NEPRA grants license to Nizam Power Limited for 09.50 MWp Solar Power Plant

October 16, 2020 (MLN): National Electric Power Regulatory Authority (NEPRA) has granted power generation license to Nizam Power (Private) Limited (NPPL) for its 09.50 MWp Solar Power Plant located at Quetta Cantonment, in the province of Baluchistan.

The license was granted in pursuant to Section 14B of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997/Amendment Act, 2018, said a notification issued on Thursday.

The company submitted an application for the grant of license on May 15, 2019. Accordingly, the Authority acknowledged the application on May 23, 2019 for consideration of the grant of the generation license as stipulated in Regulation-7 of the Licensing Regulations and invited comments of general public, interested and affected persons in the matter as stipulated in Regulation-8 of the Licensing Regulations.

In addition to the above, the Authority also approved a list of stakeholders for seeking their comments for its assistance in the matter.

The comments were received from three stakeholders. These included Central Power Purchasing Agency (Guarantee) Limited (CPPA-G), Ministry of Science and Technology (MOST) and Alternate Energy Development Board (AEDB).

CPPA-G submitted that the Authority may consider the provisions of the Least Cost Option Criteria (LCOC) as provided in the NEPRA Licensing (Generation) Rules, 2000 (the "Rules"). Furthermore, it stated that as per the existing tariff structure, the major portion of fixed charges including capacity payments, UoSC, MOE, DM, etc., is being recovered through sale of energy to end consumers. In this regard, any scheme that decreases the energy sale from central/CPPA-G pool to end consumers may result in an increase in the rate of fixed capacity charges for other consumers and stranded costs at the central pool level.

In addition to the above, CPPA-G also stated that the increase in grid defection, due to rapid deployment of roof top solar/self-generation, may result in death spiral for the utilities. Accordingly, CPPA-G suggested: (i). the quantum of distributed generation may be ascertained, the notification revealed.

keeping in view the demand projections and energy charge being avoided by distributed generators; (ii). uniform tariff may be introduced for net metering/self-consumption through the introduction of a new tariff category; (iii). a separate category for net metering may be introduced in the central planning mechanism; and (iv). The design of competitive wholesale market i.e. CTBCM may be approved, it added.

MoST and AEDB supported the grant of generation license to NPPL and stated that it would help overcome electricity shortfall in the country. Moreover, MoST added that it may be ensuring that the panels are IEC and UL certified. Addtionally, the ministry succumbed that it cannot comment on the financial and other ToRs of the project.

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