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FAQs

  • What does Government Guarantee cover?

    The Government’s Guarantee covers the payment obligations of the power purchaser under the Energy Purchase Agreement (EPA). 

    What does Government Guarantee cover?

  • What is Implementation Agreement?
    Implementation Agreement (IA) is the agreement signed between the Government of Pakistan through AEDB and the project IPP that provides for direct contractual obligations and undertakings between the Government and the IPP including the Government’s Guarantee.

    What is Implementation Agreement?

  • Which is the existing policy for renewable energy?

    The Policy for Development of Renewable Energy for Power Generation 2006 (RE Policy 2006) is the current policy in place for alternative and renewable energy technologies. The RE Policy 2006 is valid till 2018.

    Which is the existing policy for renewable energy?

  • What is an Upfront Tariff?

    Upfront Tariff is one which is determined and announced by the Regulator based on its own scrutiny and calculations with certain terms and conditions. The project sponsors may accept the Upfront Tariff based on its viability for their project. 

    What is an Upfront Tariff?

  • What is Cost-Plus Tariff?

    Cost-plus tariff is one in which RE IPP is paid its actual cost plus an agreed profit. In this mode, the IPP is required to submit a tariff petition to NEPRA for award of tariff for a particular project along with the tariff proposed for the project and supporting documents evidencing the cost.

    What is Cost-Plus Tariff?

  • What does IPP stand for?

    IPP is an abbreviation of Independent Power Producer

    What does IPP stand for?

  • What are the modes of determination of tariff for an IPP project?

    The tariffs for IPP projects are determined by National Electric Power Regulatory Authority (NEPRA). There are three ways for determination of tariff for RE power projects on IPP mode;

  • Cost-Plus tariff
  • Upfront Tariff
  • Competitive Bidding (solicited mode)

What are the modes of determination of tariff for an IPP project?