In order to save an estimated Rs300 billion, the Federal government has chosen to cease power purchase agreements with six additional Independent Power Producers (IPPs).
According to sources, agreements for a combined 2,396 megawatts of capacity across the six IPPs would be terminated. This includes the cancellation of a 136 megawatt contract with Gul Ahmed Energy.
Kepco Power Projects (1,638 and 200 megawatts), Attock Power (165 and 131 megawatts), and Koh-i-Noor Energy (126 megawatts) are among the other impacted IPPs.
It is anticipated that the government’s action will result in lower electricity rates. Agreements with 13 other IPPs, including eight private power plants that use bagasse (sugarcane residue) as fuel, were previously terminated.
These cancellations have resulted in significant cumulative savings, which represent
