Pakistan starts 35 renewable energy power generation projects with $3.5 billion investment

• 5 years ago (2018-12-31)
• David Flin

Asia 892 Solar 272 Wind 257

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The Pakistan Government has announced that several fiscal and financial incentives have encouraged private investors to undertake 35 renewable energy power generation projects with an investment of over $3.5 billion. Several wind, solar, and bagasse power projects, with a cumulative capacity of 2100 MW, are in different stages of development, and are scheduled to be completed by 2022.

The Government said that it is pursuing development of renewable energy projects through private sector development of IPPs under the Renewable Energy Policy. The incentives include: no duties on import of equipment; no sales tax/income tax/withholding tax and turnover tax; repatriation of equity along with dividends freely allowed; non-residents allowed purchase of securities issued by Pakistani companies without requiring permission from the State Bank of Pakistan; and protection against political risk and changes in the law.

Twenty-three wind power projects with a cumulative capacity of 1186.07 MW are operational. Six solar projects of 430 MW cumulative capacity are operational, as are six sugar mill-based bagasse cogeneration projects of 201.1 MW capacity.