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 Green Milestone Achieved: AEDB and SSML sign IA for 32-MW Bagasse-based Power Cogeneration Project

On 4th April 2023, AEDB and SSML signed Implementation Agreement (IA) for the establishment of a 32-MW bagasse-based power cogeneration plant at Mandi Bahauddin. It is the only bagasse/biomass project to accomplish such a milestone after the 2017 and 2019 decisions of the Cabinet Committee on Energy ("CCOE"). This milestone is in line with the GOP ARE targets. The event marks a significant achievement in harnessing indigenous resources as the operation of this project will reduce Pakistan’s dependence on fossil/imported fuels as well as will provide reliable and dispatchable energy. The plant operation does not incur foreign exchange on fuel costs as bagasse is a local product. NEPRA has determined bagasse price @Rs 2750/ton with 2% escalation per annum & awarded a levelised tariff of Rs- 9.0611/KWh based on 30-year project life, which will eventually contribute to lowering the consumer tariff with a positive impact on the country's energy landscape. The project is set to achieve its Commercial Operation Date (COD) by the end of the current year.

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