Daily Times

The Senate on Friday unanimously passed the Private Power and Infrastructure Board (Amendment), Bill, 2023 aimed to ensure operational efficiency and support the accelerated pace of renewable energy development in the country and facilitate investors.

The bill was moved by Minister of State for Law and Justice Malik Shahadat Awan. According to Statement of Object and Reasons, the Alternative Energy Development Board (AEDB) was created in 2003 to develop and generate renewable energy. However, it has similar functions to the Private Power and Infrastructure Board (PPIB), which causes duplication of efforts and resources.

Therefore, it is proposed that the AEDB should merge with the PPIB to create a one-window operation and facilitate investors. Additionally, the merger is part of the overall scheme of the Competitive Trading Bilateral Contract Market (CTBCM), which envisions an Independent Auction Administrator (IAA) for conducting auctions/biddings on behalf of DISCOs for procurement of new power generation capacity.

Originally, the Alternative and Renewable Energy (ARE) project development was within the mandate of PPIB through Policy for Power Generation Projects 2002 and short, medium, and long-term targets were envisioned thereunder. From the administrative perspective, the AEDB is essentially tasked with the similar functions as that of PPIB’s, except that its scope is limited to development of ARE projects, resulting in duplication of functions, resources and efforts. The existence of AEDB as a separate administrative unit is contrary to the spirit of “one-window operation” and “ease of doing business”, as investors have to deal with two different entities, having similar mandate and scope to work.

lt also runs contrary to concept of creating synergies for optimum output and undermine the concept of cost and resource effectiveness. lt is now a serious apprehension that with the current structure and resource, the AEDB may not be able to match the expectation of accelerated pace of GOP’S renewed focus on ARE development in Pakistan that has been set out in ARE Policy 2019.

The merger of AEDB into PPlB is also part of the overall scheme of the Competitive Trading Bilateral Contract Market (CTBCM), which envisions an independent Auction Administrator (lAA) for conducting auctions/biddings on behalf of DISCOs for procurement of new power generation capacity. Thus, it is imperative that IAA functions are carried out by a single entity. For reasons above, it is felt that the AEDB might be merged into the PPIB, which had been in existence since 1994, and had therefore developed the requisite skill set and ability to act as a one window/ facility for all segments of the energy sector. The merger of AEDB into PPIB will not only pave the way for smooth and seamless development and processing of power projects of all technologies including ARE projects but it will also ensure operational efficiency and facilitate investors by extending a true one-window for all technologies.