Pakistan Energy 2035-FINAL 20th October 2014

Pakistan Energy Vision - 2035Similarly in the case of wind energy, NEPRA granted tariff to six different IPPs. Theseprojects were expected to be completed by 2008, adding 450MW of renewable energy in thenational grid, but these plans failed to materialize.Despite of the aforementioned facts, NEPRA is claiming that in the recent past, Pakistan’senergy sector has witnessed a gradual shift of focus from nonrenewable energy to renewableand alternate energy. As per last year, authority has accepted tariff petitions and approvedtariffs for numerous wind, hydro and biomass base power plants. But, it is important tohighlight here that tariff determination is not the fine indicator for shifting the trend fromconventional to renewable energy resources, provided the progress of hydropower projectswhich had to commission by 2011 but is still pending.The regulator has also reported that it has enlarged its monitoring role by creating aMonitoring and Enforcement Division. A number of performance audits and inspections ofpower generation plants and DISCOs have been carried out over the year and GENCOs werestrongly directed to carry their efficiency tests in order to pass the true cost of generation only.However, the results of these performance audits have so far not improved the performance ofGENCOs in terms of cost of generation and passing the true cost to the consumers. As the gapbetween the NEPRA’s determined sales rate and GOP notified price has touched the value of3.17 Rs/Kwh as compared to 1.80 Rs/Kwh in 2011(See Table 3).Table 3: Difference between the NEPRA’s determined rate & GOP notified RateFY 2010-11 FY 2011-12NEPRA’s Determined Average Sale Rate (Rs/Kwh) 9.58 11.89GOP’s Notified Average Sales Rate (Rs/Kwh 7.78 8.72Gap in terms of Rs/Kwh 1.8 3.17Source: State of Industry Report, 201323 | P a g e