Gwadar Solar Power Project under controversy

The 50MW solar power project for Gwadar which has already been approved by Nepra is now surrounded by controversy. Secretary Power Ali Raza Bhutta has told the Senate Standing Committee on Power that he would table a 50MW solar power project before the Cabinet Committee on Energy (CCoE), because the project has been approved allegedly in violation of the Renewable energy Policy.

Previously the committee had directed the Power Division and Nepra to provide latest details on P&G Energy, a subsidiary of ib Vogt GmbH Germany, which was granted generation licence by Nepra on January 19, 2020 for setting up a 50 MW solar power plant at Gwadar.

A representative of the company, Mr. Nadeem, briefed the committee that his firm was granted generation licence and tariff of Cents 4.7 per unit. He also challenge wome of the arguments presented by the secretary power division.

On a question raised by Senator Mirza Muhammad Afridi, the Secretary Power said that the regulator granted generation licence and approved tariff of this project after the RE policy had been approved.

“I didn’t want to indulge in controversy but it is a fact that the regulator gave tariff and generation licence to the project after the approval of RE policy based on three categories, which clearly states that in future renewable energy projects will be given generation licences through competitive bidding process,” the Secretary Power maintained.

While commenting on the project Chief Executive Officer (CEO) AEDB/ MD PPIB Shah Jahan Mirza informed the committee that the project of P&G Energy is only one project and the Government of Balochistan has issued LoIs to 18 renewable energy projects, with the total capacity of 1100 MW.