Nepra reduces wind power tariff by 20 per cent

[ziaulislam]

Nepra reduces wind power tariff by 20 per cent
ISLAMABAD: Amid criticism, the National Electric Power Regulatory Authority (Nepra) has reduced levelised upfront tariff for wind power projects by 20 per cent to Rs10.6048 per unit from Rs13.1998.

The revised tariff came after protests by the Sindh government over a ban imposed by the federal government on new wind and solar projects. The centre said the temporary ban was meant to translate falling technology prices of wind energy in the international market into domestic tariff.

The revised tariff was, however, immediately rejected by the investors of wind energy projects. They alleged that the energy policy was heavily tilting towards Punjab-based solar power projects, about 1,000MW of which had been awarded to a single firm through a negotiated deal instead of bidding.

Nepra said on Thursday the new tariff would remain applicable for six months from the date of notification. The investors opting for this tariff are required to achieve financial close within one year from the date of award of upfront tariff to them.

The targeted maximum construction period after financial close is 18 months. “This initiative, besides ensuring energy security, will provide clean, renewable energy at an affordable price to the consumers and help mitigate power shortfall,” Nepra added.

It said wind power tariff had been reduced because of advancement in technology and it would benefit economy and industry due to its unique benefits and competitiveness.

“It is a shocking tariff,” said a wind energy investor, adding that 1,000MW solar projects in Punjab had been given higher tariff despite its 17pc plant efficiency, compared to wind energy’s 38.5pc plant efficiency.

On top of that, he said, the power agreement would be finalised only on the basis of yet to be completed grid study by the National Transmission and Dispatch Company (NTDC). This means the wind project will not apply for tariff with Nepra before the NTDC’s grid report, being the pre-requisite.

Published in Dawn, June 27th, 2015

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[ziaulislam]

REMEBER, SOLAR tarrif IS 19.9 FOR FIRST 10 YEARS AND LEVELED RATE OF 16 RS for 20 years

that is nearly 80% more expensive

 

[SBD-3]

38% efficiency of wind farm? are they smoking high? these investors sought an approval for 30% required level whereas they currently continue at around 33% which yields 2-3% efficiency bonus.

 

[Kabira]

Solar power project in Punjab is disaster to say the least. Obviously no one predicted oil price drop. And they are not going up any time soon for many years. Should Pakistan replace furnace oil? Yes but with cheaper alternatives not more expensive.

Which mean indigenous hydro and coal resources and after that Gas power plants.

Power cost in last 3 years.


"The cost of furnace oil-based generation came out at Rs9.86 per unit, HSD at Rs13.85, natural gas Rs5.18, coal Rs4.49 and nuclear power Rs1.18. Hydropower generation did not have any fuel cost component." June 2015


"The cost of electricity through coal was Rs 4.45 per unit; furnace oil, Rs 15.96; gas Rs 4.33 per unit; nuclear Rs 1.325 per unit; and Iranian electricity Rs 10.55 per unit." March 2014



"As per CPPA recommendations, cost of diesel-based power generation stood at Rs 20.80 per unit last month, cost of production of furnace oil-based power stood at Rs 16.16 per unit, gas-based power generation cost Rs 5.21 per unit and cost of hydro-power generation remained at 8 paisas per unit." 2013

Now power from furnace oil cost around Rs 10 per unit, this will go down to Rs 9 if sanctions on Iran are removed.

 

[ziaulislam]

gas plants your quoting is based upon indigenous as, which we dont have.
indigenous gas costs 2 MTB vs 12 of imported gas.

govt should work on DESCOs rehabilitation as its costing 25+rs at least.
wind tarrif should be rationalized,as its always better than solar due to its twice plant factor

focus should be coal, hydro, nuclear and may be wind.
LNG/Gas is vaiable option but we have already exercised that option in past, we have 50% production based upon gas. we cannot increase it further

you have to factor in return rates(profits to private investors) , thus NEPRA tarrifs are better way to show the costs

 

[Gufi]

Dams and nuclear power, followed by more dams and nuclear power. Solar can come after that with no wind because it is too cyclic. Solar will be a feasible option in the next decade with costs decreasing and efficiency increasing.

 

[Kabira]

gas plants your quoting is based upon indigenous as, which we dont have.
indigenous gas costs 2 MTB vs 12 of imported gas.

govt should work on DESCOs rehabilitation as its costing 25+rs at least.
wind tarrif should be rationalized,as its always better than solar due to its twice plant factor

focus should be coal, hydro, nuclear and may be wind.
LNG/Gas is vaiable option but we have already exercised that option in past, we have 50% production based upon gas. we cannot increase it further

you have to factor in return rates(profits to private investors) , thus NEPRA tarrifs are better way to show the costs

Basically hydro and thar coal (not imported) is Pak best option going forward. After that nuclear etc