Fatima Energy seeks tariff for 120MW plant

KARACHI: Fatima Energy Limited (FEL), a wholly-owned subsidiary of Fatima Group, has applied for the tariffs of its co-generation power plant with the National Electric Power Regulatory Authority (Nepra).  

A document showed on Tuesday that the company sought tariffs for its 120-megawatt of co-generation power plant being set up in Muzaffargarh, a city in the southwestern Punjab. The plant has an estimated cost of $250 million.

FEL, in its tariff petition, mentioned that the total cost of a project will be Rs23.33 billion. It claims an annualised tariff of Rs9.5243/kilowatt hour.

The authority will take up the FEL’s tariff petition at a hearing on February 25, 2016 and would deliberate on various aspects of the petition, including 17 percent rate of return as claimed by the company.

Fatima Group is developing the co-generation power project adjacent to Fatima Sugar Mill. It will utilise bagasse along with other biomass and imported coal as fuel for the project.

The plant will be capable of generating 88.78MW of power during the crushing season, whereas the generation will be 107.54MW during the non-crushing season.

The company has already achieved financial close of the project and the company expects that the plant will be able to achieve commercial operations by mid-2016 to be able to provide power to the national grid prior to the upcoming summer season.