Nepra issues generation licence to Chanar Energy Ltd

KARACHI: The National Electric Power Regulatory Authority (Nepra) has issued a generation licence to Chanar Energy Limited for a 22MW baggase / biomass-based cogeneration facility being setup in Faisalabad, a statement said on Tuesday.

The power sector of the country is experiencing a demand-supply gap. In order to reduce the deficit, all efforts are being made to develop indigenous, as well as imported resources. The government of Pakistan has set up Alternative Energy Development Board (AEDB) for the development of renewable energy resources in the country, it said.

Further, the government through AEDB formulated the Policy for Development of Renewable Energy for Power Generation 2006 (the RE Policy) for the development of small hydro, wind, and solar technologies.

Later, the government amended the scope of the policy to include power projects based on bagasse, biomass, waste-to-energy and bio-energy, using high pressure boilers. The government also extended the applicability of the policy to be continued for an additional five years with effect from March 6, 2013, the statement added. In accordance with the amendments, the AEDB issued letter of intent (LoI) to different entrepreneurs / power developers, including Chanar Energy Limited (CEL).