ISLAMABAD: The Private Power and Infrastructure Board (PPIB) has cast uncertainty over the future of nearly a dozen renewable energy projects — including several hydropower and solar ventures — citing both official and undeclared reasons, primarily the pending finalization of the Indicative Generation Capacity Expansion Plan (IGCEP) 2025–35, according to informed sources.
During its recent board meeting, PPIB Managing Director Shah Jahan Mirza presented a compliance report outlining the status of key projects, revealing that multiple ventures are now in limbo pending government-level decisions and policy clarity under the upcoming IGCEP framework.
One of the most notable cases is the 700.7 MW Azad Pattan Hydropower Project (AJK/Punjab), where the Board decided to maintain status quo until the outcome of the CPEC Energy Cooperation Projects List Adjustment Joint Study, to be approved by the Joint Cooperation Committee (JCC) and the Federal Government. The company’s request for an extension in the Financial Close (FC) deadline has been put on hold, though it must keep its performance guarantee valid for the notified period.
Similarly, the previously granted FC extension for the 1,124 MW Kohala Hydropower Project—until September 30, 2027—has been recalled, with the Board directing the company to maintain its performance guarantee until further notice. Both project CEOs have reportedly written to the Prime Minister and other concerned authorities expressing serious concerns over these decisions.
In another move, the Board approved the termination of the 8 MW Kathai Hydropower Project, directing the prompt return of the company’s performance guarantee upon signing a Deed of Release and payment of processing fees. The company and the Government of Azad Jammu & Kashmir (GoAJ&K) may mutually agree on compensation terms or the purchase of the project’s feasibility study, without any liability on the part of the federal government or PPIB.
The Board also decided to officially notify the expiry of Letters of Support (LoSs) issued to Access Solar (Pvt) Ltd and Access Electric (Pvt) Ltd for their 11.52 MW and 10 MW solar PV projects, respectively. Similarly, Safe Solar’s 10 MW project is undergoing termination, with its performance guarantee being returned in full upon signing of a Deed of Release.
Meanwhile, the decision on extending the Letter of Intent (LoI) for Trans-Atlantic Energy (Pvt) Ltd (TAEPL) has been deferred until the IGCEP 2025–35 receives NEPRA’s approval. The PPIB noted that a comprehensive policy on LoI extensions will be formulated once renewable capacity additions are finalized under the IGCEP. TAEPL has been directed to keep its bank guarantee valid until a final decision is reached, with the current guarantee extended to October 30, 2026.
The Board also opted to maintain status quo on three additional hydropower projects — 640 MW Mahl, 450 MW Athmuqam, and 82.25 MW Turtonas-Uzghor — until the IGCEP 2025–35 is approved. No further extensions in project timelines or LoI validity will be granted during this period, though sponsors are required to keep performance guarantees active.
Furthermore, the Board authorized the signing of the Government of Pakistan Implementation Agreement (IA) with Riali Hydropower Company (Pvt) Ltd, but clarified that the project’s implementation will depend on NEPRA’s approval under the forthcoming IGCEP 2025–35.
The latest developments underscore growing uncertainty across Pakistan’s renewable energy sector, as multiple projects await clarity on policy direction and future inclusion in the country’s long-term power generation plan.
Story by Mushtaq Ghumman
