Below 50 megawatts capacity: Power Ministry to issue new guidelines for SIPPs

The Ministry of Water and Power is to issue fresh guidelines for Small Independent Power Projects (SIPPs) below capacity of 50 MW, sources in PPIB told Business Recorder. Power Policy 2002 deals with power generation projects of 50 MW or above.
At present there is no policy for power projects below 50 MW, which was considered as a major impediment in the development of SIPPs which according to the PPIB contribute significantly to augment the power starved system. The Planning Commission in consultation with National Transmission and Dispatch Company (NTDC) has projected an urgent requirement for additional generation of 5,000 MW in order to bridge short term power supply demand deficit. The small power producers can contribute to meet power shortages locally at distribution level to help stabilise the system voltages and reduce the line losses in the system as well.
The sources said, Ministry of Water and Power finds it expedient to issue the policy guidelines for power generation through SIPPs with a maximum installed capacity up to 50 MW. These guidelines are aimed at providing a policy framework whereby the private sector is facilitated to establish, operate and manage SIPPs on commercial basis and through bilateral contracts with power Distribution Companies (Discos), licensed by National Electric Power Regulatory Authority (NEPRA).
The sources said a summary has been submitted to the ECC for approval of policy guidelines for power generation capacity through SIPPs with capacity below 50 MW. According to sources the summary was circulated to Ministries of Finance, Law, Justice and Parliamentary Affairs, Planning and Development Division, Board of Investment, Governments of AJ&K, Balochistan, Gilgit Baltistan, Khyber Pukhtoonkhwa, Punjab, Sindh and NEPRA, for views and comments.
No reply has been received from governments of Gilgit Baltistan and Punjab whereas other stakeholders have sent their comments. Government of Khyber Pukhtoonkhwa (GOKP) has suggested that the summary may be placed before the CCI rather than discussing/deliberating in the ECC, where there is no provincial representation.
Contrary to the stance of GoKP, Ministry of Water and Power argues that the subject summary was cleared/endorsed by the Law, Justice and Parliamentary Affairs Division, without any reservation/suggestion on this account. Further the policy guidelines for SIPPs directly relates with economic incentives/benefits for the Discos.
The Government of Sindh (GoS) cited Article 157 of Constitution and commented that the guideline given for SIPPs deviate from the true sprit of the constitution. In denial Ministry of Water and Power mentioned that clause 3.3 of the proposed policy that states "in light of the 18th amendment to the Constitution of Pakistan, the concerned province shall have the "first right of refusal" to develop these project." In view of comments of the stakeholders, the guidelines have been modified and placed before the ECC, the sources concluded.