cost at reasonable level.”
The cost of setting up of renewable energy-based power plants is internationally on a declining path and according to officials the government is eager that these global declines in project cost are reflected in the generation cost of the renewable projects in Pakistan. Nepra has been determining tariff of solar-based power plants on grid applications from project capacity of 5 MW to 100 MW. The tariff determined by the regulator for these power projects range from about Rs17.9 per unit which was determined and notified during early 2014 to the reduced tariff of Rs14.85 per unit through revised determination issued in January, 2015.
It is important to mention here that the higher tariff of Rs15.78 is tariff of generation only and after including debt servicing it will be Rs25.78 per unit which will ultimately impact the overall per unit price as now share of solar energy in overall power mix is increasing and has reached a substantial level.
The Ministry of Water and Power Office Memorandum sent to Registrar Nepra under No. IPPs-(Misc)/15 dated November 13, 2015 reads;
“Subject: Request for the reconsideration of the authority determination on account of tariff for solar power projects, I have been directed to state that we are in receipt of authority determination on account of tariffs for various solar power projects and this ministry would like to bring to the authority’s notice that the determination for aforementioned renewable energy projects is the one of the highest after two lower tariffs (one determined on 22-01-2015 and the other even lower for which the public hearing was held recently).
2. In these circumstances when the authority has concluded the public hearing for revision of tariffs on a lower side, the determination at an earlier higher tariff of January 2014 may not be in the interest of the power consumers.
3. It is therefore, requested that the abovementioned tariff sent to this ministry may kindly be reconsidered and revised to utilize the lowering of tariffs for all these projects.
4. This issues with the approval of the competent authority.