Nine Companies given Letter of Intents to generate biomass electricity
ISLAMABAD : As many as nine companies and sugar mills have been issued Letter of Intents (LoIs) to generate about 271 Mega watt biomass based electricity in different areas of the country, Chief Executive Officer of Alternate Energy Development Board (AEDB) Amjad Ali Awan said.
“In order to tap the potential of electricity generation from the sugar mills in Pakistan, the government on recommendation of AEDB has already announced the Framework for Power Co-Generation (Baggase/Biomass),” Awan said in an interview with APP.
Giving details of these biogas projects, he said these included Etihad Power Generation (Ltd) with capacity of 67 megawatt, Layyah sugar Mills with capacity of 41 megawatt and Almoiz Industries with capacity of 36 megawatt.
Awan said that other mills that have been issued LoIs to generate biogass electricity included Hamza Sugar Mills (15 MW), Alliance Sugar Mills (19 MW), Safina sugar Mills (20MW), Shahtaj Sugar Mills (15MW), Chanar Energy (22MW), and RYK Energy (36MW).
Awan said AEDB has been following standard security documents (Energy Purchase Agreement (EPA) / Implementation Agreement (IA) for bagasse based co-generation projects under Framework for Power Co-Generation 2013 (Baggase/Biomass).
He said that NEPRA has also announced an Upfront Tariff of 10.7291 per kWh (Levellized) for bagasse based co-generation projects under the Framework.
It is pertinent to mention here that Renewable Energy (sector has attracted foreign investment of over $ 3 billion during the last one year, clearly indicating investment potential in this particular sector and the outcome of initiatives taken so far to exploit such resources for the betterment of the country.
“Due to the potential, robust policy framework, lucrative tariff structures and bankable security documents, Pakistan has become a choicer investment destination for private investors,” Amjad Awan told.
Awan said, the government was taking pragmatic steps to harness the available renewable energy potential, diversify its energy mix and ensure energy security and sustainable development in the country.
He observed that owing to the promotion and development of RE technology in the country, a record investment has been witnessed in just one year, revealing the interest of investors in this sector.
The CEO said that detailed resource assessment of wind, solar and biomass was carried out in the country through ESMAP’s (World Bank) assistance.