Global and local insurance companies are exploring opportunities in the upcoming energy projects worth billion of dollars across the country through customized protection solutions on technical and financial aspects.
Speakers at the Energy Summit: Fostering Growth, Collaboration, and Resilience in Pakistan’s Energy Mix highlighted the critical importance of insurance to enhance the sustainability of power projects and refineries while attracting foreign direct investment in these sectors.
Various hydropower projects are being developed in Pakistan, including Bunji (7,100 MW), Diamer Basha (4,500 MW) in Gilgit-Baltistan, Thakot (4,866 MW), and Dasu (4,320 MW) in Khyber Pakhtunkhwa. The government developed a policy under three objectives, including universal access to energy, doubling the share of renewable energy, and doubling the rate of energy efficiency and conservation.
In this regard, the target has been set: 60% of Pakistan’s energy will be clean and renewable by 2030. It is noteworthy to mention here that Pakistan’s solar and wind power potential is over 40,000 megawatts. Also, 30% of vehicles will be electric by 2030. The Sustainable Development Goals (SDG 7), which called for universal access to clean and sustainable energy, were indispensable for progress on all 17 SDGs as well as climate goals.
These projects are being developed with public funds and financing from different agencies. Moreover, various countries are planning to invest in Pakistan’s energy sector, mainly China and the Kingdom of Saudi Arabia.
In recent years, these two countries announced mega projects in the energy sector. China will construct the largest civil nuclear power plant to produce 1,200 megawatts of electricity daily for the national grid at estimated to cost at least $3.5 billion.
The plant is known as Chashma-5 will be completed by 2030. Kingdom of Saudi Arabia planned to install 500 megawatts of renewable energy projects worth $4.5 billion in Baluchistan and a $10 billion mega oil refinery in Gwadar.
Distinguished speakers addressed the conference including Ata Khatib, Chairman Lockton MENA; Dr. Jason Shirley, General Manager at ECP Energy and Chemical Professionals; Phil Pavey, Senior Underwriter at GCube Insurance Services; Pavel Chernoverkhskiy, Chief Underwriting Officer at Zurich Insurance Company; Khurram Ali Khan, CEO of Fidelity Insurance Brokers, along with other Industry leaders representing Independent Power Producers (IPPs) within Pakistan, Oil and Gas regulators, and accomplished insurance experts.
This is a good effort to meet future energy requirements with a particular reference to Pakistan. The other important thing is insurance coverage or to provide protection for these projects. Mr. Khurram Ali Khan has served insurance industry by providing reinsurance arrangements and facultative. I appreciate his endeavor.