ISLAMABAD: K-Electric has requested Private Power and Infrastructure Board (PPIB) to seek feedback from National Transmission and Distribution Company (NTDC) on status of Cat-III wind projects including submission of RfP to Nepra.
According to the power utility company, it is engaged with PPIB on the Cat-Ill Wind Projects initiated in January 2024 as active collaboration was carried out amongst the parties to iron out development steps, needed for successful materialization of the opportunity. The inclusion of project’s capacity into the upcoming IGCEP was a key regulatory pre-requisite needed to ensure the subsequent development of the opportunity.
In a letter to Managing Director, PPIB, Shah Jahan Mirza, KE’s Chief Strategy Officer, Shaab Qader Khan stated that due to this very reason, during the meeting held on January 4, 2024, whose minutes were issued through of January 5, 2024, it was unequivocally agreed and documented that “NTDC will allocate a minimum of 480 MW of wind capacity to K-Electric, for the year 2026-27 in the Indicative Generation Capacity Expansion Plan (IGCEP), comprising 300 MW of Category-Ill wind projects, and 180 MW wind projects, for which K-Electric has already submitted the RFP to National Electric Power Regulatory Authority”.
Thatta Cat-III wind projects: PPIB develops ‘new arrangements’
Subsequent to this, KE shared its draft Energy Purchase Agreement (EPA) with PPIB on March27, 2024 via email. Since PPIB will be acting as Independent Auction Administrator (IAA) during the bidding process, KE, through its letter of May 10, 2024, also sought clarity on the registration process, if any, that is required to be followed.
Feedback was also provided by KE on draft Request for Proposal (RFP) through email on May 14, 2024, as RfP is required to be approved by National Electric Power Regulatory Authority, to initiate competitive bidding process.
According to KE, the IGCEP document formulated by NTDC and published by Nepra on its website on May 17, 2024 for stakeholders’ comments, does not include wind capacity for Cat III project and other development projects of KE which may delay the project’s progress, as the prevailing regulatory regime - Nepra’s Electric Power Procurement Regulations 2022- make it obligatory that no new electric power procurement shall be made unless it is approved in the Power Acquisition Program (PAP), which in turn is based on the IGCEP.
Although PPIB through its letter of May 31, 2024, requested NTDC to include the capacity needed for the project, within its IGCEP however significant time has elapsed and no feedback has yet been received from NTDC.
KE has requested PPIB to solicit feedback from NTDC, on IGCEP inclusion of the project, besides update on the status of RfP submission to NEPRA, which is another pre-requisite for the initiation of the bidding process. “Since the arrangement of the project has been ratified by the 9th Apex committee of Special Investment Facilitation Council (SIFC), therefore, we understand that this project has potential to be the bellwether to attract foreign direct investment in renewable sector of Pakistan.
Building on our recent success in securing bids for three renewable energy projects at record low tariffs, we aim to capitalize on this momentum and further accelerate our transition to clean energy, “said Chief Strategy Officer.
Copyright Business Recorder, 2024
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