Hydropower project seeks tariff on cost-plus basis

KARACHI: Dhadar Hydropower Pvt Ltd has approached the National Electric Power Regulatory Authority (NEPRA), seeking tariff on cost-plus basis for its proposed 18.18MW generation facility in Mansehra, KP.

Dhadar Hydropower envisages setting up of an 18.18MW run-of-the-river, high head hydropower project at Dhadar Nullah Batakundi in Mansehra district with an estimated cost of $52.54 million. The company has sought a levelised 30-yer tariff of US cents 9.206/kWh.

The implementation of the project will help energise indigenous power resources to meet the current shortfall and future increase in the demand for electricity in the region through economical and sustainable means. Currently, Batakundi has no electricity resource, as it is not connected to the national grid.

Aequitas, the main sponsor of the project, has strong domain knowledge of energy, real estate, telecom, cement, banking, asset management, brokerage sectors and has successfully completed development and fund raising transactions for early-stage to listed companies.

Though Pakistan is deficient in oil and gas, but it has a vast potential of hydropower, coal, wind, and solar energy resources.

It is estimated that Pakistan has hydropower potential of around 60,000MW, but only 11 percent of it is being utilised for the production of electricity and the remaining potential is still untapped.

According to a report, the share of hydropower can become more than 40 percent and indigenous energy resources, as a whole, can contribute up to 80.7 percent in the supply mix for electricity production in Pakistan by the year 2030.

At the same time, the share of oil and gas, which is currently more than 64 percent, can be reduced to 11.8 percent, which is favourable for the sustainable development of the country.