ISLAMABAD: Altern Energy Limited (AEL) has formally concluded major agreements with the Government of Pakistan and key energy stakeholders, marking a significant development in the country’s independent power sector.
In a notice submitted to the Pakistan Stock Exchange on Monday, the company confirmed that it has signed a Termination Agreement (TA) with the Government of Pakistan (GoP) and Central Power Purchasing Agency Guarantee Limited. As a result, several core agreements have been discontinued, including the Implementation Agreement (IA), the sovereign guarantee issued by the government, and the Power Purchase Agreement (PPA) with CPPA-G.
The move follows AEL’s earlier request for early termination of the PPA, citing prolonged operational losses due to the absence of dispatch demand from the power purchaser over several years.
Separately, the company also executed a Termination Agreement dated April 30, 2026, with Sui Northern Gas Pipelines Limited, leading to the cancellation of its gas supply agreement.
Altern Energy Limited, incorporated under the Companies Ordinance, 1984 (now the Companies Act, 2017), primarily operates a gas-fired power plant and maintains investments in various entities within Pakistan’s power sector.
The termination of these agreements reflects ongoing structural adjustments in the energy sector, particularly concerning underutilised generation capacity and evolving market dynamics.
