NEPRA approves upfront tariff for coal power plant

Developer to step up work on the $600m project located at PQ

LAHORE: The National Electric Power Regulatory Authority (Nepra) has approved the upfront tariff for a 350-megawatt coal-fired power plant, which will be set up at Port Qasim by a private company.

This supercritical power plant will be Pakistan’s first-ever coal-based project of its kind and the approval of upfront tariff at Rs9.34 per kilowatt hour will assist the company in stepping up work on the scheme, says a press release issued on Monday.

The company - Siddiqsons Energy Limited - has entered the development and progressive phase of the project, which is estimated to cost $600 million. The financial close is expected by the first quarter of 2016.

“Our company is fully cognisant of the fact that low-cost electricity is extremely crucial for economic growth and stability of the country and coal-based energy production is the key to addressing this issue,” said A Rahim Rafi, Chief Executive Officer of Siddiqsons Energy.

Against the global average of approximately 41% of electricity being produced through coal, Pakistan was generating less than 1% of electricity through coal, despite it being the cheapest source of power generation, he said.

The group’s ventures in Pakistan include denim manufacturing, MCB Bank and Ocean Tower. It is now diversifying into power generation to help ease electricity shortages through the efficient supercritical technology that has lower cost and reduced carbon footprints compared to existing assets in the country.

The company was established in May 2014 with the mandate to enter the business of power generation.

Published in The Express Tribune, August 11^th,  2015.

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