The Shehbaz Sharif-led coalition government turned down a proposal floated by the Power Division that called for awarding billions of rupees worth of transmission line projects on a government-to-government (G2G) and cost-plus basis.
The Power Division proposed that economic policymakers may award projects under the Transmission Line Policy 2015 on a G2G and cost-plus basis.
However, the Economic Coordination Committee (ECC), in a recent meeting, turned down the proposal but gave the go-ahead for making proposed amendments in the Transmission Line Policy for inclusion of ancillary services projects in its scope.
Sources told The Express Tribune that the Power Division, while briefing the economic decision-making body, stated that in order to transmit electricity without any interruption and evacuate renewable energy from new projects, the National Transmission and Despatch Company (NTDC)/ National Power Control Centre (NPCC) was required to enhance grid reliability and quality, minimise voltage fluctuations and line losses and improve grid resilience against disturbances.
“These are considered as essential services for improvement of the system,” it said.
The Grid Code, system operator licence and Commercial Code also provide for installation of ancillary services as per system operation requirements determined by the system operator.
In order to include ancillary services in the scope of the Transmission Line Policy and process such projects on a G2G basis, amendments were proposed for the ECC’s consideration, which would be included in the 2015 policy.
The Power Division proposed the inclusion of words “and ancillary services” after the words “sub-stations and converter stations” in last line of the paragraph under the title (A) Introduction.
It proposed the addition of Clause (BB) and the inclusion of ancillary services including battery energy storage systems and reactive compensation and any other ancillary services as stipulated in the Grid Code or identified by the NTDC/ system operator.
The provider of such services will be called “ancillary services provider or ASC” and shall be subject to the same policy provisions/ compliances and benefits as are available in the Transmission Line Policy, as and where applicable.
Furthermore, the concession term of ancillary services projects will be up to 15 years depending on the nature of such projects, and boards of the Private Power and Infrastructure Board (PPIB) and NTDC are authorised to prepare security documents or amend the existing standardised security documents available under the policy.
The Power Division submitted a summary for the ECC’s consideration and approval.
The committee considered the summary titled “Proposed amendments in Transmission Line Policy 2015 for inclusion of ancillary services projects in its scope” and approved it.
It said words “and ancillary services” would be added after the words “sub-stations and converter stations” in last line of the paragraph under the title (A) Introduction.
It decided to add Clause (BB) for provision of ancillary services including battery energy storage systems and reactive compensation. The provider of such services will be termed “ancillary services provider or ASC” and shall be subject to the same policy provisions/ compliances and benefits as are available in the 2015 policy, as and where applicable.
The ECC agreed that the concession term of ancillary services projects would be up to 15 years depending on the nature of such projects, and boards of PPIB and NTDC were authorised to prepare security documents or amend the existing standardised security documents.
Published in The Express Tribune, August 15th, 2023.
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