Author: Admin

Govt’s IPP Deal Revisions Secure Rs1.3 Trillion in Savings Consumers to Benefit as Power Sector Reforms Progress

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IPPs-Project

ISLAMABAD: The renegotiation of agreements with Independent Power Producers (IPPs) has resulted in lifetime savings of Rs1.3 trillion, with the government actively working to pass these benefits on to electricity consumers, the Power Division announced on Tuesday. Electricity consumers have been paying Rs2.5 to 2.8 trillion annually in capacity charges to IPPs, some of which received payments without generating electricity due to flawed past agreements. To address this issue, the government renegotiated contracts to lower capacity payments, leading to a Rs7 per unit reduction in electricity tariffs. Efforts are underway…

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Net Metering Changes Pose Threat to Solar Industry PSA Chairman Warns Move Will Drive Consumers Off-Grid

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Net-Metering

LAHORE: Pakistan Solar Association (PSA) Chairman Waqas Moosa has cautioned that proposed amendments to net metering regulations will severely impact the solar industry, particularly affecting residential users and Small and Medium Enterprises (SMEs). The new regulations aim to extend the payback period for on-grid photovoltaic (PV) systems from the current 1.5 years to approximately three years. In contrast, hybrid solar systems with lithium-ion batteries already offer a payback period of under three years, with technological advancements expected to further reduce this duration. “We foresee a sharp rise in demand for…

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Inconsistent Energy Policies Threaten Pakistan’s Economy

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power-sector-in-pakistan

HYDERABAD:* Pakistan’s energy sector is being mismanaged by inexperienced and irresponsible officials, pushing the country’s economy toward crisis, warned Hyderabad Chamber of Small Traders and Small Industry (HCSTSI) President Mohammad Saleem Memon on Tuesday. He criticized the government’s inconsistent and contradictory energy policies, highlighting the introduction of costly independent power producers (IPPs) without a comprehensive strategy. It later emerged that these plants relied on imported oil and coal, making electricity generation excessively expensive. Despite billions of dollars in investments, poor planning has led to soaring circular debt, with the government…

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Lowest Power Production in February 2025: KP Advisor Rejects Federal Govt’s Economic Claims

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Power-sector

PESHAWAR:* Advisor to the *Chief Minister of Khyber Pakhtunkhwa, Muzzammil Aslam, has dismissed the federal government’s assertions of economic improvement, citing alarming trends in *electricity production and industrial output. In a statement issued on *Monday, Aslam highlighted that **Pakistan recorded its lowest electricity production in February 2025, marking the weakest output since **February 2020, when the economy was reeling from *post-COVID-19 impacts. Additionally, the large-scale manufacturing (LSM) sector contracted by 1.8% in the first seven months of the current fiscal year, with January alone witnessing a negative growth of 1.2%.…

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Seven IPPs Seek Tariff Reduction Under Hybrid Take-and-Pay Model

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IPPs

ISLAMABAD:* The National Electric Power Regulatory Authority (Nepra) has admitted a joint tariff reduction application filed by seven Independent Power Producers (IPPs) under the *Power Generation Policy 2002, in collaboration with the **Central Power Purchasing Agency-Guaranteed (CPPA-G). The proposal aligns with agreements made with the *Government’s Task Force on Power Sector Reforms. The seven IPPs seeking tariff adjustments include: The *Task Force, headed by **Federal Minister for Power Sardar Awais Khan Leghari, also includes **SAPM on Power Muhammad Ali, National Coordinator Lt General Muhammad Zafar Iqbal, Chairman Nepra, CEO CPPA-G,…

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