Capacity payment to IPPs rises to Rs2153b after dollar value hike

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2023-09-19T06:51:58+05:00 Fawad Yousafzai

ISLAMABAD  -   Following a sharp de­preciation of Pakistani rupee against the US dollar, the capacity pay­ment to various Interna­tional Power Producers (IPPs) has doubled to Rs2153 billion from the earlier Rs 1082 billion.

With the slump of Pa­kistani currency from Rs100 to Rs300 against the US dollar, the impact of capacity payment in per unit has increased from the earlier Rs10/unit to Rs19/unit, said Secretary Power Divi­sion Rashid Langrial in a tweet here.

He said that the ca­pacity payment has doubled as dollar rose from Rs100 to Rs300.

“Foreign-funded dol­lar-denominated IPPs have contributed the most,” he added.

He further said that locally funded Re-Liquefied Natu­ral Gas (RLNG) based power gener­ation plants’ capacity payment has increased by 60 percent while for­eign-funded coal based power plants payment has gone up by 145 percent.

As per the official data shared by the secretary, when the conversion value of dollar was at Rs 100/US dol­lar, the capacity payment was Rs1082 billion, and its per unit impact was Rs 10/unit. At Rs 200 vis-à-vis one US dollar, the capacity payment was Rs 1617 billion with an impact of Rs 14/unit. With further depreciation of Pakistan rupee to Rs 300 against US dollar, the capacity payment reached Rs 2152 billion, having an impact of Rs 19/unit.

According to the data, the total avail­able capacity in system, excluding KE, is 36,277MW. The capacity of foreign funded power projects is 21,374MW, while the local funded is 14903 MW.

Foreign Funded power plants in­clude IPPs under 1994, 2002 policies, coal, renewable, hydel IPPs and nucle­ar. WAPDA hydel projects inclue RLNG power plants and GENCOs are local­ly funded. Foreign funded projects are those IPPs established under 1994 and 2002 policies, coal projects, renewable, hydel IPPs and nuclear power projects. Currently at Rs 300/US dollar, the gov­ernment is paying Rs643 billion ca­pacity payment to 6777MW coal pow­er plants, Rs 510 billion to 3266 MW nuclear power plants, Rs 260 billion to 2887 MW renewable, Rs 255 billion to 2215 MW hydel IPPs, Rs 147 bil­lion to 8578 MW Wapda hydel power, Rs139 billion to 4687 MW RLNG pow­er and Rs86 billion, Rs 66 billion and Rs 46 billion respectively to IPPs under 1994, 2002 policies and Gencos.

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