The government is undertaking a comprehensive review of both existing and upcoming power projects, including hydropower and nuclear plants, in response to growing concerns over energy overcapacity and pricing issues. This review aims to evaluate the viability and efficiency of these projects as the country grapples with surplus energy production.
Officials have emphasized the need to optimize power generation to better align with current demand and ensure economic sustainability. The issue of overcapacity has resulted in financial strain, notably due to high capacity payments to Independent Power Producers (IPPs) for unused power.
During a Senate Standing Committee on Power meeting chaired by Senator Mohsin Aziz, Minister for Power Awais Leghari provided an update on the review process. He stated, “We are also reviewing the committed projects, including Bhasha and C5, for which we have issued letters of support.” The C5 project refers to the 1,200 MW Chashma Nuclear Power Plant Unit 5.
Leghari further mentioned that a task force is currently evaluating the IPPs. He expects to present a detailed outcome and a realistic timeframe to the committee within the next two weeks.
