Hydel

Key Statistics

  • Punjab derives its name from the five rivers flowing through the province (Sutlej, Beas, Ravi, Chenab and Jhelum). Punjab is home to over 90 million people. Location: 27. 40°/to 34.01° N and 69.20°/ to 75.20° E. latitude & longitude
  • The installed electricity generation capacity is about 38719 MW, presently out of which 9861 MW comes from hydropower. The identified hydropower potential in the country is approximately 60,000 MW
  • Punjab consumes 68% of generated national power. The current energy mix about is 26% hydro power and 72% thermal
  • Punjab has the world’s largest contiguous irrigation canal network, about 23712 miles long
  • Punjab Government invites the private sector to invest in power stations at raw sites on canals and rivers. There is about Hydropower untapped potential of 419 MW on canal falls/rivers
  • Punjab Power Development Board is currently facilitating the development of 265 MW capacity hydropower projects in IPP mode.

 

Solicited Hydro Power Sites in Punjab

Sr No.
Parameter
Unit
Name of Hydro power Project
Pakpattan
Okara
Deg-out
Chianwali
Marala
Khokhra
1.
Location
-
District
Pakpattan
District
Okara
District
Sheikhupura
District
Gunranwala
District
Sialkot
District
M.B.Din
2.
Canal
-
Pakpattan
Canal
RD-112
LBDC
RD-196
UCC
RD-283
UCC
RD-128
UCC
RD-000
Gujrat
Branch
RD-2.5
3.
Design Capacity
MW
3.2
4
5
5.4
7.2
2.8
4.
Design
m3/sec
84
150
150
150
350
41
5.
Discharge Gross Head
m
4.5
3.2
4
4.3
2.5
9.8
6.
Annual Generation
Gwh
22.7
27.6
29.1
32.2
48.5
20.7
7.
Cost
UD$
7.30
10.80
11.10
11.80
16.30
4.20
8.
EIRR
%
17
14
14.50
15.70
16.30
22.88
9.
FIRR
%
9.10
6.70
7.10
8.10
8.60
12.77
 
Sr No.
Name of Canal - Raw Sites (Without Feasibility)
Location
Discharge
M3/Sec
Fall
(M)
Power
Potential (MW)
1.
T. S. Link Canal
RD 0+000
311.49
0.87
2.20
2.
C. J. Link
RD 0+000
614.50
2.75
13.86
3.
Thal Main Line Lower Canal
RD 212+500
90.87
3.09
2.30
4.
Tail Main Line UCC
RD 133+298
315.00
2.45
4.24
5.
Main Line L.C.C.
RD 0+000
230.58
2.62
4.95
6.
Lower Chenab Canal
RD 140+050
136.00
2.16
2.40
7.
Upper Gogera
RD 214+000
132.52
2.38
2.58
8.
Thal Canal
RD 0+000
113.27
3.37
3.13
9.
B.R.B.D. Link Canal
RD 0+000
146.55
1.70
2.00
10.
B.R.B.D. Link Canal
RD 433+958
64.17
5.23
2.75

Fiscal and Financial Incentives

  • Mandatory purchase of power generated by IPPs
  • The Power Purchase will ensure grid connection, off take voltage and interface
  • Wheeling arrangements
  • Bonus incentive on power production more than the bench mark level
  • NEPRA (National Electric Power Regulatory Authority) is in a process of announcing FIT (Feed in   Tariff) for small hydropower projects soon
  • Hydropower projects can be implemented on Build-Own-Operate-Transfer (BOOT) basis or on other negotiable mechanism
  • GOP will guarantee the terms of executed agreements including payment terms
  • No custom duty or sales tax for machinery, equipment and spares
  • Exemption on income tax including turnover rate tax and withholding tax on import
  • Repatriation of equity along with dividends freely allowed
  • Non-Muslims and non-residents exempted from payment of zakat on dividend paid by the company
  • Power generation companies can issue corporate registered bonds and shares at discounted prices
  • Foreign banks can underwrite shares and bonds issued by private power companies
  • Non-residents can purchase securities issued by Pakistani companies
  • Abolition of 5% limit on investment of equity in associated undertakings
  • Independent rating agencies are operating in Pakistan to facilitate investors in making informed decisions
  • Government of Pakistan will guarantee the terms of executed agreements including payment terms
  • Sovereign Guarantee by the Federal Government

Punjab Power Generation Policy 2009

  • Projects may be developed on Raw/Solicited sites
  • Concessions in duties/tax regime announced by Government of Pakistan are applicable for projects developed under the policy
  • Standard formats of Power Purchase Agreement (PPA), Implementation Agreement (IA) and Water Usage Agreement (WUA) are available
  • Water use charges @ Rs.0.425 / (Kwh) as per Federal Power Policy 
  • Dispersal of power can be made by:
    • Sale to dedicated industry
    • Sale to local area by establishing distribution network
    • Sale to utility company (NTDC/DISCO),
  • Use of Government land is allowed in following two modes:
    • Lease
    • Through equal equity participation.
  • Mode of investment for Hydropower Power is:
    • Build
    • Own
    • Operate;
    • and Transfer basis  (BOOT) or PPP

Un-solicited Proposals (Raw Sites)

  • The proposals for which feasibility studies are not available can be developed for power generation and are classified as un-solicited proposal/raw sites
  • The process includes invitation of Expression of Interest through press, registration and pre-qualification. The highest ranking sponsor is selected, who is issued Letter of Interest (LOI) authorized to carry out feasibility studies within 12 months
  • Tariff will be negotiated between sponsor and power purchaser and approved by
  • NEPRA Letter of Support (LOS) will be issued for a period of twelve months to execute agreement (IA, PPA and WUA) and to achieve financial close

Solicited Proposal

  • Proposals will be solicited from investors for projects for which feasibility is available
  • Process of selection involves invitation of competitive bidding through press
  • For competitive bidding, selection process will involve pre-qualification, issuance of RFP, bid, evaluation and award
  • Lowest bidder in terms of tariff is selected, who will get tariff approved from NEPRA
  • Letter of Support (LOS) will be issued for a period of twelve months to execute project agreements and achieve financial close