Price formula may derail Sino-Pak energy deals ...(Volume 2, Issue 1)

STAFF REPORT ISLAMABAD: The future of $6.5 billion worth of renewable energy deals signed between China and Pakistan is hanging in the balance as Islamabad has linked the final agreement with the price offered by the Chinese investors.

“The 2300 megawatts power project deals recently signed between Pakistan and China would materialise only if the latter offers competitive tariffs,” disclosed an official of the Alternative Energy Development Board to this scribe.

Both the states had signed the MoU for 2000MW wind and 300 MW solar energy generation. After three months the Chinese investors will quote the prices at which they intend to sell the renewable energy, the official said.

Pakistan wants to capitalise on renewable energy to meet its growing power requirements, preserve the environment and encourage investments.

China plans to invest in the renewable energy sector in Pakistan by setting up wind and solar power plants in Punjab and Sindh. About 1000 MW wind and 100 MW solar energy will be generated in Sindh, while 1000 MW wind and 200 MW solar energy will be produced in Punjab, over the next three years.

http://www.technologytimes.pk/mag/2011/jan11/issue01/price_formula_may_derail.php