September 12, 2020 Read More →

Pakistan electricity plan will lock country into long-term financial burden


The government has rightly decided to discontinue 2,900 MW of generation from old, inefficient state-owned power companies. The plan will see the 1,400 MW capacity of four plants being phased out immediately followed by the shutdown of another 1,500 MW by 2022. The government has also decided to end the must-run status of the three RLNG-based plants in Punjab with a combined capacity of 3,900 MW. The existing agreements with these plants force the government to use them even though the induction of cheaper coal- and hydro-based generation and the reduction in electricity demand have pushed them to a lower position in the economic dispatch merit order. The addition of nuclear-, hydro-, renewable- and coal-based capacity going forward is expected to further drive these plants down the merit order.

Take the example of the NTDC’s electricity-generation expansion plan for the next 27 years. A review of the project by the Institute for Energy Economics and Financial Analysis shows that the authors of the plan are completely unaware of ongoing developments in renewables and how these are expected to change the global electricity-generation scene by the time Pakistan turns 100. Instead, it proposes, even if innocently, to lock Pakistan into dirty and expensive generation capacity and saddle the government and consumers with a greater financial burden. 

[Staff Reporter]

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Posted in: IEEFA In the News

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