BOI) Secretary Syed Iftikhar Hussain Babar highlighted the importance of such deliberations at a time when the country was faced with severe energy crisis and the present government was making all-out efforts to add 10,000 MW in the national grid by 2025.
Mr. Babar said that the growth of renewable energy projects in Pakistan will contribute in balancing the energy mix of the country, which at present was heavily dependent on thermal generation.
Secretary of BOI claimed that the lucrative investment opportunities offered by the government of Pakistan in the shape of 17 percent guaranteed return annually in renewable energy projects is attracting a significant number of foreign investment in the sector which has immense potential in the country.
Referring to the potential of future investment in energy sector in the $46 billion worth CPEC project and a number of recent renewable energy projects based on run-of-the-river hydel, geo-thermal, solar, wind and biogas technologies initiated across the country, Mr. Babar underscored the need for better assistance by the financial sector to facilitate the investors and their financiers.
Syed Iftikhar Hussain Babar also informed that a committee has been constituted at the Securities Exchange Commission of Pakistan (SECP) to reform the insurance sector and a conflict resolution cell is functional at the Board of Investment (BOI).
Lockton MENA CEO Tony Saada and FIB CEO Hassan Rehman Muhammadi in their joint welcome address said the seminar was a groundbreaking effort on the part of their organisations to provide an expert forum to debate the issues in addressing risks in Pakistan’s renewable energy projects in order to remove technical hurdles in their financing through international lenders.
The expert panel of international and local speakers thoroughly discussed the potential for the renewable and alternative energy in Pakistan and issues like the role of risk consultant broker in debt-financed projects, business interruption insurance, re-insurers’ view of Pakistan renewable energy market, etc.