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Licences for power generation sought

Three more power generation plants have submitted applications with the National Electric Power Regulatory Authority (Nepra) to obtain generation licenses for their proposed small-scale generation plants, sources said.

One of them, Bahria Town Electric Supply Company, intends to set up 10 megawatts of thermal power plant in Rawalpindi with an estimated cost of Rs12.932 million, they added. Another one, Bismillah Energy Private Limited, plans to establish a six MW thermal power plant in Sheikhupura with an estimated cost of Rs300 million.

Blue Star Hydel Private Limited has applied for the license of 3.2 MW hydropower generation facility to be set up in Mandi Bahauddin with an estimated cost of Rs485.266 million.

Notably, Bahria Town plans to use coal water slurry as the fuel, while Bismillah Generation is said to set up biomass-combusted plant.

As the energy crisis is getting severe in the country with no immediate solution in sight, private companies are opting for small- and medium-scale power generation plants.

A Nepra’s official said that they were receiving many generation license applications from the private sector for power projects since these required comparatively low investment and little time for completion.

Nepra processed 14 applications for the generation of 1,343 MW and issued a total of 12 licenses previous year.

Naveed Tehsin, an energy sector analyst at JS Research, said that at the moment small- and medium-sized projects were the only option.

He said that the large power projects – particularly hydropower projects – required huge investment, which the private sector did not have the capacity to undertake.

Most of the time, the government embarks on such ventures and since presently the government is quite preoccupied, such projects are coming up, he added.

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