ISLAMABAD: Secretary Power Ali Raza Bhutta, on Monday told the Senate Standing Committee on Power that he would table a 50MW solar power project before the Cabinet Committee on Energy (CCoE), approved by Nepra allegedly in violation of policy.
On February 2, 2021, the committee directed the Power Division and Nepra to provide latest details on P&G Energy, a subsidiary of ib Vogt GmbH Germany, which was granted generation licence by Nepra on January 19, 2020 for setting up a 50 MW solar power plant at Gwadar.
A representative of the company, Mr. Nadeem, briefed the committee that his firm was granted generation licence and tariff of Cents 4.7 per unit; and challenged some of the arguments of Secretary Power, which irritated the Secretary who told the Chairman of the Committee that he is answerable to him and not to any outsider.
The Secretary Power apprised the committee that the government has already approved Renewable Energ (RE) policy according to which only the projects participating in competitive bidding process would be facilitated.
“This is the government policy and he cannot change it. However, he can present his company’s case to the standing committee which in turn can make its recommendation,” he added.
The Power Division, he said, does not have any reservation on the project if the electricity to be generated from the plant is not added to the national grid.
Chief Executive Officer (CEO) AEDB/ MD PPIB Shah Jahan Mirza informed the committee that the project of P&G Energy is only one project and the Government of Balochistan has issued LoIs to 18 renewable energy projects, with the total capacity of 1100 MW.
Taking ahead the arguments of CEO AEDB, the Secretary Power informed the committee that not only the Government of Balochistan, but the governments of Punjab, Sindh and KP have issued LoIs to renewable energy projects.
On a question raised by Senator Mirza Muhammad Afridi, the Secretary Power clearly stated that the regulator granted generation licence and approved tariff of the specific project after the approval of the RE policy.
“I didn’t want to indulge in controversy but it is a fact that the regulator gave tariff and generation licence to the project after the approval of RE policy based on three categories, which clearly states that in future renewable energy projects will be given generation licences through competitive bidding process,” the Secretary Power maintained.
Member Nepra, Bahadar Shah, informed the committee that there are 12 projects of 660 MW( three in KP, four Balochistan and rest are in Sindh) which have been given tariffs by the regulator, and proposed that these projects be placed before the Cabinet Committee on Energy for a way forward.
The committee was informed that 300MW coal-fired project being established under the CPEC at a tariff of 7.3 Cents will be operational by 2023. Senator Ahmed Khan claimed that the machinery of coal plant to be set up at Gwadar is second-hand. He also urged the Power Division to ensure load-shedding-free electricity to Gwadar.
The members maintained that investors are shy of investing in Gwadar as “no electricity” is available for industry. The Power Division, however, stated that 100MW electricity is being imported from Iran for Makran Division.
The Secretary Power also stated that only sustainable solution for Gwadar is supply of electricity from national grid and National Transmission and Dispatch Company (NTDC) is undertaking the project, adding that work has already been awarded to complete the last phase of transmission project. This will be completed over the next 18 months.
“Gwadar cannot get electricity from a solar project on a sustainable basis. It can only get power from national grid on sustainable basis,” Secretary Power continued.
On controversy over the recruitment process in Peshawar Electric Supply Company (Pesco), a heated debate was witnessed in the committee’s meeting. Some members argued that the entire recruitment process should be annulled, whereas others suggested that recruitment process of SDOs should not be investigated as there was no serious complaint received in this regard. Others however noted that as the same testing agency conducted the tests that had previously released results that were regarded as doubtful then how the tests and marking of SDOs could be considered transparent.
Secretary Power assured the committee the case of testing agency will be sent to investigating agency. Other Members of the Committee, and one KP Member Assembly, Amjad Khan raised the issues in relation to their respective areas.
Copyright Business Recorder, 2021