ISLAMABAD: Alternative Energy Development Board (AEDB) has approved issuance of Tripartite Letter of Support (TLoS) to Turkish Firm M/s Zorlu which intends to establish 100-MW solar project at Bahawalpur, official sources told Business Recorder.
The Punjab Power Development Board (PPDB) has asked AEDB of Power Division to expedite issuance of TLoS to Turkish Company, M/s Zorlu.
According to Managing Director PPDB, Letter of Interest (LoI) was issued, after due process by the PPDB to M/s Zorlu Solar Pakistan Pvt. Ltd (ZSPL), Special Purpose Vehicle (SPV) company of M/s Zorlu Enerji Elektrik Uretim A.S, for development of 100-MW solar power project at Quaid-e-Azam Solar Park, Lal Sohana, Bahawalpur on January 17, 2017, which is still valid.
PPDB asks AEDB to expedite issuance of tripartite LoS to Zorlu
Last month, the Board was apprised that Zorlu Solar Pakistan Limited (ZSPL) is developing a 100-MW solar PV project at Lal Sohanra, district Bahawalpur, Punjab. The project is placed under Category-II of CCoE decisions.
The Board was informed that National Electric Power Regulatory Authority (Nepra) on January 15, 2020, granted tariff to ZSPL for its project. Upon confirmation of grid interconnection by NTDC and issuance of consent for purchase of power by CPPA-G, the matter for issuance of TLoS to ZSPL was placed in the 51st Board meeting on January 6, 2021.
The Board meeting was informed that ZSPL has filed modification of Generation Licence to Nepra on November 26, 2020 and will be filing new tariff petition to Nepra based on Nepra’s approval of modification of Generation Licence.
Accordingly, the Board decided to defer the matter of issuance of TLoS till the determination of tariff by Nepra against the new tariff petition.
The Board was further apprised that Nepra approved the amendment in Generation License issued to ZSPL on January 07, 2022. Based on Nepra’s approval of amendment in Generation Licence, ZSPL filed new tariff petition to Nepra on February 22, 2022. Nepra issued tariff determination on August 12, 2022, whereby it had awarded a tariff of US cents 4.0136 per kWh.
However, CPPA-G on September 20, 2022, filed a motion for leave to review against the determination. Nepra, on June 09, 2023, issued the determination against the motion for leave for review filed by CPPA-G and awarded a tariff of US cents 3.9017 per kWh for the project.
According to sources, M/s ZSPL has now provided its acceptance of the tariff determined by Nepra and has requested AEDB for issuance of TLoS for the subject project. The Board was informed that the tariff determined by Nepra has yet to be notified in the Official Gazette.
After detailed discussion, the Board approved issuance of Tripartite Letter of Support to 100-MW solar PV project of Zorlu Solar Pakistan Limited at Bahawalpur, in view of the fact that formal publication in the official gazette is only a procedural formality once the tariff has been determined by Nepra.
During a recent visit of Prime Minister Shehbaz Sharif to Turkey, the company’s Chief Executive Officer (CEO) Sinan AK informed him that the company is seeking financial closure for 100-MW plant in Quaid-e-Azam Solar Park in the next two months. He also expressed Zorlu’s interest in investing in Discos, especially in Lahore.
In August last year, Nepra had shown ‘special kindness’ to Turkish company M/s Zorlu Solar Pakistan Limited (ZSPL) by approving 13 percent Return on Equity (RoE), after intervention of the Prime Minister, who had apologized publicly to the Turkish companies for mistreatment in the past. Turkish company had complained of ‘ill-treatment’ during the PTI government including from National Accountability Bureau (NAB).
Copyright Business Recorder, 2023
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