The Federal Minister for Energy, Awais Leghari, acknowledged that the country has the highest electricity costs in the region, stating that the government is working towards resolving issues related to Independent Power Producers (IPPs).
Speaking at the National Youth Convention in Islamabad, Awais announced that within one to two months, the government, in collaboration with intelligence agencies and other institutions, will deliver positive news regarding IPPs that will benefit both the public and industrial sectors.
Awais highlighted that Pakistan’s actual power generation capacity is 29,000 MW, not the often-cited figure of 45,000 MW.
He noted that the year-round demand is just 7,000 MW, with peak demand reaching 24,000 MW.
The minister explained that maintaining an additional 1,845 MW in the system, which is only required for 85 hours annually, incurs an annual cost of Rs 50 billion.
He suggested that if the country could endure 85 hours of load shedding over 40 days, the national exchequer could save Rs 50 billion.
Awais added that enduring 874 hours of load shedding annually, or about 10% of the year, could save up to PKR 100 billion in capacity payments.
“Capacity payments are the price we pay to avoid load shedding,” Awais Leghari remarked.
“I admit, we are providing the most expensive electricity in the region”