Sindh government has announced its intention to launch a tariff-based auction to develop a 50-megawatt solar power project in the province.
It will be the first project to implement the decision of National Electric Power Regulatory Authority (NEPRA) on March 3, 2017, to enable tariff-based auctions for solar photovoltaic (PV) power projects, substituting open tariff regime. Tariff-based auctions have been successful internationally in rapidly reducing the price of solar power is a least-cost generation option in many countries.
Pilot solar auction is one segment of a bigger program on solar and sustainable power source being produced by the Energy Department, Government of Sindh, with the help of the World Bank. The program is as of now under arrangement, with plans to incorporate improvement of utility-scale sustainable power source projects, housetop solar on open structures, and support for off-grid power arrangement in rural areas.
A key target of the program is to pull in private speculation into solar power in Sindh, including foreign direct investment. Talking at the One Planet Summit in Paris, Mr. Agha Wasif Abbas, Energy Secretary, government of Sindh, said that Sindh presenting value disclosure for solar power tariff in Pakistan. This 50 MW project solar power can be a least-cost generation alternative, and we anticipate inviting qualified worldwide and household solar power designers to offer on this project, and on ensuring sustainable power source barters.”
The Energy Department issued a request for information (RFI) to solar power engineers and speculators to a formal procurement process that will complete in second quarter of 2018. The tax based sale will take after global gauges and techniques to guarantee full straightforwardness and guarantee slightest cost offers obtained.
The 50 MW project is for a site on the government-owned land north-west of Hyderabad having an excellent solar resource potential of over 2,200 kWh/m2 per year. This equates to estimated annual production of around 85,000 MWh of clean, domestic power from the sun per year, immune to the price volatility of fossil fuels. The RFI will enable the Government of Sindh to exchange information and carry out consultations with private sector developers interested in bidding for the project. Government of Sindh will welcome Interested engineers to an interview workshop to happen in mid-2018.