Power sector: contrary ambitions
The Cabinet Committee on Energy (CCoE) has certainly been busy lately under the leadership of PM Shahid Khaqan Abbasi. It recently announced revisions to power policy, which included amendments to power purchase agreements (PPAs).
A major change has been the removal of “take or pay” contracts for IPPs, instead shifting them to a “take and pay” mode and discontinuing long term power purchase agreements. According to the government, this has been done in order to deal with the “capacity trap”; which by the way has materialised in light of abundant generation capacity done with extreme swiftness but zero planning.
Published in Business Recorder, 19th December, 2017