ISLAMABAD-K-Electric has decided to hold open competitive biddings for four renewable energy projects with a cumulative capacity of 620MW with an aim to get the lowest tariff.
KE has submitted revised Request for Proposal (RFP) to the National Electric Power Regulatory Authority (NEPRA) for four renewable energy projects with a cumulative capacity of 620 MW based on open competitive bidding in line with NEPRA decision on 600MW solar project at Muzaffargarh. It is worth noting that the federal government has recently allowed provision for open competitive bidding on 600MW solar power project at Muzaffargarh and now KE has approached NEPRA to allow the company to conduct open competitive bidding for its renewable projects too. In four separate petitions submitted with NEPRA, KE has sought the regulator nod for moving from competitive biddings to open competitive biddings. These projects include the Winder and Bela Solar Projects (150MW), Dhabeji Site Neutral Hybrid Plant (200MW), Sindh Solar Energy Project – Site 1 (120MW), and Sindh Solar Energy Project – Site 2 (150MW). In four separate petitions submitted with NEPRA, KE has sought the regulator nod for solar project of 150MW in Balochistan.
Under relevant provisions of the Competitive Bidding Tariff (CBTR), the K-Electric Limited submitted a single Request for Proposal (RFP) on April 23, 2021 to carry out separate bidding to procure energy from three solar PV projects, each having capacity of 50MW, to be developed in Winder, Uthal and Bela sites in Balochistan. Now KE has submitted a review motion against the Nepra decision and requested the regulator to allow the open competitive bidding for 150MW solar power plants in Balochistan. Solar project of 50MW at Vinder and 100MW project at Bela are strategic projects where KE is planning on installing new 132 kV lines and grids from Hub to Bela for improved reliability of power supply to Lasbela region of Balochistan. Similarly earlier KE had submitted the RFP documents to Nepra for approval of benchmark tariff to carry out competitive bidding for 150MW solar PV project at Malir Karachi (Karachi site 02). However, now KE has requested the regulator to allow open competitive bidding for this project as well.
The third project is 120MW solar PV project at west Karachi (Karachi site 01), for which KE had submitted the RFP documents to Nepra for approval of benchmark tariff to carry out competitive bidding. Now the company has requested Nepra to allow for open competitive bidding in the matter. Earlier, KE had submitted the RFP documents to Nepra for approval to carry out competitive bidding for development of 200MW site Neutral Hybrid Power Project at Dhabeji grid. However, now KE has requested the regulator to allow open competitive bidding for the project. Dhabeji Site Neutral Hybrid Plant, with an installed capacity of 200MW, will combine wind and solar power within a 50km radius from K-Electric’s Dhabeji Grid Station. Sindh Solar Energy Projects Site 1 and Site 2 entail a collaboration with Sindh Energy Department and World Bank to undertake utility scale solar projects to be developed by private sector under competitive bidding model. The MoU for project development was signed in December 2021 between all parties. Government of Sindh has also allocated approximately 1200 acres of land for the development of these projects. Presently the combined capacity of the projects is 270MW with provision for additional 80MW at a later stage. Successful bidders will be responsible for development and financial close of the projects.
Meanwhile, an official of the KE told the scribe that inclusion of renewable-based projects will help KE reduce reliance on expensive thermal fuel and generate electricity with reduced emissions as well. This is in line with the company’s Power Acquisition Program under which the power distribution company is scheduled to add 1200MW of renewables into its energy basket by 2030. To ensure the seamless integration of variable renewable energy (VRE) into its network, K-Electric is conducting a VRE Integration Study with the assistance of international consultants, he said. This study will determine the optimum capacity of renewables that can be inducted into the network while considering technical limitations and maintaining network reliability. It will also identify the necessary augmentation work and explore ways to maximize the utilization of renewables and lower electricity costs, the official maintained. NEPRA will conduct public rehearing on all the KE’s petition on November 14 and 15.