In an effort to reduce the electricity tariff in the country, Chinese and Pakistani experts have suggested the early retirement of 6,447 MW thermal-based power generation plants.
In addition to retiring state-run inefficient generation plants (Gencos), the government should also emphasize on retiring the Independent Power Producers (IPPs) that have completed a term of their licenses, according to the report “An overview of Pakistan’s power sector and its future outlook” mutually compiled by Chinese and Pakistan experts.
In the national grid, almost 6,447 MW of power projects operating on RLNG, RFO, and gas in the public and private sectors are very old, unproductive, and have very low availability. These power projects must be retired as soon as possible or per their EPA/PPA term or government decision. This will consequently lead to the reduction of the overall tariff, the report stated.
Moreover, the report added that in the long run, i.e. 6-10 years, the government should establish power projects based on hydro resources and thermal. The power produced through hydro and Thar coal-based power projects is much lower as compared to the imported fuel projects, thus, this will help in decreasing the basket price of electricity. These projects could be operated as base load plants.
The report further recommended the inclusion of maximum cheap renewable electricity into the national grid.
Meanwhile, emphasizing the need for solar power plants, Federal Minister for Energy, Khurram Dastgir said that the government has completed the bidding process for the 600 megawatts (MW) pilot solar power project.
During his address to a press conference in Islamabad, the minister said that investors have been invited to assess the solar project. Soon after its evaluation, the reverse bidding process will start for the project. Gulf countries had also expressed their interest to invest in this regard, Khurram Dastgir said,?highlighting that the indigenous sources would add 11,000 MW of energy to the national grid in the future.