Pakistan Renewable Energy Policy

Principal Ministry and Departments of Government of Pakistan involved with execution of renewable energy projects fall under the purview of the Ministry of Water & Power and include the Alternative Energy Development Board, National Electric Power Regulatory Authority, Water and Power Development Authority (WAPDA), National Transmission and Dispatch Company (NTDC).
Alternative Energy Development Board (AEDB) www.aedb.org has been mandated by the GOP to act as a facilitator for all RE projects, besides National Electric Power Regulatory Authority (NEPRA) www.nepra.org.pk conducts public hearings and determines the electricity tariff for each project. All petitions (http://www.nepra.org.pk/petitions.htm) filed with NEPRA are available on their website and latest determinations (http://www.nepra.org.pk/tariff_gen.htm) for wind power projects can also be viewed.

Short Term Policy
Main features of the Short Term Policy include:
• Initially land was facilitated by Alternative Energy Development Board (AEDB)
• Wind risk was taken by the power purchaser
• Guaranteed off take (Mandatory purchase of electricity)
• Cost plus tariff guaranteeing a 15% - 18% Return on Equity
• Additional fiscal and tax benefits provided as: zero import duty on equipment, income tax free regime, all exchange rate fluctuations / CPI changes / LIBOR, KIBOR rate changes are pass through items in the tariff calculation
• Net metering / Wheeling of electricity allowedThe Medium Term Policy has inherited most of the features from the Short Term Policy and is currently being finalized - after obtaining all stake holders comments the policy will be put up for government approval. The Draft Medium Term Policy document can be viewed.