Month: May 2020

ISLAMABAD: The National Power Regulatory Authority (Nepra) sees cash injection to ease circular debt in the power sector as a stopgap measure and ineffective until privatisation is promoted to break monopoly of state-run entities and rid consumers of higher energy costs. Nepra said measures such as injection of cash in the sector would only provide temporary support as long as the real issues are not addressed. Centralised control of power distribution companies (Discos) and public sector generation companies (Gencos) is one of the main reasons for substandard performance and accumulation…

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The circular debt, higher transmission losses and inefficiency of power firms continued to haunt the power sector in financial year 2018-19, reveals a report released by the National Electric Power Regulatory Authority (Nepra). The power sector regulator, in its annual Industry Report 2019, called for retiring all inefficient state-run power plants and privatising all power distribution companies. Nepra observed that centralised governance models for distribution companies failed to bring any noticeable improvement over a period of more than 15 years. It noted that 12,000 megawatts of electricity was added to…

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Russia is seeking direct award of a construction contract for the $13 billion Diamer Bhasha Dam in a government-to-government deal without resorting to international competitive bidding, sources say. Faced with water and power shortages, Pakistan is looking for funds from China and Russia, who in turn want a government-to-government deal without international bidding. The government’s search for funds came after multilateral donors asked Pakistan to get a no-objection certificate from India for the dam’s construction. China and Russia want a similar arrangement for undertaking the Iran-Pakistan gas pipeline project, which…

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The Global Wind Energy Council (GWEC) has published its first quarter wind auction database under its Market Intelligence’s services. The database reveals that from January to April 2020, a total of 3.35 GW of wind power capacity was auctioned, with 2.1 GW in Europe and the remaining 1.2 GW in Asia. It also stated that during the same period in 2019, nearly 5 GW of capacity was auctioned. This significant difference can predominantly be attributed to the COVID-19 crisis, with delayed and postponed auctions in key markets such as Brazil,…

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With an aim to provide relief to cash strapped power distribution companies (Discoms), the government has taken a slew of measures to help them, including providing a rebate for the lockdown period amidst the coronavirus pandemic. The power ministry’s move is in line with the Finance Minister Nirmala Sitharaman’s announcement on May 13, 2020, under the Atmanirbhar Bharat special economic and comprehensive package including therein the liquidity infusion by PFC/REC of Rs 90,000 crore to Discoms against receivables and loans to be given against state guarantees for discharging liabilities of…

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