ISLAMABAD
Nepra has admitted the application of a private company, Quid Azam Solar Power Private Limited for the grant of generation licence of 100-megawatt at Solar Park near Bahawalpur.
The total cost of setting up polycrystalline solar panels project is $15 million whereas debt equity ratio is 75 and 25 respectively.
Bank of Punjab will finance this project costing Rs16.5 billion approximately. After approval bank will provide loan to public private company for the tenure of 10 years.
The project is expected to start power generation till 2015. Photo voltaic cell solar power generation plant has an expected life of 25 years.
According to feasibility report, project would be a very good financial investment and even in the bad case scenarios there will be an IRR of nearly 10pc.
It said that the main drivers for the financial case are the tariff, debt financing conditions and solar irradiation.
The base case assumes a tariff for the electricity injected to the grid of 21,73 PKR/kWh for the first 10 years and 9,76 PKR/kWh thereafter. The base case shows an IRR of 17pc for the equity with a payback time of 5 years, the report said.
The report advises for the fixed installation of panels and suggests that it would have least capital and operational risks. The tracking devices require more maintenance due to their moving parts.
The power generated would be supplied to NTDC/ MEPCO through 132 kV transmission line. NEPRA has asked all the stakeholders to submit their comments regarding this project in next14 days.
Punjab government last year approved setting up of Quaid-e-Azam Solar Park at Lal Sohanra and Din Garh in Bahawalpur district of southern Punjab.
Chief Minister Muhammad Shahbaz Sharif while inaugurating the project announced that project would be completed next year.