EU-funded mini hydropower project gets tariff

KARACHI: National Electric Power Regulatory Authority (Nepra) awarded Rs3.572/kilowatt-hour (kWh) to the European Union (EU) funded two megawatts Birmogh Golen hydropower project in Chitral, a document showed on Monday.

Sarhad rural support program (SRSP) submitted tariff petition for determination of cost-plus tariff for the mini hydropower project being set up at a cost of Rs383.2 million. Tariff is on take-and-pay basis.

European Union granted SRSP a financial award worth 40 million Euros for the development of sustainable and innovative initiatives in order to eliminate poverty, curb employment, and initiate capacity building through mobilisation of the locals in Chitral district.

SRSP intends to provide electricity to the locals through tapping the hydropower potential in the district and achieve the objectives of poverty elimination and community building.

Sarhad rural support program said the construction phase of the project has been completed and the project is ready to undergo testing and commercial operations.

Since the project’s sponsor has not obtained letter of intent from any facilitating agency of the government, SRSP will bear up any hydrological risk and in case of non-availability of water flow the power purchaser Central Power Purchasing Agency will not make capacity payments.

Nepra said the project won’t receive incentives, which are generally available to other projects, as SRSP couldn’t take the relevant government agencies onboard. SRSP said it would ensure that hydrological risks don’t affect other projects in the vicinity.

Nepra directed SRSP to ensure that all funds generated from sale of electricity would be utilised for smooth operation of the plant and, empowerment and economic development of the local community. It was asked to periodically inform the authority about the fund utilisation.

Hydropower potential of Gilgit-Baltistan is estimated at 50,000 megawatts. Total 7,400 megawatts can be generated at a power plant alone in Bunji with two additional projects of 2,000 megawatts each upstream from the location.

Government has recently approved two hydropower projects, namely Attabad and

Ghwari that would produce more than 60 megawatts of electricity.