Norwegian energy firm seeks tariffs for solar plants

KARACHI: A Norwegian energy firm sought tariffs for its proposed 150 megawatts peak (MWp) solar power projects to be set up with an estimated cost of around $150 million from the power regulator, aiming to benefit from the government’s attractive policies for renewable energy sector.  

Scatec Sukhur BV, a subsidiary of a world’s leading solar energy provider Scatec Solar of Norway, sought tariffs for its three solar power plants with 50MWp of capacity each, National Electric Power Regulatory Authority (Nepra) said in a statement on Thursday.

The plants are to be installed in Sindh and expected to start power generation by end of 2018. Scatec Sukkur is developing these solar photovoltaic stations in a joint venture with Nizam Energy Pvt. Ltd with a cost of $48 million each. 

The joint-venture wants a levelised tariff of 5.9574 cents/kilowatt hour (kWh), which is 37 percent lower as compared to tariff determined by Nepra in 2016 and 45 percent below than what was set in December 2015. Analysts said government policies, especially feed-in-tariff regime, have become attractive for investors in renewable energy sector. 

Alternative Energy Development Board has so far issued at least seven letters of support and 17 letters of intent for various solar projects to generate a total of 556.52MW. Analysts said Pakistan receives one of the best solar irradiation in the world and has a potential to produce more than 2.324 million megawatts of electricity per annum through solar, thermal and photovoltaic systems, but this potential is yet to be tapped.

Solar irradiation in Pakistan and India stand at 1,900kWh/m2 as against China's 1,500 and Germany's 1,200kWh/m2.

Analysts said energy crisis jeopardised the country’s economic progress and social development in the past. Major reasons for power shortfall were lack of investment, non-development of hydro, wind and solar resources – having immense potential – and depleting oil and gas reserves.

“It is imperative for Pakistan to explore indigenous and cheap energy resources for sustainable growth,” an analyst said. “One of the utilisable resources is solar power generation. Although it is a relatively new technology in Pakistan solar power has a proven track record of commercial viability worldwide.”