ISLAMABAD: The Power Division has announced that 12 Independent Power Producers (IPPs) with a combined capacity of 2,577MW are scheduled to retire over the next 10 years as part of Pakistan’s evolving power sector landscape.
According to the ministry, IPP agreements are structured around commissioning timelines and system requirements, making it neither technically feasible nor commercially viable to terminate all contracts simultaneously. These agreements are typically reviewed upon completion, with some plants retiring while others may receive extensions to maintain grid stability and ensure reliable electricity supply.
A spokesperson emphasized that assumptions regarding the uniform termination of all projects ignore operational realities and legal complexities tied to long-term power purchase agreements.
Under the national grid system, several major plants are set for phased retirement, including Kot Addu Power Company (495MW, 2029), Liberty Power Tech Limited (235MW, 2028), Kohinoor Energy Limited (131MW, 2028), Fauji Kabirwala Power Company (157MW, 2032), Uch Power Limited (586MW, 2031), Altern Energy Limited (31MW, 2032), Attock Gen Limited (163MW, 2034), Gul Ahmed Energy Limited (136MW, 2025), and Engro Powergen Qadirpur Limited (223MW, 2035). These plants, operating on fuels such as RLNG, natural gas, and residual fuel oil (RFO), account for 2,157MW of capacity.
In addition, under the K-Electric system, *BQPS-I Unit 5 and Unit 6, each with a capacity of **210MW, are expected to retire in *2027 and 2033, respectively.
The Power Division noted that the phased retirement strategy is essential to maintain system reliability, frequency control, and capacity adequacy while managing the transition toward a more sustainable and efficient energy mix.
Story by Mushtaq Ghumman
