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Govt fails to take timely steps to save energy

Despite lapse of several deadlines, the energy efficiency programme has yet to take off, delaying distribution of energy savers that can help conserve 1,000MW, sources said on Wednesday.

The signing of the contract agreement for the CFL energy saving project has been delayed on several occasions for reasons better known to the policymakers, they said, adding that the tender for the supply of compact fluorescent lamp (CFL), also known as energy savers, was opened in the first week of November 2011 and the notification of the award was issued in the last week of February. After receiving acceptance of award in March from successful bidders, the authorities are apparently in deep slumber as nothing has been done so far, they said.

As per the rules, after notification of award, the purchaser must sign a contract agreement with successful bidder within four weeks, the sources said.

The use of energy savers is being dubbed as a major component of demand side management (DSM) initiative with a view to curb the use of electricity. It includes implementation of policies and measures, which serve to control and generally reduce electricity demand. However, like little success in the supply side initiatives, the government has miserably failed in taking DSM seriously, the sources added.

The CFL distribution project has seen several ups and down in the last couple of years and earlier bidding process had to be abandoned twice due to multiple factors, they said.

The National CFL programme, which aims at replacement of 30 million incandescent or power guzzling ordinary bulbs in domestic sector spread in eight distribution companies (DISCOs) and Karachi Electric Supply Company (KESC) with high quality CFLs. Energy efficiency is being considered as the least cost solution for the demand side management and to address the current power shortages.

The project envisages purchase of 30 million CFLs, which was funded by the ADB and AFD of France for $40 million and $25 million, respectively. The loan is being extended to the government of Pakistan, which will bear the cost of CFLs. CFLs are being purchased in bulk, in two rounds of 10 million and 20 million and will be distributed to domestic consumers through all the DISCOs and KESC free of cost in exchange for 40-100MW incandescent bulbs. The distribution cost will be borne by the DISCOs and KESC using their own resources, the sources said.

The project will help reduce peak demand by 1,000MW, in avoiding generation of 1,600MW and a saving of around 2,000 million units of energy equivalent to Rs17.5 billion.

The project will also yield Clean Development Mechanism (CDM) revenues of about $ 32 M by 2018. It will also help in reducing consumers bills substantially.

The electricity saved can be sold to higher tariff consumers generating additional revenues of approx $ 29 million per year for DISCOs.

The government-led free CFL distribution program have been executed in many countries of the world including Thailand, Vietnam, Philippines, Indonesia, USA and Cuba.

The PC-I for the National CFLs Project was considered by the CDWP in its meeting held on 19th November 2009 and was recommended for approval by the ECNEC. Accordingly, ECNEC after its consideration in a number of meetings approved the project on 09.12.2010.

Meanwhile, when contacted, a senior official associated with CFL project admitted delays in awarding contract to successful bidders. He said one of the reasons was declining trend in the price of energy savers after bidding process. Besides, he said, several offeres were submitted to government after bidding process that were far below the quoted price. We were busy in examining these offers that can help save millions of rupees. However, he acknowledged that both federal government and ADB concluded that we should go ahead with ongoing process of awarding contract to successful bidders.

To a question, he said, a contract agreement is being signed today (Wednesday) in this connection while similar agreement with another company would be signed in a few days.

On the other hand, according to a statement issued on Wednesday, Pakistan Electric Power Company (PEPCO) carried out supply contract of 20 million CFL on cost insurance and place of destination (CIP) under the “National CFL Project- Prime Minister Energy Saver Programme” with M/s Philips Electrical Industries of Pakistan.

Khalid Hussain Rai Project Director PMU PEPCO and Asad. S. Jaffer Chairman and CEO Philips signed the contract deed, here Wednesday at Wapda House.

The spokesman of PEPCO said this project started on the directive of Prime Minister Syed Yousaf Raza Gilani duly approved from Cabinet as well as ECNEC. Under the contract the first consignment of CFLs (Energy Savers) will be delivered to 36 warehouses all over the country within 12 weeks and free distribution of energy savers to consumers will start soon after the delivery.

The total cost of this project (20 million CFLs) is Rs2.8 billion and is being funded by ADB and AFD of France.

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