Pakistan, like other developing countries of the region, is facing a serious challenge of energy deficit. Renewable Energy (RE) resources can play an important role in bridging this deficit. More importantly, RE can also play an important role in rural electrification. Realizing the importance of RE, the Government of Pakistan created the Alternative Energy Development Board (AEDB) in May 2003 to act as the central national body on the subject of Renewable Energy. The main objective of this Organization is to facilitate, promote and encourage development of Renewable Energy in Pakistan with a mission to introduce Alternative/Renewable Energy at an accelerated rate to achieve 10 percent share of RE in the energy mix of the country. The current initiative is directed towards creating a market-based environment that is conducive to private sector investment and participation. The AEDB provides a one-window point of operations for investors in the alternate energy sector. They perform all of the functions of the PPIB for alternate energy projects below 50 MW. This is done in order to reduce the timeframe required for the completion of these projects, which are deemed essential to meet Pakistan's short term and long-term energy requirements. Due to this, alternate energy projects to not go through the PPIB. Another one of the mandates of the AEDB is to form international associations in an effort to transfer foreign technology and expertise to Pakistan. It is their objective to reduce the cost of alternate energy by transferring as much of the manufacturing process to Pakistan as possible Following are the main functions of PPIB:

-  To provide " One-Window" facility to investors in the private power sector by acting as a one-stop organization on behalf of all ministries, departments and agencies of the GoP in matters relating to establishing power projects in the private sector.

-  To issue Letters of Interest (LoIs) and Letters of Support (LoSs) on behalf of the GoP, and execute Implementation Agreements (IAs).

-  To negotiate the IAs and to provide support in negotiating PPAs and other related agreements.

-  To liaise with the concerned local and international agencies for facilitating and expediting the progress of private sector projects.

-  To process solicitation of projects and entertain unsolicited proposals for establishing private power projects.

-  To assist private investors in obtaining consents and licenses from various agencies of GoP and the Provincial Governments.

-  To act as a mediating organization on behalf of the GoP on issues/disputes arising among IPPs, WAPDA /KESC, Provincial Governments etc.

-  To assist the NEPRA (power sector regulatory authority) in determining and approving the tariff for new private power projects.

-  To prepare, conduct and monitor litigation and international arbitration for and on behalf of GoP.