Islamabad: The government has decided to increase the power generation capacity of the country, and phase out existing thermal power plants within the next 20 years, a news source reported. It has finalised a plan for an increase of 300% to reach a power generation capacity of 111,000 megawatts (MW). It will also shut down almost all existing thermal power plants in the time period mentioned.
The government has planned these measures in order to meet the rising demand of energy in the country, and make it available at affordable prices. The measures are part of the Indicative Generation Capacity Expansion Plan (IGCEP) 2018-40, which was finalised by the National Transmission & Despatch Company. IGCEP was prepared in consultation with the federal and provincial agencies, along with experts from the private sector. The government aims to ensure low-cost development of future projects, and comply with the regulator’s Grid Code obligations by implanting the IGCEP.
The IGCEP 2018-40 is the first complete iteration of Pakistan’s integrated planning exercise for the power sector. It will be revised each year, keeping in view the ground realities like consumption patterns, growth trajectory, completion/delays in projects for ensuring regulatory compliance, etc.
The government has devised the plan for increasing power generation capacity in light of three possible economic growth situations. These include scenarios with an increase of the GDP growth rate by 4.5%, 5.5%, and 7%.
The plan includes the addition of power capacity through renewable sources. While considering all strategic projects, the plan also takes existing policy limitations and system constraints into account.
