Nepra issues power generation licence

KARACHI: The National Electric Power Regulatory Authority (Nepra) has granted generation licence to China Power Hub Generation Company for their 1,320MW (660x2) coal-fired plant to be setup in Hub.

The proposed project is a joint venture of the Hub Power Company Limited (Hubco) and China Power International Holding Limited (CPIHL).

According to the Board of Investment, uninterrupted and affordable supply of energy is the backbone for industrial growth, as well as attracting foreign direct investment in the country.  The Board of Investment supports the grant of generation licence subject to the tariff being consumer-friendly and competitive with the neighbouring countries.

The Directorate General of Mines and Minerals, Balochistan has appreciated the establishment of 1,320MW thermal power plant at Hub and proposed that coal resources of the province may be used in these power plants to promote coal industry of the province.

An official at the National Transmission and Dispatch Company (NTDC) said that a 500kV double circuit transmission line from the Hub Power Company Limited to Matiari has been proposed for interconnection of the project with the national grid.

PC-I has been sent to the Planning Commission for approval, the official said.

In order to implement the initiative, the government has setup Private Power Infrastructure Board (PPIB) as a one-window facilitator for the entrepreneurs interested in setting up new generation facilities. PPIB has issued letter of intent (Lol) to various local and foreign investors and groups so far.

Nepra in its determination said the current energy mix of the country is skewed towards the costlier thermal generation facilities / power plants operating on furnace oil.

Import of relatively expensive furnace oil results not only in depletion of the precious foreign exchange reserves, but it is also affecting the macro and micro stability of the country.

Therefore, an increase in the consumer-end tariff is experienced, which not only results in higher inflation, but it also affects the competitiveness of the local industry with its foreign peers. In order to address these issues, the authority considers it imperative that efforts must be made to change the energy mix towards cheaper fuels.