- The plant’s financing structure includes 19% equity and 81% debt.
- Project cost of Rs 1.125 billion includes EPC cost of Rs 965.8 billion
- Return on equity was sought at 14.50% per annum.
The National Electric Power Regulatory Authority (Nepra) has accepted the request of the Pakistan Atomic Energy Commission (PAEC) seeking approval of a level tariff of Rs 16.7354 (5.97 cents) per unit for a period of 40 years for the Chashma-5 nuclear power plant. (C-5), News reported Monday.
According to the petition, the C-5 is expected to be completed within 81 months at an estimated cost of Rs 1,124.842 billion. The financing structure of the plant, which has a production capacity of 1,200 MW, includes 19% equity and 81% debt.
The PAEC petition sought the rate of Rs 19.8268 per unit for 1 to 12 years and Rs 9.6320 per unit for 13 to 40 years and thus the levelized rate would be Rs 16.7354 per unit.
The cost of the Rs 1,125 billion project includes EPC cost of Rs 965.835 billion, non-EPC cost of Rs 69.469 billion and IDC (interest during cost) of Rs 89.538 billion.
Return on equity was sought at 14.50% per annum. The repurchase of equity was carried out over 28 years from 13 to 40 years. The debt repayment period would be 12 years with a grace period of 8 years. The interest rate on the 81% financing that China must provide amounts to 3%. The loan will be provided at the exchange rate of Rs 280 to the US dollar, Rs 38.50 to the RMB and RMB 7.27 to the US dollar. C-5 will have a vegetable factor of 90%.
PAEC, in its petition, sought a two-part tariff structure comprising energy purchase price (variable) and capacity purchase price (fixed) on take or pay basis. The day-to-day capital cost was estimated at $3,081 per kW.
The country has two nuclear power plant (NPP) sites containing six operating units, representing a total electricity generation capacity of 3,262 MW.
One site is in the Punjab province, near the town of Mianwali, called the Chashma Nuclear Power Plant (CNPGS) and houses four units C-1, C-2, C-3 and C-4, all based on a 300 MW power plant. design of pressurized water reactor (PWR).
The second site is near the city of Karachi in the Sindh province and is called the Karachi Nuclear Power Plant (KNPGS). Two identical plants at KNPGS, KANUPP-2 and KANUPP-3, are based on an advanced 1,100 MW PWR design.
A 137 MW pressurized heavy water reactor (PHWR) design unit called KANUPP-1 at KNPGS is being decommissioned, after 50 years of operation.