Latest news with #IndependentPowerProducer
Business Recorder
01-07-2025
- Business
- Business Recorder
‘No electricity duty' decision: Minister reaches out to all CMs
ISLAMABAD: Federal Minister for Power Division, Sardar Awais Ahmed Khan Leghari has written letters to all the chief ministers about the decision to discontinue the collection of electricity duty through electricity bills starting July 2025. In his letters, the federal minister sought support of all the chief ministers in removing complexity arising from multiple charges, taxes, and duties being collected through consumer bills. He said that high electricity tariffs are already a significant challenge, and the additional burden of various levies further complicates the billing structure, making it difficult for consumers to understand and manage their electricity costs. Power smart app introduced to get rid of over-billing The federal minister in his letters highlighted the federal government efforts regarding various measures to reduce power tariffs, including renegotiating Independent Power Producer (IPP) contracts, lowering the Return on Equity (ROE) for government-owned power plants, and implementing other structural reforms. He said in parallel, we are also committed to simplifying electricity bills so that they primarily reflect the actual cost of power consumption rather than serving as a collection mechanism for various additional charges. Leghari in his letter wrote that to achieve this objective, we are considering the removal of non-electricity-related charges from consumer bills. 'As part of this initiative, the Power Division has decided to discontinue the collection of Electricity Duty through electricity bills starting from July 2025. We request provincial governments to explore alternative mechanisms for collecting provincial levies and duties, rather than relying on electricity bills as a collection channel.' He expressed the confidence that this will not only make electricity bills more transparent and easier to comprehend but also ensure that consumers are paying only for the cost of electricity, rather than a mix of other charges. The federal minister also sought cooperation of all the chief ministers in identifying and implementing alternative revenue collection methods instrumental in making this initiative a success. Copyright Business Recorder, 2025
Mint
30-06-2025
- Business
- Mint
Stocks to trade today: Trade Brains Portal recommends two stocks for 30 June
Indian equities ended higher for the fourth straight day on Friday, largely led by select heavyweights, including Reliance Industries, ICICI Bank, and Bharti Airtel. Nifty gained 86.35 points, or 0.34%, to finish the session at 25,638, while the Sensex rose 303 points, or 0.36%, to settle at 84,058. Here are two stocks to trade from the renewable energy sector, as recommended by Trade Brains Portal for 30 June: Waaree Renewable Technologies Ltd - Current price: ₹ 985 The company's FY2025 revenue of ₹1,597.75 crore was a remarkable 82.29% increase over FY2024 revenue of ₹876.5 crore. Compared to FY24's EBITDA of ₹207.18 crore, FY2025's EBITDA of ₹310.90 crore was a 50.06% year-over-year increase. Compared to FY2024's PAT of ₹145.22 crore, FY2025's PAT of ₹228.92 crore was a 57.64% year-over-year growth. WRTL expanded its market footprint and grew its sales at a CAGR of 115% between FY22 and FY25. The company has obtained orders for 2,448 MWp of engineering, procurement, and construction (EPC) work for projects and has a portfolio of 695 MWp of O&M. The company has a 3,263 MWp unexecuted order book as of FY25, which has grown over time, and an executed order book of 1,524 MWp. The order book for the EPC company is 3.2 GW, or around ₹1.2 crore, and it is anticipated to be completed within the next 12 to 15 months. Plans to pursue a pipeline with a capacity of about 30 GW in the upcoming years. The company has developed 54.82 MWp solar power generating assets under IPP assets. establishing a 41.6 MWp Independent Power Producer Plant as well. Additionally, under the Mukhyamantri Saur Krishi Vahini Yojana (MSKVY) 2.0, the company received an order from Renewable Energy Generation Company for the design and EPC of 94 MW AC solar PV plants across several locations. The project is worth ₹114.22 crore in total. Adani Green Energy Ltd - Current price: ₹ 1,020 On the financials, operating revenue increased by 22% to ₹11,212 crore and EBITDA rose by 22% to ₹8,818 crore. PAT increased from ₹1,260 crore in FY24 to ₹2,001 crore, a 59% increase. Of the 33 gigawatts of projects the company has planned, 25% are merchant and C&I projects, and the capacities are CFDs. The remaining capacity will be negotiated with the appropriate DISCOMs and other parties. It has the largest RE portfolio in India, with 14.2 GW, and added 3.3 GW of renewable energy capacity in FY25, the most by any RE company in the country. Signed a 25-year PPA to deliver 5 GW of solar power with the Maharashtra State Electricity Distribution Company Limited (MSEDCL). Got $444 million in financing and finished forming a joint venture (JV) with TotalEnergies for a 1,150 MW RE portfolio. Signed the first C&I contract to provide Google's data center with 61 MW of renewable energy and refinanced a $1.06 billion first construction facility with an amortizing structure that aligns closely with PPA cashflows and a 19-year tenor loan. By constructing the largest renewable energy plant in the world, a 30 GW facility at Khavda, the business hopes to increase its RE capacity from 14.2 GW to 50 GW by 2030 at a compound annual growth rate of 27%. Market Recap Friday saw a solid start for the Nifty 50, which continued its surge for the third straight day. It opened at 25,577, up 28 points from the previous day's closing price of 25,549. The index concluded Friday at 25,638 after rising 89 points, or 0.35%, to a day-high of 25,654. The Nifty finished above all four of the 20/50/100/200-day EMAs on the daily chart, and the RSI was at 67.72, approaching the overbought zone of 70. With an RSI of 66.9, the Sensex ended the day at 84,059, up 303 points, or 0.36%, in line with this pattern. The reduction of Middle East tensions between Iran and Israel was the primary driver of the market increase. Additionally, the dollar index fell to a three-year low of 97 on Thursday, suggesting that there may be a chance for additional foreign capital to enter the Indian market. Additionally, the market is experiencing a rise due to strong demand from DIIs. On Friday, the majority of indices were up. The Nifty Oil & Gas index resumed its upward trend for the second straight session, closing at 11,835, up 139 points or 1.2%. Adani Total Gas, which surged 5.7%, Mahanagar Gas, and Hindustan Petroleum Corporation Ltd., which jumped approximately 4.5%, as well as other stocks like Gujarat State Petronet and Indraprastha Gas, which increased by up to 3%, all contributed to the index's increase. The positive trend was also followed by the Nifty Energy index, which ended the day at 36,543, up 363.5, or 1%. The index rose as a result of gains of up to 6% in stocks of Adani Total Gas, Mahanagar Gas, HPCL, Suzlon Energy, and Reliance Power. Also, the Nifty Smallcap 100 index climbed up to 0.9%, or 171 points, closing at 18,977, with stocks like Himadri Speciality Chemical Ltd. rising about 12.5%, Narayana Hrudayalaya Ltd. up 9.2%, and Redington Ltd., IDBI Bank Ltd., and Godfrey Philips India Ltd. up 8.5%. The Nifty Realty Index closed at 993.95 points after dropping -15.60 points, or -1.6%. Heavyweights like Phoenix Mills, Oberoi Realty, Prestige Estates, and Anant Raj saw their stock drop up to 3.5%, which caused the index to fall. Asian markets traded on a mixed note on Friday as investors assessed China's May industrial data. The National Bureau of Statistics reports that during the first five months of the year, the nation's industrial profits fell 9.1% year over year. Hong Kong's Hang Seng closed in red at 24,284.15 after falling -0.17%, or -41.25 points. The Kospi of South Korea closed at 3,055.94, down -0.77% or -23.62 points. The Nikkei 225 in Japan rose 566.21 points, or 1.43%, to close at 40,150.79. Shanghai's Composite Index closed the day lower at 3,424.23, down -24.23 points, or -0.7%, while the Shenzhen Index increased 35.07 points, or 0.34%, to 10,378.55. Since October of last year, when industrial profits fell by 10%, that was the biggest monthly loss. One important indicator of the financial stability of Chinese companies, mines, and utilities is industrial profitability. The week started slowly but picked up steam as tensions between Israel and Iran decreased after a ceasefire deal. On Thursday, the dollar index fell to a three-year low of 97, indicating more opportunities for foreign investment in India. Additionally, optimism about possible trade agreements between the US and India that would allay worries about tariffs improved investor mood. This week, the Nifty 50 hit a weekly high of 25,650 after surpassing the crucial 25,500 threshold. The Bank Nifty reached a record high of 57,475 during the week, while the BSE Sensex crossed the 84,000 mark and peaked at 84,089. Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729. Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
Business Recorder
25-06-2025
- Business
- Business Recorder
Power tariffs: PPP sets base for tariff changes
As NEPRA gears up for the next round of base tariff revisions, it has released the revenue requirements for power distribution companies—anchored in the Power Purchase Price (PPP) projection submitted by the Central Power Purchasing Agency (CPPA). Developed in consultation with the Power Division and other stakeholders, the PPP for FY26 is marginally lower than last year. But with the total revenue requirement still hovering around Rs4 trillion—virtually unchanged—any hope for relief in end-user tariffs now rests squarely on government subsidies. The CPPA's PPP projection originally offered seven scenarios—each based on different assumptions for electricity demand, rupee-dollar parity, fuel prices, and hydrology. NEPRA, however, requested an eighth set, which ultimately formed the basis for the FY26 PPP. This scenario assumes a modest 2.8 percent growth in demand over actual generation during July–December 2024, an exchange rate of Rs290 to the dollar, and fuel prices under standard conditions. Most notably, NEPRA has chosen to adopt low hydrology as the base case—a critical assumption that heavily influences overall power purchase costs. The relief may be modest, but it's still a milestone—marking the first time in years that the year-on-year change in PPP has turned negative. For context, Pakistan's electricity PPP has doubled over the past five years, despite a noticeable shift towards a more efficient generation mix. A key contributor to the recent easing is the Rs100 billion in savings secured through the renegotiation of Independent Power Producer (IPP) contracts. Breaking it down, 63 percent of the Rs25.98/unit PPP stems from capacity charges, while the energy component hovers around Rs9/unit. Factoring in the allowed 11 percent transmission and distribution (T&D) losses pushes the effective PPP to Rs29.6/unit. Add to that Rs3.3/unit for the wire business margin, Rs0.56/unit for distribution margin, and Rs0.49/unit in prior year adjustments—and the total revenue requirement for DISCOs lands at Rs34/unit. Unlike in FY23, the reference generation mix for FY26 aligns more closely with ground realities, with thermal generation now assumed at 27 percent—down from 32 percent last year. Hydel output is projected at 35.9 billion units, roughly 10 percent lower than FY24, priced at an average of Rs12/unit. NEPRA notes that the projected reduction also accounts for emerging concerns over India's upstream water control—factored in as a risk to hydrology. Nuclear power maintains a 19 percent share in the generation mix for the second consecutive year, priced at Rs17.5/unit—driven largely by the highest capacity charge among all sources, exceeding Rs450 billion. Imported coal continues to be the system's most expensive burden, with a punishing unit cost of Rs61 and a meagre 7 percent generation share. Its capacity charges, at Rs428 billion, are nearly on par with hydel's. Solar, meanwhile, comes in around the system's average, priced at approximately Rs26/unit. All of this assumes average T&D losses of 11 percent—translating to nearly Rs170 billion effectively vanishing into the circular debt black hole. Unlike K-Electric, no recovery allowances have been granted to discos, with recovery targets still pegged unrealistically at 100 percent. That means under-recoveries could mirror T&D losses, adding yet another layer to the circular debt pile. Meanwhile, the Debt Servicing Surcharge (DSS) remains in place—ensuring that honest bill payers continue to foot the bill (for next six years at least) for past loans taken in the name of clearing circular debt, even as fresh debt quietly accumulates.
Business Recorder
14-06-2025
- Business
- Business Recorder
FPCCI slams 18pc tax on e-commerce transactions, solar panels
KARACHI: Vice President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Muhammad Amaan Paracha has said that the federal budget for the new fiscal year does not align with the expectations of the trade, industry, and the general public. He criticised the imposition of taxes on e-commerce transactions, saying it is an unjust move. 'Unemployed youth were earning through e-commerce, and this step will stifle their potential,' he said. Expressing serious concern over the 18% tax imposed on solar panels, Paracha said the government has retrieved Rs 3 trillion through the termination of Independent Power Producer (IPP) agreements — a positive move for the power sector. However, instead of formulating an effective alternative energy policy, the government has imposed 18% sales tax on solar panels. This has already caused a spike in solar panel prices in the market. 'The entire business community unanimously demands the immediate withdrawal of this sales tax,' he added. 'We had hoped for relief to help the industry stabilize, but even the agricultural sector received no support, and the government turned a blind eye to education, offering no relief,' Paracha stated. He further pointed out that the federal budget for 2025–26 contains over 40% anomalies that the government must address. The industrial sector had expected the budget to be business-friendly and in the public interest, but instead, it has led to deep disappointment. Due to rising electricity prices, industrial production costs are already extremely high, and taxing solar panels will deprive industries of cheap energy options — effectively forcing them to buy expensive electricity, which is unfair. Paracha acknowledged that given the current post-Pakistan-India war scenario, an increase in the defense budget was inevitable. He cited the regional situation, recent surge in terrorism, India's water aggression, and non-traditional threats as reasons to prioritize national security. A 21% increase in the defense budget, allocating Rs 2,550 billion, was a necessary and vital step, he said. He also urged the SBP governor to reduce the interest rate by 3% in the monetary policy scheduled to be announced on Monday. Copyright Business Recorder, 2025
Hi Dubai
09-06-2025
- Business
- Hi Dubai
DEWA Expands Mohammed bin Rashid Solar Park Capacity to 3,860MW
Dubai Electricity and Water Authority (DEWA) has ramped up the total production capacity of the Mohammed bin Rashid Al Maktoum Solar Park to 3,860 megawatts (MW), marking a major step forward in the emirate's clean energy transition. Announced by Saeed Mohammed Al Tayer, MD & CEO of DEWA, the increase includes 800MW added this year from the park's sixth phase. Clean energy now accounts for roughly 21.5% of DEWA's total production capacity. Al Tayer said the expansion supports Dubai's long-term strategies to reach net-zero carbon emissions by 2050. 'The Mohammed bin Rashid Al Maktoum Solar Park is our key project to realise this vision and achieve the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050,' he stated. Launched in 2013 with a modest 13MW capacity, the solar park has grown through multiple phases using photovoltaic (PV) and concentrated solar power (CSP) technologies. Notably, the fourth phase introduced hybrid solar systems, while the fifth and sixth phases continued expanding PV output. DEWA plans to raise the park's capacity to 7,260MW by 2030, which would supply 34% of the utility's total energy mix from clean sources. This transition is expected to cut carbon emissions by around eight million tonnes annually. Looking ahead, DEWA has invited global developers to participate in the seventh phase of the solar park. Set to feature a 1,600MW PV system and a 1,000MW battery storage system, the project will be one of the world's largest solar-plus-storage initiatives. The solar park is implemented under the Independent Power Producer (IPP) model, reinforcing Dubai's position as a regional leader in renewable energy innovation. News Source: Emirates News Agency
