Power Purchase Agreements

Pakistan’s first corporate PPA at Sindh Engro Coal Mining Company (SECMC)

Safeguard your future
electricity prices

Power Purchase Agreements (PPAs) are between the purchaser (i.e. a private company or a state-owned local utility) and a power producer (i.e. Reon Energy Limited) to secure the payment stream. PPAs, which are generally for the time period of 15 years, safeguard the future

electricity prices at a predetermined price while offering the quickest way to achieve your sustainability goals. PPA creates a win-win scenario for both the producer and the consumer as it mitigates the risk of uncertainty in energy prices and guarantees offtake for the producer.

References

Our diversified experience in renewable energy project development gives us an edge to help you navigate the complexity of PPA contracts. Browse through the case study beneath to find out how companies have benefitted from a PPA.

Project Size: 5MW

Contract Type: Take or pay for 15-years at fixed rate per unit (Built Own Operate Model)

Tariff Structure: Fixed Rate Tariff

The Situation:

Sindh Engro Coal Mining Company Limited (SECMC) is a joint venture of Engro & Affiliates and Government of Sindh. The Mining activity in Thar Block-II requires electrical power that is partially being supplied through Solar Power Plant on BOOT basis for the period of fifteen (15) years. During the earlier years of operation, the power requirement of the mine was being fulfilled by diesel generation. Due to high fuel costs and global oil price volatility, SECMC entered into the first Private Power Purchase Agreement (PPA) with an approved Generation License from NEPRA.

The SOLUTION:

5MW solar based power generation system with civil structures and auxiliaries
Complete solar based power generation with monitoring, control and synchronization with existing diesel gensets

IMPACT:

Roughly 40-50% reduction in cost per unit for diesel power displaced by solar energy

How does it work?

A PPA can roughly be executed within a 10-months’ time frame after the issuance of the Letter of Intent (LOI).

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Ahmad Shahzad

Ahmad holds 10 plus years of experience in Business Development with a particular interest in Power Purchase Agreements. Ahmad has deep know-how of industries in the Armed Forces segment. He has led the account deals for 12.5 MW solar project and another 55 MW in the cement industry.

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Power Purchase Agreements

Power Purchase Agreements

References

Project Size: 5MW

Contract Type: Take or pay for 15-years at fixed rate per unit (Built Own Operate Model)