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September 21, 2018

Saudi energy firm plans to invest Rs6 billion in solar power project

Business

September 21, 2018

KARACHI: A Saudi Arab-based energy firm has planned to invest six billion rupees in setting up a solar power plant of 50 megawatts capacity in Khyber Pakhtunkhwa, an official document said.

The company incorporated as FAS Energy Pakistan approached the National Electric Power Regulatory Authority (Nepra) to obtain a licence to set up the solar power facility in Dera Ismail Khan with an estimated investment of $47.8 million.

The document said the applicant will execute energy purchase agreement with the power purchaser, and aims to reach financial close by June next year after issuance of the generation licence and tariff determination. The expected commercial operation date of the project is March 2020, which is subject to award of tariff and execution of concession agreements.

The previous government accorded top priority to electricity generation and reduced power cuts to households and industry in its tenure. As a result, installed capacity of electricity was raised to 29,573 megawatts by February 2018 compared to 22,812MW in 2012/13, thus posting a growth of 30 percent.

Renewable energy sources contribute a negligible portion in the country’s total power generation, dominated by re-gasified liquefied natural gas (24.3pc) in March, followed by natural gas (21.3pc), furnace oil (16.1pc), coal (14.5pc) and hydropower (10pc).

FAS Energy is the renewable energy development arm of Fawaz Al Hokair group based in Saudi Arabia. Al Hokair Group, one of the largest group of companies in the Kingdom of Saudi Arabia, is involved in energy, retail, hotels and real estate business sectors and operates across Southern and Central Asia, Northern Africa, Middle East and Southern Europe.

With its branches in the Middle East and North Africa region – Jordan, Egypt and Morocco and Gulf Cooperation Council – FAS Energy presently has 300 MW of solar power projects in various stages of development. FAS Energy has so far signed two power purchase agreements for 50 MW solar power projects each with the Egyptian and Jordanian governments.

FAS Energy Pakistan is pursuing a 50MW solar photovoltaic independent power producer project near Kulachi under the terms of a letter of interest duly issued by the Pakhtunkhwa Energy Development Organization.

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