Nepra eases conditions for renewable energy projects smaller than 2.5 MW

[Naveed Yaseen]

ISLAMABAD (April 10 2009): National Electric Power Authority (Nepra) has announced simplification of license procedures and a major cut in the license fee for small scale renewable energy projects. Private investors intending to set up renewable energy projects with power generation capacity of 500KW would now be required to pay Rs 24,000 while applying for generation licence.

The license fee for RE projects with up to 2.5 MW capacity has been fixed at Rs 50,000. Earlier, investors seeking license for any project of over 1 MW had to pay over Rs 200,000 along with their application. Furthermore, under the revised procedures sponsors of small RE projects would not be required to visit Nepra offices for their licenses.

The procedures could now be completed through mail. Alternative Energy Development Board (AEDB) had requested Nepra for the simplification of licensing procedures so that RE projects could be commissioned with minimum gestation period. AEDB would be proposing further simplification of procedures for setting up of RE projects in its medium term policy expected to be implemented by January 2010.

AEDB Chief Executive (CEO) Arif Alauddin hailed the simplification of licensing procedures and reduction in license fee saying it would pave way for promotion of RE in the country on fast track. "This is a major step taken by Nepra and one for which AEDB had been striving for a long time." Alauddin said Nepras decision would encourage small individual investors to invest in small-scale projects.-PR

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