PAKISTAN: National Policy for Power Co-Generation by Sugar Industry and Guidelines for Investors

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Effective Start Year: 
2008
Scope: 
National
Document Type: 
Overarching Policy, Guideline
Economic Sector: 
Power, Industry
Energy Types: 
Power, Renewable, Bioenergy
Issued by: 
Ministry of Water and Power, Government of Pakistan
Source: 
National Electric Power Regulatory Authority (NEPRA)
File: 
National Policy for Power Co-Generation by Sugar Industry and Guidelines for Investors
Overall Summary: 
To cater for the rapidly growing energy requirements of Pakistan, the Government has adopted a coherent approach of Energy Security. The Energy Security Plan is aimed at not only adding new power generation sources but also diversifying and tapping all possible fuel sources for power generation. It is estimated that Pakistan has a potential of generating more than 300 MW of electricity through cogeneration from its existing sugar industry. It will not only offset greenhouse gas emissions but would also help in generating additional sources of clean energy in the country.
Pricing
Energy taxation: 
---- No levy of sales tax on such plant, machinery and equipment, as the same will be used in production of taxable electricity.
Energy pricing: 
----The tariff will be levelized for 30 years and will be available for 60MWs or above capacity based on 28% net thermal efficiency. ----Pakistan Sugar Mills Association (PSMA) shall approach NEPRA for tariff for Bagasse based Co-Generation Power Projects ----Based on the tariff worked out by NEPRA on PSMA’s recommendations/feasibility study, the interested parties will register with PPIB after depositing the requisite fees, and submit a detailed proposal on the proposed project to PPIB. ---- After issuance of Generation License and determination of Tariff for specific project by NEPRA, the sponsors would communicate acceptance of the Tariff to PPIB.
Investment
Independent power producers: 
---- The incentives available to the Independent Power Plants under Policy for Power Generation Projects 2023 would be available to the Power Co-Generation units of Sugar Mills. ---- The Power generated by the Sugar Industry will be purchased by NTDC or DISCO concerned at agreed/negotiated and competitive rates to be approved by NEPRA. Power Sale/Purchase Agreements, valid during the life of the Power Co-Generation units, will be signed with Sugar Mills on the lines of the Agreements signed with the IPPs.