ISLAMABAD: The Private Power Infrastructure Board (PPIB) has decided to formulate a framework for change in power purchaser after issuance of Letter of Intent (LoI).
During a recent meeting of PPIB, Board., Managing Director PPIB, Shah Jahan Mirza apprised the Board that 82.25 MW Turtonas-Uzghor Hydropower projects is to be located on River Golen Gol in Chitral, Khyber Pakhtunkhwa (KP). LoI was issued by PPIB in March 2017 under Power Policy 2015. The Sponsors successfully carried out the feasibility study which was approved by the PPIB’s Panel of Experts (PoEs) in June 2019. The Project was envisaged to be connected to the National Grid and CPPA-G to be the Power Purchaser.
ln IGCEP 2022-2031 the Project has been optimized for sale of power to K-Electric (KE). Project Company requested for support of PPIB mainly for change of Power Purchaser from CPPA-G to KE and development of wheeling mechanism with NTDC. PPIB Board in 139th meeting constituted a “Special Technical Committee” (STC) to carry out this task. STC has recommended that (a) project may be processed by PPIB for sale of electricity to KE instead of CPPA-G; (b) PPIB management will formulate a framework/ way forward for change of Power Purchaser after issuance of LoI and submit the same for consideration of PPIB Board; and (c) NTDC in consultation with KE and other stakeholders will conduct power evacuation-related studies for this as well as future projects at Chitral region.
The Chairman enquired about impact on tariff differential subsidy, regarding which MD PPIB explained that it will be reduced as the basket price of KE is higher than the tariff of this project (i.e. around 4.43 cents/kwh).
Representative GoPunjab commented that use of system charges (wheeling charges) are yet to be approved by NEPRA and in the absence of wheeling charge, it cannot be guaranteed that the project will remain economical for KE once wheeling charges are determined and added to the tariff.
MD PPIB explained that it will still remain viable as he understands that wheeling charges mechanism is economical in G2G and G2B scenario. The Chairman desired that this aspect should be properly analyzed considering the difference between G2G / G2B vs. ordinary wheeling mechanism and resubmit to the case to the Board for consideration.
After deliberations the Board advised the PPIB that the aspect of use of system charges be properly analyzed considering the difference between B2B transactions verses wheeling arrangement between Discos & private supplier and submit to the Board tor consideration.
PPIB management was also directed to formulate a framework/ way forward for change of Power Purchaser after issuance of LOI and submit the same for consideration of PPIB Board.
Ends
