ISLAMABAD: In a smart move, the Water and Power Development Authority (WAPDA) has significantly reduced the price of its proposed 300 MW floating solar project to 2.98 cents per unit for a 30-year period. This adjustment aims to make the project compatible with the revised Indicative Generation Capacity Expansion Plan (IGCEP) for 2024-34.
Sources told Newzshewz that the prospects of WAPDA’s solar project were initially uncertain, as the Minister for Power, Sardar Awais Leghari, had opposed it due to concerns about its high cost and its potential violation of IGCEP’s principle of least-cost generation.
On December 18, 2024, the National Electric Power Regulatory Authority (NEPRA) sent a letter to WAPDA in response to its proposal, which had been outlined in a communication sent on September 25, 2024. The proposal details WAPDA’s plan to set up a 300 MW floating solar generation facility at the Tarbela-Ghazi Barotha Complex.
NEPRA clarified that it had reviewed the proposal in light of prevailing laws and the existing regulatory framework, including the Renewable Energy Policy 2019, National Electricity Policy 2021, National Electricity Plan 2023-27, and NEPRA Procurement Regulations 2022. These documents emphasize that future power procurement should be based on the “least-cost principle,” which is a key consideration for inclusion in the IGCEP and Power Acquisition Plan (PAP) for Suppliers of Last Resort (SoLRs).
The future of WAPDA’s solar project was also discussed at a recent meeting chaired by Prime Minister Shehbaz Sharif, where concerns about its high cost were raised. The World Bank, which is financing this long-planned project, had given a tight deadline to the Economic Affairs Division (EAD) and WAPDA to confirm whether they would proceed with the project or cancel it.
In a prompt response, WAPDA’s Member of Finance assured the federal government that WAPDA remained committed to utilizing affordable, clean, and renewable energy to support Pakistan’s energy security and economic stability. He explained that, in collaboration with the World Bank, WAPDA had worked extensively to optimize costs and ensure the project’s viability.
“After rigorous financial and technical evaluations, the total cost of the project has been substantially reduced to $238 million. By extending the project’s operational life to 30 years, as proposed by the bidder, the tariff is further reduced to 2.98 cents per kWh,” the Member of Finance (WAPDA) stated.
He emphasized that this tariff is not only competitive by international standards but also the lowest in the region. Furthermore, it represents a significant economic advantage for Pakistan, especially when compared to the cost of power generation from thermal sources.
The WAPDA official also highlighted that the World Bank and WAPDA are aligned in their vision to promote renewable energy for a sustainable future. Through this partnership, WAPDA aims to: : (i) deliver cost-effective renewable energy solutions that reduce reliance on expensive thermal power ;(ii) support Pakistan’s national goals of increasing renewable energy capacity as part of its Indicative Generation Capacity Expansion Plan ; and (iii) strengthen Pakistan’s energy infrastructure, ensuring affordability, sustainability, and resilience.
Given the project’s substantial economic and environmental benefits, WAPDA has requested Power Division to include the 300 MW Floating Solar Project in the current IGCEP optimization framework.
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