PAKISTAN Law and Practice Contributed by: Nadir Altaf and Muhammad Fahim Khan, RIAA Barker Gillette
licence, they must construct the power project as per the approved parameters. The 2018 Amendment Act, however, has stated that the requirement for a generation licence shall cease as of five years from the promulga- tion of the Amendment Act. A generation com- pany must only obtain NEPRA’s “concurrence” and ensure that they comply with the technical standards related to grid connectivity (see 1.1 Law Governing the Structure and Ownership of the Power Industry ). NEPRA promulgated the NEPRA (Alternative and Renewable Energy) Distributed Generation and Net Metering Regulations 2015 to estab- lish a framework for the regulation of distributed generation by using alternative and renewable energy and net metering by distributed genera- tors (ie, a domestic, commercial or industrial consumer who owns and/or operates the rele- vant renewable energy small-scale facility and is licensed by the authority under the regulations). Pakistan Engineering Council The Pakistan Engineering Council (PEC) is responsible for regulating engineers, construc- tors and operators working in Pakistan. Such persons must be issued the requisite licences from the PEC before they can undertake con- struction and operation works. Federal and Provincial Environmental Protection Agencies The regulation of environmental matters, includ- ing the environmental impact of power projects (particularly at the site of the project), is the mandate of the federal Environmental Protection Agency (EPA) and the provincial EPAs. In order to obtain the approval of an EPA, a pro- ject may be required to carry out an Environmen-
tal Impact Assessment or an Initial Environment Examination, depending on the requirements of the respective EPA. 3.2 Obtaining Approvals to Construct and Operate Generation Facilities The following key consents, inter alia, are required for the construction and operation of generation facilities: • letter of intent – issued after successful application to the relevant facilitative body (approval only required if the project is being developed pursuant to a government policy) (see 1.1 Law Governing the Structure and Ownership of the Power Industry for a list of the federal and provincial facilitative bodies); • generation licence – issued after successful application to NEPRA under the NEPRA Act and the Generation Licensing Rules (see 1.1 Law Governing the Structure and Ownership of the Power Industry ); • generation tariff – issued after successful application to NEPRA under the NEPRA Act, the Tariff Rules and other relevant regulations; • letter of support – issued after successful completion of milestones under the letter of intent (approval only required if the project is being developed pursuant to a government policy); • the IGCEP and grid interconnection study approval – issued by the NTDC after review- ing the study; • environmental approvals – issued after successful application to the relevant envi- ronmental protection agency, following an Environmental Impact Assessment; and • project agreements, including: (a) power purchase agreement – entered into with the power purchaser; (b) implementation agreement – entered into with the relevant government, usually
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