The Central Development Working Party (CDWP) will begin the PC-I for land acquisition to install a 1,200 MW solar power plant at Sher Garh Tehsil Chubara District Layyah costing Rs. 2.65 billion without foreign exchange component (FEC).
According to the media, the project was discussed in a pre-CDWP meeting, conducted under the chairmanship of Member (Energy), in which it was decided that the project costing Rs. 2.65 billion without FEC, will be put forward in the upcoming CDWP subject to receipt of compliance of following decisions:
•???????The Ministry of Energy (Power Division)/National Transmission and Dispatch Company will switch from a grant from the public sector development program to a cash development loan (CDL).
•???????The Ministry of Energy (Power Division)/Alternative Energy Development Board will include the cost of land in a request for proposal (RFP) package for the subject solar plant’s competitive bidding.
•???????Power Division/NTDC will present a summarized report to CDWP on the most suitable sites for the project in terms of power evacuation infrastructure and will ensure that land rates are determined based on notified DC rates.
The PC-I is put forward for the consideration of CDWP with a total cost of Rs.2.65 billion without FEC based on the decisions taken in the pre-CDWP meeting.
Moreover, the Planning ministry observed that 4,800 hectares of land will be necessary for the establishment of a 1,200 MW solar power project which comes to four hectares of land per MW. The sponsors are asked to justify the need for land, which appears to be on the high side given the latest advancements in solar technology.
In response, the Power Division (Sponsor Agency) said that the land requirement for the proposed solar photovoltaic project has been considered considering the recently commissioned 100 MW Zhenfa solar photovoltaic project at Chaubara and the current 150MW Helios HNDS Meridien solar projects at Sukkur.
In addition, the Planning Commission approves the proposal to replace fossil fuels with renewable energy projects. However, the sponsors are asked to justify whether they conducted a technical and operational analysis of the proposed plant prior to acquiring land for the power plant.