Govt, power producers agree to reduce project returns, share savings

[The Accountant]

PPAs for these are close to expiring I believe.

do you know it for sure?

 

[Bilal.]

do you know it for sure?

No just have an impression I read something to that effect recently.

 

[ziaulislam]

You are missing the important bit. Between 2000-2014 and likely even before, hardly anyone invested in power plants. Pakistan had to agree with CPEC terms to get those power plants to end era of chronic shortages. Now that power plants are running and risk is much lower for investors, government can renegotiate terms.

Anyway we need similar deal with CPEC projects otherwise electricity cost will keep increasing with devaluation of currency.

Would that have solved the problem??
Are you saying that a wrong decision should be made to fix abother problem due to inaction..

It would have been better to BUILD NO PLANTS rather than UNAFFORDABLE PLANTS

Eithet PMLN should have invested to build coal plants at gaddani or the decision to build LNG plants should have been made earlier

Today the LNG plant they build are providing cheaper power than coal!

What happened is that PMLN did nothing for first
3 years and then woke up.

 

[ziaulislam]

 

[ziaulislam]

 

[The Accountant]

Is it truth ? The amount seems unrealistic

 

[ziaulislam]

Is it truth ? The amount seems unrealistic

upfront tarrif was at 14 cents for wind which is 25 rupees(due to depreciations)

for a country like Pakistan, we should not have gone into renewables if it was expensive than fossils

it is no longer this expensive though

in summary to increase total capacity of country govt forgot about the real issue..affordability

 

[ziaulislam]

these things should have been done before

this guy has surprisingly explained in easier way

though his numbers are off but concept of issues have been explaine dn a good way

 

[ziaulislam]

--point is 19-20 RR was simply not sustainable--