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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