Power Division says 12 IPPs with 2,577MW capacity to retire over next decade

The Ministry of Energy (Power Division) has said that 12 Independent Power Producers (IPPs) with a combined capacity of 2,577 megawatts are scheduled to retire over the next 10 years.

According to official data, several plants under the National Grid Company system are scheduled for retirement over the coming years. These include KAPCO (495MW, RLNG) in 2029, Liberty Power (235MW, gas) in 2028, Kohinoor Energy (131MW, RFO) in 2028, Fauji Kabirwala Power Company (157MW, RLNG) in 2032, Uch Power (586MW, gas) in 2031, Altern Energy Limited (31MW, RLNG) in 2032, Attock Gen Limited (163MW, RFO) in 2034, Gul Ahmed Energy Limited (136MW, RFO) in 2025, and Engro Powergen Qadirpur (223MW, gas) in 2035.

The total capacity of plants listed under the National Grid Company system stands at 2,157MW, with fuel types including RLNG, gas and residual fuel oil.

Under the K-Electric system, two units—BQPS-I Unit 5 and Unit 6—each with a capacity of 210MW (RLNG), are scheduled for retirement in 2027 and 2033, respectively.

The Power Division said IPP agreements are structured around commissioning timelines and system requirements, making simultaneous termination of all contracts neither technically feasible nor commercially viable. It added that these agreements are reviewed upon completion of their tenure.

Officials said some plants will retire at the end of their lifecycle, while others may receive extensions or renewals to maintain grid stability, meet capacity requirements and support system reliability, including frequency control.

A spokesperson for the Power Division said assumptions about uniform termination of all large-scale projects do not reflect operational and legal realities of long-term power contracts.