Govt to finalise revised power purchase deals with wind power plants in two weeks

The task force negotiating with wind power plants (WPPs) is expected to finalise revised power purchase agreements (PPAs) within the next two weeks, similar to the agreements already revised with independent power producers (IPPs) and government power plants (GPPs), The News reported, citing official sources from the Power Division involved in the discussions. 

“Although the talks have been tough and time-consuming, particularly due to concerns raised by the lenders, we are optimistic about reaching a deal with the WPPs,” the sources said. 

The issues largely revolve around the debt payment terms, as the current debt tenure is set at 3-4 years. The government aims to extend this period, which is expected to provide relief of Rs 0.13 per unit.

The task force, which includes Power Minister Sardar Awais Khan Leghari, Muhammad Ali (Adviser to the Prime Minister on Privatisation), Lt-Gen Zafar Iqbal (National Coordinator), and representatives from CPPA-G, PPIB, SECP, and Nepra, has been negotiating with the lenders.

The talks faced opposition from the lenders initially, but after being asked to undergo a forensic audit, they agreed to engage in further discussions. The official emphasised that while the negotiations have been difficult, the authorities remain focused on reaching a fair and transparent resolution in the national interest.

Pakistan currently operates 36 wind power projects with a cumulative capacity of 1,845.475 MW, primarily located in the Gharo-Jhimpir wind corridor in Sindh. Despite this capacity, wind power’s contribution to the national energy mix remains limited due to transmission constraints and operational challenges. Of these 36 projects, five were installed under the China-Pakistan Economic Corridor (CPEC).