Tariff cut litigation delays 900-MW solar project in Pakistan - report

A 900-MW solar project in Pakistan is being delayed after a cut in the rate the government pays for solar power led to a lawsuit by the investor, the Thomson Reuters Foundation reported on Monday.

After the Punjab province government built a 100-MW pilot project in the Cholistan desert in 2015, Chinese-owned company Zonergy Ltd agreed to invest USD 1.5 billion (EUR 1.3bn) to install an additional 900 MW by June 2016, the charitable arm of Thomson Reuters said.

Citing falling costs, however, Pakistan's National Electric Power Regulatory Authority (NEPRA), cut the amount paid for solar electricity to USD 0.0925 from USD 0.145 in December last year.

Zonergy has started litigation over the tariff cut, which is delaying completion of the project, Muhammad Amjad, chief executive of the solar park, told the Thomson Reuters Foundation in an interview. The company last month put into operation only 200 MW of the planned 900 MW, according to the article.

Amjad said there were efforts to resolve the issue as soon as possible and that even after the cut, solar payments in Pakistan were still one of the world's most favourable.

Zonergy officials in Pakistan could not be reached for comment, the Thomson Reuters Foundation noted.

(USD 1.0 = EUR 0.894)

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