National Electric Power Regulatory Authority Islamic Republic of Pakistan
NEPRA Tower, Ataturk Avenue (East) G-5/1, Islamabad Ph: +92-51-9206500, Fax: +92-51-260002° Registrar Web: www.nepra.org.pk, E-mail: [email protected]
No. NEPRA/R/LAG-227/ ► - 13 1 6 .17. November 27, 2013
Project Director Ranolia Hydropower Project Pakhtunkhwa Hydel Development Organization (PHYDO) [formerly Sarhad Hydel Development Organization (SHYD0)] SHYDO House, Plote No. 38-B, Phase-V, Hayatabad, Peshawar
Subject: Generation Licence No. GL(Hydel)/12/2013 Licence Application No. LAG-227 Pakhtunkhwa Hydel Development Organization (PHYDO) (formerly Sarhad Hydel Development Organization (SHYD0)1
Reference: Your application vide letter No. 1452/SHYDO/Ranolia, dated 20.02.2013.
Enclosed please find herewith Generation Licence No. GL(Hydel)/12/2013 granted by National Electric Power Regulatory Authority (NEPRA) to PHYDO (formerly SHYDO) for its Ranolia Hydro Power Plant, pursuant to Section 15 of the Regulation of Generation, Transmission and Distribution of Electric Power Act (XL of 1997). Further, the determination of the Authority in the subject matter is also attached.
2. Please quote above mentioned Generation Licence No. for future correspondence.
Enclosure: Generation Licence NER Ite6> [GL(Hydel)/12/20131
u.i! REGASTRAFt
0, (Syed Safeer Hussain) Copy to: NEEPO--` 1. Chief Executive Officer, Peshawar Electric Supply Company (PESCO), WAPDA House, Sakhi Chashma, Shami Road, Peshawar
1. Director General, Pakistan Environmental Protection Agency, House No. 311, Main Margalla Road, F-11/3, Islamabad. National Electric Power Regulatory Authority (NEPRA) Islamabad - Pakistan
GENERATION LICENCE
No.GL(Flvdel)/12/2013
In exercise of the Powers conferred upon the National Electric Power Regulatory Authority (NEPRA) under Section 15 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, the Authority hereby grants a Generation Licence to: Pakhtunkhwa Hydel Development Organization (PHYDO) rformerly Sarhad Hyde! Development Organization/(SHYD0)1
Established under the SHYDO Act of 1993 of Government of Khyber Pakhtunkhwa (KPK) for its Generation Facility/Ranolia Hydro Power Plant located at Ranolia Khwar, District Kohistan in the Province of KPK
(Installed Capacity: 17.00 MW Gross ISO)
to engage in generation business subject to and in accordance with the Articles of this Licence. Given under my hand this n.--1/4 day of November Two Thousand & Thirteen & expires on 30t" day of June Two cc0 Thousand & Forty Four. Registrar Nr.47 tiEpRN Generation Licence Pakhtunkhwa Hydel Development Organization (PHYDO) [formerly Sarhad Hydel Development Organization/(SHYD0)] for its Ranolia Hydro Power Plant located at Ranolia Khwar District Kohistan In the Province of Khyber Pakhtunkhwa (KPK) Article-1 Definitions 1.1 In this Licence (a). "Act" means "the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997"; (b). "Authority" means "the National Electric Power Regulatory Authority constituted under section 3 of the Act"; (c). "Carbon Credits" mean the amount of carbon dioxide (CO2) and other greenhouse gases not produced as a result of generation of energy by the generation facility, and other environmental air quality credits and related emissions reduction credits or benefits (economic or otherwise) related to the generation of energy by the generation facility, which are available or can be obtained in relation to the generation facility after the COD; (d). "CPPA" means "the Central Power Purchasing Agency of NTDC" or any other entity created for the like purpose; (e). "Commercial Operations Date (COD)" means the Day immediately following the date on which the generation facility of the Licensee is Commissioned; (f). "Grid Code" means the grid code prepared by approved by the Authority, as it may be revised from time to time by NTDC with any necessary approval by the Authority; (g). "Licensee" means "PHYDO/SHYDO"; (h). "NTDC" means National Transmission and Despatch Company Limited and its succes Ors nd permitted assigns; Page 2 of 6 :"■ti REGISTRAR Ni> Generation Licence Pakhtunkhwa Hydel Development Organization (PHYDO) [formerly Sarhad Hydel Development Organization/(SHYD0)] for its Ranolia Hydro Power Plant located at Ranolia Khwar District Kohistan In the Province of Khyber Pakhtunkhwa (KPK) "PESCO" means Peshawar Electric Supply Company Limited and its successors and permitted assigns; (j). "Policy" means "the Policy for Development of Renewable Energy for Power Generation, 2006" of Government of Pakistan as amended from time to time; (k). "Power Purchaser" means the CPPA of NTDC purchasing power on behalf of XW-DISCOs or PESCO; (I). "Rules" mean "the National Electric Power Regulatory Authority Licensing (Generation) Rules, 2000"; (m). "XW DISCO" means "an Ex-WAPDA distribution company engaged in the distribution of electric power". 1.2 Words and expressions used but not defined herein bear the meaning given thereto in the Act or in the Rules. Article-2 Application of Rules This Licence is issued subject to the provisions of the Rules, as amended from time to time. Article-3 Generation Facilities 3.1 The location, size (capacity in MW), technology, interconnection arrangements, technical limits, technical functional specifications and other details specific to the power generation facilities of the Licensee are set out in Schedule-I of this Licence. v:1? 9; 4v0'11 t, "I Page 3 of 6 1:,,LL--.:_jj . REGISTRAR 19 -.--: 0 Generation Licence Pakhtunkhwa Hydel Development Organization (PHYDO) [formerly Sarhad Hydel Development Organization/(SHYD0)] for its Ranolia Hydro Power Plant located at Ranolia Khwar District Kohistan In the Province of Khyber Pakhtunkhwa (KPK) 3.2 The net capacity of the generation facilities of the Licensee is set out in Schedule-II hereto. 3.3 The Licensee shall provide the final arrangement, technical and financial specifications and other specific details pertaining to its generation facility before its COD. Article-4 Term of Licence 4.1 This Licence is granted for a term of thirty (30) years from the date of the COD of the Generation Facility. 4.2 Unless suspended or revoked earlier, the Licensee may within ninety (90) days prior to the expiry of the term of the Licence, apply for renewal of the Licence under the National Electric Power Regulatory Authority Licensing (Application & Modification Procedure) Regulations, 1999 as amended or replaced from time to time. Article-5 Licence fee After the grant of the Generation Licence, the Licensee shall pay to the Authority the Licence fee, in the amount and manner set out in the National Electric Power Regulatory Authority (Fees) Rules, 2002. Article-6 Tariff The Licensee shall charge only such tariff which has been determined, approved or specified by the Authority in terms of Rule-6 of the Rules. fga7tZG, Page 4 of 6 Generation Licence Pakhtunkhwa Hydel Development Organization (PHYDO) [formerly Sarhad Hydel Development Organization/(SHYD0)] for its Ranolia Hydro Power Plant located at Ranolia Khwar District Kohistan In the Province of Khyber Pakhtunkhwa (KPK) Article-7 Competitive Trading Arrangement 7.1 The Licensee shall participate in such measures as may be directed by the Authority from time to time for development of a Competitive Trading Arrangement. The Licensee shall in good faith work towards implementation and operation of the aforesaid Competitive Trading Arrangement in the manner and time period specified by the Authority. Provided that any such participation shall be subject to any contract entered into between the Licensee and another party with the approval of the Authority. 7.2 Any variation or modification in the above-mentioned contracts for allowing the parties thereto to participate wholly or partially in the Competitive Trading Arrangement shall be subject to mutual agreement of the parties thereto and such terms and conditions as may be approved by the Authority. Article-8 Maintenance of Records For the purpose of sub-rule (1) of Rule 19 of the Rules, copies of records and data shall be retained in standard and electronic form and all such records and data shall, subject to just claims of confidentiality, be accessible by authorized officers of the Authority. Article-9 Compliance with Performance Standards The Licensee shall comply with the relevant provisions of the National Electric Power Regulatory Authority Performance Standards (Generation) Rules 2009 as amended from time to time. Page 5 of 6 Generation Licence Pakhtunkhwa Hydel Development Organization (PHYDO) [formerly Sarhad Hydel Development Organization/(SHYD0)] for its Ranolia Hydro Power Plant located at Ranolia Khwar District Kohistan In the Province of Khyber Pakhtunkhwa (KPK) Article-10 Compliance with Environmental Standards The Licensee shall comply with the environmental standards as may be prescribed by the relevant competent authority from time to time. Article-11 Provision of Information 11.1 The obligation of the Licensee to provide information to the Authority shall be in accordance with Section 44 of the Act. 11.2 The Licensee shall be subject to such penalties as may be specified in the relevant rules made by the Authority for failure to furnish such information as may be required from time to time by the Authority and which is or ought to be or have been in the control or possession of the Licensee. Article-12 Carbon Credits The Licensee shall process and obtain Carbon Credits expeditiously and credit the proceeds to the Power Purchaser as per the Policy. ,..."7",•71 7:;i'''' l'ee ,.."° -,...., * ‘,/..., r ''''''1/4 a 4 ."41 [ "A , REC;STF I -...-I - P, )> C-- \I 0 fj 1 Page 6 of 6 Generation Licence Pakhtunkhwa Hydel Development Organization (PHYDO) [formerly Sarhad Hydel Development Organization/(SHYD0)] for its Ranolia Hydro Power Plant located at Ranolia Khwar District Kohistan In the Province of Khyber Pakhtunkhwa (KPK) SCHEDULE-I The Location, Size (i.e. Capacity in MW), Type of Technology, Interconnection Arrangements, Technical Limits, Technical/Functional Specifications and other details specific to the Generation Facilities of the Licensee are described in this Schedule. \N E; ke.; ;SI> 111...„ 1 RgC:c'TiRAR • 4 gCq Page 1 of 12 of Schedule-I C x I Y A N 6ff -; ,'B 73 3 2 p _ 3 ,, _c CL :Ei-J >i - mj- cc'-f:E-t.._y, 0, . 0- u) .`- ...6 2-.. co Y Ef 7= 72- il sT 2 . c2 if, a- 0 2 76 45 ff, 4, • 7 . --a- I'J >. (0 .0 to % 1 V > • CD 0).52 .92y ♦ • " Op 2 - E ..E .. - co '2 ri) o T,. cr o E EE o. cc .,./ 18AN, No „..,,,,,,,,,,, i ; 413 1 8 ' 4-\ R 0 a., 0 0 p .c e. 1 i ti..,,e.,,,,,oes,,,, TO GILGIT C r.' -'i 1 lir-o -al _ ›s",3 . ,f' '''''''/r,,,,47 : , 0 1; i K.K.H.% 2 1" KANDIAH RIVER • co 4 s O • KHWAR CHOR NALA ROAD • , • Ga RIVER ////°.....•■•••• • ♦• ♦- - • TOWN • • TS BESHAM 0,. SHYDO SARMAD hYVEL DEVELOPMENT GROANWATION • ,0 Governrneot of Khyber rakIrtenkhwe heehaws, RANOLIA HYDROPOWER PROJECT (17MW) PROJECT LOCATION MAP BANA 04AWN redo.. „," ALAVG10 TO ABBOTTABAC Generation Licence Pakhtunkhwa Hydel Development Organization (PHYDO) [formerly Sarhad Hydel Development Organization/(SHYD0)] for its Ranolia Hydro Power Plant located at Ranolia Khwar District Kohistan In Province of Khyber Pakhtunkhwa (KPK) sit 1_1_ 1.. 1 I I T PLAN YOU A L INN ER \13_ Page 3 of 12 of Schedule-I REC„;STR:=„1`,R Generation Licence Pakhtunkhwa Hydel Development Organization (PHYDO) [formerly Sarhad Hydel Development Organization/(SHYD0)] for its Ranolia Hydro Power Plant located at Ranolia Khwar District Kohistan In Province of Khyber Pakhtunkhwa (KPK) 04403 7075 3775 5775 57/5 12.271, , 1111111111M 11011F ;gi . 7, . 71 . 1 .. 171719:17171 ... 0. .I!10! 71711...1 = 1 1 1 1 1:1.7.71:1717 15-1..11 710071111017 030 1075 "1 '000 /775 N, !Page 4 of 12 of Schedule-I Generation Licence Pakhtunkhwa Hydel Development Organization (PHYDO) [formerly Sarhad Hydel Development Organization/(SHYD0)] for its Ranolia Hydro Power Plant located at Ranolia Khwar District Kohistan In Province of Khyber Pakhtunkhwa (KPK) • 4 4 I • lo a J a I I I I ' I I I MIA , for Contra! 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' I 4 4 I • i ' le Page 5 of 12 of Schedule-I Generation Licence Pakhtunkhwa Hydel Development Organization (PHYDO) [formerly Sarhad Hydel Development Organization/(SHYD0)] for its Ranolia Hydro Power Plant located at Ranolia Khwar District Kohistan In the Province of Khyber Pakhtunkhwa (KPK) Interconnection Arrangement/Transmission Facilities for Dispersal of Power from the Generation Facility/Hydro Power Plant of PHYDO/SHYDO The power generated from the Generation Facility/Hydro Power Plant of PHYDO/SHYDO shall be dispersed to the load center of PESCO. (2). The proposed Interconnection Arrangement/Transmission Facilities for dispersal of will consist of the following:- (a). A 132 KV D/C Transmission Line (Measuring about 1.5 KM on ACSR Rail Conductor) for making In-Out of one Circuit of 132 KV D/C Allai Khwar- Duber Khwar Transmission Line at Ranolia Hydro Power Plant (RHPP) ; (3). Any change in the above mentioned Interconnection Arrangement/Transmission Facilities duly agreed by PHYDO/SHYDO, NTDC and PESCO, shall be communicated to the Authority in due course of time. Page 6 of 12 of Schedule-I Existing 132 kV Network Near Ranolia I le- du With Ranolia HPP he Sc Duber Khwar f 12 o f 7 o e Pag 7 Khan Khwar • Ranolia HPP Altai To Mansehra Legend Sketch-2 132kV Interconnection Study of Ranolia HPP 220kV Power Planners International Proposed 12012 Ranolia Sketch-2.DWG Generation Licence Pakhtunkhwa Hydel Development Organization (PHYDO) [formerly Sarhad Hydel Development Organization/(SHYD0)] for its Ranolia Hydro Power Plant located at Ranolia Khwar District Kohistan In the Province of Khyber Pakhtunkhwa (KPK) Detail of Generation Facility/ Hydro Power Plant (A). General Information Pakhtunkhwa Hydel Development Organization- Name of (i). PHYDO [formerly Sarhad Applicant Hydel Development Organization/(SHYDO) Registered 38/2-B, Phase V, Room 223-SHYDO, (ii). /Business Hayatabad, Peshawar Office Ranolia Khwar, District Kohistan in the Province of (iii ). Plant Location Khyber Pakhtunkhwa (KPK). Type of (iv). Generation Hydro Power Plant Facility (B). Configuration & Technology Plant Size/ (i). Installed 17.00 MW Capacity (ii). Plant type High Head (iii). Water Source Ranolia Khwar Type of (iv). Pelton Wheel Turbines Technology Number of Units (v). 2 x 8.50 MW & Size (MW) Turbine Make & Hangzhou Hangfa Equipment Works(HEE China)/ (vi). Model CJA475-W-140/2x138 Page 8 of 12 of Schedule-I Generation Licence Pakhtunkhwa Hydel Development Organization (PHYDO) [formerly Sarhad Hydel Development Organization/(SHYD0)] for its Ranolia Hydro Power Plant located at Ranolia Khwar District Kohistan In the Province of Khyber Pakhtunkhwa KPK Expected Commissioning COD Commissioning (vii). and Commercial Operation June 01, 2014 July 01, 2014 Date (COD) Minimum Expected Life of the Generation (viii). Facility 30 years Facility/Hydro Power Plant from COD (C). Detail of Hydrology (i). Catchment Area 73.00 km2 Mean Annual (ii). 4.33 m3/s Discharge Total Annual (iii). 136 x 106 m3 Flow Maximum (iv). 44.28 m3/s Discharge (D). Diversion Dam (i). Type Low Height Concrete Diversion Weir (ii). Crest Elevation 1120.50 m.a.s.l. (iii). Crest Length 20.00 m (iv). Maximum Length 3.00 m from river bed level Design Flood (Q (V). 854 m3/sec 100) Page 9 of 12 of Schedule-I 1/! 7. LaU • Generation Licence Pakhtunkhwa Hydel Development Organization (PHYDO) [formerly Sarhad Hydel Development Organization/(SHYD0)] for its Ranolia Hydro Power Plant located at Ranolia Khwar District Kohistan In the Province of Khyber Pakhtunkhwa (KPK) (E). Spill Way (i). Type Overflow weir .. Design Flood (Q (O . 854 m/sec3 100) (F). Intake & Headwork Structure (i). Intake Side Intake-Gate Controlled (ii). Approach Canal Rectangular — Reinforced Concrete Settling (iii). Basine/Sand Reinforced Concrete 75.5 m x 16.5 m Trap (G). Intake & Headwork Structure (i). Intake Side Intake-Gate Controlled (ii). Approach Canal Rectangular — Reinforced Concrete Settling (iii). Basine/Sand Reinforced Concrete 75.5 m x 16.5 m Trap (H). Headrace Canal (i). Length 2,650 m (ii). Type Reinforced Concrete (iii). Dimensions Rectangular 2.5 m x 2.0 m (iv). Bed Slope 1: 1000 Page 10 of 12 of Schedule-I 'WI: ,--±r-:—..,---R; T- R h tc 4_ C.. l-'i ..)\\ fl-2r7 11..7 i,J.•3 „I Generation Licence Pakhtunkhwa Hydel Development Organization (PHYDO) [formerly Sarhad Hydel Development Organization/(SHYD0)] for its Ranolia Hydro Power Plant located at Ranolia Khwar District Kohistan In the Province of Khyber Pakhtunkhwa (KPK) (I). Siphon with In-Let & Out-Let Ponds (i). Type Mild Steel Pipe/ 1.5 m inner diameter (ii). Length 830 m (iii). Maximum Head 170 m (J). Forebay Dimensions (i). Type Reinforced Concrete Structure (ii). Surface Area 400 m2 Spillway (iii). Full Inflow with sudden tripping of Turbine Capacity (K). Penstock (i). Type Mild Steel (ii). Length 684 m Diameter/ (iii). 1.50 m internal dia 12mm to 18 mm thickness Thickness (L). Power Facilities (i\ Power House Surface /. Type (ii). Dimensions 28 m x 18 m (iii). Gross Head 408.90 m (iv). Net Head 404 m (v). Turbine Kaplan Wheel Turbines (vi). Units 2 x 8.50 MW Page 11 of 12 of Schedule-I Generation Licence Pakhtunkhwa Hydel Development Organization (PHYDO) [formerly Sarhad Hydel Development Organization/(SHYD0)] for its Ranolia Hydro Power Plant located at Ranolia Khwar District Kohistan In the Province of Khyber Pakhtunkhwa (vii). Generator 2 x 8.5 MVA (viii). Power factor 0.8 Lagging — 0.90 Leading (ix). Frequency 50 Hz 1 Automatic Provided (xi. Generation Control (xi). Ramping Rate 10 minutes Time required to Synchronize to (xii). Grid and loading 5 minutes the Complex to full load. Transformer (xiii). 1 Units Transformer (xiv). 12.5 MVA Capacity Transformer (xv). 11/132 KV Voltage (M). Power & Energy Mean Annual 100.50 Gwh Energy Page 12 of 12 of Schedule-I Generation Licence Pakhtunkhwa Hydel Development Organization (PHYDO) [formerly Sarhad Hydel Development Organization/(SHYD0)] for its Ranolia Hydro Power Plant located at Ranolia Khwar District Kohistan In the Province of Khyber Pakhtunkhwa (KPK) SCHEDULE-II The Installed/ISO Capacity (MW), De-Rated Capacity At Mean Site Conditions (MW), Auxiliary Consumption (MW) and the Net Capacity At Mean Site Conditions (MW) of the Generation Facilities of Licensee is given in this Schedule Page 1 of 2 of Schedule-II Generation Licence Pakhtunkhwa Hydel Development Organization (PHYDO) [formerly Sarhad Hydel Development Organization/(SHYD0)] for its Ranolia Hydro Power Plant located at Ranolia Khwar District Kohistan In the Province of Khyber Pakhtunkhwa (KPK) SCHEDULE-II Total Installed Capacity of the Generation 17.00 MW (1). facility/Hydro Power Plant (Gross ISO) Total De-Rated Capacity of the Generation (2). Facility/Hydro Power Plant at Mean Site 17.00 MW Conditions Auxiliary Consumption of the Generation 00.51 MW (3)' Facility/Hydro Power Plant Net Capacity of the Generation facility/Hydro 16.49 MW (4). Power Plant at Mean Site Conditions Note All the above figures are indicative as provided by the Licensee. The Net Capacity available to the Power Purchaser for dispatch will be determined through procedure(s) contained in the Bi-lateral Agreement(s) or any other applicable document(s). Page 2 of 2 of Schedule-II National Electric Power Regulatory Authority (NEPRA ) Determination of the Authority in the Matter of Generation Licence Application of Pakhtunkhwa Hydel Development Organization (formerly Sarhad Hydel Development Organization) November 26, 2013 Application No. LAG-227 (A). Background (i). In order to explore and develop the hydropower potential in the province, the Government of Khyber Pakhtunkhwa (KPK) set up Pakhtunkhwa Hydel Development Organization-PHYDO/(formerly Sarhad Hydel Development Organization-SHYDO), an autonomous body under the PHYDO/SHYDO Act 1993 amended in 2013. (ii). PHYDO is working on a number of Hydel Power Projects (HPPs) which are at different stages of implementation. One of such project (i.e. Ranolia HPP/RHPP) is being set up at Ranolia Khwar, District Kohistan in the Province of KPK. (B). Filing of Generation Licence Application (i). PHYDO filed an application on April 02, 2013, requesting for the grant of Generation Licence for the RHPP. The Authority admitted the application under Regulation-7 of the NEPRA Licensing (Application and Modification Procedure) Regulations, 1999 (the "Regulations") on May 29, 2013 for the grant of a Generation Licence and approved the advertisement about the Notice of Admission (NoA) to be published in daily newspapers, seeking comments of the general public as stipulated in Regulation 8 of the Regulations. " Page 1 of 5 (ii). The Authority also approved the list of interested/affected parties for inviting comments or otherwise assisting the Authority in the matter as stipulated in Regulation 9 of the Regulations. Accordingly, NoA was published in the national newspapers on June 05, 2013. Further, separate notices were also sent to Individual Experts/Government Ministries/Representative Organizations etc. on June 06, 2013 directing them for submitting their views/comments in the matter for the assistance of the Authority. (C). Comments of Stakeholders (i). In reply to the above, the Authority received comments from three (03) stakeholders. These included Central Power Purchasing Agency (CPPA) of National Transmission and Despatch Company Limited (NTDC), Indus River System Authority (IRSA) and Energy and Power Department Government of KPK (E&PGoKPK). The salient points of the comments offered by the CPPA are summarized in the following paragraphs: - (a). CPPA expressed its no reservation for the grant of Generation Licence to PHYDO subject to the fulfillment of all the conditions laid down in the NEPRA Licensing (Generation) Rules, 2000 (the Rules) and the Policy for Development of Renewable Energy, 2006 (the "RE Policy"); (b). IRSA demanded six (06) copies of Feasibility Study (FS) for its comments. Further, it desired a presentation on the Project from PHYDO; (c). E&PGoKPK supported the request of PHYDO for the grant of Generation Licence for the RHPP. Page 2 of 5 (ii). In view of the above comments of IRSA, the sponsor of the project (i.e. PHYDO) was directed providing copies of FS and arranging presentation for IRSA. Accordingly, PHYDO provided the required copies of the FS and also arranged a presentation on September 03, 2013. After reviewing the FS and presentation given by the consultants of the Project, IRSA deiced issuing necessary NoC for the Ranolia Project. (iii). In view of the above mentioned NoC of IRSA and the encouraging comments of stakeholders, it was considered appropriate to proceed further in the matter in terms of the relevant Regulations and the Rules, for the grant of Generation Licence to PHYDO. (D). Grant of Generation Licence (i). Energy is a fundamental input to economic activity, and thus to human welfare and progress. The costs of producing energy vary between different energy sources and technologies. A competitive energy mix will keep overall costs as low as possible given the available resources. Hydro power is a renewable energy source that is economically attractive, provides security of supply and has low levels of CO2 emissions. (ii). The importance of electricity in the development of the economy of any country is understandable. The Economic Growth of any country is directly linked with the availability of safe, secure, reliable and cheaper supply of electricity. In view of the said reasons, the Authority is of the considered opinion that for sustainable development all indigenous power generation resources including Coal, Hydel, Wind, Solar and other Renewable Energy (RE) resources must be developed on priority basis. (iii). The existing energy mix of the country is heavily skewed towards the costlier thermal power plants, mainly operating on imported furnace oil. The continuously increasing trend in fuel prices is not only creating pressure on the a1h•,41 , ..: 1f RECtISTRAR '!' Page 3 of 5 precious foreign exchange reserves of the country but is also an environmental concern. Therefore, in order to achieve sustainable development it is imperative that all indigenous resources especially the environmental friendly Renewable Resources are given priority for power generation and their development is encouraged. (iv). In view of the above, the Authority contemplates that the initiative of SHYDO/PHYDO for exploiting the hydro potential of the Province of KPK for power generation as very encouraging and vital. This will not only help in overcoming the severe shortage of electricity in the Province of KPK but will also help in industrialization of the Province thus improving the living standards of the population of the Province. The Authority considers that RHPP will be particularly beneficial to the economy of the Province of KPK and that of the Country in general as it will displace the costly electricity being generated using imported oil. The project will be a step in enhancing the energy security of the country by reducing dependence on imported furnace oil. Further, the project will also help in reducing carbon emission by generating clean electricity, thus improving the environment. (v). The term of a Generation Licence under the Rules is to be commensurate with the maximum expected life of the units comprised in a generating facility. According to the information provided, the RHPP will achieve Commercial Operation Date (COD) on July 01, 2014 and will have a useful life of more than thirty (30) years from its COD. The applicant/PHYDO has requested that the term of the proposed Generation Licence may be fixed to thirty (30) years in consistent with the term of the proposed Power Purchase Agreement (PPA)/Energy Purchase Agreement (EPA) to be signed with the Power Purchaser. The Authority considers that information provided by PHYDO about the useful life of RHPP and the subsequent request to fix the term of the Generation Licence as rational therefore, the Authority fixes the term of the Generation Licence to thirty (30) years from its COD. Page 4 of 5 (vi). Regarding the Tariff, it is hereby clarified that under Section 7(3)(a) of the NEPRA Act, the determining of tariff, rate and charges etc. is the sole responsibility of the Authority. Accordingly, the Authority directs PHYDO to charge only such tariff which has been determined, approved or specified by the Authority in terms of Rule-6 of the Rules. (vii). In view of this, the Authority hereby decides to approve the grant of Generation Licence to PHYDO/SHYDO for its RANOLIA HPP on the terms set out in the Generation Licence annexed to this determination. The grant of Generation Licence will be subject to the provisions contained in the NEPRA Act, relevant rules and regulations framed there under. Authority Habibullah Khilji Member Maj. Retd Haroon Rashid Member Khawaja Muhammad Naeem Member/Vice Chairman ( Page 5 of 5