12 IPPs of 2,577MW set to retire in 10 years: PD

ISLAMABAD: The Ministry of Energy (Power Division) has stated that 12 Independent Power Producers (IPPs), with a combined capacity of 2, 577 MW, are scheduled to retire over the next 10 years. According to the Power Division, IPP contracts are structured based on commissioning dates and system requirements, making it neither technically feasible nor commercially viable to terminate all agreements simultaneously. These contracts are typically reviewed upon completion of their agreed tenure. The ministry explained that while some projects are retired at the end of their lifecycle, others may have their contracts extended or renewed to ensure grid stability, meet capacity requirements, and address strategic considerations such as frequency control and overall system reliability. READ MORE: Pacts with IPPs, GPPs: Task force seeks performance-based rewards “Assumptions regarding the uniform termination of all large-scale projects overlook the operational realities of power systems as well as the legal complexities inherent in long-term contracts, ” a spokesperson for the Power Division said. As per the official details, several plants operating under the National Grid Company (NGC) system are set to retire over the coming years. These include: KAPCO (495 MW, RLNG) in 2029; Liberty Power (235 MW, gas) in 2028; Kohinoor Energy (131 MW, RFO) in 2028; Fauji Kabirwala Power Company (157 MW, RLNG) in 2032; Uch Power (586 MW, gas) in 2031; Altern Energy Limited (31 MW, RLNG) in 2032; Attock Gen Limited (163 MW, RFO) in 2034; Gul Ahmed Energy Limited (136 MW, RFO) in 2025; and Engro Powergen Qadirpur (223 MW, gas) in 2035. A detailed table accompanying the document outlines these and other power plants under the NGC system, indicating their installed capacities and fuel types—including RLNG, gas, and residual fuel oil (RFO). The total capacity of plants listed under the NGC system stands at 2, 157 MW. In addition, under the K-Electric system, two units — BQPS-I Unit 5 and BQPS-I Unit 6 — each with a capacity of 210 MW (RLNG), are scheduled for retirement in 2027 and 2033, respectively. Copyright Business Recorder, 2026

Read full story on Business Recorder