Nepra cuts tariff of bagasse, wind, solar power plants
Islamabad – National Electric Power Regulatory Authority (Nepra) has Friday reduced the Return on Equity (ROE), Return on Equity during Construction (ROEDC), Operation Maintenance and Insurance components of 12 bagasse, wind, and solar Independent Power Producers (IPPs) which will result an estimated savings of Rs 150b.
Additionally, the tariff share of these IPPs, for energy generation beyond their respective annual plant factors, has also been reduced. The reduction in tariff will result in estimated savings of around Rs150b over the remaining life of the projects.
The cumulative generation capacity of the 12 IPPs which include seven bagasse, three wind and two solar PV Independent Power Producers (IPPs) is around 355 MW.
The Authority under the prevailing rules and regulations admitted the applications, submitted by Central Power Purchasing Agency (CPPA-G) for tariff adjustments of these plants, and subsequently conducted hearings in the matter on March 03, 2021. After detailed deliberations, the Authority today finalised their decision to revise the tariff components of these power plants.
In separate orders for the 12 IPPs, the Authority noted that as per review decision on the COD tariff decision of Artistic Energy (Private) the ROE Component of Rs 3.6623/kwh has been revised to Rs 2.8311/kwh. OM Component of Rs 1.5039/kWh has been revised to Rs 1.2031/kwh. The cap of 1per cent in respect of annual insurance has been revised to 0.7per cent of the EPC cost of AJPPL. For energy produced beyond 184.300 GWh (P90 level), 50per cent of the applicable tariff shall be paid to AEPL.
On the COD tariff Decision of Hamza Sugar Mills Limited, the Nepra order said that ROE Component of Rs 1.0346/kwh has been revised to Rs 0.7329/kwh, to be applicable for 5 years from the date of signing of Master Agreement. Subsequently, ROE component of Rs1.7073/kwh shall be applicable. Variable OM-local component of Rs 0.1197/kwh has been revised to Rs 0.1078/kwh. Variable OM-Foreign component of Rs 0.3393/kwh has been revised to Rs 0.3054/kwh. Fixed OM-local component of Rs 0.3194/kwh has been revised to Rs 0.2875/kwh. Insurance cost component of Rs0.2204/kwh has been revised to Rs 0.1543/kwh.
The Authority, while reviewing the COD tariff decision of FFC Energy Limited, said that ROE Component of Rs 3.0932/kwh has been revised to Rs 2.3654/kwh. ROEDC Component of Rs 0.6404/kwh has been revised to Rs 0.5416/kwh. The cap of 1 per cent in respect of annual insurance has been revised to 0.7 per cent of the EPC cost of FFCEL.
In its decision on review of the COD tariff Decision of Chanar Energy Limited, it has been decided that the ROE component of Rs1.0346/kwh has been revised to Rs 0.7325/kwh, to be applicable for 5 years from the date of signing of Master Agreement. Subsequently, ROE component of Rs1.7078/kwh shall be applicable. Variable OM-local component of Rs 0.1197/kwh has been revised to Rs 0.1078/kwh. Variable OM-Foreign component of Rs 0.3393/kwh has been revised to Rs 0.3054/kwh. Fixed OM-local component of Rs 0.3194/kwh has been revised to Rs 0.2875/kwh. Insurance cost component of Rs 0.2204/kwh has been revised to Rs 0.1543/kwh.
Regarding the review of the COD tariff decision of RYK Mills Limited, the order said that ROE component Rs1.0346/kwh has been revised to Rs 0.7333/kwh, to be applicable for 5 years from the date of signing of Master Agreement. Subsequently, ROE component of Rs1.7067/kwh shall be applicable. Variable OM-Iocal component of Rs 0.1197/kwh has been revised to Rs 0.1078/kwh. Variable OM-Foreign component of Rs 0.3393/kwh has been revised to Rs 0.3054/kwh. Fixed OM-local component of Rs 0.3194/kwh has been revised to Rs 0.2875/kwh. Insurance cost component of Rs0.2204/kwh has been revised to Rs 0.1543/kwh.
The order in the review of the COD tariff Decision of Thai industries Corporation Limited, said that ROE component of Rs1.0346/kwh has been revised to Rs 0.7327/kwh, to be applicable for 5 years from the date of signing of Master Agreement. Subsequently, ROE component of Rs1.7075/kwh shall be applicable. Variable OM-local component of Rs0.1197/kwh has been revised to Rs 0.1078/kwh. Variable OM-Foreign component of Rs 0.3393/kwh has been revised to Rs 0.3054/kwh. Fixed OM-local component of Rs 0.3194/kwh has been revised to Rs 0.2875/kwh. Insurance cost component of Rs 0.2204/kwh has been revised to Rs 0.1543/kwh.
The Authority in the review of the COD tariff Decision of JDW Sugar Mills Limited-Il, said that ROE component of Rs1.0346/kwh has been revised to Rs 0.7333/kwh, to be applicable for 5 years from the date signing of Master Agreement. Subsequently, ROE component of Rs1.7067/kwh shall be applicable. Variable OM-local component of Rs 0.1197/kwh has been revised to Rs 0.1078/kwh. Variable OM-Foreign component of Rs 0.3393/kwh has been revised to Rs 0.3054/kwh. Fixed OM-local component of Rs 0.3194/kwh has been revised to Rs 0.2875/kwh. Insurance cost component of Rs 0.2204/kwh has been revised to Rs 0.1543/kwh.
In its order on the review of the COD tariff Decision of JDW Sugar Mills Limited-Ill, the authority said that ROE Component of Rs1.0346/kwh has been revised to Rs 0.7333/kwh, to be applicable for 5 years from the date signing of Master Agreement. Subsequently, ROE component of Rs1.7067/kwh shall be applicable. . Variable OM-local component of Rs 0.1197/kwh has been revised to Rs 0.1078/kwh. Variable OM-Foreign component of Rs 0.3393/kwh has been revised to Rs 0.3054/kwh. Fixed OM-local component of Rs 0.3194/kwh has been revised to Rs 0.2875/kwh. Insurance cost component of Rs 0.2204/kwh has been revised to Rs 0.1543/kwh.
The Authority reviews the tariff decisions of Act Wind Power (Private) Limited, to the extent of following: ROE Component of Rs 4.9780/kwh has been revised to Rs 3.6437/kwh. OM component of Rs1.6040/kwh has been revised to Rs1.2832/kwh. The cap of 1 per cent in respect of annual insurance has been revised to 0.7 per cent of the EPC cost of AWPPL. The insurance cost shall be adjusted annually, on actual basis, subject to maximum of 0.7 per cent of the EPC cost of AWPPL converted in Pak Rupees, using the Rs/USD parity value, prevailing on the 1st day of insurance coverage period.
The Authority reviews the COD tariff Decision of Al Moiz Industries Limited, issued on February 22, 2019, to the extent of following: ROE component of Rs1.0346/kwh has been revised to Rs 0.7325/kwh, to be applicable for 5 years from the date of signing of Master Agreement. Subsequently, ROE component of Rs1.7078/kwh shall be applicable. Variable OM-Iocal component of Rs 0.1197/kwh has been revised to Rs 0.1078/kwh. Variable OM-Foreign component of Rs 0.3393/kwh has been revised to Rs 0.3054/kwh. Fixed OM-local component of Rs 0.3194/kwh has been revised to Rs 0.2875/kwh. Insurance cost component of Rs 0.2204/kwh has been revised to Rs 0.1543/kwh.
The Authority also reviews the COD tariff Decision of Harappa Solar Private Limited, issued on November 20, 2018, to the extent of following: ROE Component of Rs 3.9921/kwh has been revised to Rs 3.0600/kwh. Withholding Tax on Dividend shaIl be considered as pass-through item. OM Component of Rs1.8714/kwh has been revised to Rs1.5907/kwh. The cap of 1 per cent in respect of annual insurance has been revised to 0.5 per cent of the EPC cost of HSPL.
The Authority reviews the COD tariff Decision of AJ Power Private Limited, and determined that ROE component of Rs 3.9171/kwh has been revised to Rs 3.0023/kwh. Withholding Tax on dividend shall be considered as pass-through item. OM Component of Rs1.8714/kwh has been revised to Rs1.5907/kwh. The cap of 1 per cent in respect of annual insurance has been revised to 0.5 per cent of the EPC cost of AJPPL.
These savings are in addition to the recent tariff reduction of 12 thermal power plants estimated to save Rs182 billion over the remaining life of the projects. So, total savings including these and earlier determination of the 12 thermal power plants is around Rs 332 billion.
Article source: https://nation.com.pk/10-Apr-2021/nepra-cuts-tariff-of-bagasse-wind-solar-power-plants