- Three SPV companies formed by Scatec Solar and Nizam Energy have petitioned Pakistani regulator NEPRA to determine a reference generation tariff of 6.25 PKR ($0.0595) per kWh for their projects
- The SPVs Helios Power, Meridian Energy and HNDS Energy are each developing a 50 MW project in Sindh state
- Post the approval from NEPRA, the projects are expected to achieve financial close and start commercial operations by the end of next year
Three special purpose vehicle companies (SPVs) of Norway’s Scatec Solar and Pakistan’s Nizam Energy, which develop solar power projects in Pakistan, have filed a petition to determine reference generation tariff of 6.25 PKR ($0.0595) per kWh for their respective projects. The tariff is around 45% lower than the level targeted in late 2015.
Both Scatec Solar and Nizam Energy had signed an agreement in July 2015 to develop three projects of 150 MW capacity in Pakistan for an initial investment of around $300 million. All these projects of 50 MW capacity each are located at Goth Gagrawara, Taluka Saleh Pat in the state of Sindh’s Sukkur district.
The three SPVs Helios Power, Meridian Energy and HNDS Energy now have asked the National Electric Power Regulatory Authority (NEPRA) to process the tariff petition post which they will achieve financial close and start commercial operations by the end of 2018.
EPC services were provided by Scatec Solar, which also arranged debt financing solution at ‘lucrative rates’ from ‘international lenders’. Owing to this, the project companies were able to achieve the ‘lowest levelized solar tariff, ever awarded, in Pakistan’s history’. Single axis tracker are used to increase yield from the power plants. Although rather low for a developing country and early stage solar market, Scatec believes it is well prepared adn that the projects qualify for the suggested tariff. The petitions can be viewed on NEPRA’s website.
Sctaec Solar and Nizam Energy had suggested back in July 2015 that they had plans to develop another 150 MW in the second stage.