NEPRA to determine reference generation tariff for 13.80MW wind power project

ISLAMABAD: Burj Wind Energy Private Limited has asked National Electric Power Regulatory Authority (NEPRA) to determine the reference generation tariff for its 13.80MW wind power project for the proposed sale of power to Central Power Purchasing Agency (CPPA).

Official documents available with Pakistan Today disclose that Burj Wind Energy Private Limited, in a tariff petition, has sought from NEPRA to determine a levelised tariff at Rs8.1161 per kWh for its 13.80MW wind power project for the proposed sale of power to CPPA. The tariff for year 1-13 is proposed to set at Rs9.2318kWh, while Rs4.1007kWh for year 14-25 and fix levelised tariff at Rs8.1161kWh is requested by Burj Wind Energy Private Limited. Also, NEPRA has called a hearing on August 08, 2018 to settle Burj Wind Energy’s petition.

“All stakeholders, interested/affected persons and the general public are notified that the Authority (NEPRA) has admitted the petition of Burj Wind Energy (Pvt.) Limited for consideration under NEPRA Tariff (Standards & Procedure) Rules, 1998,” said a public notice of NEPRA, dated July 24, 2018.

NEPRA, in an official notice, has invited all stakeholders, interested/affected persons and the general public to attend the hearing and submit comments/opinion in this regard.

It is also learnt from the document that NEPRA in its scheduled hearing on August 8, 2018, will discuss in detail whether the details provided for EPC cost are sufficient and whether the claimed EPC cost is competitive and comparative and based on the firm and final agreement(s)? Similarly, whether the NEPRA (selection of EPC contractor by IPPs) guidelines, 2017 have been complied with? Likewise, whether the details provided for non-EPC cost are sufficient and claimed non-EPC cost is justified and whether the claimed O&M (operation and maintenance) cost are justified? More, NEPRA has further urged to provide justification for the land requirement as claimed by the petitioner.

Furthermore, NEPRA will take up whether the petitioner’s proposed wind turbine technology satisfies the international standards of quality and operation and whether the claimed insurance during operation cost is justified and whether the claimed return on equity is justified? Last but not least, NEPRA would look into the justifications of claimed financing /debt terms and whether the claimed construction period is justified?

It is worth mentioning here that any interested/affected person may participate in tariff setting proceedings. In terms of rules 6 and 7 of NEPRA (Tariff Standards and Procedure) Rules, 1998, any interested person who desires to participate in the proceedings may file an intervention request within from the date of publication of the notice. Such intervention request shall state the name and address of the person filing the same, objections and the manner in which such person is or is likely to be substantially and specifically affected by any determination in the proceedings. The intervention request may also contain the contentions of the person making the same, the relief sought and evidence if any in support of the case.

Besides, any person may also file the comments in the matter and the authority, if deemed fit, may permit participation of such person into the proceedings and may also consider those comments in the final determination.

Ahmad Ahmadani
Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected].

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