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Progressive Localization of Power Sector Equipment

EDB has started working on formulation of five to ten years Power Industry Equipment Development Plan (PIDP) under the clause 4.5.1 of National Electricity Policy (NEP)’2021 and Indicative Generation Capacity Expansion Plan (IGCEP)’ 2021-30; “A multi-pronged approach for indigenization will be adopted, which shall include promoting local content, transfer of technology, and R&D across the value chain of the power sector. This may also include Government to Government and Business to Business agreements, through which the Government or private entities / parties in Pakistan shall promote transfer of technology. Further, steps will be taken to facilitate creation of development funds to support domestic R&D as well as resources needed for augmentation of indigenous capacity.”

 

Under Clause “4.5” of NEP’2021 and Roadmap under NE-Plan, EDB has to prepare comprehensive Policy Frame Work for the production of energy equipment within the country with the following two actions

 

S. No Action Entity Description
1 Assessment of local capability for power industry MoIP/EDB A high-level capability estimation of local industry for production of power industry equipment.
2 Power Industry development Policy & Plan (PIDP) MoIP/EDB A detailed policy & plan for power industry:
•        Incentivizing power industry
•        Design standardization
•        Development, manufacturing & assembly
•        Technology upgradation of local industries capabilities (5-10 years plan)

 

Engineering Development Board (EDB) with assistance of PPMC and relevant stakeholders shall develop Power Industry Development Plan (PIDP) by December 2022, to enable progressively increasing share of indigenous equipment/components in power sector. PIDP shall identify requisite actions and corresponding timelines on account of, inter-alia, incentives, legislation, standardization, certifications, technological upgradations. Provided further, the targets under PIDP shall be deemed part of this National Electricity Plan.

EDB has started consultation with the concerned stake-holders in power sector including the operators, manufacturers and service providers. Operators of power equipment in the areas of Generation, Transmission and Distribution (i.e. NTDCL, GENCOs, DISCOs) are requested to share total requirement of power equipment, (being procured locally or imported) and issues being faced in procurement of locally produced power equipments. Whereas, local manufacturers of power equipments (transformers, cables, switchgears, insulators, energy meters, isolators, hardwares, etc) and EPC/Construction service providers have been requested to provide details of the power equipment being manufactured locally, capability, capacity and service offered.

 

Tentative power equipment is given below:

 

Power Industry Equipment
Generation Transmission Distribution
Boilers •        For Baggasse based PPs

•        Coal based PPs

•        Combined Cycle PPs

•      Potential transformers

•      Current transformers

•      Power transformers

•      Surge arresters

•      Circuit breakers

•      Switches

•      Protective relays

•      Lightening arresters

•      Switch gear Equipment

•         Transformer

•         Meter

•         Structure

•         Pole

•         Insulator

•         Hardware

•         T&P

•         Safety Items

•         Cable

•         Conductor

Turbines •        Steam Turbines

•        Gas Turbines

•        Wind turbines

•        Francis, Kaplan, Pelton, etc.

Transformers •        Power transformers
•        Auto Transformers etc.
Solar Technology •        Solar Panels
•        Inverters
•        Other Related equipments.

 

Way forward:

 

  1. Requisite information from all the stake-holders is being follow-up.
  2. Subsequent upon information received from the all stake-holders, EDB in consultation with PPMC will work out Power Sector Resource Requirements (PSRR) and will start drafting the Power Industry Development Plan (PIDP);
  • Central Power Purchasing Agency (CPPA), Ministry of Energy, is also assigned the task to assist in preparation of progressive content localization for power sector equipment.
  1. The PIDP shall cover the development of Generation, Transmission and Distribution power equipment viz-a-viz assurance to local manufacturer to safeguard its investment towards localization. PIDP shall identify future requirements related to capacity, technology and exports on year to year basis.

 

 

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