Govt throws out 7400MW cheap generation plants from 10-year IGCEP 2022-31: Investors

ISLAMABAD-The power sector investors have alleged the government of throwing out cheap generation plants with the cumulative capacity of 7400MW from the 10 years Indicative Generation Capacity Expansion Plan 2022-31 (IGCEP 2022-31). 
In the hearing conducted by NEPRA on proposed IGCEP 2022-2031 of the NTDC, the investors have alleged that NTDC has taken out cheap power generation plants in advance stages from the plan. Tariff had already been issued for these power plants, the investors claimed. During the hearing presided over by Chairman NEPRA Tauseef.H.Farooqi, the investors have requested that those power projects whose installation has already been completed should not be removed from the plan. Chairman NEPRA remarked that the regulator will not let any injustice to anyone. The decision regarding inclusion or exclusion of cheaper power plants will be purely on merit basis. The NTDC official informed that total of 48 projects with the capacity of 7400MW were excluded from the plan as they were not fulfilling the merit.
By taking cheaper projects out of the plan a new Pandora’s box is being opened, the concerned investors said in the hearing. The investors further alleged that the stakeholders were not taken on board while compiling the 10 years plan. Chairman NEPRA asked NTDC why investors were not consulted during the process. NTDC official rejected the allegations saying that all the questions raised by the stakeholders regarding the plan had been replied. Official of the NTDC informed that to provide electricity to 100 percent population by 2030 investment of $11b will be required. Chairman NEPRA remarked that expensive power generation is the main issue. In the country 65 percent electricity is being generated from expensive fuel, he added. 
The generation from expensive imported fuel should be switched over into cheaper indigenous resources, chairman NEPRA said. The chairman further asked that why the proposed 10 years plan was delayed for five years. Farooqui further said that the 10 years plan has been prepared on the average GDP growth rate of 4.3pc. Official of NTDC informed that World Bank data was used for the plan. Why did the authority use the GDP data of the World Bank in the power plan? chairman NEPRA asked. The NTDC official replied that they asked for it from federal government agencies but were not provided. Do you have the written proof of it, the regulator asked. The matter of not sharing the data by the concerned agencies should be investigated by Nepra, chairman added. NEPRA official informed that under the new plan, cheap electricity projects will be taken up on the basis of competitive bidding. The NTDC official informed that 18000MW cheap energy generation plants will be installed in the next 10 years. The IGCEP 2022-31 covers the generation capacity expansion planning in the country for a horizon of 10 years. Future generation projects are selected on the basis of the least-cost option criteria while prioritizing the addition of projects based on clean and green sources of energy. At the same time, power plants running on polluting and imported sources of fuel will be gradually phased out so that the eventual energy mix is developed along the lines of sustainability and indigenization. The authority has completed the hearing on the plan related to cheap electricity. The regulator asked the stakeholders to submit their further comments within seven days.

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