Gharo Solar Project issued Tariff Notification

M/s Gharo Solar Limited has been issued the tariff of US Cents 5.6073/kWh according to a notification issued by NEPRA. Insurance during Operation has been calculated as 0.50% of the allowed EPC Cost. Reference Exchange Rates of 105 PKR/USD has been used. Last year in December Gharo Solar limited had had approached the power division for the issuance of tariff. The company had stated that ‘despite written follow-ups and meetings with Power Division officials, notification of tariff remains pending for over 10 months’. Now the Cabinet is said to have cleared tariff notification of 50MW M/s Gharo Solar Power Project on the reason that the company will sell produced electric power to K-Electric as Energy Purchase Agreement (EPA) will be signed by the company with KE at its own risk and cost.
The case was referred to Law and Justice Division for seeking guidance/clarification on this issue. In response, Law and Justice Division conveyed that “the policy and subsequent amendments including CCoE decisions of December 12, 2017 related to the projects where LoI and LoS are to be issued by the Alternative Energy Development Board (AEDB), Power Purchase Agreement (PPA) is to be signed by the CPPA-G and payment guarantee is to be given by the government of Pakistan in the form of IA and Gharo Solar Private Limited will sell produced electric power to K-Electric and EPA shall be signed by the company with KE, at its own risk and cost. Therefore, the policy and amendments to it shall have no impact on Gharo Solar Project and that Ministry of Energy, Power Division, may notify Gharo Solar tariff as determined by Nepra under section 31(4) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997”
Gharo Solar Limited has also signed an Undertaking stating that “The company undertakes that, as the project does not fall within the ambit of the RE Policy 2006, the company shall not avail incentives under the said policy, except for any incentives available otherwise (eg, tariff, income tax ordinance, customs/sales tax act, etc).”