ISLAMABAD - After facing strong criticism over issuing exorbitant tariffs, Nepra on Thursday announced a very nominal decrease in the levelised tariff of the wind power generation .

According to the 67 page decision new levelised tariff (calculated on the basis of average of 20 years tariff) would be now Rs 10.6048/kWh, against the levelised previous tariff of Rs 13.1998/kWh. The public hearing regarding revision of tariff was held on April 16, 2015, after expiry of previous upfront tariff on April 24, 2013, after a period of two years, in April, 2015.

The new tariff will remain applicable for six months from the date of notification. The prospective investors opting for this tariff will have to achieve financial close within one year from the date of decision of the Authority awarding upfront tariff to them. The targeted maximum construction period after financial close is 18 months. This time period prescribed in the determination is to ensure early completion of the projects.

According to the order only those companies who have been recommended by the relevant agencies, those who could certify that they would install new plant and machinery of international standard, and those who have installed capacity of up to 250 MW would be eligible for this tariff.

Why exorbitant tariff was announced two years back and now if the authority has realised that if the previous tariff was excessive, and does Nepra take responsibility of any mistake in this regard, and this new tariff would not shy away investors who are already discouraged due to law and order and red tapism of the country, the spokesperson said.

the tariff has been revised after Nepra realised advancement in technology.

“The tariff of wind power has reduced over time due to advancement in technology, wind projects in the country have massive potential, due to high wind speeds in many areas”, spokesperson said, adding, through reducing the rates Nepra is encouraging the wind potential to be utilised to the optimum level.