Independent power producers
energy & resources. Also IPPs, capacity payments
Privately owned power plants that sell electricity to Pakistan’s state buyer under long-term contracts, first under the 1994 power policy, which offered dollar-indexed returns. Under “take-or-pay” terms the state pays capacity payments for available capacity whether or not power is used, a major cause of high tariffs and circular debt. From 2024 the government renegotiated many of these contracts, moving several plants to “take-and-pay” terms.12
Linked from 1 page across CUPA.
Sources
- Govt renegotiates Power Purchase Agreements with eight IPPs. Profit (Pakistan Today), 2024-11-30. Press
- IPPs: Currents of discontent. Sustainable Development Policy Institute. Reference
