Islamabad: As per reports, Pakistan is currently reviewing its existing and planned power projects, including those involving hydropower and nuclear energy, due to growing concerns about energy overcapacity and the financial burden of high capacity payments to Independent Power Producers (IPPs) for unused power, according to reports on Saturday.
Reportedly, the review, led by the government, aims to assess the viability and efficiency of these power projects, given the country's surplus energy production. The focus is on optimising power generation to match current demand and ensure economic sustainability, according to The News International.
Additionally, this development follows reports indicating that the Pakistani government has disbursed approximately Rs1 trillion over the past decade, starting in 2015, in capacity payments to 26 IPPs using gas, regasified liquefied natural gas (RLNG), and residual furnace oil (RFO), as reported by the Business Recorder.
Minister for Power Awais Leghari informed the Senate Standing Committee on Power during a meeting chaired by Senator Mohsin Aziz on Friday that the government is also reviewing committed projects, including the Diamer-Bhasha Dam and the Chashma Nuclear Power Plant Unit 5 (C5). The C5 project involves a 1,200 MW nuclear power plant, while the under-construction Diamer-Bhasha Dam on the Indus River is expected to irrigate 1.23 million acres of land and generate 4,500 MW of electricity annually.
Moreover, under the Integrated Generation Capacity Expansion Plan (IGCEP), Pakistan is expected to add around 18,000 MW of new capacity over the next decade, with the majority coming from hydropower projects. However, Leghari stressed the importance of moving towards more cost-effective solutions, acknowledging that the IPP agreements are backed by sovereign guarantees, which complicates any unilateral changes.
According to the Economic Survey of Pakistan 2024, the country's installed electric generation capacity for FY 2024 stands at 42,131 MW.
Source-PTI
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