KARACHI: National Electric Power Regulatory Authority (NEPRA) has awarded a 25-year levelized tariff of Rs5.846/kWh for Burj Capital’s Burj Wind Energy Pvt Ltd’s 13.8MW power plant.
Burj wind Energy had proposed a levelized tariff of Rs8.1161/kWh for its plant being developed in Thatta, Sindh at an estimated cost of $27.7 million.
The authority in its determination noted all plant and equipment should be new and of acceptable standards. The verification of the plant and equipment will be done by the independent engineer at the time of the commissioning of the plant duly appointed by the power purchaser.
The company will have to achieve financial close within one year from the date of issuance of this determination. The tariff granted to the company will no longer remain applicable/valid, if financial close is not achieved by the company in the abovementioned timeline or its generation license is declined/revoked by NEPR.
Pakistan’s huge energy crisis is jeopardising its economic progress and social development. The major reasons for the energy crisis are lack of investment in power sector, non-development of renewable energy sector and the depleting hydrocarbon reserves.
Government has tasked the Alternative Energy Development Board to ensure five percent of total national power generation capacity to be generated through renewable energy technologies by the year 2030.
The US Agency for International Development and the National Renewable Energy Laboratory estimate that Pakistan has more than 132 gigawatt of wind energy capacity and has so far exploited only one percent of it.