Daily Times

KARACHI: Despite Sindh and Khyber Pakhtunkhwa (KPK)’s objections, the National Electric Power Regulatory Authority (NEPRA) has granted an electricity production license to the Quaid-e-Azam Thermal Power Private Limited (QATPPL) on Thursday.

The QATPPL has planned to set up a 1,180-megawatt Liquefied Natural Gas based thermal generation facility located in Bhikki, Sheikhupura. NEPRA provided QATPPL with a license on 2nd June 2016 which is valid till 30 December 2047. In view of this, the Authority set the term of the generation licence of QATPPL 30 years from Commercial Operation Date of the project.

According to international benchmarks, the useful life of a combined cycle power plant is approximately thirty (30) years from its Commercial Operation Date (COD).

NEPRA said in its decision ‘The proposed project is based on imported RLNG which is considered a clean fuel. In this regard, QATPPL has confirmed to the authority that that its proposed project will comply with environmental standards’. QATPPL also provided a copy of the necessary NOC issued by the Environmental Protection Department in the Punjab Government.

NEPRA has granted QATPPL the project on cost plus tariff terms. The Authority directs QATPPL to follow the terms and conditions of the approved tariff in letter and spirit and charge the power purchaser only such tariff as has been determined, approved or specified by the Authority.The grant of the generation licence will be subject to the provisions contained in the NEPRA Act and other applicable documents.

The governments of Sindh and KPK had certain objections but NEPRA said that the CCI had already approved the Power Generation Policy 2015, which was subsequently finalised in consultation with all provincial representatives during the meeting of the Inter Provincial Coordination Committee.

Further, NEPRA addressed the Ministry of Petroleum & Natural Resources objection, saying, ‘the jurisdiction of the CCI is limited to the natural gas produced from the well head situated in the territorial jurisdiction of provinces, while RLNG, being an imported product does not falls within the jurisdiction of the CCI. NEPRA states that the authority is of the view that issues arising out of the comments of the stakeholders on the application of QATPPL have been addressed and that QATPPL fulfills the eligibility criteria for the grant of the generation licence as given under the NEPRA Act.’