The government is expected to finalise revised power purchase agreements (PPAs) with wind power plants (WPPs) within two weeks, aiming to ease the financial burden on the national grid. This move mirrors previous revisions made with independent power producers (IPPs) and government power plants (GPPs), according to officials from the Power Division.
Although negotiations have been challenging, mainly due to concerns raised by lenders, the government remains optimistic. Officials said the talks took time but are progressing steadily toward a deal that ensures fairness and national benefit. One key goal is to extend the current debt payment period of 3 to 4 years, which could save Rs 0.13 per unit.
The task force leading the discussions includes Power Minister Sardar Awais Khan Leghari, Adviser Muhammad Ali, Lt-Gen Zafar Iqbal, and officials from CPPA-G, PPIB, SECP, and Nepra. Initial resistance from lenders softened after they were asked to undergo a forensic audit, leading to a renewed round of talks with more cooperation.
Pakistan currently has 36 operational wind power projects with a total capacity of 1,845.475 megawatts. Most of these projects are located in the Gharo-Jhimpir wind corridor in Sindh, a region known for its wind energy potential. Five of these projects were developed under the China-Pakistan Economic Corridor (CPEC) initiative.
However, despite this installed capacity, wind energy’s share in the national energy mix remains low. This is mainly due to issues like poor transmission infrastructure and operational limitations that hinder full-scale integration of wind energy into the national grid.
If successful, the revised agreements could offer both financial relief and improved energy efficiency. The government sees this effort as a step toward strengthening Pakistan’s renewable energy future while addressing rising electricity costs.