Raza Khan

The textile industry has urged the government to remove hurdles in its transition to renewable energy resources. “The government needs to address legislative hurdles, limit of net-metering scheme for solar power and re-regulate wheeling of energy,” says the All Pakistan Textile Mills Association (APTMA) in its report on transition to clean energy. The limit of the present net-metering scheme for the solar power systems of the industry is 1MW, which needs to be extended to 5MW, the report says.

“The industry should be permitted to install its own solar power structures with the extension of net-metering scheme for solar from 1MW to 5MW. This would enable the export-oriented units (EOUs) to become competitive in the international market with lower energy costs and increase the share of renewables in the total energy mix,” the report adds.

The Association says the government’s plan to launch solarisation projects of around 14,000MW would not only reduce the import bill of costly fuel but also help generate low-cost and environment-friendly electricity. It also demands that the wheeling regulations must incorporate the wheeling of renewable energy and the associated wheeling cost must be reduced for any industrial off-site installation of renewable power infrastructure.

The report further suggests that Pakistan needs to move towards free market models with multiple buyers and sellers to revive the power sector and make it transparent. The APTMA demands that the government should legislate to encourage the industry’s transition to clean and renewable energy. “The government must address the existing limitations of net-metering scheme for solar, wheeling charges and continue providing regionally competitive energy tariffs for the industry to regain sustainable progress and transition to renewable energy,” the report suggests.

“The government support will help the industry utilize the country’s current renewable energy potential to the maximum, reduce reliance on fossil fuels and enhance competitiveness in the global export market,” says the report. “If Pakistan brings into play this untapped potential in all the major sectors by implementing exemplary policy reforms, a massive decoupling from the conventional energy resources such as fossil fuels can add to the existing efforts on climate resilience,” the report adds.

According to Shahid Sattar, Secretary General APTMA, the textile industry’s manufacturing processes are energy intensive, with 10% of greenhouse gas emissions coming from the production of apparel and footwear. Sattar said all major steps involved in textile manufacturing (raw material production, harvesting, dyeing, and dumping of used textiles) and their discarding emit GHGs into the atmosphere.

“Pakistan has tremendous potential to fulfil its growing energy demand from the renewables including solar, wind, hydro, geothermal and biomass,” he added. Solar is the most attractive alternative energy solution and Pakistan’s southwestern region receives the highest irradiation, Sattar said. “Moreover, the International Renewable Energy Agency estimates that Pakistan’s hydropower sector has a potential of 60GW and it remains the cheapest source of power in the country,” said the APTMA secretary general.

“Transitioning to renewable energy solutions is not only cost and resource-effective for the textile industry, but also enhances the sector’s overall compliance of the global standards on energy efficiency,” Sattar said.  According to a World Bank report, renewable energy expansion will make electricity cheaper, enhance energy security and help save up to $5 billion over the next 20 years.

Credit: Independent News Pakistan-WealthPk