ISLAMABAD, June 3: The National Electric Power Regulatory Authority (Nepra) has allowed a 133-mw combined cycle private power plant based in Jarwar near Dharki in Sindh to sell its power to the Central Power Purchasing Agency (CPPA) within the national grid. Nepra has also allowed it an overall levelized tariff of Rs2.805 per unit based on an overall capital cost of $700 per kilowatt. The specified tariff will be subject to certain adjustments on account of inflation, variation in fuel price, etc.
The Jarwar Power Project, which is owned by the Star Power Generation Company Limited, would provide its power to meet the needs of power distribution companies of Wapda. The primary source of fuel for this green field power project is low BTU (British Thermal Unit) Mari Deep gas.
A peculiar feature of this power project is that the entire debt is proposed to be raised in Pakistani rupees within ten years of its commercial operation date. A two-year grace period has been sought for its construction.
Nepra said it found its financing arrangements to be prudent compared to other power projects of the same size — as it relieves the consumer from the foreseeable shocks of foreign exchange fluctuations.
Furthermore, it is also perceived as supportive of local borrowing which would enhance the capacity of local banking in terms of their participation in infrastructure projects.
The primary consideration of Nepra has been the prudence of procurement of power, so as to ensure that public interest is guarded and a wholesome balance is maintained between the interest of consumers as well as the service providers and other stakeholders.
In order to discharge this responsibility, the technology, quantum or size of the plant, location and timing of induction of power have been the prime consideration of Nepra. The company gave an assurance to Nepra that the low BTU gas, which cannot be transported to the main system because of its low quality, would be the main fuel and available for the entire 25-year life cycle of the project. It also said that diesel fuel would be used only for start-up operations.
After completing 25 years of commercial operations, the project and its assets would stand transferred to the distribution company to whom the power procurement is dedicated under a contract between the National Transmission and Dispatch Company (NTDC) and the Disco.