NEPRA and GIZ signed an MoU to advance Pakistan’s power sector!

The National Electric Power Regulatory Authority (Nepra) and Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) signed a memorandum of understanding (MoU) to strengthen Pakistan’s energy sector through regulatory improvements and the integration of renewable energy.

Pakistan’s Power sector is stuck in a complex maze of obstacles The country is facing an electricity shortfall of approximately 10-15%. The nationwide electricity demand has peaked at 26,500 megawatts, but the production capacity stands at 20,253 megawatts creating a significant power shortage. Moreover, it is reported that a 6-hour load shedding is enforced across the country and a 12-14-hour load shedding in areas of high line losses.

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH has operated in Pakistan since 1961 under the German Federal Ministry for Economic Cooperation and Development (BMZ). Furthermore, GIZ is contributing to the UN’s National Sustainable Goals as part of the EU’s team.  The focus areas of GIZ are;  climate change, energy transition, social protection and local governance, support for Afghan refugees and host communities, sustainable economic development, and vocational education and training. 

On Jan 28th a Memorandum of Understanding (MoU) was signed between the National Electric Power Regulatory Authority (NEPRA) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). The purpose of this agreement was the advancement of Pakistan’s energy sector by regulatory improvements and integration of renewable energy. Waseem Anwar Bhinder, Registrar NEPRA, and Wolfgang Hesse, Cluster Coordinator, Energy and Climate, GIZ signed MoU, In addition, senior officials from both organizations were also present. 

The MoU pivots around many key areas such as the development of a regulatory framework for battery energy shortage systems, improvement of the Distribution Code to facilitate the integration of renewable energy, electric vehicles, smart technologies, and Net Metering Regulations aligned with market dynamics. The review of transmission and distribution investment plans for grid resilience is also a part of the MoU. Furthermore, medium-term demand forecasting tools and capacity-building initiatives to support DISCO are also included in the MoU. 

This collaboration between NEPRA and GIZ signifies an important advancement in the support and development of a sustainable and efficient power sector.