KARACHI: The National Electric Power Regulatory Authority (Nepra) has awarded tariff to three wind power producers for a cumulative generation capacity of 151MW.
Western Energy (Pvt) Ltd had sought a levelised tariff of Rs8.0906/kWh over the tariff control period of 25 years for its 50MW plant proposed to be setup in Jhimpir, Sindh. However the authority after due consideration has granted a levelised tariff of Rs5.2161/kWh.
Similarly, Master Green Energy Limited has proposed a levelised tariff of Rs7.605/kWh for its facility being setup in Jamshoro, Sindh. The authority granted the tariff of Rs4.9563/kWh for a controlled period of 25 years.
Shaheen Renewable Energy Limited sought a levelised tariff of Rs8.0215/kWh over the tariff control period of 25 years for its 51MW plant proposed to be setup in Bholari, Sindh, for which the authority after due consideration has granted a levelised tariff of Rs5.2985/kWh.
According to the tariff determination, in case the power producer secures full or part of local conventional loan, then the tariff will be adjusted at the time of commercial operations at applicable KIBOR + spread of 1.75 percent. In case the power producers secures full or part of foreign conventional loan, then the tariff will be adjusted at the time of commercial operations at applicable LIBOR + spread of 4.25 percent. The tenor of the debt servicing will not be less than 13 years for these loans.
In case the power producer secure foreign loan under any credit insurance (Sinosure etc), then the cost of that insurance will be allowed to the maximum limit of 0.6 percent of the yearly outstanding principal and interest amounts. For that purpose, the spread over that full/part of loan will be considered as 3.5 percent as the maximum limit.
Regarding the award of tariff for renewable energy projects through competitive bidding, vide its decision dated January 27, 2017 in the matter of wind power generation tariff, the authority decided to allow induction of wind energy through competitive bidding and directed the relevant agencies to develop Request for Proposal (RFP) for that purpose. Due to non-finalisation of RFP by any agency after the lapse of considerable time period, the process of competitive bidding has not taken place.
Further, the authority through a decision dated May 30, 2017, passed in the review motions of the government of Sindh clarified that submission of tariff petitions under the Tariff Rules, 1998 is permissible.