Letters of support issued for 11 wind power projects

Published November 7, 2019
A view of the $136m Jhimpir Wind Power project which has a total capacity of 50MW. The International Renewable Energy Agency estimates that Pakistan has up to 50GW of theoretical wind potential in Sindh and Balochistan.—Dawn file
A view of the $136m Jhimpir Wind Power project which has a total capacity of 50MW. The International Renewable Energy Agency estimates that Pakistan has up to 50GW of theoretical wind potential in Sindh and Balochistan.—Dawn file

ISLAMABAD: In a dramatic move, the Alternate Energy Development Board (AEDB) on Wednesday approved issuance of letters of support (LoS) to 11 wind power projects having a total generation capacity of 550 megawatts.

Prime Minister Imran Khan had expressed displeasure over reluctance of the Ministry of Energy to go ahead with these projects despite tariff approvals by the National Electric Power Regulatory Authority (Nepra) a year ago.

Many LoS agreements of these projects were to be signed during the recent visit of the World Bank president to Pakistan but had to be postponed over dilly-dallying by the senior bureaucrats of the energy ministry.

This had angered the prime minister who was told early this week that these projects could be subjected to National Accountability Bureau (NAB) investigation since almost all the project tariffs had been approved under cost-plus tariff formula without international competitive bidding. It was also reported that the Cabinet Committee on Energy in the previous government had also took some decisions to put on hold fresh renewable energy projects because of capacity constraints.

The levelised tariff of all these projects ranged between 4.7 to 4.8 cents per unit (about Rs5.60 to Rs5.80 per unit) as per exchange rates prevailing before November last year. The energy ministry had also told the prime minister that they had sought a clarification from Nepra seeking the go-ahead for signing of these agreements but the regulator had not responded.

When enquired, Nepra reported to the prime minister that its clarification or legal opinion was not required at all when it had issued the tariff determinations that was considered an acceptable and valid legal document. It reported that the delays had been caused on part of the energy ministry.

Immediately, Energy Minister Omar Ayub Khan called a board meeting of the AEDB to take up LoS issuance to 11 wind projects. Nepra has issued tariff for these projects and are scheduled to achieve their financial close by Nov 19.

The projects cleared for issuance of LOS included 50MW ACT2 Wind (Pvt) Ltd; 50MW Artistic Wind Power (Pvt) Ltd; 50MW Din Energy (Pvt) Ltd; 50MW Gul Ahmed Electric Ltd; 50MW Indus Wind Energy Ltd; 50MW Lakeside Energy (Pvt) Ltd; 50MW Liberty Wind Power 1 (Pvt) Ltd; 50MW Liberty Wind Power 2 (Pvt) Ltd; 60MW Metro Wind Power Ltd; 50MW NASDA Green Energy (Pvt) Ltd; and 48.30MW Transatlantic Energy Pvt Ltd, said an AEDB statement.

Published in Dawn, November 7th, 2019

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

Editorial

Ominous demands
Updated 18 May, 2024

Ominous demands

The federal government needs to boost its revenues to reduce future borrowing and pay back its existing debt.
Property leaks
18 May, 2024

Property leaks

THE leaked Dubai property data reported on by media organisations around the world earlier this week seems to have...
Heat warnings
18 May, 2024

Heat warnings

STARTING next week, the country must brace for brutal heatwaves. The NDMA warns of severe conditions with...
Dangerous law
Updated 17 May, 2024

Dangerous law

It must remember that the same law can be weaponised against it one day, just as Peca was when the PTI took power.
Uncalled for pressure
17 May, 2024

Uncalled for pressure

THE recent press conferences by Senators Faisal Vawda and Talal Chaudhry, where they demanded evidence from judges...
KP tussle
17 May, 2024

KP tussle

THE growing war of words between KP Chief Minister Ali Amin Gandapur and Governor Faisal Karim Kundi is affecting...