KARACHI: Provincial Energy Minister Syed Nasir Hussain Shah on Monday announced that electricity prices in the province would be significantly reduced once the Sindh Electric Power Regulatory Authority (Sepra) becomes operational next month.

He said this while speaking at a consultative workshop — Solar Wind Hybrid Project B2B Arrangements — jointly organised by the Sindh energy department and Energy Update magazine.

“The relief process for domestic and industrial consumers will start with Sepra, which is expected to become operational by the end of next month,” the minister said, adding that the authority would determine power tariff in Sindh.

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He didn’t explain how the upcoming provincial body would take over the task of fixing power tariff currently exercised by the National Electric Power Regulatory Authority (Nepra), but expressed the hope that the federal government would fully support Sepra and the provincial government’s energy plans envisioned in line with the 18th Amendment.

Nasir Shah says Sindh Electric Power Regulatory Authority is expected to become functional by August end

Sharing other government plans aimed at providing relief to power consumers, he said solar parks were being established under a public-private partnership that would supply renewable electricity through the Sindh Transmission and Dispatch Company (STDC).

“The establishment of solar parks was part of the election manifesto of the Pakistan Peoples’ Party that had promised to provide 300 units of free electricity to poor consumers.

“Furthermore, the government is working hard to ensure early implementation of the plan contained in the new provincial budget to provide 500,000 solar panels to off-grid homes in faraway areas.”

The government, he pointed out, was committed to energise 2.6 million off-grid house by using the renewable power potential of the province and that distribution of 200,000 solar systems to off-grid houses would soon start under a World Bank-assisted drive to promote clean energy.

About concerns related on capacity payments to independent power producers, he said, that arrangement would be “controlled” under the proposed Sepra to ensure justified increase in tariffs in Sindh.

Sindh Alternative Energy Director Mehfooz Qazi told the audience that the provincial government had initially planned to set up solar-wind hybrid generation plants of 350 MW generation capacity to produce electricity at the proposed tariff of Rs18.45 per unit.

“The per-unit cost of electricity would be reduced with the expansion in the generation capacity of the hybrid power plants. The project would be capable of producing 766 GW of clean energy per year.”

He explained that the government would conduct third-party studies and validation for transparency.

“The transmission and distribution systems of the STDC would be fully utilised to supply clean electricity produced by hybrid wind-solar projects to industrial consumers in the province under the B2B arrangements.”

Thar Coal Energy Board Managing Director Tariq Ali Shah shed light on the proposed new electricity policy of Sindh while saying that the Constitution fully supported the provinces to establish their own power sector regulators, and transmission and distribution companies as being done in Sindh.

Naeem Qureshi of Energy Update expressed the hope that the consultative workshop would be helpful in harnessing the massive clean energy potential of Sindh.

Several representatives of energy sector companies, academics, and researchers attended the workshop and shared their views on the proposed B2B arrangement for the upcoming wind-solar hybrid power project under a public-private partnership regime.

Sindh Energy Secretary Mussadiq Ahmed Khan, STDC CEO Saleem Shaikh, Enginner Irfan Ahmed and other senior officials of the energy department also participated in the workshop.

Published in Dawn, July 30th, 2024