The National Electric Power Regulatory Authority (Nepra) has amended its regulations to exempt renewable energy projects established under the Inter-Governmental Commercial Transactions (IGCT) Act, 2022, and projects committed under the Indicative Generation Capacity Expansion Plan (IGCEP) 2021 from the purview of the NEPRA Act.Â
According to a news report, the decision was made through a split vote, highlighting divisions within the authority. The amendments were passed with a majority vote of three, including Chairman Waseem Mukhtar, Member (Law) Amina Ahmed, and Member (KP) Maqsood Anwar Khan. However, Member (Finance and Tariff) Mathar Niaz Rana and Member (Technical) Rafique Ahmad Shaikh, representing Sindh, opposed the changes, citing concerns over exemptions tied to IGCEP 2021 projects.
The amendments were crucial as the government and Saudi company ACWA Power near an agreement to establish a 600 MW solar project in Kot Addu under the IGCT framework.Â
Saudi investors have sought clear assurances to facilitate investments, while discussions with Chinese firms for similar projects are also underway.
The draft memorandum of understanding (MoU) for the Kot Addu project has been reviewed and revised by the Pakistani side and vetted by the Law Division.Â
The Power Infrastructure Board (PPIB) has addressed all queries from ACWA Power and shared updated responses with the Saudi company and Pakistan’s embassy in Saudi Arabia.
The PPIB further noted that the development of large-scale solar PV projects under the MoU would be subject to their inclusion in the approved IGCEP 2024, which is currently being finalized. Commercial viability will also play a key role in determining project feasibility.
Additionally, Nepra’s amendments address technical issues related to IGCEP 2021, where some projects, including the Gorkin-Matiltan Hydropower Project, were stalled despite partial completion. The changes will benefit approximately 400 MW of committed projects, enabling their continuation.
