Photo courtesy PID
During a daylong visit to Lahore on Sunday, Prime Minister Shehbaz Sharif blamed the ousted Pakistan Tehreek-e-Insaf (PTI)-led government for the ongoing energy crisis in the country and directed authorities concerned to take urgent steps to reduce prolonged power outages by next month.
According to a statement issued by the Prime Minister’s Office, Sharif regretted that the previous government had failed to purchase fuel for power plants or repair damaged units, leaving the country with an electricity shortfall. He said that ousted prime minister Imran Khan’s government had shuttered power units that the Pakistan Muslim League (Nawaz) government had set up for low-cost electricity generation. “Instead, the previous government utilized those low power generation units that supplied expensive power, and due to this injustice, the nation had to pay a heavy price in the shape of Rs. 100 billion every month,” he claimed.
“Nawaz Sharif’s government had generated surplus power, but Imran’s government failed to add a new single unit,” he claimed.
The prime minister also said the PTI-led government had not purchased Liquefied Natural Gas (LNG) when a single consignment cost Rs. 6 billion, which had now risen to Rs. 20 billion. “The nation had to pay more than Rs. 500 billion this year due to such injustice done by Imran Khan’s government,” he said.
“Until we get rid of load-shedding, I will not leave for China, and I will not allow anyone to relax,” he warned, adding that the public was suffering due to the criminal negligence of the previous government. He directed authorities concerned to make temporary arrangements till the provision of oil and gas.
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Pakistan needs to exponentially increase the Wind capacity
Pakistani WInd farms,are set up by conglomerates,who can set off the accelerated depreciation,on the wind project,per se, as the farm is set up,as part of an existing industry,or by merging the brought forward tax assessed losses of the wind farm,or by a tax provision,which allows the depreciation of a WInd-SPV, to be offset with the taxable profits of the holding company.
BUT THJS IS NOT ENOUGH
Pakistan has to bring in foreign capital.In many parts of the US/EU,people do not want Wind,and also,in sub zero temperatures,like in Texas,the Wind energy is a flop.
These investors need wind corridors,in hot and humid zones,in high cost power grids,with no humans or agri or plantations.
Pakistan is the ideal bet for them.
Treat Wind power as a Deemed Export (as you save imported oil and gas)- allow capital goods imports at Nil duty,and a tax holiday for 10 years – with the year of start of the holiday,to be chosen by the farm at any time,in the 1st 5 years.In addition,maximum repatriation of profits and affix the tarriff in USD – as a proxy to imported oil and gas – so that the investors is insulated from PKR-USD.
Based on deemed exports – refund all indirect taxes or allow the wind farm to TRANSFER THE INDIRECT TAX PAID by the wind farm on purchases – to any Pakistani,who can use 85% of the tax as a VAT input credit.
To obviate the need for spinning power to offset wind-solar variations,better to provide incentives to farm,as the wind-solar hybrids,can be used to perpetually pump water – even where the water table in deep.Once the water comes out – THE ENTIRE ECONOMIC CYCLE STARTS.
HOT AND HUMID ZONES – ARE IDEAL FOR WIND GENERATION – 24 HOURS A DAY.dindooohindoo
The issue is NOT that the land of the wind farms,is to be used for SPV farms or CSP or agri – USE THEM FOR ALL THREE ! IF WATER REACHES BALOCHISTAN – IT WILL BECOME A BRAZIL/ARGENTINA (IN TERMS OF AGRI)