- NEPRA prohibits cost transfer to consumers in the event of delay.
- Renewable projects are aligned with IGCPE and PAP planning tools.
- Ke ordered to align himself with the CTBCM market reforms.
Islamabad: K-Electric received regulatory approval to accelerate 370 MW of renewable energy projects, following the authorization of the National Electric Power Regulatory Authority (NEPRA) of its offer to offer the offer for three major energy initiatives, The news reported.
These include two photovoltaic solar plants in Balutchistan and a hybrid project in Dhabeji, allowing the company to carry out official price deposits within the framework of the National Energy Framework.
The approved wallet includes a 100 MW solar factory in Bela and an installation of 50 MW in Winder, both awarded to Master Textile Mills Ltd. In addition, the 220 MW hybrid project approved by NEPRA, which offers a flexible combination of solar energy, potential wind or storage techniques, as well as capacity techniques of 20% to support the solar range.
The projects are aligned with an expansion plan for indicative production capacity (IGCEP) and the power acquisition plan (PAP), the main Pakistan planning instruments for the development of the energy sector.
The NEPRA has also ordered any delay, whether on the part of K-Electric or project developers, should not lead to an additional financial burden for consumers, and this condition must be explicitly written in the project agreements.
Beyond renewable energies, the regulator examined the KE transitional roadmap to the Bilateral Competitive Negotiation Contracts Market (CTBCM) – a radical reform to liberalize the electricity sector of Pakistan.
While the obstacles remain, including the inherited energy purchase agreements and the need for a renovated capacity billing mechanism, the NEPRA has ordered KE to align its operations on the central distribution model and to deposit a revised pricing petition reflecting these reforms.
Meanwhile, NEPRA increased the average basic basic rate on Tuesday for K-Electric of RS6.15 per unit-an increase of 18.18%, which fixed it at RS39.97 per unit for exercise 2023-24 under a newly approved multi-year rate speed at FY2030. The hike supports an investment plan of 400 billion rupees while absorbing the risk of subreation to maintain the power supply through Karachi.
In particular, the authority had previously approved the production, transmission and distribution rates for the period of control of the 2010 financial year at the 2010 financial year.
According to the determination of the NEPRA issued Tuesday, the new tariff structure includes RS31.96 per unit for the purchase of power to the exclusion of transmission costs, RS2.86 per unit for the transmission cost, RS3.31 for the cost of distribution, RS2.28 for the food margin and a negative adjustment of 0.44 RS per unit due to the adjustments of the previous year.
The decision indicates that the adjustments are essential to support the investment plan of 400 billion KE rupees ($ 1.42 billion) in the next seven years, duly approved by NEPRA. He also mentioned that the ice had managed to reduce its post-privatization line losses and continues to solve problems such as illegal connections (Kundas) which arise from unforeseen urban sprawl.
KE claims that its $ 700 million investments and reinvested profits have resulted in post-privatization upgrades of $ 4 billion, aligning yields with dollar-based references used by IPPS and IHVDC.