Publication: Variable Renewable Energy Competitive Bidding Study
Date
2022-04-28
ISSN
Published
2022-04-28
Author(s)
World Bank
Abstract
This study was commissioned to
support the government of Pakistan, the provincial energy
departments, and the electricity regulator in the
implementation of competitive bidding for the procurement
and development of all future variable renewable energy
(VRE) capacity in the country. The decision was taken in
2017 to move from a “cost-plus” tariff-setting regime for
future solar and wind power capacity to one based on the
principles of competitive bidding, following international
trends and the very positive results seen in terms of steep
cost reductions in other countries. In many locations, these
cost reductions have led to solar and wind becoming the
“least-cost” form of power generation, although this has
already been achieved in Pakistan through gradual declines
in the tariff awarded on a cost-plus basis to solar and wind
projects by NEPRA, the electricity regulator. The report is
structured as follows: Section 2 outlines key background
issues of relevance to competitive bidding mechanisms for RE
in Pakistan; Section considers potential arrangements for
deployment of competitive bidding; Section 4 analyzes tender
governance processes; Section 5 examines detailed
arrangements for the design of competitive bidding; Section
6 evaluates implementation arrangements; Section 7 considers
the impact of the forthcoming Competitive Trading Bilateral
Contract Market (CTBCM) on renewable energy (RE) competitive
bidding mechanisms; Section 8 reviews information technology
needs; Section 9 considers communications and marketing
strategies; and Section 10 reviews the potential for
introducing local content arrangements.
Citation
“World Bank. 2022. Variable Renewable Energy Competitive Bidding Study. Pakistan Sustainable Energy Series;. © Washington, DC: World Bank. http://openknowledge.worldbank.org/handle/10986/37405 License: CC BY 3.0 IGO.”