I would like to request the Government to look into the energy generation of Sugar Mill Bagasse cogeneration power plants. The previous Government had given up-front tariff to all Bagasse power plants of Sugar Mills. Although these power plants were supposed to run on the waste material of Sugar cane crushing and should only be useful during crushing season. But somehow all the Bagasse power plants are generating power all year round in Pakistan.
Another strange phenomena is the sheer size of power generation. For example one sugar mills (HSM) uses 1.5MW energy, but they installed 24MW power plant and are getting capacity payment from Government against it.
Even the Upfront tariff discussion meetings dated November 2017, clearly showed that Central Power purchasing Agency highlighting to NEPRA that upfront tariff was wrong idea and even highlighted that in past fuel charges were paid to Bagasse power plants without them producing the relevant power. But NEPRA efficiently sidelined these concerns and still issued upfront tariff to all sugar mills. The sugar mills were given bank loans for the power plants but than in up-front tariff they are given almost 25% for bank loan charges.
Therefore I think the Sugar Mills getting upfront tariff for power generation and NEPRA should be investigated. The excess amount recovered from the culprits and all Bagasse generation contracts cancelled.
Shahryar Khan Baseer P Engr