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National Electric Power Regulatory Authority Of Pakistan Publishes Proposed Revisions To Feed-In Tariffs

The National Electric Power Regulatory Authority (NEPRA) of Pakistan has published its proposed revisions to feed-in tariffs for solar electricity projects in two regions generating between 1-100MW of capacity.

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According to PVTECH, the notice of “Suo Moto proceedings” concerned the proposed new tariffs.  (Suo moto generally refers to a situation wherein a judge acts without request by either party to the action before the court.)

NREL states a feed-in tariff is an energy supply policy promoting the rapid deployment of renewable energy resources. A FIT offers a guarantee of payments to renewable energy developers for the electricity they produce.

Following that, analyst firm Mercom Capital Group has converted the figures into US dollars regarding the lower table. Mercom’s research and consulting division provides market intelligence, industry reports and consulting services for companies in cleantech and healthcare IT industries.

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The South region of Pakistan includes the whole of Sindh and Baluchistan provinces, in addition to South Punjab. The rest of Pakistan’s provinces account for the North.

PVTECH reported NEPRA will now consider whether to determine a new upfront tariff for solar power projects or to determine a benchmark tariff is leveled for competitive bidding by the relevant agency and the proposed costs are reasonable.

Concerning FiTs, NEPRA has stated,

“The determination of tariff for electric power services is one of the primary responsibilities of NEPRA. NEPRA determines electricity tariffs, keeping in view the principles of economic efficiency and service of quality, according to the prescribed tariff standards and procedure rules 1998. In most cases under long-term PPAs, Generation Company’s tariff is determined on cost-plus basis. Distribution companies are given a multi-year performance tariff and transmission company tariff is determined on annual cost-plus basis.”

NEPRA has added a response deadline, stating stakeholders now have less than two weeks to provide an intervention to the proposals. A hearing will be held July 21 on the matter in Islamabad.

On its website, NEPRA states its main responsibilities involve:

  1. Licensing for generation, transmission, and distribution of electric power;

  2. Establishment and enforcement of standards to ensure quality and safety of operation and
    supply of electric power to consumers

  3. Approval of investment and power acquisition programs of the utility companies;

  4. Determination of tariffs for generation, transmission, and distribution of electric power.

NEPRA will regulate the electric power sector to promote a competitive structure for the industry and to ensure the co-ordinated, reliable and adequate supply of electric power in the future. By law, NEPRA is mandated to ensure that the interests of the investor and the customer are protected through judicious decisions based on transparent commercial principals and that the sector moves towards a competitive environment.

Images via Shutterstock & Mercom Capital Group




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