The National Electric Power Regulatory Authority (“NEPRA”) has initiated suo moto (public hearing) proceedings to determine a new feed in tariff for solar PV and wind projects in Pakistan. 

The current feed in tariff for solar PV projects is $11.35 to 11.53 cents per kWh for north Pakistan and $10.72 to 10.89 cents per kWh for south Pakistan, for projects ranging between 1-100MW. 

The feed in tariff for the wind projects is Rs 10.6048 per kilowatt. 

NEPRA’s proposed new feed in tariff for solar PV projects is $11.78 cents per kWh for north Pakistan and 11.12 cents/kWh for south Pakistan for projects ranging between 1-13 years. The proposed feed in tariff for the projects ranging 14 to 25 years is $5.91cents per kWh for north Pakistan and 5.58 cents/kWh for south Pakistan. 

The levelized tariff is $9.4511 cents per kWh for the south and 10.0070 cents per kWh in the North. 

The proposed new tariff has been calculated assuming capacity utilisation factor of 18% for south Pakistan and 17% for north region Pakistan. 

NEPRA’s proposed feed in tariff for wind is $8.95 per kilowatt per hour for projects between 1 to 13 years and $4.37 kWh for the projects ranging from 14 to 20 years. 

In calculating the proposed new feed in tariff, NEPRA have made certain assumptions around construction costs, financing costs and level of performance which developers believe are overly optimistic. 

NEPRA is holding suo moto proceedings to determine a new tariff for generation of electricity from Solar PV power projects on July 21, 2016, and for generation of electricity from wind power projects on July 19, 2016, at NEPRA Tower, Islamabad. 

Any interested person who desires to participate in the proceeds may file an intervention request within 15 days from 14 June 2016 (being the date of the notice of suo moto proceedings).