Muhammad Omar
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The solar power tariff is to fall over time; it would provide energy security in the country in addition to diversification in power generation. STOCK IMAGE
ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has determined and approved upfront tariff and indexation for solar power generation.
The purpose is to deliver electricity to the power purchaser based on solar photovoltaic power plants.
This determination was in accordance with Section 31 Sub-section (4) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 read with Regulation 3 of the Upfront Tariff (Approval & Procedure) Regulations 2011, said a press release issued on Wednesday.
According to the statement, an applicant can opt for the upfront generation tariff for solar power plant once notified in the official gazette.
The solar power tariff is to fall over time; it would provide energy security in the country in addition to diversification in power generation.
Solar power would facilitate the economy and industry due to its unique benefits and competitiveness; it provides environment-friendly and renewable energy, the statement said. The per megawatt cost of solar power – although higher in the beginning – will decline subsequently, making it a financially viable solution in the medium term.
Additionally, the low operation and maintenance cost of solar power projects is an added advantage. It would mean less reliance on the import of fossil fuel or no worry over depletion of indigenous natural resources like gas.
In the next stage, after the introduction of off-grid solution, solar panels can be provided to remote areas.
In Pakistan, connecting far-off villages to the national grid would be very costly, thus giving each house a solar panel would be cost efficient and save investment in transmission lines and transmission losses.
Many countries such as the US, Germany, Australia, Brazil, the UK, Japan, India, China and Thailand are now generating electricity in bulk through solar system.
India has already installed solar power projects having 3,000MW capacity, China 22,000MW and Germany succeeded in installing 38,000MW of solar power generation capacity.
The statement said the determination of upfront tariff is a step in the right direction. Net metering is also being envisaged by Nepra as the next step after input, comments and recommendations are received from stakeholders.
The cost of installation of solar panels can be recovered in four years and consumers would get cleaner energy at cheaper costs.
Published in The Express Tribune, January 29th, 2015.
It was the biggest in ASia of 1000 MW but now it is reduced to 100 MW initially and will be operational in this year and hopefully will produce 1000 MW in 2017.
