28-05-2025
- Business
- Business Recorder
Nepra clears KE's BERs for two solar, one hybrid projects
ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) has cleared KE's Bid Evaluation Reports (BERs) of two solar - 50 MW and 100 MW power projects - and 220 MW site neutral Hybrid Project at Dhabeji Grid and its Competitive Trading Bilateral Contract Market (CTBCM) integration plan.
KEL carried out separate competitive bidding processes for the two solar projects, and in accordance with Regulation 11 of the NCBTR and paragraph 28 of the Decision, submitted the BERs to the Authority on August 28 2024, for the approval of these BERs and the bidding process. KEL stated that upon approval of the BERs, it shall notify the successful bidder and proceed with the subsequent procedural steps.
KEL submitted the BERs including therewith all the information as stipulated in Regulation 11(1) of NCBTR. KEL noted that Master Textile Mills Limited ('MTML') emerged as the lowest responsive bidder for both projects, having successfully cleared the technical evaluation and submitted the lowest financial bids. According to KEL's submission, notification to the successful bidder shall be issued upon receipt of the Authority's approval of the BERs.
220MW hybrid project: KE tells Nepra won't seek additional costs
The Authority has directed KEL that any adverse financial impact resulting from the delay in execution of generation or transmission projects whether on account of KEL or the successful bidder shall not be passed on to the consumers in any form and this condition shall be appropriately reflected in the relevant project agreements.
In view of the foregoing, the Authority was satisfied that the bidding process conducted by KEL complies with the applicable provisions of the NCBTR-2017 as well as the directions issued by the Authority from time to time. Given that the projects were duly optimized in the approved Indicative Generation Capacity Expansion Plan ('IGCEP') and included in the approved Power Acquisition Plan ('PAP'), the Authority approved the BERs submitted by KEL in respect of its 100 MWp Solar PV Project at Bela and 50 MWp Solar PV Project at Winder, Balochistan. This decision was to form the basis for regulatory processing of the tariff petition in accordance with the applicable laws, rules, and regulations.
On the issue of 220 MW site neutral hybrid project at Dhabeji Grid the Authority said that it is satisfied that the bidding process conducted by KEL complies with the applicable provisions of the NCBTR-2017 as well as the directions issued by the Authority from time to time.
The Authority noted that KEL had initially indicated the possibility of equity participation in the projects, which was approved in the Decision, subject to certain directions. However, upon review of the submitted BERs, it was noted that KEL opted not to participate in the projects, as an equity shareholder. Accordingly, the Authority's directions regarding equity participation do not apply in the present circumstances.
It was noted that KEL's submissions regarding the transparency of the bidding process appeared to be well-founded. The timely communication with bidders, publishing the RFP on its website, requiring both hard and soft copy submissions via SAP ARIBA, and uploading all correspondences, clarifications, and amendments on both ARIBA and its website for equal access to information, showed that the bidding process was visible and transparent.
Additionally, the Authority noted that no grievance or complaint was filed by any participating bidder during the entire bidding process before the designated GRC, and during the instant proceedings. Furthermore, all documentation, procedural steps, and disclosures required under the NCBTR-2017 were verified, and found to be in order by the Authority. In light of the foregoing, the Authority was satisfied that the competitive bidding process undertaken by KEL was carried out in a transparent manner and was in compliance with the provisions of the NCBTR-2017, as well as the directions issued by the Authority in the decision.
KEL stated in the subject BERs dated 19 December 2024 that based on the evaluation criteria, MTML offered the lowest tariff of Rs 11.6508 /kWh (US Cents 4.0363/kwh) for 50MWp Winder project, and Rs 11.2071 /kWh (US Cents 3.8826/kwh) for 100MWp Bela project.
KEL was informed that it has duly complied with the directions of the Authority in the approved RFP regarding prudence check and displacement of expensive units. And was asked to submit a revised displacement working reflecting the updated assumptions and parameters.
The Authority noted that the revised analysis reflected a more holistic view of the system-level impact of the 150 MW renewable addition. The Authority reviewed those workings and observed that KEL had the responsibility of justifying the benefits of cost savings by procuring energy from these projects, and a sufficiently reasoned and data supported case has been presented to justify the procurement of these projects on the grounds of displacing costlier generation, demonstrating potential savings in energy costs and FOREX outflow through the replacement of expensive generation sources with lower-cost renewable energy.
Given that the Projects were duly optimized in the approved Indicative Generation Capacity Expansion Plan (''IGCEP') and included in the approved Power Acquisition Plan ('PAP'), the Authority has approved the BER submitted by KEL in respect of 200 MWp -AC Peak (with a +20% allowance) Site Neutral Hybrid power project at Dhabejl Grid Station. This decision shall form the basis for regulatory processing of the tariff petition in accordance with the applicable laws, rules, and regulations.
On integration plan, NEPRA said that keeping in view the material implications of commercial allocation of existing PPM / ERAs, Plan for KE's integration is subject to finalization of commercial allocation of existing PPAs/ EPAs and mechanism for capacity invoicing for supply from National Grid, at the time of commencement of CTBCM, as well as other areas which need to be firmed up as part of CTBCM implementation phase, detailed in the Plan.
As detailed in Section 2.2.2 of the Plan, KR's current MYT is for a 7-year tariff control period, expiring on June 30, 2023. As per the CTBCM detailed design and also detailed in plan, ICE shall participate in CTBCM in various service providers as well as market participants. In order to align with the framework which proposes central despatch, KE, as part of the implementation phase shall evaluate appropriate tariff structure, agree on key principles with NEPRA and will accordingly file its tariff petition with NEPRA by July 2022.
Copyright Business Recorder, 2025
