FiT Reduction In Pakistan

• Pakistan's National Electric Power
• Regulatory Authority (NEPRA) has suggested revised tariffs for solar PV power projects
• NEPRA considers 18% capacity utilization factor for the Southern region, comprising Sindh and Balochistan, and 17% for the Northern region of South Punjab and the rest
• Media reports say solar power projects tariff in Balochistan is now proposed to come down by $0.01 to $0.09
• In Punjab, a reduction of $0.01 would result in a tariff of $0.10 per kWh

The National Electric Power Regulatory Authority (NEPRA) of Pakistan has proposed revisions to the tariff for solar PV Power projects in the country. The proposed revisions take into account the capacity utilization factor of 18% for the Southern region and 17% for the Northern region. The entire province of Sindh and Balochistan comes under the South region, while South Punjab and the rest is all North Pakistan.

According to the local daily The Express Tribune, NEPRA has proposed a cut of 1.44 PKR per kWh ($0.01) to offer a new price of 9.45 PKR per kWh ($0.09) for solar power projects in Balochistan. Similarly, for Punjab, the reduction of 1.53 PKR per kWh ($0.01) brings the proposed tariff for solar power projects to 10 PKR per kWh ($0.10).

Reduction of tariffs for renewable energy projects, particularly wind and solar, has been a matter of concern for foreign investors, who last year, according to the report, 'had warned the government and power regulator that they would stop work on solar power projects worth billions of dollars because of the cut in tariff'.

The authority has proposed the tariffs as 'suo moto' proceedings. It seeks to determine whether a new upfront tariff for solar power projects is needed or if it should set a benchmark levelized tariff for competitive bidding by the relevant agency.

Stakeholders can approach the authority with their suggestions and comments on July 21, 2016 when NEPRA will hold a public hearing.

Details about the upcoming NEPRA hearing can be seen  here.