ISLAMABAD: The Board of Alternative Energy Development Board (AEDB) has granted six months extension in Letter of Intent (LoI) to two wind IPPs listed under Category-II and Category-III while one project’s fate is linked to recommendations of a Committee, well informed sources told Business Recorder.
The Board in its meeting held on May 24, 2023 was informed that Western Energy (Private) Limited (WEPL) is developing a 50MW wind project in Jhimpir, district Thatta, Sindh and is placed under Category-II of the CCoE decision.
AEDB Board in its 57th Board meeting had allowed an extension of six months in the validity period of the LoI issued to WEPL that lapsed on January 27, 2023. WEPL, in its letter of January 26, 2023, requested AEDB for grant of further extension in the LoI validity period.
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The Board was apprised that pursuant to the decision of the CCoE, WEPL had filed a tariff petition and Licence Proposed Modification (LPM) of the generation licence before NEPRA on May 12, 2020, and December 09, 2020, respectively. However, NEPRA, in its letter of March 11, 2022, returned the tariff petition filed by WEPL. NEPRA also returned the LPM filed by WEPL. It was further apprised that PAF/ AHQ have provided its clearance for the twenty WTG locations of the project; however, the signing of the MoU between WEPL and AHQ is still awaited by the company.
WEPL filed LPM of the generation licence and afresh tariff petition to NEPRA on January 12, 2023, and January 20, 2023, respectively. Further, WEPL also submitted the revised feasibility study which was approved by AEDB on March 01, 2023.
The decision of the Authority on the LPM and tariff petition filed by WEPL is awaited.
Trans Atlantic Energy (Private) Limited (TAEPL): The IPP is developing a 50MW wind project in Jhimpir, district Thatta, Sindh and is placed under Category-II of the CCoE decision. AEDB Board in its 57th Board meeting allowed an extension of six months in the validity period of the LoI issued to TAEPL that lapsed on January 17, 2023. Accordingly, TAEPL vide letter dated January 13, 2023 requested AEDB for grant of further six (06) months extension in the LoI validity period.
The Board was apprised that pursuant to the CCoE decisions, TAEPL had filed afresh tariff petition and LPM of the generation licence before NEPRA on February 18, 2021. However, NEPRA, on March 11, 2022, returned the tariff petition filed by TAEPL with the directions to file afresh tariff petition, after issuance of decision on the LPM which was issued by NEPRA on August 16, 2022.
TAEPL, based on the WTG of Goldwind (GW155-4.5), filed modification application of the generation licence (LPM) before NEPRA and submitted the revised feasibility study to AEDB for approval on October 12, 2022 and November 02, 2022, respectively. Later on, TAEPL on January 11, 2023, also filed a fresh tariff petition to NEPRA, decision on which is pending. The revised feasibility study submitted by TAEPL has not been processed by AEDB due to pendency of the decision on its application dated September 16, 2022, for change of shareholding.
Buri Wind Energy (Private) Limited (BWEPL): The BWEPL IPP acquired LoI from AEDB for the development of 14MW wind power project and is placed under Category-II. AEDB Board in its 57th meeting allowed an extension of six months in the validity period of the LOI that lapsed on February 03, 2023.
Accordingly, BWEPL vide letter of February 01, 2023, requested AEDB for grant of further extension in the LoI validity period. It was apprised that pursuant to the decisions of the CCoE, the RFP documents have already been prepared by AEDB. However, the competitive bidding of Category-II wind projects is pending due to non-receipt of the consent from the provincial energy departments on the quantum proposed by AEDB in letters of January 16, 2023 and January 20, 2023.
As per the terms & conditions of the LoI, if the award of tariff is delayed beyond the initial validity period of the LoI, the Sponsor shall extend the Bank Guarantee for a further period of six months and the expiry date shall be extended ipso facto for a further period of six months. Further, the LOI also allows for day-for-day.
After brief discussion, the AEDB Board approved six months extension in the validity of the LoIs issued to Western Energy Pvt. Ltd. and Burj Wind Energy Pvt. Ltd. from the date of submission of extended bank guarantees.
However, the Board decided that the extension validity of LoI of Trans Atlantic Energy Pvt. Ltd. will be decided upon based on the recommendation of the committee and subsequent decision of the Board with regards to approval on change of shareholding of Trans Atlantic Energy Pvt. Ltd.
Copyright Business Recorder, 2023
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