Wind projects: KE’s Dhabeji grid station, NTDC line to reduce power cuts: PPIB

ISLAMABAD: The Private Power and Infrastructure Board (PPIB) has said that KE’s 220 kV Dhabeji Grid Station and transmission line of NTDC will reduce curtailment of power from existing wind projects.

Recently, Wind Independent Power Producers (WIPPs) wrote to the government that all currently operational wind projects have been experiencing curtailments for a considerable period. However, these curtailments have increased exponentially since 2022, mainly due to low local demand in the HESCO area and system-wide transmission constraints.

According to the PPIB, wind projects are compensated for grid unavailability using the Non-Project Missed Volume (NPMV) concept, initially intended for temporary or remote situations such as grid outages or scheduled maintenance. Consequently, the NPMV formula outlined in the Energy Purchase Agreement (EPA) undervalues the energy (and revenue) loss experienced by wind projects when calculating compensation.

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As a result, wind projects struggle to achieve their break-even point, determined by their respective capacity factors upon which NEPRA determined their tariffs.

The PPIB is of the view that to address the curtailment challenges experienced by wind Independent Power Producers, it is essential to eliminate system-wide transmission constraints. This will require significant time, as it necessitates the construction of the Matiari - Moro - Rahim Yar Khan 500 kV transmission line, full utilization of HVDC line, as well as the deployment of Battery Energy Storage Systems (’1000 MWh) in the South, among other reinforcements.

The PPIB is also of the view that with the completion of the KE’s 220 kV Dhabeji grid station, currently under construction and expected to be operational by June 2024, and its subsequent connection to the NTDCL’s Jhimpir-II grid station, a substantial amount of power can be efficiently evacuated through the KE system. This will contribute to a reduction in the curtailment of power from existing wind projects.

During a meeting held on January 04, 2024, it was agreed that NTDCL will expedite the construction of a 220 kV transmission line for connectivity of Jhimpir-II Grid Station with KE’s Dhabeji Grid Station, aiming this linkage by June 2024.

Copyright Business Recorder, 2024