Advancing CTBCM – A Multi-Stakeholder Conference скачать в хорошем качестве

Advancing CTBCM – A Multi-Stakeholder Conference

July 9, 2024, 10:00 AM – 3:00 PM Ballroom C, Mövenpick Hotel | Karachi, Pakistan The Competitive Trading Bilateral Contract Market (CTBCM) is the biggest reform program in the history of Pakistan. If implemented in its true spirit, it has the potential to spur the growth of the power sector and the national economy. This newly proposed market structure seeks to draw upon numerous benefits of open electricity markets, including higher competition, improved efficiency, and enhanced consumer choice. However, amidst political and institutional turmoil, the advent of CTBCM continues to be delayed. Moreover, there has been no determination by the authority on the matter of fair and equitable wheeling / Use of System Charges (UoSC), without which electricity markets cannot open for competitive business. Amidst these delays and indeterminations, it is the Pakistani industry and businesses who are suffering the most. Reliable and cheap electricity is a fundamental requirement for any industry and in Pakistan, this requirement is not being met. Costly power purchase agreements and poor planning decisions on the part of the government have resulted in exorbitant prices of electricity. Going forward, the industrial and business sectors must be allowed to make their own decisions and empowered to freely buy and sell electricity in a competitive setting according to their needs. Another important aspect of the CTBCM model is the potential it holds for the advent of renewable and clean energy sources. In Pakistan, despite being the cheapest sources of electricity, solar and wind technologies have not seen their shares rise in the national generation mix. The reasons behind this catastrophe include failure on part of the government to conduct timely auctions in a participatory and inclusive manner, low investor confidence due to political and institutional turmoil, lack of transparency and efficiency in planning and operation, delays in payments and excessive curtailments. By reducing reliance on inefficient state machinery and providing more freedom to the market participants, CTBCM promises a way towards securing new investments in RE (Renewable Energy) and holds the hope of recovering confidence in the business sector. Another key factor that emphasizes the importance of CTBCM for export-based industries is the increase in international regulations and compliance requirements to reduce GHG (greenhouse gas) emissions. Policies such as the EU’s Carbon Border Adjustment Mechanism (CBAM) and major global brands’ net-zero commitments mandate Pakistan’s industrial sector to cut down its emissions to net zero by 2050 along their entire supply chains. Clean and green electricity sources are rapidly moving from merely providing a competitive edge to a non-negotiable business condition for industry players. Page 2 of 3 With potential renewable electricity costs falling below 4 cents per unit, CTBCM offers a prospect for industry players to secure clean electricity directly from RE developers through direct bilateral contracts and green power purchase agreements, thereby reducing their Scope 2 emissions and advancing towards the net zero goal. Under this setting, RECs, green bonds, and climate finance instruments can also play a huge role. Countries such as the Philippines, Brazil, and India have successfully implemented similar reforms successfully and Pakistan can draw valuable lessons from their experiences to enhance its RE landscape. The power sector of Pakistan today stands at a critical juncture as the fate of CTBCM hangs in the balance. To discuss the larger significance of CTBCM for the industry and to convey the demands of Pakistan’s industry to the government, Renewables First (RF) and Pakistan Environment Trust (PET) have planned a multistakeholder conference in the nation’s economic heart, Karachi. The event will convene major industry leaders, government officials, RE developers, and financiers from banking and market landscapes to discuss what CTBCM is, why it is necessary for the industry, and advocate for its timely implementation by the government.