Delays Plague CPEC Solar Project Launch, Chinese Firm Raises Concerns
A Chinese state-owned company is expressing apprehension regarding significant delays in the initiation and completion of the remaining 600-megawatt segment of the 900MW mega solar power project, a crucial component of the China-Pakistan Economic Corridor (CPEC). Allegedly, issues involving the National Electric Power Regulatory Authority (Nepra) and the National Transmission and Despatch Company (NTDC) are impeding progress, prompting the Chinese firm to seek urgent resolution from various authorities.
Sources reveal that despite successfully completing and commissioning 300MW in 2016-17, the Chinese company has encountered bureaucratic obstacles hindering further advancement in the project. Persistent efforts to engage with government departments have yielded no tangible progress.
The primary roadblocks reportedly revolve around unresolved matters related to tariff agreements and interconnection study reports, creating a bottleneck for the remaining 600MW. The company's recent communication with relevant authorities highlights the challenges, emphasizing the pending re-affirmation of Grid Interconnection Study (GIS), extension of IEE/NOC approvals, and generation license applications with the NTDC, Nepra, and Punjab Environment Protection Department.
In response to the bureaucratic hurdles, the Chinese firm initiated fresh feasibility studies and hired consultants to address concerns raised in official meetings with the concerned departments. However, despite submitting these studies to the Punjab Power Development Board (PPDB) for approval, the company's efforts have not translated into tangible progress.
The competitive bidding mechanism introduced in the Alternative and Renewable Energy Policy 2019 is cited as an additional challenge. The Chinese firm argues that this mechanism should not apply to its advanced-stage project listed under CPEC's priority schemes. Citing agreements reached in the 5th Joint Energy Working Group minutes of November 13, 2017, the company contends that CPEC projects are entitled to apply for the cost-plus tariff regime, as per the relevant tariff resolutions in the renewable energy power generation development policies of 2006.
The Chinese firm expresses readiness to proceed with the remaining 600MW segment through a cost-plus, market-based tariff under the Government-to-Government (G2G) model, awaiting Nepra's immediate approval for the proposed tariff. Simultaneously, the company awaits the signing of the project agreement for the pending portion.
Despite these concerns, the Punjab minister for energy and his spokesperson remain unavailable for comments. NTDC Managing Director Azaz Ahmad assures prompt action upon receipt of a formal written complaint from the Chinese firm, dispelling any perceived issues from the NTDC's end.