National Electric Power Regulatory Authority (Nepra) has observed that the existing energy mix of the country is heavily skewed towards thermal power plants, mainly operating on imported fossil fuel. The regulator gave these remarks while granting generation licence to Pakhtunkhwa Energy Development Organization (PEDO) for establishment of its 11.80 MW Karora Hydel Power Plant located on Khan Khwar River at Karora village near Besham, District Shangla.
The Authority, which itself granted generation licences for thermal power projects based on imported fuels like RLNG, coal and furnace oil in the past, has stated that it is of the considered opinion that use of imported fossil fuel for power generation is not only an environmental concern but also creates pressure on the precious foreign exchange reserves of the country, adding that in order to achieve sustainable development, it is imperative that all indigenous resources specially RE including hydel, wind, solar and other RE resources are given priority for power generation and their development is encouraged.
The Authority observed that PEDO was set up to exploit hydel potential of the province and is an autonomous organization governed by its Board of Directors. PEDO has successfully completed seven (07) small and medium sized hydel power projects. These include (a) 81.00 MW Malakand-Ill; (b) 18.00 MW Pehur; (c) 1.80 MW Shishi; (d). 4.20 MW Reshun; (e) 2.40 MW Machai; (f) 17.00 MW Ranolia; and (g) 36.60 MW Daral Khwar Projects. Currently, PEDO is working on a number of hydropower projects which are at different stages of implementation located in Chitral, Dir, Swat, Mansehra and Kohistan. The Authority has also observed that the major source of funding for financing these projects is Hydel Development Fund and the Annual Development Program of Govt. of KPK. In view of the above, the Authority is satisfied that PEDO has the required financial and technical capability to implement hydel power projects.
PEDO carried out a detailed feasibility study of the project through ACE Consulting Engineers (Pvt.) Limited. Later on, the feasibility study was again updated by the consortium of Pakistan Engineering Services (Pvt.) Ltd (PES) and Development & Management Consultant (DMC) in association with Nippon Koei Co Ltd, Japan. The scope of the feasibility study included the site investigations, infrastructure requirements, detailed design of power house, GIS, IEE, tariff calculation (including economic/financial analysis), term of financing and project cost.
According to the generation license determination, the Authority is encouraged that the proposed generation facility/Hydel Power Plant of PEDO will be utilizing water which is Renewable Energy (RE) source. However, the Authority has observed that the construction and operation of the proposed generation facility/hydel power plant may cause some environmental concerns including soil pollution, water pollution and noise pollution.
The Authority has observed that PEDO carried out the required IEE study and submitted the same for the consideration and approval of Environmental Protection Agency, Govt of KP (EPAGoKP). In this regard, the Authority is satisfied that EPAGoKP has issued NOC for the construction of the project.
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