Islamabad: The Ministry of Water and Power has refused to endorse the world’s highest solar tariff announced by the National Electric Power Regulatory Authority (NEPRA) in relation to two solar projects. The tariff rate for these two projects are Rs19.2 per unit for its first 10 years and for the next 15 years it will fall down to Rs8.6 per unit.
Water and power ministry has also filed a review petition with the regulator for reduction of tariff in regard to these projects. Originally, the tariff for solar power projects was Rs21 per unit, which now had decreased to Rs14 per unit due to decreasing energy prices globally, as per a government official. He also mentioned that the government had been promoting a reverse building policy in order to further decrease tariffs for solar-powered projects which would allow to pass on the relief to energy consumers.
NEPRA had been approached by the sponsors of these two projects to sign off this project at a tariff of Rs21 per unit when the actual prices were Rs14 per unit. The sponsors stated that since their projects were old, they were bound to be offered rates of Rs21 per unit, which the power ministry strongly rejected. The sponsors then filed a case in the Islamabad high court, which decided in their favour and NEPRA then notified the tariff rates in light of this decision.
