ISLAMABAD: Private Power and Infrastructure Board (PPIB) is all set to extend Letters of Intent (LoIs) for 12 months, issued to three solar PV projects falling under category–III, well-informed sources told Business Recorder.
The decision was taken at a recent meeting of Projects Committee of PPIB, presided over by Additional Secretary, Planning Division (nominee of Secretary Planning Division).
Director (Solar PV), PPIB apprised the Committee that LoI was issued to three projects namely RE Solar I (Pvt) Limited, RE Solar II (Pvt) Limited and Siddiquesons Solar Limited which are listed under category-III solar PV projects of Cabinet Committee on Energy (CCoE) decisions, which are required to participate in the competitive bidding process to be undertaken by PPIB based on the quantum, ascertained for each technology by IGCEP.
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In the draft IGCEP 2024, there is no allocation of quantum for the procurement of power from candidate solar PV projects through competitive bidding, including category-III. Previous LoI extension approved by PPIB Board lapsed in February 2024. These projects have now requested PPIB for extensions in LoI till completion of competitive bidding process.
The Chair inquired about the notion behind granting extension in a situation wherein these projects have not been picked up in draft IGCEP 2024 and excess generation capacity already exists in the system. Also, that the solar projects create an anomaly in IGCEP, whereby they generate power during day time only.
Representative of Government of Sindh explained that solar-wind hybrid projects generate continuous power. Director (Solar PV) PPIB explained that fate of these projects will be finalized at the time of competitive bidding and till such time, Lols are required to be extended.
The DG (Law) PPIB explained that these projects were part of previous IGCEP, whereas draft IGCEP 2024 is not yet finalized and is under consideration, adding that LoI extension may not be refused on basis of draft IGCEP 2024.
Representatives from Punjab government and Sindh government supported the extension mentioning that similar projects have been granted extension in their respective provinces till conclusion of competitive bidding without any extension fees. The Committee desired that status of competitive bidding may be apprised to the Board while presenting this agenda.
After deliberations, the Committee approved extensions in the LoIs issued by PPIB to category-III solar PV projects until the competitive bidding of category–III solar PV projects is conducted, subject to the validity of the Bank Guarantee as specified in the Lol.
The Committee also authorised PPIB to issue extensions of the LoI for period of up to 12 months at a time.
Copyright Business Recorder, 2024
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