RfP for solar PV project: PPIB seeks revision in indexation, adjustment formula

ISLAMABAD: The Private Power Infrastructure Board (PPIB) has sought revision in indexation/adjustment formula, taking into account the one-time adjustment of 20 percent of the bid tariff at Commercial Operation Date (COD) for exchange rate variation, well-informed sources told Business Recorder.

The PPIB, in a letter to the National Electric Power Regulatory Authority (NEPRA) has cited reference of correspondence of NEPRA’s of September 6, 2023, whereby the decision on the PPIB’s review motion for amendment to the Request for Proposal (RfP) has been issued in line with the Framework Guidelines for Fast Track Solar PV Initiatives, 2022 approved by the Federal Government.

“Though the NEPRA in the reference decision has allowed one-time adjustment of 20 percent of the bid tariff at COD for exchange rate variation, indexation/adjustment formula approved by the NEPRA in the decision (Para 121 iii) did not take into account the same,” said PPIB’s Board Secretary Fawad Hasan in his letter on the decision of the Authority in the matter of review motion filed by the PPIB in the matter of approval of RfP document for competitive bidding of 600 MWp solar PV project.

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Accordingly, the NEPRA has been requested to provide revised indexation/adjustment formula, taking into account the one-time adjustment of 20 percent of the bid tariff at COD for exchange rate variation.

The PPIB argues that the tender for invitation to bid will be published in newspapers. Accordingly, the revised formula in the said regard may please be provided at the earliest enabling it to incorporate the same in the RfP documents for issuance to the prospective bidders.

It is unclear whether NEPRA which had conveyed its objections on the mechanism proposed by the PPIB, has accommodated it or not.

Further, with regard to NPCC comment noted by the NEPRA, a detailed analysis has been carried out by NTDC/NPCC wherein it has been found that no curtailments are expected in winter months and the fuel that would likely be displaced is either RLNG or imported coal.

Copyright Business Recorder, 2023