Private sector to invest in power transmission lines

[RAMPAGE]

The National Electric Power
Regulatory Authority (Nepra) has
cleared the way for private-sector
investment in laying power
transmission lines with the grant
of a special purpose licence to
Fatima Transmission Company for
building and running such
facilities.
“Nepra has taken a big step to encourage the
private sector and other entities to invest in
an area which is inherently considered a
public-sector domain, by granting the first
special purpose transmission licence to a
private enterprise,” the regulator was
quoted as saying in a press release issued on
Tuesday.
Under the licence, Fatima Transmission
Company will construct and own
transmission facilities. It will lay a 37km
transmission line for the supply of 120
megawatts from power generation facilities
to bulk consumers.
Nepra stressed that its initiative was in line
with the objectives of reforms undertaken
in the power sector, which was approved by
the federal government in 1992 to bring
efficiency and encourage competition with
the unbundling of public-sector enterprises.
Though state enterprises are primarily
responsible for developing extra high-
voltage (66,000 volts and above)
transmission facilities, they could not
upgrade and develop the system according
to required reliability levels, leading to
severe bottlenecks and congestions.
As a consequence, not only power plants
were forced to operate without merit, but
also major breakdowns occurred.
With the addition of new power generation
plants over the next four to five years, the
National Transmission and Despatch
Company (NTDC) will be required to
transmit a large volume of electricity.
Since the laying of new extra high-voltage
transmission lines is highly capital-
intensive, the NTDC in all likelihood will
not be able to meet such huge funding
needs.
It will also be difficult for the government
to pump massive investments into the
transmission network because of financial
constraints and operational issues. The
Nepra Act allows that in addition to the
NTDC, other entities including the private
sector can construct, own and operate
transmission facilities for providing
interconnection services to the NTDC and
others.
A special purpose transmission licensing
regime will not only enhance the existing
capacity, but will also result in installation
of new transmission infrastructure. It will
create avenues for private-sector
investment, which could be made for
mutual contracts between the supplier and
the consumer or for providing services to
the NTDC.
This initiative is expected to revolutionise
the power sector by significantly reducing
bottlenecks in the transmission network. It
will also enable the government to
overcome acute power shortages and permit
private-sector players and entrepreneurs to
play their role more effectively in
developing the energy sector.
With the timely laying of transmission
lines, power generation companies will be
able to supply electricity in an efficient
manner, reduce line losses and operational
and management costs. Through such
initiatives, the country will gradually
develop an efficient transmission and
distribution system.

tribune.com.pk/story/940490/private-sector-to-invest-in-power-transmission-lines/

 

[touela]

Finally somebody taking transmission lines seriously