Pakistan’s power regulator to determine upfront tariff for solar and wind projects

17 February 2013 (Last Updated February 17th, 2013 18:30)

Pakistan’s National Electric Power Regulatory Authority (NEPRA) has said it will initiate suo motu proceedings to determine the upfront tariff for solar and wind power projects in the country.

Pakistan's National Electric Power Regulatory Authority (NEPRA) has said it will initiate suo motu proceedings to determine the upfront tariff for solar and wind power projects in the country.

The solar tariff will be determined on the basis of a proposed 23.2934 cents per kilowatt hour, as laid down by the Alternative Energy Development Board (AEDB).

"The solar tariff will be determined on the basis of a proposed 23.2934 cents per kilowatt hour, as laid down by the Alternative Energy Development Board (AEDB)."

For solar power companies, the installed capacity of generation should be between 1MW to 100MW, provided the authority may allow a deviation of up to 10%.

NEPRA also intends to determine a fresh upfront tariff for generation of electricity from wind power, as the most recent tariff expired on 31 December 2012.

Wind power generation companies with installed capacity between 5MW to 250MW will be eligible for the tariff, provided they are AEDB-recommended, and their plants are certified by the AEDB.

NEPRA has planned a hearing to determine the tariffs on 27 February in Islamabad, Pakistan.

"The objective of the proposed upfront as laid down by the AEDB is to minimise the procedural process, save time of tariff approval/reviews and facilitate investors in carrying out due diligence regarding financial viability and acceptability of the tariff," an official document noted.

The tariff currently being offered to independent power producers (IPPs) for wind power, coal, and thermal power based on oil and gas, ensures 18%, 20% and 15% return on equity, respectively.

NRI Technology