LAHORE – Taking initiative to bridge supply and demand gap by implementing energy conservation policy during the ongoing energy crisis in the country, the PEPCO carried out supply contract of 20 million Compact Fluorescent Lamps (CFL) on cost insurance and place of destination (CIP) under the “National CFL Project - Prime Minister Energy Saver Programme” with M/s Philips Electrical Industries of Pakistan. The total cost of this project (20 million CFLs) is Rs 2.8 billion and is being funded by ADB and AFD of France.
PEPCO spokesman said the project started on the directive of Prime Minister Syed Yousaf Raza Gilani duly approved from Cabinet as well as ECNEC. Under the contract the first consignment of CFLs (energy savers) will be delivered to 36 warehouses all over the country within 12 weeks and free distribution of energy savers to consumers will start soon after the delivery. Ministry of Water and Power will carry out overall project management and PEPCO will act as project coordinator whereas DISCOs and KESC will act as executers, he added.
Dilating upon the features of the contract, the spokesman said that the cost of per energy saver was Rs140 including the cost of insurance, freight charges to final destination, cost of containers along with inland transportation and port handling charges. The life of CFL is 10,000 hours with two years warranty whereas the market price of Philips CFL is Rs189 with life of 8,000 hours and one year warranty only. The difference of price will save a substantial amount of Rs980 million, according to the spokesman. It is said: “The project will help in reducing peak demand over 1000MW, an amount $1.84 billion will be saved while avoiding overall generation of 1600MW. The project will yield Clean Development Mechanism (CDM) thus revenue of about $ 32 million will be returned by 2018.
It will also help in reducing consumers bill Rs300 per bulb per annum. The electricity saved can be sold to higher tariff consumers generating additional revenue of approximately $ 29 million per year for DISCOs.”
The spokesman said that the contract of 2nd phase of free distribution of 10 million energy savers is likely to be signed in the same month for which notification of award has been issued. Performance board has also been submitted by the M/s Beauty Shadow Company of Hong Kong.