Power generation: Nine companies, sugar mills get letters of intent

They will produce 271MW of biomass-based energy

ISLAMABAD: Nine companies and sugar mills have been issued Letters of Intent to generate 271 megawatts of biomass-based electricity in different areas of the country, said Alternate Energy Development Board (AEDB) Chief Executive Officer Amjad Ali Awan.

“In order to tap the potential of electricity generation by sugar mills, the government has already announced the Framework for Power Co-Generation (Bagasse/Biomass),” he said.

Giving details of the biogas projects, he said they included Etihad Power Generation with a capacity of 6MW, Layyah Sugar Mills with a capacity to produce 41MW and Almoiz Industries that would generate 36MW.

Other mills that have been issued the Letters of Intent were Hamza Sugar Mills (15MW), Alliance Sugar Mills (19MW), Safina Sugar Mills (20MW), Shahtaj Sugar Mills (15MW), Chanar Energy (22MW) and RYK Energy (36MW).

“AEDB is following the guidelines on standard security documents (energy purchase agreement/implementation agreement for bagasse-based co-generation projects,” said Awan. He said the National Electric Power Regulatory Authority (Nepra) had announced an upfront tariff of Rs10.7291 per kilowatt hour (levellised) for bagasse-based co-generation projects.

The renewable energy sector has attracted foreign investment worth over $3 billion in the last one year, clearly indicating the investment potential. “Due to the potential, a robust policy framework, lucrative tariff structures and bankable security documents, Pakistan has become a preferred destination for private investors,” Awan remarked.

He said the government was taking steps to harness the renewable energy potential, diversify the energy mix and ensure energy security and sustainable development in the country.

He observed that owing to the promotion and development of renewable energy technology, a record investment had been registered in just one year.

“A detailed assessment of wind, solar and biomass resources was carried out in the country through Esmap’s (World Bank) assistance,” Awan said, adding ground installations for measuring solar irradiation had also been made in several parts of the country. 

Published in The Express Tribune, December 22^nd, 2015.

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