Nepra issues 12 new power generation licences with cumulative capacity of 1,430.49MW in FY2022-23

Five licences were issued for solar generation with capacity of only 7.62MW or 0.53pc of total new capacity

ISLAMABAD  -  The National Electric Power Regulatory Authority has issued 12 new power gen­eration licences with cumulative capac­ity of 1,430.492MW in the FY2022-23, with the share of solar generation pow­er only at 0.53 percent (7.62MW).

During FY2022-23, a total of 24 gen­eration licence applications were in pro­cess with around 2,398.96 MW capacity, among these, 6 applications were new, totaling 21.507 MW, said annual report 2022-23 issued by National Electric Power Regulatory Authority here. 

The report said that 12 licenses, in­cluding two micro grid licenses, were granted, accounting for 1,430.492 MW capacity. The pending applications are undergoing processing. A total of four li­cences were issued for hydle power gen­eration projects which is 59.85 percent or 855.90MW of the total 1,430.492MW capacity. Similarly, one licence was issued for thermal power generation projects which is 565.65 MW (or 39.55pc) of the total granted new capacity. According to the report, five licences were issued for solar generation with the capacity of only 7.62MW or 0.53pc of the total new capac­ity. Two licences for micro grid with the capacity of 1.3215MW were issued dur­ing fiscal year 2022-23, the report said.

In the FY2022-23, a total of 1,596 net-metering licenses were issued, representing a cumulative installed capacity of 221.05MW, the report maintained. In the FY2022-23, eight distribution licenses were issued to DISCOs, namely IESCO, PESCO, GEPCO, LESCO, MEPCO, QESCO, FESCO, and HESCO. In addition to the issuance of distribution licenses to aforemen­tioned DISCOs, 10 applications for the grant of distribution licenses are cur­rently under process. These include KE, five projects of PIEDMC, Rashakai Special Economic Zone, Bahria Town (Rawalpindi/Islamabad), Bahria Town (Lahore), and PECHS Valancia, Lahore.

As per Section 23E of the amended NEPRA Act, the Authority is currently reviewing 23 applications for the issu­ance of supplier licenses. These applica­tions were submitted by IESCO, PESCO, GEPCO, LESCO, MEPCO, QESCO, FESCO, HESCO, SEPCO, TESCO, KE, and various projects under PIEDMC, including Sun­dar, Vehari, Bhalwal, Rahim Yar Khan, and Sheikhupura. Additionally, applica­tions from Rashakai Special Economic Zone, Maple Leaf Power Limited, Lucky Energy (Pvt.) Limited, Shams Power Limited, Innovative Energy Solutions (Pvt.) Limited, Aquagen (Pvt.) Limited, and Nishat Mills Limited are also under consideration. During the FY2022-23, NEPRA made tariff determinations for three solar PV projects: Zorlu Solar Pak­istan Limited (100MW), Access Electric (Pvt.) Limited (10MW), and Access So­lar (Pvt.) Limited (11.52MW), in accor­dance with NEPRA’s Tariff (Standards and Procedure) Rules, 1998. The lev­elized tariffs approved were US Cents 3.9017/kWh, US Cents 4.5586/kWh, and US Cents 4.5950/kWh, respectively.

During FY2022-23, the Authority is­sued a decision on Master Green Energy Limited true-up application, approving a levelized tariff of US Cents 4.4450/kWh. During FY2022-23, the Authority issued decision in respect of the tariff modifica­tion petition filed by Shahtaj Sugar Mills Limited regarding generation tariff of its bagasse based project. A levelized tariff of Rs. 9.0611/kWh was approved for a tariff control period of thirty years.

NEPRA set the tariff for DISCOs from FY2020-21 to FY2022-23. The deter­mined national average tariff stands at Rs24.82/kWh, a notable increase of Rs. 7.91/kWh compared to the previous av­erage tariff of Rs. 16.91/kWh. This revised tariff was notified by the federal govern­ment with effect from July 25, 2022. The rise of Rs. 7.91/kWh is primarily attrib­uted to elevated fuel prices, the addition of new plant capacities (such as coal, nu­clear, and RLNG power plants), exchange rate fluctuations, and inflationary factors. DISCOs, FESCO with regard to MYT ad­justment/indexation decision, and GE­PCO, MEPCO, HESCO, SEPCO, PESCO, and QESCO in response to MYT determina­tions, have submitted motions for leave for reviews. These motions were subse­quently decided by the Authority. Both the NEPRA Act and the notified decisions outline a framework for implementing specific adjustments in the approved tariff on a monthly and quarterly basis.

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