The federal government is planning to add 9,000 megawatts (MW) of solar energy to the national grid on a priority basis.
Express Tribune has reported that the government is planning to waive all the import duties and provide tax incentives to start the 9,000 MW projects under “Solar Energy Initiatives”.
According to the details, the government might invest in generating 6,000 MW of solar energy. It is also looking to initiate a project to generate 2,000 MW of solar photovoltaic (PV) on 11 kV feeders. In this regard, the government has selected various sites in south Punjab.
Alongside this, the government will also add 1,000 MW of solar energy to the national grid by solarizing the public-sector buildings.
The authorities will introduce a straight-line tariff through the single-stage, two-envelope bid process and 70 percent indexation of tariff every quarter. In this regard, It is looking to offer friendly countries with attractive tariffs.
Because of higher demand, the government could buy all the power that is generated on 25 years-BOOT (Build, Own, Operate and Transfer) basis. It is also planning to provide the land for the projects and guaranteed power off-take. The government is further planning to exempt all the investors from import duties and other taxes, while they will also be exempted from the income tax on profits and gains for the first 10 years.
The Ministry of Energy may also announce incentives for the 4MW solar generation to be installed at 11kv feeders through a bid process In this regard, the government could offer a straight-line tariff and 50 percent Pak CPI quarterly indexation with a cap of 15 percent. The solar rooftop system will also be installed through a bidding/lease process.