Monday, September 14, 2015

Pakistan Approves Net Metering and Feed-in Tariffs for Solar and Wind

Pakistani power regulators have approved a regulatory framework for solar and wind energy for both commercial and residential installations. The framework includes feed-in tariffs for commercial power producers and net metering for residential applications of up to 1 MW.



Under the new Net Metering Law, NEPRA, the Pakistani power regulator, will grant power generation licenses to solar and wind system owners. The owners will need to register the critical equipment used, particularly the make and model of inverter and generator used. Among other technical considerations, the generator must also install a manual disconnect device to take the system off the network if necessary, according to details published by PV Tech publication.

Source: PV-Tech
Net metering is a billing mechanism that pays solar energy system owners for the electricity they add to the grid. It allows a residential customers with rooftop solar panels to generate more electricity than the home uses during daylight hours and sell it to the power supply company. It will require a bi-directional meter (or two separate meters) for implementation.

Pakistan has already introduced feed-in tariffs (FiTs) for larger renewable power systems to supply electricity to the national grid on a commercial scale.  It paved the way for a 1000 MW Quaid-e-Azam solar park being built in Bahawalpur.

Pakistan's renewable power policy and regulatory frameworks have drawn praise from international law firm Eversheds which has described the country as “one of the most exciting renewables markets globally, with an abundance of potential”. Alternative Energy Development Board (AEDB) of Pakistan's CEO, Amjad Ali Awan has said that "Pakistan’s renewable market is relatively new but it provides an attractive investment opportunity with compelling structures which make it bankable as well as marketable."

Net metering law is necessary but not sufficient to promote widespread use of renewable energy. It will take serious coordinated efforts of Pakistan power regulator NEPRA, the country's nascent solar industry and various utilities like K-Electric to start implementation. Meanwhile, consumers could install a stand-alone rooftop solar system that can be connected to the grid in future. They just need to make sure to select high-quality equipment, particularly inverter and switch, for this purpose which will most likely be acceptable to utilities.

Related Links:

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Pakistan's New FIT Policy For Alternative Energy

Media & Telecom Revolution in Pakistan

Pakistan Building 1000 MW Wind Farms

Pakistan Launches Wind Farm Projects

Renewable Energy to Solve Pakistan's Electricity Crisis

Electrification Rates By Country

Wind Turbine Manufacturing in Pakistan

Pakistan Pursues Hydroelectric Power Projects

Solar Energy for Sunny Pakistan

Wind Power Tariffs in Pakistan

Pakistan's Twin Energy Shortages

24 comments:

Rameez said...

financing options r limited

Anonymous said...

Compared to india's existing solar installations and upcoming mega installations of 1000 megawatts with the biggest being 10000 megawatts Pakistan's solar plans are a drop in the ocean.
Have you compared the electricity usage per capita of India and Pakistan?
I think Pakistan will suffer economically big time and industries will shift to other parts of the world like China or Bangladesh.

Raza said...

So it requires an investment of almost PKR 100 for every solar Watt?

Kind of expensive in the beginning, but reducing dependency on the grid for in-house lighting will prove dead cheap in the long run.

Shahid said...

Need to promote solar energy in cities like Karachi and Lahore... I visited relative a year ago in village near Narowal and they had a roof top solar panels installed and they were not crying for load shedding at all.

Anonymous said...

The good news about Solar energy is that with each passing day the cost of producing electricity from Solar is going down. Hopefully, that day is not far when the solar energy will become efficient and the cheapest form of producing electricity.

I cannot wait for the day when home owners will be able to produce so much energy during the day that they can store it in batteries which is enough for many days and nights. when that happens, Electricity Utility companies will become passe and outdated as Telephone land lines did with the advent of mobile phones.

To conserve, you can replace your home lights ( energy Savers) with LED lights Or even SMD to run longer on batteries.

Riaz Haq said...

Anon: " Compared to india's existing solar installations and upcoming mega installations of 1000 megawatts with the biggest being 10000 megawatts Pakistan's solar plans are a drop in the ocean."

A 2013 joint World Bank and International Energy Agency report titled "Global Tracking Framework" identified India as the most deprived country in terms of access to energy: as many as 306.2 million of its people are still without this basic utility. The remaining 19 nations lacking access to energy, with the number of deprived people is as follows: Nigeria (82.4 million), Bangladesh (66.4 million), Ethiopia (63.9 million), Congo (55.9 million), Tanzania (38.2 million), Kenya (31.2 million), Sudan (30.9 million), Uganda (28.5 million), Myanmar (24.6 million), Mozambique (19.9 million), Afghanistan (18.5 million), North Korea (18 million), Madagascar (17.8 million), the Philippines (15.6 million), Pakistan (15 million), Burkina Faso (14.3 million), Niger (14.1 million), Indonesia (14 million) and Malawi 13.6 million).

http://www.riazhaq.com/2013/06/massive-growth-in-electrical.html

Majumdar said...

Good development!

Regards

Anurag said...

Riaz you mean in India 900 million people have electricity supply.
The countries mentioned here does has many times less population in their country than India provide Power and Basic utilities.
Comparing Pakistan has only 200 Million population and yet 15 million without power.

Riaz Haq said...

Anurg: " India 900 million people have electricity supply....Comparing Pakistan has only 200 Million population and yet 15 million without power"

Since you seem to have not learned ratios and proportions in school, let me help you with it: 300 million Indians lacking electricity translates into 25% of the population with the basic utility, a lot higher than the 7.5% of Pakistanis (15 million out of 200 million) who have no connection to the grid.

Anonymous said...

Surprising industries are running away from Pakistan inspite of only 7.5% people not having electricity. Wonder why so many strikes and riots take place in Pakistan because of energy shortages whereas in India despite 25% people not having electricity you hardly hear any energy shortage related strikes.
What is the per capita energy consumpsion of the 2 countries?

Riaz Haq said...

Anon: "India despite 25% people not having electricity you hardly hear any energy shortage related strikes."

Poor downtrodden Indian Hindus are highly fatalistic as portrayed by Prof Godbole in EM Forster's "A Passage to India".

They resign themselves to their fate without protest.

Riaz Haq said...

In #Pakistan, #solar water heaters help a town move away from wood http://reut.rs/1MoGS9m via @ReutersIndia

NATHIAGALI, Pakistan (Thomson Reuters Foundation) - For the past year, a steady stream of villagers has been visiting Muhammad Naeem’s home in this quaint mountain town in Pakistan’s northwestern Khyber-Pakhtunkhwa province.

They come for one reason: to see for themselves the benefits of his solar water heater.

"A solar geyser does not cause respiratory diseases, it reduces the burden of firewood collection, and it gets rid of kerosene expenses,” the roadside shop owner, 35, tells curious visitors. “My wife no longer burns fuelwood to heat water for cooking, bathing, and washing dishes or laundry.”

At least one of Naeem’s visitors walks away convinced.

"I don’t think anyone could resist owning a solar water geyser himself,” fruit farmer Ali Akbar told the Thomson Reuters Foundation. “It offers so many economic, health and environmental benefits.”

First introduced to Nathiagali six years ago, as part of an initiative by the World Wide Fund for Nature - Pakistan (WWF-Pakistan), roof-top solar water heaters are gaining popularity among the area’s villagers as a cheap, easy, and green alternative to wood and kerosene.

The heating systems comprise of a set of water-filled solar tubes, called collectors, connected to an insulated water tank above them.

The tubes absorb sunlight to heat the water inside them. As it heats, the water rises into the storage tank. At the same time, cooler water from the tank flows into the collectors to be heated, keeping hot water circulating through the system.

The units require no electricity to run, making them an affordable, convenient option for communities not on the power grid, experts say. Because they produce no smoke or fumes, solar heaters cut down on the respiratory illnesses associated with burning wood and kerosene.

And, crucially, the heating systems help conserve the trees in Nathiagali and three other towns surrounding Ayubia National Park, an area that is home to 4,000 families, most of whom rely on the local forests of oak, cedar and ​​coniferous pine for fuel.

SAVING TREES

The solar water heating technology first arrived to the towns around the park in 2009, as part of a $48,000 WWF-Pakistan Climate-Resilient Watershed Management Programme funded by the Coca Cola Foundation.

The aim of the project was to curtail deforestation in the area, where over 1,100 mature trees are cut down each year, local forest officials say.

According to Itzaz Mehfooz, a former sub-divisional forest officer, tree cutting has led to problems including soil erosion, landslides, and flash floods, particularly when torrential rains hit.

Anonymous said...

I am in Karachi , How can I install net metering at home , what will be the procedure ? I dont see any information from K-electric on net metering in karachi

Riaz Haq said...

Anon: "I dont see any information from K-electric on net metering in karachi "


Net metering law is necessary but not sufficient to make it happen. It will take serious coordinated efforts of regulator NEPRA, solar industry and utilities like K-Electric to start implementing.

Meanwhile, you could install a stand-alone rooftop solar system that can be connected to the grid in future. Just make sure you select high-quality equipment, particularly inverter and switch, for this purpose which will most likely be acceptable to K-Electric.

Here's an interesting article from Pro_Pakistan on installing solar:

http://propakistani.pk/2014/07/07/everything-need-know-setup-solar-energy-pakistan/

Anurag said...

Riaz,

I am Graduate in Maths and my degree is not from AXACT, it is from reputed University in India.
and this page of wiki says "https://en.wikipedia.org/wiki/Electricity_sector_in_India"
your knowledge is not upgraded. you are using your generation (your own architect 8086) CPU.

Kindly update you information,

Last 4 years in Indian Electricity Generation Growth percentage is 10% approx or more.

You figures are wrong, India yet have biggest percentage of share of Poor man, but Indian Has biggest percentage of rich man also and Per capita income is more than Pakistan.
it means every Indian citizen is in better position than Pakistani citizens.

Riaz Haq said...

Anurag: "it means every Indian citizen is in better position than Pakistani citizens. "

Your Math knowledge is not serving you well.

Do you know that, according to the World Bank figures, Pakistan has higher median income and lower poverty rates than India?

http://www.riazhaq.com/2015/03/comparing-median-incomes-of-bangladesh.html

Riaz Haq said...

AGP’s report sees improvement in power generation to 16,890 MW 2015 in #Pakistan since 2013 http://www.pakistantoday.com.pk/?p=444609 via @ePakistanToday

The power sector in 2015 has shown significant improvement and has been able to utilise 90 per cent of its available generation capacity and recorded 16,890 MW electricity generation against 18,616 MW derated generation capacity previously.

This has been stated in the audit report submitted by the AGP to the president of Pakistan for the period 2012-13 of previous government tenure till 2014-15.

According to the report, domestic load shedding has been brought down from 8-11 hours to 6-8 hours while industrial load shedding has decreased from 8-12 hours to zero since November 2014, except during January and Ramzan.

The report said that cost minimisation and improvement in cash flow has been ensured by implementing the merit order dispatch – using economical plants first, introducing uniform load management, differentiated load management by identifying higher theft areas and brining all DISCOs collection to CPPA.

These measures have enabled the power sector to pay better and as a result the PSO has received 101 per cent of its outstanding during 2014-15 as compared to 77 per cent during 2013-14, IPPs received 102 per cent in 2014-15 as compared to 85 per cent during 2013-14 and gas companies 106 per cent in 2014-15 as compared to 104 per cent in 2013-14.

In the efforts to lower burden on national exchequer, the power sector has improved a lot. In 2012-13, 334 billion was the subsidy provided by the government accounting for 2.4 percent of GDP. Due to better fiscal management in 2013-14, the subsidy was brought down to 292 billion rupees making it 1.7 percent of the GDP. In the year 2014-15, the subsidy further decreased to 221 billion making it 0.76 percent of GDP. The ministry is further making efforts to further bring down the subsidy.

Similarly, the increase in circular debt in 2013-14 was 203 billion making it 0.7 percent of GDP while in 2014-15 it registered only 49 billion rupees increase accounting for only 0.17 percent of GDP.

For investment facilitation new polices have already been adopted, flexible and enabling security documents have been ensured and investors have been granted greater access and regular reviews of the potential power projects. These policies have been taken well and around 15,000 MW of power sector projects are now on fast tract and in different stages.

In 2013 the energy sector was faced with dual deficit dilemma – generation deficit of around 6,000 MW resulting in heavy industrial and domestic line losses and financial deficit resulting in heavy burden on public exchequer. Another problem being faced was the management deficit in terms of no load management plan resulting in unpredictable load shedding and no financial management plan resulting in burden on fiscal resources. Similarly, the national transmission system was highly risky and there were challenges for new investment in the power sector.

Riaz Haq said...

#Solar-powered emergency mobile network developed in #Pakistan - E & T Magazine http://eandt.theiet.org/news/2015/sep/rescue-base-station.cfm#.VgNrN8zNmR4.twitter …

A solar-powered portable mobile phone network that can be used if standard communication channels are down due to natural disasters has been developed by Pakistani researchers.
Called the Rescue Base Station (RBS) for Pakistan, the system, developed by a team from the Information Technology University (ITU) in Lahore in cooperation with the University of California, is the first of its kind supporting standard mobile phones.

"When the RBS is installed in a disaster-hit area, people automatically start receiving its signals on their mobile phones,” said Umar Saif, ITU vice chancellor and an adviser to the project. “They can manually choose it and then call, send messages and even browse (Internet) data free of charge."

The network is powered by a compact antenna fitted into a lightweight box equipped with a signal amplifier, battery and a solar panel. The whole system could be either carried by rescue workers or even dropped from a helicopter to re-establish communication channels in disaster-stricken areas.

According to Saif, people within three kilometres from the station would be able to receive the signal. All they would need to do is to register into the network by sending their name, occupation, age and blood group to a dedicated phone number.

"This helps generate an automatic database of people in distress, and eventually helps both the rescue and relief teams and the victims," said Saif.

The network has not yet been tested in a real-life scenario but the ITU hopes to run first experiments within the next six to eight months.

The network could save lives in disaster situations by enabling survivors to connect with rescue workers and the government authorities.

Users would be able to get the information they need in just a few seconds by sending a text message to specific numbers appearing on their mobile phone.

“For example, if a person needs to contact a fire brigade, they text the words ‘occupation: firefighters’ to the relevant number,” said Saif. “They will then receive names and contact details for local firefighters in just a few seconds and can call for help.”

Funded through the Google Faculty Research Award, the RBS network is based on open source software and cost about $6,000 to develop.

The researchers envision the technology would be procured by mobile phone network operators to bridge outages in their coverage in disaster situations before their normal services could be restored.

Riaz Haq said...

GE, Harbin to Provide Large, High-Efficiency Gas Power Plant to Meet Energy Demand in #Pakistan at Bhikki 1.1GW http://www.businesswire.com/news/home/20151014005988/en/GE-Harbin-Provide-Large-High-Efficiency-Gas-Power#.Vh7eahCrS8U … Bhikki Combined-Cycle Power Plant Marks the First HA Order in the Middle East and North Africa Region and the 20th and 21st HA Orders Worldwide
New Project Furthers GE-Harbin Technical Collaboration in Providing Competitive Power Plant Solutions Worldwide
Punjab Government Creating What is Expected to be the Largest, Most Efficient Power Plant in Pakistan, Helping Area Meet Growing Power Demand
The Bhikki plant will be able to generate the equivalent power needed to supply more than six million Pakistani homes, and is likely to be the largest, most efficient power plant in Pakistan. It is expected to enter commercial operation in 2017. This project marks the first HA orders in the Middle East and North Africa region and the 20th and 21st worldwide. GE’s 9HA is the world’s largest, most efficient gas turbine.

“We are committed to meeting the growing demand for power to drive industrial growth and all-round economic progress as well as to promote the welfare of our people,” said Ahad Khan Cheema, CEO, Quid-e-Azam Thermal Power Limited, on behalf of the government of Punjab. “As part of this, we are not only investing in new plants but also strengthening public-private collaboration to ensure that advanced technologies are deployed to meet the growing demand. GE and Harbin are moving forward with an accelerated time frame to add additional power to the grid.”

Joe Mastrangelo, president and CEO, gas power systems at GE Power & Water added, “The Bhikki project is another testament to the long-term commitment of GE to serve as an active partner in helping to meet Pakistan’s development needs. We have established strong partnerships in the power sector, and the introduction of our HA gas turbines, a significant first for the region, underlines our focus on bringing the latest technologies to enhance the operational efficiency and productivity of power plants.”

“The Bhikki combined-cycle plant is a strong example of technical collaboration between GE and Harbin in providing the most advanced combined-cycle power plant solutions,” said Mr. Guo Yu, chairman of HEI. “Deploying GE’s advanced HA technology is a game changer for the industry as it supports the government’s goal to ensure affordable, reliable and efficient power generation to meet growing demand.”

With the Bhikki plant, 21 HA units have been ordered and 68 HA units have been technically selected1 by customers around the world. GE’s H-class technology has been embraced by customers in Korea, Japan, the United Kingdom, Brazil, the United States, France, Russia, Germany, Turkey, Egypt, Pakistan and Argentina.

GE’s HA gas turbines provide a combination of the most output, highest efficiency and best operational flexibility and lead the industry in total life cycle value. The 9HA.01 offers a net combined-cycle efficiency of more than 61 percent and leads the industry with cleaner, reliable and cost-effective conversion of fuel to electricity.

The 9HA gas turbine completed off-grid, full-speed, full-load validation testing in January 2015 at the world’s largest, most thorough gas turbine test stand located at GE’s manufacturing facility in Greenville, South Carolina. This testing facility has attracted industry visitors from around the world.

Among key agreements in the country, GE has signed a memorandum of understanding with the government to develop Pakistan’s energy resources to meet the projected demand of 54,000 megawatts by the year 2020. GE will assist the government in achieving its goals by engaging in Pakistan's energy, transportation and water sectors and will work to identify potential sources of funding and explore potential investment opportunities in those sectors.

Riaz Haq said...

#Pakistan power company Hubco signs deal with GE to digitize power plants | Business Wire http://www.businesswire.com/news/home/20160609005713/en/GE-Signs-Digital-Power-Plant-Agreement-Hubco#.V1pFKL0_QMc.twitter …

GE (NYSE:GE) has signed a contract with Hubco to provide its digital industrial solutions for the 1,292-megawatt (MW) Hubco power plant in Baluchistan, Pakistan. Commissioned in 1997, the plant operates four 323-MW generating units. Additionally, it’s the largest independent steam power plant in Pakistan and exports power to the national grid.

“GE’s digital solutions are a game changer for the energy sector, and we are happy to be working with them,” said Khalid Mansoor, CEO of Hubco. “Once implemented at the Hubco Power Plant, these solutions will help us to enhance the reliability of our operations.”

Powered by Predix*, GE’s cloud-based operating system built exclusively for industry, GE’s Digital Power Plant includes a suite of software solutions that can enable Hubco’s power plant operators to analyze and monitor operations across all touchpoints in real time and help identify any maintenance issues ahead of time, leading to greater asset uptime and reduced unplanned downtime.

The Baluchistan Hubco power plant is equipped entirely with non-GE equipment, demonstrating the power of Predix to operate across different types of original equipment manufacturers.

“Energy is increasingly becoming digital, and we have been proud to support Pakistan’s energy sector for more than 50 years with both hardware and software solutions,” said Steve Bolze, president and CEO of GE Power. “This agreement with Hubco marks the sixth deployment of our advanced digital industrial solutions in the country, underscoring our commitment to provide Pakistan with our latest technology.”

Industry experts estimate that between now and 2025 there is $1.3 trillion in value creation for companies that embrace digitization and $90 billion is expected to be invested in the energy industry’s digitization by 2020.

“Pakistan is a leader in adopting new technologies to generate more power,” said Ganesh Bell, chief digital officer, GE Power. “This deployment of GE’s digital industrial solutions marks another chapter in our relationship with the country to deliver better productivity and outcomes for our customers.”

Riaz Haq said...

Pakistan proposes solar FiT revisions

http://www.pv-tech.org/news/pakistan-proposes-large-scale-solar-fit-revisions

Pakistan’s National Electric Power Regulatory Authority (NEPRA) has published proposed revisions to its feed-in tariffs (FiTs) for solar energy projects of between 1-100MW capacity.

The South region includes the whole of Sindh and Baluchistan Provinces and South Punjab while the rest fo Pakistan's provinces account for the North.

NEPRA will now consider whether to determine a new upfront tariff for solar power projects or to determine a benchmark levelized tariff for competitive bidding by the relevant agency, and whether the proposed costs are reasonable.

Stakeholders now have less than two weeks to provide an intervention to the proposals. A hearing will also be held on 21 July in Islamabad.

This article has been updated to say the FiTs account for projects between 1-100MW.

Riaz Haq said...

http://www.eclareon.eu/sites/default/files/05_solarenergieinpakistan_waqas_bin_najib.pdf

Incentives 17 Solarenergie in Pakistan -Waqas Bin Najib  An attractive tariff model with sound guarantee structures for the RE power projects  Additional guarantee structures being put up my multilateral agencies for RE power projects in the country  Guaranteed power purchase (100% of produced electricity is mandatory for Power Purchaser to off-take)  State Bank of Pakistan (SBP) has soft credit line for small renewable energy power projects  Zero rated import of all renewable energy plant, machinery, equipment, and spares (including electronics, batteries, and other machinery)  Exemption from income tax, including turnover rate tax and withholding tax on imports.  Repatriation of equity along with dividends freely allowed, subject to rules and regulations prescribed by the State Bank of Pakistan.

Riaz Haq said...

Solar tariffs decline to all-time low of of Rs 4.63 per kWhr: Piyush Goyal

http://articles.economictimes.indiatimes.com/2015-11-05/news/68044032_1_sunedison-tariff-solar-parks

Solar power tariff in India touched record low as US-based SunEdison won a contract to sell electricity from a 500 Mw project at Rs 4.63 per unit (Pak Rs. 7.19) , accelerating India's $160 billion clean energy drive and casting a shadow on fossil-fuel plants that pollute the air and sometimes charge a higher rate.

The winning tariff, for a project of NTPC, came in the Narendra Modi government's first round of auction under the solar mission. India has already attracted big-ticket solar energy investments. These include $3 billion plans of China's Sany group and $20 billion planned by Japan's SoftBank Corp along with Bharti Enterprises and Taiwan's Foxconn Technology. SunEdison's bid is about 15% cheaper than the industry average and about 8% less than the previous lows achieved a few months ago in India's solar energy space. It betters the previous lowest solar tariff in India — Rs 5.05 per unit (Pak Rs. 7.85) — quoted by Canadian SkyPower for a tender in Madhya Pradesh while current average solar tariff in the country is Rs 5.5-6 per kWh. Experts said the tariff offered under the Centre's National Solar Mission reflects the bidders' confidence on NTPC that called the bids and the solar parks where the plants would come up. Sources said SunEdison won the entire contract for 500 Mw solar power supply after an aggressive bidding among 28 companies, including Japan's SoftBank Corp, China's Trina Solar, ReNew Power, Reliance Power and First Solar, which were in fray for the NTPC tender for solar capacity to be developed in Ghani Solar Park at Kurnool in Andhra Pradesh.

The 28 companies had qualified for the reverse e-auction that started Tuesday afternoon and ended in the early hours of Wednesday. At least nine firms bid lower than Rs 5 per unit during the reverse auction, sources said. "Delighted that an all time low solar tariff has been achieved during reverse e-auction conducted by NTPC," renewable energy minister Piyush Goyal tweeted on Wednesday morning. The minister had earlier told ET in an interview that the country's energy investment thrust would clearly be skewed towards the renewable sector.

PricewaterhouseCoopers energy leader Kameswara Rao said the latest solar auction reflects continued decline in solar module prices. "But it owes as much to higher creditworthiness of the buyer, and to the concept of solar parks, which are relatively costlier but take out development risks," he said. The government has increased its thrust on renewable energy projects with an ambitious target of raising renewable energy generation to 175 GW by 2020.

Riaz Haq said...

Tariff revision poses threat to solar power project

http://tribune.com.pk/story/988924/tariff-revision-poses-threat-to-solar-power-project/

Upset over the move by the National Electric Power Regulatory Authority (Nepra) to push the tariff down from 14.15 cents to 9.25 cents per unit from January 2016, Zonergy President Yu Yong has sent a letter to Punjab Chief Minister Shahbaz Sharif.

In the letter, he recalled that the company’s interest in setting up the solar power plant dated back to August 2013 when the first memorandum of understanding (MoU) was signed. The Punjab government and Zonergy signed another MoU on July 9, 2014 in Beijing for installation of the 900MW plant in Bahawalpur under the Quaid-e-Azam Solar Park project.

This was followed by a project commitment agreement on July 23, 2014 and both sides agreed on a tariff of 14 cents per unit excluding taxes and also reached agreement on associated conditions and the project implementation schedule.

This tariff, he claimed, was quite below the prevailing market standard as Nepra’s tariff at that time was 16.2 cents per unit, but the company accepted it in view of the economies of scale of the project.