ISLAMABAD-Small solar projects owners Thursday voiced serious concerns over the State Bank of Pakistan (SBP) policy for blocking imports of equipment and National Electric Power Regulatory Authority was informed that the investors are unable to import equipment for the last six months that has delayed execution of solar projects in Balochistan province.
The concerns were raised during an interaction of National Electric Power Regulatory Authority (Nepra) with small solar projects owners especially working in Balochistan areas. Investors in solar power projects have voiced serious concerns against State Bank of Pakistan (SBP) for blocking imports of equipment that is resulting in halting progress on projects implementation. The investors alleged that the State Bank of Pakistan had regressive policy towards import.
The meeting was informed that there were several areas of Balochistan that were scattered and therefore, the province had immense opportunities for solar projects. Participants also noted that Balochistan had also opportunities of off grid solar projects. The representatives of the companies said that State Bank of Pakistan had blocked imports of solar power projects equipment and therefore requested the power regulator to intervene to streamline the imports. They sought support from Nepra in the form of firm policy to execute solar projects.
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The investors claimed that solar projects will pay back in two years period if SBP streamlines the imports of solar projects equipment. They said that small solar power projects could save $200 million in form of fuel substitution. The participants further said that solar industry had indigenized up to 40 percent. Therefore, it required more support in form of localisation. The small solar project owners regretted that local manufacturers had no support from anyone. They asked for support to back localisation. India was supporting in form of a 10 percent premium to local suppliers of solar equipment and same support should be given to Pakistani local suppliers to boost localization, the investors added. It was also informed that solar projects owners did not have a recognized body and therefore they were unable to enjoy any support.
K-Electric representative Mudassir said that they had been working on solar project in Lasbela district. He said that there was a lot of potential of solar projects in Balochistan province. He said that their project would help to boost industrial growth in the Lasbela region. KE had put in place a plan and everything. But they had a problem in land acquisition from the Balochistan government. Land acquisition process had challenges in the province. He also raised questions over policy and procedure of land acquisition as there was no clear policy in this regard. He said that they were close to settle issue with cooperation of chief secretary Balochistan and Board of Investment. He said that project was a model for public-private partnership in Balochistan.
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Nepra authorities said that they would hold separate sessions with local industry to hear from them regarding their issues. They said that there were tube-wells who did not have meters and were getting illegal supply. The official said that they were also a cause of circular debt. These tube-wells should be switched to solar with participation from the private sector.
However, they said that the government should give performance guarantees on behalf of farmers to materialize the plans. The government had been giving subsidies to tube-wells in Balochistan and these subsidies should be diverted to find out solar solution for these projects. These tube-wells were not paying bills. The government should support solarizing these tubewells, companies’ representatives said.