NEPRA to rationalise wind energy tariff


ISLAMABAD: The government is probable to introduce an upfront tariff for wind energy projects, instead of the prevalent system of reverse tariff calculation by the National Electric Power Regulatory Authority (NEPRA).
Official sources from the Ministry of Water and Power disclosed that a proposal for introduction of feed-in-tariff in the power sector was considered and later initial implementation was decided in the wind power sector. Currently, investors need to design a comprehensive feasibility report for their projects, which is then reverse calculated by the NEPRA to determine the final tariff.
The present system for tariff calculation was thought to be a major impediment in way of investment in the power sector. Investors are disinclined to carry out a detailed feasibility for a project whose final tariff will be determined later by the regulatory authority and demanded a feed-in-tariff for power projects. Approval of the proposal from the government could shoot initial investment in the wind energy sector, as investors have shown tremendous interest in generating wind power along the coastline of the Arabian Sea.
Figures reveal that the coastal belt of Pakistan is 60 km wide and 180 km long, possessing the potential to generate 50,000 MW of electricity. Sources disclosed that four companies including Fauji Fertilizer Company, Zorlu, Beacon and Tapal Energy are planning to set up a 50 MW energy wind power plant in the coastal areas. A Letter of Support will be issued by December if requirements are fulfilled and operation will begin within the next 12 to 18 months.