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Pakistan: NEPRA issues 2016 upfront solar tariffs

  • Middle East
  • Energy and infrastructure - Clean energy


Pakistan's National Electric Power Regulatory Authority (NEPRA) yesterday announced the new solar tariffs, which apply from 1 January 2016 for a period of six months to 30 June 2016.

The new tariff will be 11.35 to 11.53 US cents per kilowatt-hour for projects in the North of the country (Punjab and KPK) and 10.72 to 10.89 US cents per kilowatt-hour for projects in the South of the country (Sindh and Balochistan), for projects between 1 and 100 megawatts.

Although the new tariff has reduced around 25% against the current tariff, it is designed to take into account the falling prices of solar photovolatic cells, as well balancing the interests of consumers and investors.

The new tariff also includes calculations on degradation impact and a revised capacity utilisation factor to reflect the improvement in solar modules, and also a mechanism for sharing of excess energy generated.

Eversheds has been working on projects with developers and investors in the Pakistan renewable energy market for some time and Rob McNabb represented a number of developers at the FIT public hearing. Our comments are set out here.

For further information on the NEPRA tariff and the Pakistan renewable energy market please contact our team.