IEEFA’s report “Choosing the right incentive for Pakistan’s renewable energy industry” presents these key findings on the country’s renewable energy landscape:
- The lackluster response to a Request for Proposal (RFP) floated by Pakistani authorities for a 600 MW solar power project at Muzaffargarh indicates a high-risk environment and a low benchmark tariff as the key deterrents to new renewable energy added through auctions.
- Renewable energy has been added to the system mainly through an upfront or a cost-plus tariff regime, but both were discontinued in 2016.
- Auctions have been ordained in place of these fixed incentives but pending for almost five years now.
- IEEFA’s assessment reveals an optimum benchmark tariff range of 4.2-5.8 USc/KWh (US cents per kilowatt-hour) for solar power in Pakistan, depending on the type of financing involved.
The complete report can be accessed here