Web Desk
The National Electric Power Regulatory Authority (NEPRA) has granted approval for a tariff of Rs. 7.8 per unit for the upcoming 600 MW solar project to be established in Muzaffargarh, subject to certain conditions. One of the conditions includes quarterly adjustments to the tariff to account for fluctuations in exchange rates.
Consumers will be liable to pay a 15 percent income tax on the income and gains generated from the Muzaffargarh solar project, as it will be included in the benchmark tariff. The Alternate Energy Development Board had requested that the 15 percent income tax be treated as a pass-through item, but NEPRA rejected the proposal, resulting in it being placed above the benchmark tariff, as reported by TheNews.
End users will be required to pay yearly lease rentals equivalent to 5 percent (Rs. 70 million) of the proposed land cost (Rs. 1,400 million), leading to a tariff impact of Rs. 0.06/kWh.
In addition to the above, NEPRA has also approved the Request for Proposal (RFP) documents for the government’s 600 MW solar power project. The RFP will be open for investor bids until the end of this month, following which the contract will be awarded to the selected bidder for project construction.
It is worth noting that the technical feasibility of the 600 MW solar power plant was funded and prepared by the German Government’s GIZ. To expedite Prime Minister Shehbaz Sharif’s green energy initiative, the federal government established a special task force led by Shahid K Abbasi.
The Government of Pakistan aimed to transition its electricity system to solar energy, as the lifespan of plants operating on furnace oil is expected to expire this year.
