ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) conducted a public hearing to deliberate the grant of concurrence application submitted by Korean firm M/s LSG Hydro Power Limited.
The company is seeking NEPRA’s approval for the concurrence and compliance of technical standards for the Lower Spat Gah Hydro Power Project, along with proposing the determination of the power purchaser at the tariff stage. During the hearing, the Chief Executive Officer of Pakhtunkhwa Energy Development briefed NEPRA on the Lower Spat Gah Hydro Power Project.
He informed the Authority that the Government of Khyber Pakhtunkhwa has successfully attracted $1.03 billion in Foreign Direct Investment through a Government-to-Government (G2G) agreement with the Republic of Korea.
The Government of Khyber Pakhtunkhwa will also invest 26 percent equity and has initiated the PC-1 approval process. Stressing the project’s significance, he highlighted its potential to bring economic stability to Upper Kohistan, the least developed district in KP.
Projections indicate that the project will generate 7,000 skilled and semi-skilled jobs, marking a milestone as the first Public-Private Partnership Hydro Power project initiated by the Government of Khyber Pakhtunkhwa.
According to Chief Operating Officer Choi HoonJoon Lower Spat Gah Hydro Power Plant is a high-head run-of-river project designed as a peaking power plant. Its peaking capability will help mitigate grid stability issues. He emphasized the strategic location, only 660 meters from the 765 kV NTDC line, ensuring remarkably low transmission costs when connected to the national grid. After debt repayment, the project is anticipated to produce electricity at 11.51 Rs/kWh, significantly lower than existing thermal power projects, with the government purchasing electricity at 60 Rs/kWh from certain power plants.
Lower Spat Gah is part of a cascade project, with two upstream projects totaling over 600 MW. Once operational, the infrastructure developed for Lower Spat Gah will facilitate harnessing power from upstream projects at an even more economical rate.
Copyright Business Recorder, 2023