ISLAMABAD: The country’s three dozen Wind Power Projects (WPPs) have reportedly accused National Power Control Centre (NPCC) of discriminating against them through excessive curtailments, well-informed sources told Business Recorder.
The representatives of WPPs who wrote a letter to Prime Minister Shehbaz Sharif and other authorities were invited by National Electric Power Regulatory Authority (Nepra) on Thursday to voice their viewpoints in the presence of National Power Control Centre (NPCC) and CPPA-G.
According to sources, both sides hurled accusations against each other for the current mess. However, the Regulator pacified both sides and directed NPCC to give dispatch to wind projects as their rate is far cheaper than other sources.
General Manager, NPCC, SajjadAkhtar at a recent meeting of Senate Standing Committee on Power, had commented that one of the reasons for the recent power breakdown was fluctuating supply from wind sources which impacted on the transmission system.
The NPCC further stated that wind power projects are established South whereas maximum demand is in North of the country.
During the meeting, NPCC/NTDC officials stated that they have to follow Economic Merit Order (EMO) according which generation from nuclear power plants and Thar coal-fired plants is cheaper than wind plants.
During the meeting, NPCC/NTDC officials stated that they have to follow Economic Merit Order (EMO) according which generation from nuclear power plants and Thar coal-fired plants is cheaper than wind plants.
On the other hand, representatives of wind power projects were of the view that if existing investors are not treated fairly, then no other investor will show interest in future.
The CPPA-G officials proposed that Nepra should play to find out an amicable solution. However, Chairman Nepra did not take any responsibility saying that it’s the government to take policy decisions.
Chairman Pakistan Wind Energy Association (PakWEA), Rumman A Dar, in his letter to Prime Minister stated that the government’s efforts to reduce reliance on imported fuel are being undermined by the refusal of the system operator, ie, NPCC to despatch existing WPPs.
Rather than despatching the WPPs, the NPCC has instead been issuing instructions for the cessation of generation by such WPPs thereby leading to their excessive curtailment which commenced in November 2022 and is continuing to-date.
PakWEA, in its letter, claimed that such instructions also contradict the mandatory purchase principle as incorporated in the Energy Purchase Agreements (EPAs) of the WPPs, as executed by and between the WPPs and the federal government power purchaser i.e. CPPA-G.
The Association further argued that while the EPAs do permit for curtailment where the National Grid is experiencing technical constraints, yet it noted that the current excessive curtailment is not due to any technical fault in the National Grid as evidenced by NPCC’s own instructions.
PakWEA has informed the Prime Minister that the ongoing curtailment is in flagrant violation of the contractual terms of wind power plants as well as the GoPs assurance to local and foreign investors, via its 2006 RE Policy, that renewable energy plants would be treated as must-run generation plants.
“As a result of this systemic, excessive curtailment, PakWEA fears that the ongoing curtailment will result in the WPPs being unable to sufficiently invoice the power purchaser such that they can cover debt payments to their lenders. As such, there is a real threat that WPPs’ projects shall be deemed financially unviable by their lenders and that such lenders shall take action pursuant to the remedies provided under their financing agreements,” said the Association.
The majority of affected WPPs have been funded by foreign lenders and the inability of the WPPs to meet their debt obligations may be construed by the lenders as an “event of default” under the agreements.
The following 36 WPPs have been curtailed: (i) Master Wind Energy Limited;(ii) Master Green Energy Limited;(iii) Yunus Energy Limited ;(iv) ACT Wind (Private) Limited;(v) ACT 2 DIN Wind (Private) Limited;(vi) Lucky Renewables (Private) Limited;(vii) Sapphire Wind Power Company Limited; (viii) Tricon Boston Consulting Corporation (Private) Limited A; (ix) Tricon Boston Consulting Corporation (Private) Limited-B; (x) Tricon Boston Consulting Corporation (Private) Limited–C; (xi) UEP Wind Power (Private) Limited; (xii) Liberty Wind Power 1 Limited; (xiii) Liberty Wind Power 2 Limited; (xiv) HydrochinaDawood Power( Private) Limited); (xv) Foundation Wind Energy 1 Limited; (xvi) Foundation Wind Energy 2 (Private) Limited;(xvii) Gul Ahmad Wind Power Limited; (xix) Jhimpir Power (Private) Limited; (xx) Artistic Energy (Private) Limited; (xxi) Artistic Wind Power (Private) Limited; (xxii) TenagaGenerasi Limited; (xxiii) Gul Ahmed Electric Limited; (xxiv) Metro Wind Power Limited; (xxv) Indus Wind Energy Limited; (xxvi) Lakeside Energy (Private) Limited; (xxvii) FFC Energy Limited; (xxviii) Three Gorges First Wind Farm (Private) Limited; (xxix) Three Gorges Second Wind Farm (Private) Limited; (xxx) Three Gorges Third Wind Farm (Private) Limited; (xxxi) Sachal Energy Development (Private) Limited; (xxxii) Metro Power Company Limited; (xxxiii) Zorlu Energy Pakistan Limited; (xxxiv) Zephyr Power (Private) Limited; (xxxv) Din Energy Limited and (xxxvi) NASDA Green Energy (Private) Limited).
Copyright Business Recorder, 2023
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