ISLAMABAD – With the proposed shutdown of the five Independent Power Producers (IPPs), having the combined capacity of 2400 MW, the electricity consumers are likely to save around Rs 80 billion annually.
The efficiency of these decades old IPPs was very low and the energy purchase prices were ranging from Rs 38 to Rs 60 per unit, while the capacity payments were from Rs 23.69 per unit to Rs 707 per unit, official documents available with The Nation reveal.
The federal government is very close to shut down five IPPs set up under the 1994 and 2002 power policies.
The IPPs to be shut down, in first phase, include four RFO based power plants, and one gas based IPP, having a cumulative capacity of 2400 MW, the source said. Out of the five IPPs, four are more than 25-year-old, while one is 14 years old.
The IPPs to be shut down included 1200 MW RFO based Hub Power Plant, gas based 450 MW Rousch (Pakistan) Power Limited (RPPL), RFO based 362MW AES Lalpir power limited, Atlas Power with capacity of 224 MW and RFO based 136 MW Saba Power.
During the 2023-24 financial year, the total capacity payments made to these IPPs were Rs 47.209 billion, while the Energy Purchase Price (EPP) from these power plants were Rs 52.766 billion.
According to the documents, during the previous fiscal year 2023-24, the capacity payment of ROUSCH power plant was Rs 706.86 per unit, with the EPP of Rs 38.18 per unit, while the total cost from the power plant was Rs 745.05 per unit.
Similarly, from Saba Power Plant the Capacity Payment was Rs 56.58 per unit, while the Energy Purchase Price (EPP) from the plant was Rs 60.70 EPP. The total cost from the plant was Rs 117.28 per unit.
Atlas Rs 38.94 per unit, with EPP of Rs 39.94 per unit, while the total per unit cost was Rs 57.59 per unit.
The capacity payment to EAS Lalpir was Rs 23.69 per unit, with EPP of Rs 41.73 per unit, while the total cost per unit was Rs 65.41 per unit.
Meanwhile, a source said that the entire capacity payments to these IPPs will end following the termination of the contracts. In case of the EPP, the government will utilize efficient/cheaper sources such as Thar Coal or natural gas-based power plants which is far cheaper than these IPPs. In terms of EPP the consumers will save Rs 30 to 35 billion annually, the source said.
