ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Wednesday granted a transmission licence to the Punjab Grid Company Ltd (PGCL) a newly created subsidiary of the provincial government to start electricity transmission operations across the province and facilitate power plants particularly those on renewable sources that are not served by the national grid for power evacuation.

The licence would have a 30-year term ending on Nov 7, 2053, and could be renewed for as many decades as may be approved by the regulator. This will be the third provincial grid company (PGC) to have been given a transmission licence by the regulator after Sindh and Khyber Pakhtunkhwa.

Nepra `hereby approves the grant of transmission licence to PGCL to act as PGC for Punjab, on the terms and conditions set out in the licence annexed to this determination. The grant of this licence will be subject to the provisions contained in the Nepra Act, relevant rules, regulations framed thereunder and other applicable documents`, said the regulator.

Nepra also directed the PGCL to file a separate petition for determining of Use of System Charge of its projects for transmission lines and grid stations as stipulated in the relevant rules.

Discos oppose move Punjab-based ex-Wapda distribution companies from Multan, Gujranwala, Lahore and Faisalabad had opposed the transmission licence to the PGCL on various grounds. However, the regulator overruled those observations. It said the considerable investment had been made in the generation segment of the country over the past decade, especially in the renewable energy (RE) sector of the country, including hydel resources and significant potential of the hydel, solar and wind resources were located in the northern, centre and southern part of the country in Punjab.

Although significant efforts are being made to enhance the share of hydel, wind and solar in the overall energy mix, the availability of the required transmission and grid is proving to be a handicap for adding more such resources, the regulator said, adding that even the existing hydropower projects, solar, wind and local coal-based generation facilities were facing numerous issues about dispersal of electric power due to relatively weak infrastructure in the north and south including curtailment of power during peak season.

Therefore, Nepra was of the considered opinion that there was huge scope for investment in the transmission segment of the electric power sector.

Also, Article 157(2c) of the Constitution provided that the government of a province could construct powerhouses and grid stations and lay transmission lines for use within the province. Further, Section 18A of the Nepra Act also allowed the establishment of a PGC for transmitting electricity within a province.

The PGCL had submitted that the province of Punjab was the major stakeholder in the electric power sector of the country in terms of installed generation capacity (43,775 MW) and number of consumers (33.19 million), total consumption (107.87 TWh) and total revenue collection of Rs2.2 trillion. Out of this, Punjab had the highest 42.3pc share with installed generation capacity of 18,524 MW and its number of consumers stood at 26m or 78.39pc. Its consumption stood at 83.68 TWh or 77.58pc, revenue collection of Rs1.8tr or 82.54pc.