ISLAMABAD: The Federal Government has decided to retain three solar PV projects of 50 MW each in category II instead of category III as Sindh Government clarifies its position, well informed sources told Business Recorder.
On February 8, 2021, Power Division stated that the Cabinet Committee on Energy (CCoE) in its decision of February 27, 2019 along with list of projects further amended its decision of August 28, 2019, and decided the following: (v) all projects that have been issued LoIs and have been granted determination of tariff by Nepra and issued a generation licence would be allowed to proceed ahead towards the achievement of their requisite milestone as per the RE Policy 2006. However, if the tariff determination has been done since more than one year or if the tariff validity period has elapsed, Nepra would be requested for review of the tariff to make it consistent with the current market environment/ conditions and consumers' interest. Such review shall include appropriate time extension to reach financial closing.
Power Division further informed that the gazette notifications for the 3x 50 MW solar PV power projects of Meridian Energy (Private) Limited (MEPL), HNDS Energy (Private) Limited (HNDSEPL) and Helios Power (Private) Ltd. (HPPL) are withheld by the Power Division as these projects are placed under category II as well as in category III in the list presented before and approved by the CCOE on February 27, 2019.
The Alternative Energy Development Board (AEDB) was asked to review the matter and submit its recommendations to Power Division for furtherance in the matter. AEDB, on January 11, 2021 conveyed the decision of the AEDB Board, taken in its 51st meeting held on January 6, 2021, whereby the AEDB Board recommended the processing of 3x 50 MW solar PV projects of MEPL, HNDSEPL and HPPL under category-II of CCoE decisions and deletion of 3x 50 MW projects MEPL, HNDSEPL and HPPL from category-III of the CCoE decisions, in view of the criteria set by the CCoE.
The case could not be submitted earlier for consideration of the CCoE as the AEDB Board was non-functional due to resignation of the Chairman AEDB. As per the criterion set by the CCoE, the solar PV projects of MEPL, HNDSEPL and HPPL were listed under category-II of the decision as they had acquired tariff and generation licence prior to the CCoE's decisions. Energy Department, GoS, in an email dated August 27, 2020 confirmed that they have issued only one LoI to each of the projects. Therefore, the inclusion of MEPL, HNDSEPL and HPPL in the Category-III is a typographical error. The levelized tariff approved by Nepra for the three projects is Rs5.6988/kWh (US Cents 3.6683/KWh).
Power Division requested the CCoE that considering the recommendation of the AEDB Board, the 3x 50 MW solar PV projects of MEPL, HNDSEPL and HPPL may be retained in category II and deleted from the list of category-Ill projects. Further, the Power Division may be allowed to proceed ahead with the notification of the generation tariffs in the official gazette. The CCoE approved the proposal of Power Division, which was ratified by the Cabinet last week.—MUSHTAQ GHUMMAN
