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 38,719 MW, presently out of which 9,861 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 is 26% hydropower and 72% thermal
  • Punjab has the world’s largest contiguous irrigation canal network, about 23,712 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 Hydropower Sites in Punjab

Pakpattan

Parameter Unit Pakpattan
Location - District Pakpattan
Canal - Canal RD-112
Design Capacity MW 3.2
Design m3/sec 84
Discharge Gross Head m 4.5
Annual Generation Gwh 22.7
Cost UD$ 7.30
EIRR % 17
FIRR % 9.10
     

Okara

Parameter Unit Okara
Location - District Okara
Canal - LBDC RD-196
Design Capacity MW 04
Design m3/sec 150
Discharge Gross Head m 3.2
Annual Generation Gwh 27.6
Cost UD$ 10.80
EIRR % 14
FIRR % 6.70
     

Deg-out

Parameter Unit Deg-out
Location - District Sheikhupura
Canal - UCC RD-283
Design Capacity MW 05
Design m3/sec 150
Discharge Gross Head m 04
Annual Generation Gwh 29.1
Cost UD$ 11.10
EIRR % 14.50
FIRR % 7.10
     

Chianwali

Parameter Unit Chianwali
Location - District Gunranwala
Canal - UCC RD-128
Design Capacity MW 5.4
Design m3/sec 150
Discharge Gross Head m 4.3
Annual Generation Gwh 32.2
Cost UD$ 11.80
EIRR % 15.70
FIRR % 8.10
     

Marala

Parameter Unit Marala
Location - District Sialkot
Canal - UCC RD-000
Design Capacity MW 7.2
Design m3/sec 350
Discharge Gross Head m 2.5
Annual Generation Gwh 48.5
Cost UD$ 16.30
EIRR % 16.30
FIRR % 8.60
     

Khokhra

Parameter Unit Khokhra
Location - District Mandi Bahauddin
Canal - Gujrat Branch RD-2.5
Design Capacity MW 2.8
Design m3/sec 41
Discharge Gross Head m 9.8
Annual Generation Gwh 20.7
Cost UD$ 4.20
EIRR % 22.88
FIRR % 12.77
     

Canal - Raw Sites (Without Feasibility)

  Location Discharge m3/sec
T. S. Link Canal RD 0+000 311.49
C. J. Link RD 0+000 614.50
Thal Main Line UCC RD 212+500 90.87
Tail Main Line UCC RD 133+298 315.00
Main Line L.C.C. RD 0+000 230.58
Lower Chenab Canal RD 140+050 136.00
Upper Gogera RD 214+000 132.52
Thal Canal RD 0+000 113.27
B.R.B.D Link Canal RD 0+000 146.55
B.R.B.D. Link Canal RD 433+958 64.17
     

Canal - Raw Sites (Without Feasibility)

  Location Fall (M)
T. S. Link Canal RD 0+000 0.87
C. J. Link RD 0+000 2.75
Thal Main Line UCC RD 212+500 3.09
Tail Main Line UCC RD 133+298 2.45
Main Line L.C.C. RD 0+000 2.62
Lower Chenab Canal RD 140+050 2.16
Upper Gogera RD 214+000 2.38
Thal Canal RD 0+000 3.37
B.R.B.D Link Canal RD 0+000 1.70
B.R.B.D. Link Canal RD 433+958 5.23
     

Canal - Raw Sites (Without Feasibility)

  Location Power Potential (MW)
T. S. Link Canal RD 0+000 2.20
C. J. Link RD 0+000 13.86
Thal Main Line Lower Canal RD 212+500 2.30
Tail Main Line L.C.C. RD 133+298 4.24
Main Line L.C.C. RD 0+000 4.95
Lower Chenab Canal RD 140+050 2.40
Upper Gogera RD 214+000 2.58
Thal Canal RD 0+000 3.13
B.R.B.D. Link Canal RD 0+000 2.00
B.R.B.D. Link Canal RD 433+958 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 at 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 is:
    • Build, Own, Operate, Transfer basis (BOOT)
    • PPP

Unsolicited Proposals (Raw Sites)

  • The proposals for which feasibility studies are not available can be developed for power generation and are classified as unsolicited 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