Ministry of Energy, Punjab has sought Power Division’s help for signing of Energy Purchase Agreements (EPAs) with four small hydropower projects established at different locations.
Secretary Energy, Punjab, Amir Jan has written a letter to Secretary Power Division, saying the letter is in continuation of previous correspondence made on finalization and signing of EPA for hydropower projects being developed on canal falls in Punjab, with request to issue direction to nominating either the CPPA-G or the concerned Discos for signing of EPA.
Renewable Energy Development Sector Investment Programme (REDSIP) envisaged the development of four small hydropower plants in Punjab with the financial assistance of Asian Development Bank (ADB). Secretary Energy Punjab has claimed that similar REDSIP projects have been developed in KPK.
Out of four REDSIP projects of Punjab, two plants namely 2.82MW Pakpattan Hydropower Plant and 7.64MW Marala Hydropower Plant are already connected to the system and injecting power into national grid through MEPCO and GEPCO respectively while completion and commercial operation of the other two projects namely 5.38MW Chianwali HPP and 4.04MW Deg Outfall HPP is expected by mid-next year.
He maintained that hectic efforts, series of correspondence and a number of meetings were held between the stakeholders to conclude finalization and signing of EPA for REDISP plants in Punjab.
The matter of EPA signing was finally agreed in the meeting held between CPPA-G Secretary (Energy), GoPb and PPDCL on November 15, 2019 wherein it was concluded that an addendum to existing pre-COD Sale Agreement for Marala and Pakpatan HPPs made with GEPCO and MEPCO respectively would allow full tariff along with indexation in line with NEPRA tariff determination.
According to Secretary Energy, Punjab, for the other two projects in pipeline i.e. Chianwali and Deg Outfall HPPs it was resolved that the concerned DISCOs shall sign the EPA tenure and tariff as determined by NEPRA on the same lines as for REDSIP projected located in KP. In this context, as per the decision accorded by Board of Directors, CPPA-G through its Board resolution, duly communicated to Power Division, Ministry of Energy, on April 7, 2020 requesting Ministry to issue directions to concerned DISCos to implement CPPA-G Board’s decision.
Accordingly Power Division was requested on November 25, 2021 to issue necessary directions to CEOs of concerned DISCOs for implementation of CPPA- G Board decision for conclusion of EPA of REDSIP projects in Punjab. Moreover, in the letter it was also requested to take up the matter of Gazette Notification of NEPRA Order, reference tariff determination & debt service schedule for REDSIP plants in Punjab.
Secretary Energy further stated that one of the hydel power plants under REDSIP project i.e. 5.38MW Chianwali Hydropower Plant, is currently undergoing its testing and commissioning phase and thereafter it will be ready for Commercial Operation by end of May 2022. Moreover, the project is also committed under Indicative Generation Capacity Expansion Plan (IGCEP) approved by the Government of Pakistan.
The tariff of Chianwali plant was determined by NEPRA on April 11, 2022 with request for its Gazette Notification.
Ministry of Energy Punjab has requested Power Division to make gazette notification of NEPRA’s tariff determination and issue a direction to Gujranwala Electric Power Company (GEPCO) for signing of Energy Purchase Agreement with PPDCL prior to the achievement of Commercial Operation Date for Chianwali HPP.