Govt Targets 75 More IPP Deals to Save Rs. 3.5 Trillion in Future Payments

After finalizing agreements with 29 Independent Power Producers (IPPs) to save Rs. 3.498 trillion, the government is working to negotiate with 75 more power producers, primarily solar and wind projects, by April or May 2025. Federal Minister for Power Awais Leghari told a parliamentary panel on Wednesday that the government is also seeking a Rs. 1.2 trillion commercial bank loan to manage circular debt. Since July 2024, six IPP contracts have been terminated, and eight bagasse-based power agreements have been revised. However, progress with wind and solar power producers remains in the dark and foreign diplomats are intervening in the negotiations. Senator Mohsin Aziz accused IPPs of over-invoicing and blamed wind projects from 2012-2014 for inflated tariffs. So far, revised agreements cover 12,000 MW, including 14 private plants (3,200 MW) and six state-owned units, but 15,615 MW of state-owned capacity remains unresolved. The government’s solar policy also came under scrutiny. Senator Shibli Faraz questioned the plan to buy electricity from solar consumers at Rs. 10 per unit while selling it at Rs. 50, calling it unfair. Leghari defended the pricing, arguing that capacity charges must be recovered to ensure grid stability. The prime minister has ordered a review before cabinet approval.