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Thursday March 28, 2024

Nepra processes 46 licences for generation of 7,314MW

KARACHI: The National Electric Power Regulatory Authority (Nepra) remained quite proactive during the outgoing fiscal year, which reflects the commitment of the government towards resolving the energy crisis. An analyst said Nawaz Sharif had his eyes fixed on the power sector, as he wouldn’t want the crisis threatening his rule.

By Javed Mirza
September 29, 2015
KARACHI: The National Electric Power Regulatory Authority (Nepra) remained quite proactive during the outgoing fiscal year, which reflects the commitment of the government towards resolving the energy crisis.
An analyst said Nawaz Sharif had his eyes fixed on the power sector, as he wouldn’t want the crisis threatening his rule.
During the year ended June 30, 2015, a total of 13 applications were processed with a cumulative installed capacity of 5,294MW for the conventional Independent Power Producers (IPPs). Generation licences were issued to eight applicants, while the rest are in advanced stage of processing.
Renewable energy projects, especially wind, solar and biomass were initiated under the Policy for Renewable Energy. During the period under review, 33 projects, with cumulative capacity of approximately 2,019.58MW were processed. Of these, 22 applicants have been granted generation licence, while the rest are under process.
Moreover, seven applications, with the accumulative installed capacity of 86.75MW by different sugar and textile mills approached Nepra for supplying surplus power to the national grid through their respective distribution companies. Four of these applicants were granted licences, while the rest are under consideration.
According to the Annual Report 2014-15 issued on Monday, Nepra has taken landmark decisions to mitigate the power crisis in the country. One of the major steps in this direction was determination of upfront tariff for solar power plants.
Nepra is determined to tap into this renewable potential and is proactively addressing various issues on this front such as its connectivity to the national grid.
In another major landmark decision, tariff for small hydro plants was determined. Comparatively small capital investment and short gestation periods will be the hallmarks of these projects, according to the report.
Given the fact that the coal-based power generation remains one of the cheapest sources of electricity, the authority undertook determination of upfront tariff for the coal-fired power plants to incentivise coal-based power generation.
On similar lines, the authority approved upfront tariff for RLNG-based electricity generation, which would encourage addition of 3,600MW of the much-needed energy to the national grid.
The upfront tariff for wind power was determined afresh and issued in June 2015.
In order to encourage and incentivise private investment in the field of power transmission, Nepra has finalised the grant of first special purpose transmission licence to a private entity for constructing and owning transmission lines; an area, which is inherently considered a public sector domain.
Special Purpose Transmission regime would not only enhance the existing transmission capacity, but will also result in installation of new power transmission infrastructure. It is expected to revolutionise the sector by significantly reducing the bottlenecks in the transmission system and would ensure efficient evacuation of electricity, reduced line losses and O&M costs.
In order to encourage and facilitate power generation, Nepra has formulated necessary guidelines for wheeling of electricity, guidelines for the sale of renewable energy, net metering guidelines and tariff methodology guidelines for expediting multiyear tariff regime.