Government and Wind Power Producers signs MoU to reduce tariff

The government and Wind Power Producers (WPPs) have signed pacts, to be binding after different level approvals from power firms.

Government and Wind Power Producers signs MoU to reduce tariff

The committee and Pakistan Wind Energy Association held a number of rounds of discussions with the Wind Association with a request to reduce generation tariff. All discussions have been confidential and without prejudice basis.

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This document shall not affect the parties’ rights and obligations under the agreements signed pursuant to the Government of Pakistan’s RE Policy 2006 (such as the IA, the EPA, the GoP Guarantee and the Site Lease/ Sub-Lease).

This document shall remain non-binding unless and until the following conditions precedent have been satisfied: (i) approval of the board of directors of the WPPs; (ii) approval of the shareholders of the WPPs; (iii) approval of the lenders of the WPPs; (iv) approval of any other counterparty of the WPPs; and (v) any and all legal and regulatory approvals including approval from NEPRA in relation to the WPPs’ projects.

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According to the draft MoU, the parties confirm that (i) the proposals contained herein will be implemented on a non-discriminatory manner vis-à-vis all WPPs; and (ii) necessary amendments will be signed between the relevant parties to each project agreement.

The committee has offered to help and support the WPPs in relation to the following matters: (i) WPPs’ curtailment by NTDC/ NPCC to be stopped immediately coupled with an appropriate amendment into the EPA to remove any doubts.

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The NPMV concept to be amended to compensate the WPPs on the basis of energy lost during curtailment; (ii) WPPs’ overdue receivables to be paid within agreed days from the date hereof; (iii) future invoices to be paid as per the EPA.

Originally published at Business recorder

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