Solar, wind projects to reduce power rates to Rs 6 per unit: Omar Ayub

[Kabira]

ISLAMABAD: Minister for Energy Omar Ayub Thursday said generation of electricity from solar and wind projects would get a boost with the new alternative energy development policy, resulting in reduction of electricity rates to as low as Rs six per unit in future and saving of precious foreign exchange reserves presently spent on fuel import.

Talking to APP, he said, “the wind and solar projects will help reduce the rate of electricity to Rs 6 per unit and the rate will go down even further in future."

Pakistan Muslim League (N) government generated electricity from liquefied natural gas at the rate of Rs 17 per unit, he added.

The minister said all stakeholders including the provinces had agreed on the policy and its implementation would be undertaken by a steering committee at the federal level and by provinces and Alternative Energy Development Board (AEDB).

The provinces would provide land for the solar and wind projects, he continued.

He went on to say that international companies were coming for investment in the solar and wind projects. The companies would not only generate power but would also manufacture wind turbines and solar panels in the country.


The investment would give impetus to the industrial sector, create jobs in manufacturing and technology transfer would take place. The government was working to improve the electricity grid structure, he explained. He said the alternative energy policy was a revolutionary step of the government. Prime Minister Imran Khan had taken personal interest in the policy and also guided the ministry, he added.

Secretary Power Irfan Ali and Special Assistant to Prime Minister on Petroleum Nadeem Babar and others were focusing on the policy implementation. The policy would be implemented through competitive bidding resulting in reduction of project cost.

He said Pakistan had investment potential of $ 40 billion in the sector of alternative energy. Pakistan in future could produce 75 percent of electricity from its own indigenous sustainable resources without importing fuel like oil and gas which in turn would save the government's financial resources, strengthen value of the rupee and cut the current account deficit.

Private companies from Japan, the United States, China and Denmark would invest

$ 70 million in projects of 500 megawatts, he said adding results of the policy would start appearing in the year 2021. Saudi Arabia would bring an investment of $ 4 billion for building a power plant in Balochistan, he added.
https://www.brecorder.com/2019/11/2...educe-power-rates-to-rs-6-per-unit-omar-ayub/

 

[ALi Rizwan]

Rs 6 / Unit? how???? To offer Rs 6 / unit to consumer. Govt. need to buy electricity below Rs 6.

Rs 6/unit = IPP(Independent Power House) Rate + NTDC(Main Line) Cost+ LESCO/FESCO ETC (DISTRIBUTION COMPANY) Cost
He should check NEPRA Site for IPP Rates + Revised Rate before claiming such nonsense.

Instead of more and more expensive IPP Rates its better to only allow IPP after competitive bidding & encourage Industrial Sector to Install Grid Tie Solar Panel on their units.

 

[RoadRunner401]

Rs 6 / Unit? how???? To offer Rs 6 / unit to consumer. Govt. need to buy electricity below Rs 6.

Rs 6/unit = IPP(Independent Power House) Rate + NTDC(Main Line) Cost+ LESCO/FESCO ETC (DISTRIBUTION COMPANY) Cost
He should check NEPRA Site for IPP Rates + Revised Rate before claiming such nonsense.

Instead of more and more expensive IPP Rates its better to only allow IPP after competitive bidding & encourage Industrial Sector to Install Grid Tie Solar Panel on their units.

Almost all power supplied to house holds in Pakistan is heavily subsidized, you are not paying the true cost of power.

 

[Hiraa]

I’ll believe it when I see it. In the mean time, how about lighting up the street lights?

 

[ALi Rizwan]

Almost all power supplied to house holds in Pakistan is heavily subsidized, you are not paying the true cost of power.

Lol! Apple & Orange.
Govt. Claim Rs 6 in Future using alternative Source, My Simple Question is How?
And about your Subsidy logic? Why not Govt. introduce flat rate instead of peak and off peak.
People are already paying expensive unit and taxes can't they pay few more thousands for taxes?
No need to disturb Corruption / incompetent / lazy / over paid and over staffed Govt. run companies.

As you have brought House Hold let me give you an example.
How much time it take to get Net Meter?
We have to turn off Inverter on Second Day because we don't want to pay for Unit we give LESCO for Free.

 

[Major Sam]

Almost all power supplied to house holds in Pakistan is heavily subsidized, you are not paying the true cost of power.

Another lie

Another lie

Almost all power supplied to house holds in Pakistan is heavily subsidized, you are not paying the true cost of power.

Last bill i paid costed me 23 24 pkr per unit including taxes.

Lol! Apple & Orange.
Govt. Claim Rs 6 in Future using alternative Source, My Simple Question is How?
And about your Subsidy logic? Why not Govt. introduce flat rate instead of peak and off peak.
People are already paying expensive unit and taxes can't they pay few more thousands for taxes?
No need to disturb Corruption / incompetent / lazy / over paid and over staffed Govt. run companies.

As you have brought House Hold let me give you an example.
How much time it take to get Net Meter?
We have to turn off Inverter on Second Day because we don't want to pay for Unit we give LESCO for Free.

These people are away from ground reality, subsidy is only if you can live with 1 bulb and 1 fan. You add anything else you will b out of subsidy category and these people claim every one is getting subsidy. Another lie to sell to people

 

[RoadRunner401]

Lol! Apple & Orange.
Govt. Claim Rs 6 in Future using alternative Source, My Simple Question is How?
And about your Subsidy logic? Why not Govt. introduce flat rate instead of peak and off peak.
People are already paying expensive unit and taxes can't they pay few more thousands for taxes?
No need to disturb Corruption / incompetent / lazy / over paid and over staffed Govt. run companies.

Let me explain it to you in layman's terms, the minister is saying it doesn't matter what it will actually cost Government will sell it to you at 6/rupees...

Another lie

Pakistan’s energy mix is formed of 64% fossil fuels, 27% hydro power and 9% other renewable and nuclear power. Pakistan is not oil producing nation, previous geniuses set up oil fired power plants with guaranteed prices to IPP (Independent power producers) majority of the world used coal to produce cheaper power, Pakistan richest politicians went the other way.. you were being subsidized to keep you happy, the problem is no money left in the bank account to keep up the charade....

 

[Major Sam]

Let me explain it to you in layman's terms, the minister is saying it doesn't matter what it will actually cost Government will sell it to you at 6/rupees...



Pakistan’s energy mix is formed of 64% fossil fuels, 27% hydro power and 9% other renewable and nuclear power. Pakistan is not oil producing nation, previous geniuses set up oil fired power plants with guaranteed prices to IPP (Independent power producers) majority of the world used coal to produce cheaper power, Pakistan richest politicians went the other way.. you were being subsidized to keep you happy, the problem is no money left in the bank account to keep up the charade....

Do tell me with 24pkr i paid per unit. Where is subsidy. Please do enlighten me.

Last time the report shows 40% energy was from hydel. Capacity vs generation are two different things. We don't use all plants all thr time depends on load and availability of generation.

Do tell me with 24pkr i paid per unit. Where is subsidy. Please do enlighten me.

Last time the report shows 40% energy was from hydel. Capacity vs generation are two different things. We don't use all plants all thr time depends on load and availability of generation.

Where is subsidy, even in oct when AC werent in use it Costed me 14 pkr per unit inc taxes. You are telling me there is subsidy?

Per capita in develop countries is 1k+ unit, while here this cost is for 227 units.
1800 electricity cost 900 fuel adjustment.

 

[niaz]

Since I am very interested in the field of Energy, I try to read any publication that is available free on the internet. Regarding the costs of power generation through various means, I can refer to two articles:

A 38-page study by Institute of Energy Economics & Financial Analysis published in Dec 2018 titled

“Pakistan’s Power Future Renewable Energy Provides a More Diverse, Secure and Cost-Effective Alternative” mentions:

Quote
Wind and solar are now the cheapest sources of new electricity generation in Pakistan. This fact will assist the nation increase the uptake of renewable energy. Figure 11 shows the average levelised tariff determined by NEPRA for recent projects from a variety of sources. Coal and hydro projects have recently had levelised tariffs in excess of eight U.S. cents/kWh, while the three LNG projects due to come online have levelised tariffs in excess of six U.S. cents/kWh. In comparison, solar levelised tariffs determined in 2018 have averaged U.S. cents 5.25/kWh and recent wind projects are even lower, averaging U.S. cents 4.3/kWh.
UnQuote.

http://ieefa.org/wp-content/uploads/2018/11/Pakistans-Power-Future_December-2018.pdf

A more recent study done in Pakistan:

COST OF ELECTRICITY GENERATION IN PAKISTAN – COMPARISON OF LEVELIZED COST OF ELECTRICITY OF CPEC COAL PLANTS WITH OIL AND NATURAL GAS BASED PLANTS COMMISSIONED IN 2010-14* WORKING PAPER NO. 02-19

Umbreen Fatima, Anjum Nasim, SEPTEMBER 2019
http://ideaspak.org/wp-content/files_mf/1569051386IDEAS_WP2_Final.pdf

It is written that:

Quote

We show that the average long-run cost of power generation of IPPs commissioned during 2010-2014 is Rs.10.29 per kWh (of which the average for natural gas-based generation is Rs.6.67, for RLNG it is Rs.9.60 and that of RFO based generation Rs.12.03) compared with the average long-run cost of coal-based generation under CPEC of Rs.8.85 per kWh (for imported coal plants it is Rs.9.02 /kWh and plants using local coal has a cost of Rs.8.59/kWh) provided all plants operate at 85% capacity factor throughout their operational life (that ranges between 25-30 years)
UnQuote.

I would, therefore, conclude that the Honorable Minister is quite correct in asserting Wind & Solar Energy being now cheaper than the power generated from other sources. However, as usual with the PTI gov’t Ministers, the honorable gentleman has grossly exaggerated about the cost of LNG generated electricity to show PML-N gov't in a bad light. The actual cost of power generated by LNG in Pakistan is only Rs9.60 per kWh, nearly half of the Rs 17/- per kWh stated by Minister.

 

[ziaulislam]

Since I am very interested in the field of Energy, I try to read any publication that is available free on the internet. Regarding the costs of power generation through various means, I can refer to two articles:

A 38-page study by Institute of Energy Economics & Financial Analysis published in Dec 2018 titled

“Pakistan’s Power Future Renewable Energy Provides a More Diverse, Secure and Cost-Effective Alternative” mentions:

Quote
Wind and solar are now the cheapest sources of new electricity generation in Pakistan. This fact will assist the nation increase the uptake of renewable energy. Figure 11 shows the average levelised tariff determined by NEPRA for recent projects from a variety of sources. Coal and hydro projects have recently had levelised tariffs in excess of eight U.S. cents/kWh, while the three LNG projects due to come online have levelised tariffs in excess of six U.S. cents/kWh. In comparison, solar levelised tariffs determined in 2018 have averaged U.S. cents 5.25/kWh and recent wind projects are even lower, averaging U.S. cents 4.3/kWh.
UnQuote.

http://ieefa.org/wp-content/uploads/2018/11/Pakistans-Power-Future_December-2018.pdf

A more recent study done in Pakistan:

COST OF ELECTRICITY GENERATION IN PAKISTAN – COMPARISON OF LEVELIZED COST OF ELECTRICITY OF CPEC COAL PLANTS WITH OIL AND NATURAL GAS BASED PLANTS COMMISSIONED IN 2010-14* WORKING PAPER NO. 02-19

Umbreen Fatima, Anjum Nasim, SEPTEMBER 2019
http://ideaspak.org/wp-content/files_mf/1569051386IDEAS_WP2_Final.pdf

It is written that:

Quote

We show that the average long-run cost of power generation of IPPs commissioned during 2010-2014 is Rs.10.29 per kWh (of which the average for natural gas-based generation is Rs.6.67, for RLNG it is Rs.9.60 and that of RFO based generation Rs.12.03) compared with the average long-run cost of coal-based generation under CPEC of Rs.8.85 per kWh (for imported coal plants it is Rs.9.02 /kWh and plants using local coal has a cost of Rs.8.59/kWh) provided all plants operate at 85% capacity factor throughout their operational life (that ranges between 25-30 years)
UnQuote.

I would, therefore, conclude that the Honorable Minister is quite correct in asserting Wind & Solar Energy being now cheaper than the power generated from other sources. However, as usual with the PTI gov’t Ministers, the honorable gentleman has grossly exaggerated about the cost of LNG generated electricity to show PML-N gov't in a bad light. The actual cost of power generated by LNG in Pakistan is only Rs9.60 per kWh, nearly half of the Rs 17/- per kWh stated by Minister.

I thought LNG project cost was around 9 cents or 14 rupees
Do u mean fuel cost issued by nepra?

Issue with solar is duck curve or problems at early morning and late afternoon but good thing is if we combine that with large scale hydro we can focus on hydro generation at those peak time..this will especially be helpful in winter when water isnt available

Floating solar pannels is something that we should consider over tarbela chashma reservoirs

Do tell me with 24pkr i paid per unit. Where is subsidy. Please do enlighten me.

Last time the report shows 40% energy was from hydel. Capacity vs generation are two different things. We don't use all plants all thr time depends on load and availability of generation.


View attachment 591610

Where is subsidy, even in oct when AC werent in use it Costed me 14 pkr per unit inc taxes. You are telling me there is subsidy?

Per capita in develop countries is 1k+ unit, while here this cost is for 227 units.
1800 electricity cost 900 fuel adjustment.

I am surprised ..just 14 rs /unit ..govt is still giving alot of subsidy i guess

14 rupess is cheaper than USA where energy is cheapest in the world, USA has free gas..
At 9 cents its one of cheapest rates in the world..(europe averages 20 cents after tax)

In USA cost is 12 cents before taxation that is 18 rupees(7 unit cost 4-5 cents distribution)

I think the cost is dropped alot due to devaluation

 

[Major Sam]

I thought LNG project cost was around 9 cents or 14 rupees
Do u mean fuel cost issued by nepra?

Issue with solar is duck curve or problems at early morning and late afternoon but good thing is if we combine that with large scale hydro we can focus on hydro generation at those peak time..this will especially be helpful in winter when water isnt available

Floating solar pannels is something that we should consider over tarbela chashma reservoirs


I am surprised ..just 14 rs /unit ..govt is still giving alot of subsidy i guess

14 rupess is cheaper than USA where energy is cheapest in the world, USA has free gas..
At 9 cents its one of cheapest rates in the world..(europe averages 20 cents after tax)

In USA cost is 12 cents before taxation that is 18 rupees(7 unit cost 4-5 cents distribution)

I think the cost is dropped alot due to devaluation

Govt. Always mention subsidy on bill. Neither we are US neither we are earning in usd. Their ppp is tens of times higher than us. Their labour class can afford what Pakistani middle class can't even think off. Why not compare cost with Malaysia or India. Why US? We are talking about a country where avg labour wage is 10-12k pkr. Its just electricity bill.

My previous bill costed me 24PKR per unit.

Well for your kind information there is no subsidy on this bill, govt is getting hydel @ 3 approx 3 rupees. Hydel enegry mix was 40%. Our avg avg cost is around 9 10, bec govt is minimising expensive ipps and focusing on cheaper ones.

 

[ziaulislam]

Govt. Always mention subsidy on bill. Neither we are US neither we are earning in usd. Their ppp is tens of times higher than us. Their labour class can afford what Pakistani middle class can't even think off. Why not compare cost with Malaysia or India. Why US? We are talking about a country where avg labour wage is 10-12k pkr. Its just electricity bill.

My previous bill costed me 24PKR per unit.

Well for your kind information there is no subsidy on this bill, govt is getting hydel @ 3 approx 3 rupees. Hydel enegry mix was 40%. Our avg avg cost is around 9 10, bec govt is minimising expensive ipps and focusing on cheaper ones.

THERE IS SUBSIDY ON POWER..cost is 18 cents from desel generation plus decades old system has 25+ losses..hydel generation was 64 billion units (20 billion from tarbela dam) in total of 235 b units thats 27%

the rest comes at 10-18 cents..hydro is at 3 cents not 3 rupees..i hope you know maths

so tell me..where would the government bring the money from..print it ? well thats we did..look where we are now?
and no govt should not use money to subsidize power, as this money comes FROM THE POOR
govt pays in dollar, fault is not producing hydro power instead spending on motorways and metros..

PS

my village doesnt has power and i use to spend summers without electricity and no its not cold and yes its at bank of tarbela dam supposedly producing more power than all of our domestic needs

 

[Major Sam]

THERE IS SUBSIDY ON POWER..cost is 18 cents from desel generation plus decades old system has 25+ losses..hydel generation was 64 billion units (20 billion from tarbela dam) in total of 235 b units thats 27%

the rest comes at 10-18 cents..hydro is at 3 cents not 3 rupees..i hope you know maths

so tell me..where would the government bring the money from..print it ? well thats we did..look where we are now?
and no govt should not use money to subsidize power, as this money comes FROM THE POOR
govt pays in dollar, fault is not producing hydro power instead spending on motorways and metros..

PS

my village doesnt has power and i use to spend summers without electricity and no its not cold and yes its at bank of tarbela dam supposedly producing more power than all of our domestic needs

Have you seen how govt. Mention subsidy on bill.

Please check last month generation ratio. 40% from hydel. Its in PKR we are not paying them in usd. Doesnt mean it will change with usd.

In nutshell in sep 40% from hydel, only 4% from oil.

For more details read thus article its based on September 2019 data.

According to him, the share of hydroelectric power in the total electricity generation touched an all-time at 40% in August. Last month’s overall power generation was 14,052 GWh as compared to 14,017 GWh August 2018. The expert added,

During the month, the share of hydel power generation rose to 40% compared to 32% in August 2018. In addition to this, the share of coal-based generation (another cheap source) increased to 13% compared to 10% in August 2018.

High hydel power production also reduces reliance on oil-based power production, which dropped to 4% compared to 12% last year.

Industry experts are welcoming this achievement for various reasons:

1. It is a renewable energy source.
2. It produces cheap electricity.
3. It reduces the burden on the country’s import bill.
4. It slashes the production cost by 13% to Rs. 4.83 per unit.

https://propakistani.pk/2019/09/28/...roduction-was-at-an-all-time-high-last-month/

 

[ziaulislam]

Have you seen how govt. Mention subsidy on bill.

Please check last month generation ratio. 40% from hydel. Its in PKR we are not paying them in usd. Doesnt mean it will change with usd.

In nutshell in sep 40% from hydel, only 4% from oil.

For more details read thus article its based on September 2019 data.

According to him, the share of hydroelectric power in the total electricity generation touched an all-time at 40% in August. Last month’s overall power generation was 14,052 GWh as compared to 14,017 GWh August 2018. The expert added,

During the month, the share of hydel power generation rose to 40% compared to 32% in August 2018. In addition to this, the share of coal-based generation (another cheap source) increased to 13% compared to 10% in August 2018.

High hydel power production also reduces reliance on oil-based power production, which dropped to 4% compared to 12% last year.

Industry experts are welcoming this achievement for various reasons:

1. It is a renewable energy source.
2. It produces cheap electricity.
3. It reduces the burden on the country’s import bill.
4. It slashes the production cost by 13% to Rs. 4.83 per unit.

https://propakistani.pk/2019/09/28/...roduction-was-at-an-all-time-high-last-month/

SIR DO A SIMPLE GOOGLE SEARCH

all of this is in public domain, NEPRA does public hearing for billing!

why are you doing your own calculation, you can simply look at official figures

for reference where are you distribution cost, i mentioned before in USA that is almost 50% of generation cost?

for reference the cheap coal is at 6-8 cents..6 cents is 9 rupees + plus 16% sales tax+ 20% line losses+??? distribution maintenance costs

so your cheap is what you are paying now
https://nepra.org.pk/tariff/Tariff/IPPs/003 Coal/Port Qasim/2019/TRF-299 PQEPCPL QTR Oct-Dec 2019 01-11-2019 22101-03.PDF

 

[niaz]

I thought LNG project cost was around 9 cents or 14 rupees
Do u mean fuel cost issued by nepra?

I am only quoting from a study conducted by Ideaspak published in Sept 2019. The numbers therein represent the cost that the Power Plant connection. to this, one must add transmission & distribution costs. One would that these numbers are correct. Kindly read the whole study at http://ideaspak.org/wp-content/files_mf/1569051386IDEAS_WP2_Final.pdf if you like further clarification.