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ISLAMABAD

National Electric Power Regulatory Authority has approved per unit tariff of Rs 19.02 for 12MW solar power project.

According to the decision, the authority approved that the AJ Power Private Limited will deliver electricity to power purchaser at a rate of Rs 19.02 per unit tariff for first ten years while from years 11 to 25, the rate will be Rs 8.60 per unit for 12 MW power plant at Adhi Kot, Khushab, Punjab.

Nepra’s newly-approved tariff will be one of the highest in energy mix. According to August data, the cost of generating one unit of electricity from high speed diesel was Rs 13.82, from furnace oil Rs9.38, while per unit production from gas was Rs4.77. Electricity generation from dams is still the cheapest source of power generation as the actual cost is round Rs1.80, while after adding the expenses and line losses the cost sums up to around Rs 3.

Government has been justifying the import of LNG by saying that it will help produce electricity equal to or less than the price of high speed diesel, which is Rs 13.82. The Ministry of Petroleum claims that the powerful petroleum mafia is opposing the import of LNG for their vested interests. But the question is why government, through Nepra, is allowing new power plants, which will generate electricity at exorbitant rates, while on the other hand, she is spending huge money to bring in imported gas.

During a Nepra hearing, it was also discussed that some of the power plants remained shut during the month of August, and the CPPA claimed that the RFO/HSD-run less efficient plants were shut as producing electricity from them will disturb energy mix.

If government believes that generating electricity from HSD at Rs 13.82 will disturb energy mix, then why solar plants, which are considered less efficient, were allowed to produce electricity at Rs. 19.02 per unit.