50MW project worth $76.93 million would supply power to K-Electric. PHOTO: REUTERS
The National Electric Power Regulatory Authority (Nepra) said in a notification that it has admitted the application of OSPL for consideration of grant of ‘generation licence’ for its proposed solar power plant.
Oursun intends setting up a 50-megawatt (MW) solar power plant at Gharo at the cost of $76.93 million to supply electricity to K-Electric Limited.
The total cost of the power project includes 75% debt ($57.70 million) and 25% equity ($19.23 million). The project would be set up at Gharo Thatta and the firm is in the process of acquiring the said land. The date set for the commissioning of the project is stated as 2016 in the notification.
K-Electric had invited various companies to provide electricity generation through solar power generation equipment.
OSPL and K-Electric agreed on the ‘term sheet’ whereby the company would construct the facility on site. Both companies have also agreed to opt for the upfront tariff for solar PV projects approved by Nepra in its assessment dated January 22, 2015.
For solar projects with 20-50MW generation capacity, Nepra has determined a levelised tariff of Rs14.9966 ($14.2825). “The upfront tariff has assumed a project cost (including IDC) of $1,538,673/MW, debt to equity ratio of 75:25, interconnect at 11KV level and annual utilisation factor of 17.5%. However, in case the parties agree for interconnection at a voltage level different from 11KV, the methodology of recovery of costs and corresponding losses shall be agreed with K Electric or Nepra as deemed appropriate.
“The OSPL and K-Electric also agreed to use PV panels to generate electricity using sunshine, and converting it into AC current to connect with the grid at 11KV level, however, the parties may mutually agree to make provisions for stepping up to 132KV,” the notification said.
This was for the second time the firm applied for the power generation licence for the solar project. In February 2016, Nepra retuned the application raising objection that “K-Electric has yet not conducted grid study to determine the share of renewable energy to be absorbed in the system.”
“We are also of the opinion that approval and implementation of our proposed project may be processed without waiting for the full scale study of the grid since it actually represents about 2% of the K-Electric system and the grid code already has provision of renewable up to 5%,” said Oursun Pakistan CEO Syed Saad Zafarullah Shah.
“Therefore, we believe that the interconnection study, as approved by the K-Electric, already submitted to Nepra is sufficient for the purpose,” he added. K-Electric has submitted its detailed reply to Nepra through its letter dated February 12, 2016.
Published in The Express Tribune, June 8th, 2016.
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