Govt to purchase electricity from an RPP

ISLAMABAD: The ministry of water and power is all set to once again start purchasing electricity from “controversial” rental power project as National Electric Power Regulatory Authority (Nepra) has accepted a plea of Reshma Rental Power Company, seeking power generation license.Official sources disclosed to Daily Times that privately-owned Reshma Rental Power Company has sought power generation license from the regulatory authority and the Nepra has accepted the plea. They said National Transmission & Dispatch Company (NTDC) is also willing to purchase power from the rental power company. And, the Reshma Rental Power Company has decided to start 90mw power generation from its power plant installed in Kasur, they added.A senior official at power ministry, who wished not to be named, said Reshmaan Power Company cannot generate a single unit of power without getting necessary approval from the Nepra. He added that the rental power firm remained fail to generate power in 2009 in line with the provisions of the agreement which it had earlier inked with the power ministry. Sources in power sector further informed this scribe that the machinery of Reshma Power Company is inefficient if compared it with efficiency rate of Independent Power Producers (IPPs). And, the power sector regularity body (Nepra) has already raised its profound concerns on the machinery of all the RPPs including the rental power plants of Reshma Rental Power Company. Reshma Rental Power Plant is capable to produce power till 13 to 15 year, while the age of generating power from a power plant with having new machinery can produce power for the 30 years, they added. It is worth mentioning here that the federal cabinet’s economic coordination committee (ECC) on March 27, 2014 had allowed the RPPs to produce the power but on specified terms and conditions.  On the recommendations of the Ministry of Water and Power, the ECC allowed revival of the controversial RPPs of PPP government under a new name — short-term independent power producers (STIPPs) — with improved terms and conditions, to partially bridge electricity shortfall.

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Aaj Kal