ISLAMABAD: The participating countries of CASA-1000 MW power import project have decided to set up two converter stations in Tajikistan and Afghanistan instead of three in a bid to cut the cost of the power import project to transport electricity from Central Asia to South Asia through the energy corridor.
The Almaty meetings of the Joint Working Group (JWG) and Intergovernmental Council (IGC) of the CASA-1000 Project held in April 2016 had evaluated the bid received for the three converter stations.
It had noted that since the single bid received was very high and the technical capability of the bidder was also a concern for all member countries, the JWG/IGC considered a modification of the original three-terminal configurations of the project outlined and it was agreed to go for a two converter station configuration instead of three and announce a fresh tender for this package within two months.
The revised configuration will feature two converter stations in Tajikistan and Pakistan with a separate HVDC back-to-back connection in Afghanistan on an existing 220 KV AC line between Tajikistan and Afghanistan.
In response to a fresh bid, the official of power ministry said that some bids had been received to set up two convertor stations in Tajikistan and Afghanistan. He said that in the revised bid, the number of convertor stations had been reduced from three to two which would result in cutting the cost of the project. The bids are being evaluated, the official said adding that no decision regarding the award of the contract had been taken.
The official also expressed surprise over the comments of the Planning Comission which said that the CASA deal was expensive at a time when all deals to implement the project had been signed and even NEPRA had ruled out its views and approved the tariff.
NEPRA approved the tariff at 9.41 cents per unit for electricity import from central Asian states which comprises energy charges at 5.15 cents/KWh, transmission charges at 2.91 cents/KWh, Afghanistan transit fee at 1.25 cents/KWh and Tajikistan wheeling charges at 0.10 cent/KWh.
The official said that Pakistan was currently importing 73 MW from Iran to meet the requirement of Gwadar area in Balochistan. Iran currently supplies power to Pakistan, with 73MW available for Gwadar and the energy cost is 6.25 cents per unit which is higher than the energy cost of 5.15 cents per unit to be paid to Tajikistan.
The total cost of electricity from Iran amounts to 10.60 per unit, according to record submitted to NEPRA for the month of May 2016.
Even in the new deal for a 1000 MW power from Iran, while allowing the NTDC to acquire power from Iran, NEPRA considered that the IPPs operating on LNG was around $12 per unit.The fuel component in this case works out to be 9 cents per unit which will be 11.8 cents per unit after adding capacity charges in this deal.
In Pakistan, gas was a cheaper source for power generation and its cost was 5.33 cents per unit which was even higher compared to 5.15 cents per unit cost of energy in Tajikistan.
Official said that in Pakistan, the rate of firm energy is 13.2 US cents per kilowatt-hour (KWh) and the rate of non-firm energy is 9.2 cents. The power generation cost in Afghanistan is estimated to be at least 6 cents per KWh. Pakistan is importing electricity for Gwadar at 10.60 cents per unit.The cost of Iranian power was higher due to oil and gas based generation whereas electricity from Tajikistan was cheaper due to hydel generation.
He said that electricity cost of the CASA power import project was cheaper due to hydel generation.CASA was a pilot project to link two regions and will not only help to minimise load shedding by providing clean energy but will result in paving way for other countries to export electricity to Pakistan.
Different countries like Russia, Turkmenistan and Azerbaijan had offered electricity to Pakistan and the CASA project will result in an energy corridor between the two regions.
“The development of the Central Asia South Asia Regional Electricity Market (CASAREM) is envisaged as a phased development of institutional arrangements and infrastructure to link Central Asia’s power resources with South Asia’s energy shortages and growing energy demand,” water and power ministry officials said, adding that the improved electricity interconnections offered an opportunity to resolve the power crisis as well as contributing to stability and growth in Afghanistan, and boosting inter-dependent prosperity in all the countries.