Nishan_101
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Power generation through sugar mills
Friday, May 24, 2013
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Thursday approved Rs 10.50 per unit as upfront tariff for power generation through sugar mills by utilising sugarcane bagasse.
According to the NEPRA spokesman, this upfront tariff is approved to encourage sugar mills to generate around 1,500 megawatts (MW) on fast track basis.
At present hydel generation is costing Rs 2.50 per unit, generation through natural gas is costing around Rs 5.0 per unit, thermal generation from Rs 14 to Rs 18 per unit and electricity generated through diesel is costing Rs 23 to Rs 28 per unit in the country.
The approval of upfront tariff for sugar mills would encourage sugar mills to plan their investment in this new sector for steering out the country from power crisis faced by the nation during the last decade.
The government has plans to generate around 3,000 MW cheaper electricity through sugarcane bagasse on fast-track basis and investors would be facilitated and encouraged.
Necessary amendments would also be made in the existing co-generation and renewable energy policies to make it simplified and investor-friendly.
In a recent meeting on fast-track development of bagasse-based power generation projects it was informed that the government was utilising all the resources to end the energy crisis and the power generation from bagasse would be another step to produce electricity from indigenous resources.
Pakistan Sugar Mills Association (PSMA) has been taking interest in the bagasse-based power projects and time and again assured the government to provide full cooperation.
Approval of the upfront tariff was lingering on since a few years. During the last two governments, hectic efforts were made to utilise bagasse for cheaper power generation. Initially 1,500 MW would be completed on fast-track basis. The meeting had also reviewed in detail the existing co-generation and renewable energy policies and discussed various proposals to simplify it in order to get benefit at the earliest.
It has been felt necessary that amendments in the existing policies would help alleviate the power crisis in the country. It was decided that the Alternative Energy Development Board (AEDB) would process the bagasse-based projects under renewable energy policy.
A committee was also set up to finalise the recommendations in consultation with all the stakeholders so that approval could be taken from the competent forum to start the projects.
AEDB and PSMA have already informed the government that Pakistan was the fifth largest producer of sugarcane with production of 50 million tonnes of sugarcane annually, yielding over 10 million tonnes of bagasse.
Power generation from bagasse would not only reduce the furnace oil import, but even save Rs 33 billion to Rs 49 billion of foreign exchange per annum. The country has 87 sugar mills with a capacity to generate 3,000 MW electricity from bagasse in winter season. staff report
Daily Times - Leading News Resource of Pakistan
Far better to Privatize these Thermal Plants all accross Pakistan by selling 51% shares to the private people who will going to increase its effciency as well as this privatization will give them money to full fill the loan payment issue.