Featured New agreement with IPPs will bring down power generation cost, says PM

[tman786]

Why didn't previous governments try to do the same? Or did they?

 

[ziaulislam]

We’ll talk when my bill is less. I’m already at 1300 units with 2 AC’s running. WAPDA are thugs and should be hung from street lamps.

wont come down, might bent the deficit bit
Pakistan whole power planning since 1990 has been based upon imported fossil fuel or BOT hydro both of them are above 7 cents, in some cases above 12 cents
had govt spent even 100 billion rupees per year on dasu, bhasha, munda, pathan, thakot, bunji dams as per WAPDA 2025 plan that was ready by 2009..things would have been different

but metros are more important

 

[ziaulislam]

Why didn't previous governments try to do the same? Or did they?

lol..we are talking about cleaning the old government mess..
what are you trying to say..why did they sign into such agreements? because those agreement were signed by PPP and PML N ?
the answer is pretty straight forwards..why do you think qatari shahzada writes a letter so quickly, it isnt due to marium nawaz beauty

 

[ziaulislam]

despite all these power issuesa re so bad that i dont see a solution till atleast more cheaper power comes into the mix..

so what can the govt do quickly (next 3-10 years)

1. new solar
2. tarbela V
3. expediting dasu, munda and bhasha dam

these can bring down the average cost of power down

the IPPs hydro are BOT model, those wont bring the cost down significantly

 

[niaz]

Even if we assume that under the table deals we were involved; one must keep in mind that market conditions under which the old contract were signed were quite different 20 years ago. We are comparing a time when oil was the 'king' to a time when oil especially gas is cheap as dirt. LNG price in Asia was then around $12 per mm Btu now it is less than $5 due to cheap Australian production.

Natural gas was selling at Henry Hub(USA) at close $7per mm Btu in 2006 now it is hovering a little above $2/- Cost of Solar (Photovoltaic) power has dropped from around 7 cents/KWhr to under 4 cents due to a sharp drop in the Chinese PV cell prices.

However, per my info, most of the plants that have in principle agreed to the terms were established 15 to 20 years ago and the old contracts were about to expire soon. Additionally, this is only an MOU, we have to see the actual agreement to really understand what is new. Regrettably, I don't have sufficient information about the new terms to write a more definitive post.