The National Electric Power Regulatory Authority in its meeting held Thursday approved a levelled upfront tariff of Rs 10.41/kWh for new co-generation power projects based on bagasse to be set up in the country. The announcement of upfront tariff for new co-generation projects is aimed at harnessing potential generation capacity of around 1,500 MW from bagasse - by-product of sugar mills - for supply to the grid.
This would reduce processing time and help prospective investors for fast-track development of co-generation power projects in the country. The upfront tariff will be applicable for all new co-generation projects based on bagasse with expected capacity range of 1-50 MW, to be set up as per the framework envisaged by the Government of Pakistan under the Policy for Development of Renewable Energy Projects 2006. This initiative is expected to go a long way in curbing the energy deficit that has stifled Pakistan''s economy.
Under the approved terms of upfront tariff, the energy produced from these co-generation projects will be sold to power purchaser (respective distribution companies or NTDC) at 11 kV or 132 kV level. The option for accepting upfront tariff by co-generation projects will be available for one year from the date of approval of upfront tariff by submitting an unconditional formal application to Nepra for approval by the authority in accordance with the Nepra Upfront Tariff (Approval and Procedure) Regulations 2011 and GoP Policy for Renewable Energy 2006 (approved Framework for Power Co-generation 2013 (Bagasse/Biomass). The project sponsors will be required to achieve Commercial Operations Date within two years from the date of approval of upfront tariff. -PR
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