LAHORE: Renewable energy expert Fawad Jawed has said that international investors are worried about curtailment on 12 wind power projects by the government, making materialization of the dream of achieving 30 percent market share difficult by 2030.
He criticized the continued preference for expensive, obsolete power sources, urging the government to adhere to the Renewable Energy Policy 2006.
He has also emphasized that the current situation is causing significant curtailments, leading to substantial financial losses for wind energy project developers, impacting their ability to service debts, maintain operations and compromising their return on investment which is jeopardizing future expansion.
Due to curtailment issues, he said, confidence among foreign investors will be severely affected, which will directly be impacting foreign direct investment (FDI) in the renewable energy sector. Ultimately, it can lead to project defaults and financial instability, he added.
He further stressed the importance of creating a stable and supportive environment for renewable energy, aligning with the Special Investment Facilitation Council’s (SIFC) focus on the energy sector.
Jawed highlighted the economic and environmental advantages of wind power. “Wind energy in Pakistan offers clean, affordable electricity at a tariff of PKR 13.8 per kWh, significantly lower than RLNG, RFO, and coal-fired plants.
He explained that 12 wind power projects in the Jhimpir Wind Corridor, with a combined capacity of 610 MW, have been commissioned since 2021. However, these “must-run” plants, as designated by the Renewable Energy Policy 2006, face frequent curtailment and reduced off take.
Fawad further elaborated on the economic impact, saying that “wind power plants have the potential to deliver exceptionally cost-effective electricity once they reach their capacity factor of around 38%. However, underutilization prevents these cost savings from being passed on to consumers,” he added.
He urged the government not to curtail the must-run wind power projects and to ensure the consistent off take of wind power to achieve sustainable economic and environmental goals.
Copyright Business Recorder, 2025
