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

[Major Sam]

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

Well just tell me at this price m i still being subsidized?

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.

Very well informative, thanks for sharing.

 

[ALi Rizwan]

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...

First make up your mind.
You claim present day unit is subsidies. (Irrelevant)
Govt. Claim Rs 6/unit in future because Alternative Source is cheap But NEPRA Site Rates and Revised Rates give different story.
Now you said it doesn't matter whats the actual cost Govt. will sell at Rs 6/unit.

<A Simple question if present day Electricity which is already very expensive but subsidize then How can Govt. reduce the rate too Rs 6/unit? How much massive amount required each year? & Where that money will come from?>

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.

Sir don't believe what Govt. claim or some ABCD website claimed.
We have actual Figure from NEPRA Website. (https://nepra.org.pk/tariff/gen_ipps.php)
Few examples(Wind/Solar)
Reference Tariff Oct-Dec 2019
16.8597 21.2441
15.5602 26.0614
15.5602 26.3196
16.5501 25.4920
19.0887 26.6133
14.6350 19.6870
If one check their website revised rate for Wind & Solar goes as high as Rs20-25+.
Which is much expensive then even thermal.
Although these rate will drop once that loan is paid. Each unit cost also include debt payment and interest and in revised rate it is only going up including return on equity.

Even most cheapest IPP Rates will be above Rs 6/unit after Loan is paid and that too excluding NTDC and LESCO/FESCO etc cost.

 

[ziaulislam]

First make up your mind.
You claim present day unit is subsidies. (Irrelevant)
Govt. Claim Rs 6/unit in future because Alternative Source is cheap But NEPRA Site Rates and Revised Rates give different story.
Now you said it doesn't matter whats the actual cost Govt. will sell at Rs 6/unit.

<A Simple question if present day Electricity which is already very expensive but subsidize then How can Govt. reduce the rate too Rs 6/unit? How much massive amount required each year? & Where that money will come from?>


Sir don't believe what Govt. claim or some ABCD website claimed.
We have actual Figure from NEPRA Website. (https://nepra.org.pk/tariff/gen_ipps.php)
Few examples(Wind/Solar)
Reference Tariff Oct-Dec 2019
16.8597 21.2441
15.5602 26.0614
15.5602 26.3196
16.5501 25.4920
19.0887 26.6133
14.6350 19.6870
If one check their website revised rate for Wind & Solar goes as high as Rs20-25+.
Which is much expensive then even thermal.
Although these rate will drop once that loan is paid. Each unit cost also include debt payment and interest and in revised rate it is only going up including return on equity.

Even most cheapest IPP Rates will be above Rs 6/unit after Loan is paid and that too excluding NTDC and LESCO/FESCO etc cost.

Those were upfront tarrifs
Now it will be bidding
Solar and wind Cost is dropping by 20% each year..you cant compare 5 years hack even last yr rates

 

[ALi Rizwan]

Those were upfront tarrifs
Now it will be bidding

How and when??? Those few example they are all in production.
You claim that in future this and that
But i posted Oct-Dec 2019 revised rate from Official NEPRA Site Actual cost will be higher(+ Transmission & Distribution)
It would have been Cheaper if Govt. just simply support private & Consumer sector with Grid-Tie Solar Setup.

Their is a difference b/w Govt. claim and ground reality.
For Example:- we have applied for Grid-Tie and its still pending almost a month now and Solar Panel is producing Zero Electricity.

Solar and wind Cost is dropping by 20% each year..you cant compare 5 years hack even last yr rates

In USA it might be different but if you check NEPRA SIte Wind/Solar page you will understand the real issue.
1> Every Company Tariff Rate is Different
2> Tariff Rate include Return on Equity, Interest, Debt payment and Operation & Maintenance
3> Even return on Equity is different for each company
4> Debt could be as high as 80%.
5> Rate is based on Old $ Rate. Rupee Devalued. Prices Goes up.
6> In one Letter some IPP(Solar) asked NEPRA to revised tariff rate(increase) because their project cost increased.
7> Lowest Interest and Debt tariff payment is higher then Rs 6-7 excluding O&M(Local & Foreigner)
8> In Every revised rate price is going only up including O&M, Return in Equity, Debt & Interest.

Tariff Rate might slightly reduced after open bidding but based on current formula its highly unlikely to see any major difference.