Sindh Transmission & Dispatch Company gets license to act a provincial grid company

KARACHI: The National Electric Regulatory Authority (NEPRA) has granted transmission license to Sindh Transmission & Dispatch Company (Private) Limited (ST&DCPL) to act as provincial grid company for the province of Sindh, a document revealed.

According to the information provided by the company, the scope for provincial grid company (PGC) includes electricity transmission lines for the Keti Bandar-GharoJhimpir wind corridor; deployment of a combination of major and micro transmission grid model for wind corridor for initial supply of electricity to bulk consumers in Nooriabad industrial area, K-Electric (KE) and other bulk buyers.

The proposed model may comprise construction of 500 KV 4-bundle double circuit transmission line along wind corridor; 500 KV junction grid in Nooriabad and further transmission of power to the existing grids like KE-Gharo grid, Gadap grid, Maymar grid or HESCO/SEPCO grids for onward power; construction of new transmission lines of 132kV and 220kV in Jhimpir area for evacuation of power from wind power plants; construction of new Grid Stations of 132kV and 220kV in Jhimpir area for evacuation of power from wind power plants.

Moreover, the provincial grid company may construct two 132kV grid stations and one 132kV double circuit transmission line of 25kms approximately to supply electricity to Pumping Station 1 and Pumping Station 2 of KWSB K-IV Power Project.

In this regard, ST&DCPL has confirmed that proper feasibility study for each project will be carried out in consultation with all the relevant stakeholders.

In its determination, NEPRA notes that the ultimate dream of safe, secure, reliable and cheaper supply of energy/electricity for the end consumer can only be realized if the complete supply chain of electric power including generation, transmission, distribution and supply is complete and robust.

In this regard, the authority is of the considered opinion that in the previous years a lot of investment has been made in the generation segment of the supply chain of electric power however, the required level of investment in the remaining segments of transmission, distribution and supply could not be made. Resultantly, the full benefit of the addition in capacity in the generation segment has not been achieved.

“This is primarily due to the fact that transmission, distribution and supply segments are mainly controlled by the public sector and have their limitation to arrange the required amount of funds to carry out the expansion required in this regard”.

NEPRA also opined that there is huge scope for investment in the transmission segment of the electric power sector of the country.

Accordingly, NEPRA approved the grant of licence to ST&DCPL as PGC for the province of Sindh setting the term of its licence to 30 years as infrastructure to be laid under the proposed scheme of arrangement has a useful life of 30-50 years.

Regarding the tariff, NEPRA clarified that under Section-7(3)(a) of the NEPRA Act, determining tariff, rate and charges etc. is the sole prerogative of the authority. Accordingly, NEPRA has directed ST&DCPL to file a petition for determining of Use of System Charge of its Transmission Line project as stipulated in the relevant rules.

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