Government Nears Revised PPAs with Wind Power Producers Amid Tough Talks

Solar-Wind

ISLAMABAD: The federal government is expected to finalize revised Power Purchase Agreements (PPAs) with wind power plants (WPPs) within the next two weeks, following the model already applied to Independent Power Producers (IPPs) and government-run plants (GPPs).

A senior official from the Power Division, involved in the negotiations, confirmed progress despite earlier resistance, especially from project lenders. “Talks were challenging due to debt repayment concerns, but we are hopeful of achieving a Re0.13 per unit relief,” the official stated.

The task force, led by Power Minister Sardar Awais Khan Leghari, includes key figures such as Adviser to the Prime Minister on Privatisation Muhammad Ali, National Coordinator Lt-Gen Zafar Iqbal, and representatives from CPPA-G, PPIB, SECP, and NEPRA.

Negotiations initially hit stalemates due to lender opposition, but resumed after authorities warned of forensic audits. The government aims to secure revised agreements transparently and in the country’s best interest.

Pakistan currently operates 36 wind power projects with a combined capacity of 1,845.475 MW, mostly located in Sindh’s Gharo-Jhimpir wind corridor. However, transmission bottlenecks continue to limit wind energy’s full potential. Of these, five projects fall under the China-Pakistan Economic Corridor (CPEC) umbrella.

Story by Khalid Iqbal

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