NEPRA sets tariff at 10 cents for solid waste power plants

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Monday announced a levelised tariff of 10 US cents per kilowatt-hour for municipal solid waste power plants based on an operational period of 25 years.

Overall production capacity for such plants has been capped at 250 megawatts for the entire country. Share of each province and federal territory will be 50MW.

According to a statement issued by Nepra, the tariff assessment has been made based on the project cost of $3.5 million per MW keeping in view available reference prices in the region.

Construction period for these power plants has been fixed at 24 months. For the protection of environmental hazards, the power producer will obtain necessary approvals from relevant government agencies. Upfront tariff will be for one year.

While keeping in view the environmental issues and abundance of waste, Nepra said it had decided to initiate the process of determining the upfront tariff for electricity generation from municipal solid waste.

The first-ever upfront tariff, announced on Monday, for the generation of electricity through municipal solid waste was determined after consultation with stakeholders.

These included the Punjab Power Development Board, Alternative Energy Development Board, Central Power Purchasing Agency-Guarantee (CPPA-G), Anwar Kamal Law Associates, Ministry of Petroleum and Natural Resources, Ministry of Climate Change and others, the regulator said.

In Pakistan, more than 20 million tons of municipal solid waste is generated with annual 2.4% growth. All major cities – Islamabad, Lahore, Karachi, Peshawar and Quetta – are facing enormous challenges in tackling the problem of urban waste. Thousands of people die every year due to waste-related diseases.

Considering the environmental issues, most of the countries in the region have already announced the tariff for municipal waste power plants and they are reaping dual benefits with the disposal of garbage and generation of electricity through this garbage.

“The initiative regarding upfront tariff for municipal solid waste power plants will not only provide electricity to the national grid, but will also create employment opportunities and play a vital role in economic growth of the country,” Nepra said.

Published in The Express Tribune, January 16th, 2018.

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