The Cabinet Committee on Energy (CCoE) has almost closed the chapter on 13 Renewable Energy (RE) projects of 600MW with the clear decision that no exceptions are admissible to any Alternative and Renewable Energy (ARE) project and all such projects will be treated in line with the approved policy, well-informed sources told Business Recorder.
National Electric Power Regulatory Authority (Nepra) Chairman Tauseef H Farooqi had sought the case of 13 RE projects but his arguments were not accepted by the competent fora including the Power Division and its attached organization, National Transmission ad Despatch Companies (NTDC).
On December 2, 2021, the CCoE headed by Minister for Planning, Development, and Special Initiatives, Asad Umar was briefed about the case by the Power Division.
The sources said, Power Division, in its proposals, requested the CCoE that Nepra may be directed under Section 31(1) of the NEPRA Act read with National Electricity Policy 2021 and ARE Policy 2020, to forthwith annul the cost-plus tariff determination of such 13 RE projects so that Letter of Interest (LoIs) holders of such category-III projects may participate in the open competitive bidding process in view of the output of IGCEP.
Power Division also requested that CCOE intimates the Senate Standing Committee on Power that the case of PnGPvt Limited being a category III project will be processed through open competitive bidding mode under ARE Policy 2020.
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The forum discussed the case threadbare. Chairman, NEPRA stated that 13 RE projects, cleared before approval of the ARE Policy, should be excluded from competitive bidding as they were given licenses prior to the new ARE Policy.
However, the forum unanimously recommended that the ARE policy is not project-specific. It has been agreed upon after consultation with the Law & Justice Division and stands approved by the Council of Common Interest (CCI). Therefore, no exceptions are admissible to any ARE project and all RE projects will be treated in line with the approved policy.
Last week, the issue of 13 RE projects also came under heated discussion at the Senate Standing Committee on Power, headed by Senator Saifullah Abro.
During the meeting, Chairman Standing Committee sought an update on 13 RE projects as according to him, Chairman Nepra, in the previous meeting of the Committee had stated that the projects were ready and only the government’s approval was required.
Member Nepra (Sindh), Rafique Ahmad Shaikh apprised the meeting that Nepra had issued generation licences and approved tariffs between 3 Cents to 4.5 Cents to 13 RE projects of renewable energy according to its mandate.
However, the policy decision was the domain of the Power Division and it did not include these projects in the new Indicative Generation Capacity Plan, as these projects do not fall in the category of least-cost and reliable energy supply projects.
