PEDO to work on solar energy projects worth Rs4.34bn

Policy developed for promoting Solar Energy

The government has developed a robust policy for the promotion of solar PV projects. The policy was revealed at an investors’ conference to offer projects of 600 MW for investors.

Some important points about this policy are: (i) single stage, two-envelope bidding; (ii) straight line tariff; (iii) 70 percent indexation of tariff; (iv) benchmark tariff by Nepra; (v) guaranteed purchase of power; (vi) land and interconnection to be provided by GoP; (vii) exemption on all import related duties and taxes; (viii) existing EPA & IA will be used; (ix) Commercial Operation Date (COD) within 12 months of Energy Purchase Agreement (EPA); (x) term-25 years on BOOT basis; (xi) 11.15 percent income tax; and (xii) payment guaranteed on 60th day after invoice through bank default.

Tanveer Barry, Chairman public sector KCCI while speaking at the occasion said that the government has taken a good decision regarding solar energy and suggested that the government should also focus on wind energy in Sindh coastal areas – areas that are suitable for wind energy & can produce thousands of megawatts.

Former Prime minister Shahid Khaqan Abbasi, Chairman Prime Minister’s Task Force on Solar Energy Initiatives, Minister for Power, Khurram Dastgir Khan and Secretary Power, Rashid Mahmood Langrial and others addressed the conference and shared details of solar initiatives.

We are also targeting one megawatt generation directly to 11 kV feeders totaling to 2,000 MW to be directly supplied to Discos. The government is also targeting solarization of 2,000 MW for government buildings,” he said, adding that both the government and private sector will invest in this scheme.He urged investors to come forward and invest in 600 MW solar plants near 220 kV and 500 kV transmission lines.