ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Monday approved a 25-year levellised upfront tariff of 10 cents per unit (kWh) for Municipal Solid Waste-based power generation of a maximum 250MW capacity.

This is the first upfront tariff for power generation through municipal solid waste. The regulator said the special tariff was approved through a consultative process keeping in view the environmental issues caused by abundant municipal waste in the country.

Garbage will be used for a productive purpose and hence the upfront tariff for electricity generation, the Nepra said.

Stakeholders involved in the consultative process included Punjab Power Development Board, Alternative Energy Development Board, CPPA-G, Anwar Kamal Law Associates, Ministry of Petroleum and Natural Resources, and Ministry of Climate Change.

“The levellised tariff of US cents 10/kWh based on 25-years operational period has been announced with overall capacity cap of 250 MW wherein share of each province and Federal Territory have been kept at 50 MW each,” the statement added.

Unlike standard practice, Nepra did not post the tariff determination on its website. Nepra said that Pakistan generally produced roughly more than 20 million tonnes of municipal solid waste with annual growth rate of 2.4 per cent.

All major cities including Islamabad, Lahore, Karachi, Quetta and Peshawar are facing enormous challenges in tackling the problem of urban waste and thousands of people die every year due to waste-related diseases.

Considering environmental issues, most of the countries in the region have already announced the generation tariff for Municipal Waste Power Plants and are getting dual benefits – disposing garbage and generation of electricity through garbage, Nepra said.

It added the initiative regarding Upfront Tariff for Municipal Solid Waste power plants will not only provide electricity to the national grid but will also create employment opportunities and play a role in economic growth of the country.

The assessment of tariff has been made on the basis of project cost of $3.5 million per MW keeping in view the available reference prices in the region. The construction period for such kind of power plants has been fixed at 24 months.

For protection from environmental hazards, the power producer shall obtain necessary approvals from the relevant government agencies. The upfront tariff will be in field for one year.

Published in Dawn, January 16th, 2018

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Race against time
Updated 09 Feb, 2025

Race against time

While some bright spots emerged at Breathe Pakistan moot, we must streamline our climate governance.
Open door
09 Feb, 2025

Open door

THE door is still open for talks, National Assembly Speaker Ayaz Sadiq has reminded the PTI. What matters, however,...
Football suspension
09 Feb, 2025

Football suspension

ONCE again, Pakistan has been ousted from the global football family. FIFA recently suspended the Pakistan Football...
A year later
Updated 08 Feb, 2025

A year later

A war of egos has been fought between a handful of individuals at the cost of the well-being of millions of ordinary Pakistanis.
Wheat decision
08 Feb, 2025

Wheat decision

THE federal decision to stop setting the minimum support price for wheat and cease the staple’s procurement...
Dhanmondi attack
08 Feb, 2025

Dhanmondi attack

HISTORY has shown that unless states deliver development and equal rights to all, disenfranchised people can target...