National Electric Power Regulatory Authority (Nepra) announced levelised tariffs of five solar power projects for 25 years after several hearings.
The level tariff for 100MW Zurlu solar power project has been fixed at Rs5.3086 per unit and Rs5.6073 for 50MW Gharo Solar project, whereas the levelised tariff for 50MW Merdian Energy, 50MW HNDS Energy and 50MW Helious Power has been fixed at Rs5.2622 each.
According to the determinations, debt servicing will be done in the first 14 years of commercial operation of the plant. Debt servicing has been worked out using three months Libour (1.694) + spread (4.25per cent) whereas debt to equity ratio will be 75:25.
Return on equity during construction and operation of 15 per cent has been allowed. Construction period will be 10 months for workings of Return on Equity During Construction (ROEDC) and Interest During Construction (IDC). Insurance during operation has been calculated as 0.50 per cent of the allowed EPC cost.
The duties and/or taxes, not being of refundable nature, relating to the construction period directly imposed on the company up to COD will be allowed at actual upon production of verifiable documentary evidence to the satisfaction of the Authority.
However, M/s Zurlu has been allowed 15 per cent Return on Equity (RoE) during construction and operation whereas construction period of six months has been allowed for the workings of ROEDC and IDC.
The tariff shall be adjusted on actual debt: equity mix at the time of COD, subject to equity share of not more than 25 per cent. For equity share of more than 25 per cent, allowed IRR shall be neutralized for the additional cost of debt: equity ratio.
The O&M components of tariff shall be adjusted on account of change in local Inflation (CPI), foreign inflation (US CPI) and exchange rate quarterly on 1st July, 1st October, 1st January and 1st April based on the latest available information with respect to CPI notified by the Pakistan Bureau of Statistics (PBS), US CPI issued by US Bureau of Labor Statistics and revised TT & OD selling rate of US Dollar notified by the National Bank of Pakistan. This tariff will be limited to the extent of net annual energy generation supplied to the power purchaser up to 20.50 per cent net annual plant capacity factor.
