Sponsors of the two solar power projects approached the Ministry of Water and Power, asking it to sign an agreement for electricity supply at Rs21 per unit, though solar power prices had come down to Rs14 per unit. PHOTO: FILE
According to documents available with The Express Tribune, Nepra, the power sector regulator, has approved a tariff of Rs19.2 per unit for two solar power projects - Access Electric (Private) Limited and Access Solar (Private) Limited.
This tariff, which is the highest in the world, is for first 10 years of the projects and for the next 15 years, the tariff will be Rs8.6 per unit.
However, the decision has not gone down well with the Ministry of Water and Power, which terms it unacceptable because of the high price.
Nepra argues that it has set the tariff of the solar plants, which have production capacity of 20 megawatts each, in line with an order of the high court.
According to a senior government official, tariff rates for solar power projects were earlier Rs21 per unit, but they have come down to Rs14 per unit following a fall in energy prices in the world market.
At present, the highest tariff in the world is in the range of Rs5 to Rs7 per unit whereas in India the tariff is Rs4.75 per unit.
The official pointed out that Nepra approved the high tariff at a time when the government had opted for a reverse bidding policy in an effort to further slash tariffs of the solar power projects being set up in Pakistan to provide relief to energy consumers.
Earlier, sponsors of the two solar power projects approached the Ministry of Water and Power, asking it to sign an agreement for electricity supply at Rs21 per unit, though solar power prices had come down to Rs14 per unit.
The sponsors pleaded that their projects were old, therefore, they should be offered Rs21 per unit. However, the ministry rejected the plea of the sponsors, who filed a case in the Islamabad High Court.
The court gave its decision against the federal government and after that Nepra set the tariff for the two projects.
The Central Power Purchasing Agency (CPPA) also challenged the court decision and water and power ministry filed a review petition, asking the regulator to reconsider its determination.
Meanwhile, according to the official, Nepra wrote a letter to the ministry, pushing it to notify the power tariff allowed to the solar projects. However, the ministry did not accept the determination.
Published in The Express Tribune, June 24th, 2017.
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