Pakistan Institute of Development Economics


Energy Investments and Planning

Date : Friday, July 03, 2020 at 03:00 PM
Moderator: Dr. Nadeem ul Haq (Vice Chancellor PIDE)
Discussant : Ermeena Malik (Renewable Energy Consultant, World Bank), Tahir Basharat Cheema (Former MD, PEPCO), Shahid Sattar (Former Member Energy, Planning Commission), Rashid Aziz (Former Senior Energy Specialist, World Bank), Vaqar Zakaria (Partner and Director, Hagler Barley, Pakistan), Amer Durrani (President, Reenergia)

Absence of competitive bidding and non-transparent power procurement process has brought structural rigidity and hindrances to the creation of a competitive market. Generation sector did attract private investment but get stuck in the cost-plus model. Guaranteed capacity payments have increased the cost of generation. Decision-makers have always chosen short term fixes to avert crisis instead of a long-term well thought out strategy. Political expediency and short term goals resulted in longterm contracts; the end result is high prices for the consumers.