ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) is said to have accepted tariff application of 470 MW Lower Spat Gah Hydropower Project to be established by the Korean company.

The project which was on the agenda of Executive Committee of SIFC on Monday, is nestled in the underdeveloped Upper Kohistan district of Khyber Pakhtunkhwa, and is a beacon of hope for the region.

M/s KHNP, a state-owned power generation giant responsible for over 30,000 MW of electricity production in Korea, is driving this project, building on their expertise after successfully completing various projects around the world.

The KHNP will invest over $ 1 billion in Pakistan. The project is a stellar example of a public-private partnership, with the Government of Khyber Pakhtunkhwa investing 26% equity in the venture.

The KHNP will share part of its Internal Rate of Return (IRR) with the government as well, generating revenue that can be used to provide tariff subsidies to electricity consumers which marks a significant step toward reducing the cost burden on end-users while promoting sustainable power generation.

The Lower Spat Gah Hydropower Project’s strategic location, just 3 kilometers from a 765 KV transmission line, ensures low grid connectivity costs compared to future committed projects. With a 700-meter high head project, it can generate peaking energy, making it a reliable source of Grid stability.

In anticipation of integrating solar and wind projects into the national grid, the Lower Spat Gah Project is poised to play a pivotal role in mitigating grid stability risks.

The venture has received unwavering support from both the federal and provincial governments.

The KHNP has expressed the confidence that, with continued support from the Government of Pakistan, the Lower Spat Gah Hydropower Project will be a genuine game changer, not only benefiting the energy sector but also driving economic growth and sustainable development in the region.

The Lower Spat Gah Hydropower Project exemplifies the potential of public-private partnerships in realizing Pakistan’s hydropower potential. It shines as a beacon of hope for a cleaner, more sustainable energy future in Pakistan, reaping benefits not only for the environment but also for local communities and the nation’s economy as a whole.

Copyright Business Recorder, 2023