ECC approves 1,500 MW rental power projects

[Naveed Yaseen]

* Pervez Ashraf says 14 rental power companies to start at tariff of 13.5 to 15 US cents
* Load shedding to end by December

By Ijaz Kakakhel

ISLAMABAD: The government has approved new rental power projects to generate 1,500 MW of additional power to help overcome the energy crisis in the country, Minister for Water and Power Raja Pervez Ashraf said on Friday.

Addressing a press conference, Ashraf said the ministry had been permitted to produce a total of 2,700 MW of electricity through rental power projects, adding that the target had been later revised to 2,250 MW.

The minister said it has been decided that 1,500 MW of electricity would be acquired through rental power projects while the remaining 700 MW would be produced using existing power plants, provided that sufficient gas was supplied.

He said in case gas was not available, the government would also generate the remaining 700 MW of electricity through rental projects.

Tariff: Ashraf said 14 rental power companies would start their projects on a tariff of 13.5 US cents to a maximum 15 cents, adding that the average tariff was 12.5 cents.

He said the decision to generate power through rental projects had been taken after comprehensive debate.

He said the issue had also been discussed in parliament and all concerns regarding rental plants had been addressed. However, he said all such projects would take up to three to five years to become operational.

He said the country was currently facing a power shortfall of 3,500 MW to 4,000 MW and the only way to overcome it was to rely on rental power projects, as there was no other option that was as efficient in the short term.

He said countries like India and Saudi Arabia had started developing rental power projects to overcome electricity shortages.

Bold claims: He said the government’s main objective was to end load shedding by December. He said the government was also working on early completion of other on-going power projects.

“I want to have a balance in the country’s energy mix,” the minister said in reply to a question.

http://www.dailytimes.com.pk/default.asp...2009_pg7_1