Govt starts negotiations with 45 IPPs
Business
Among these IPPs, 36 have wind-powered plants and nine use solar plants for power generation
ISLAMABAD (Dunya News) – The task force set up by the government has initiated talks with 45 IPPs (Independent Power Producers) overcome electricity pricing crisis.
According to sources in the Power Division, the task force would hold talks with the IPPs who depend upon solar and wind power for power generations. These IPPs include 23 foreign-funded plants who have a combined generating capacity of 2,500 megawatts.
Among these IPPs, 36 have wind-powered plants and nine use solar plants for power generation.
The sources claimed that renegotiation with the IPPs will result in savings of about Rs21.25 billion and reduce electricity tariff by 20 paisa per unit for consumers.
A senior official from the Power Division said that talks would be held to reduce return on equity from 17% to 13%. Discussions will be held to pay these IPPs in Pakistani rupees instead of US dollars, he added.
Meanwhile, the sources said that the lifespans of these plants would be taken into consideration to ensure their sustainability. These plants were set up after 2013.
The government has also decided that a forensic audit will be conducted for any IPPs that refuse to engage in negotiations, they continued.
Negotiations with 21 state-owned IPPs, in the meantime, are likely to be concluded by next week. By revising tariff downwards, the government would save Rs24 billion and give a 27 paisa per unit relief to consumers.
