Government to shut down 5 IPPs amidst ongoing discussions

ISLAMABAD: The Ministry of Energy (Power Division) disclosed that the government plans to shut down five independent power produces (IPPs) amid ongoing negotiations with around 100 IPPs.

According to reports, the discussions will focus on addressing profitability and operational challenges within the energy sector.

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The sources indicate that while negotiations with all IPPs are still ongoing, there have been a noticeable willingness amongst the IPPs to consider reducing their profit margins.

The flexibility is viewed as a constructive step in the government’s efforts to improve the efficiency and sustainability of the country’s energy sector.

Details regarding the specific IPPs slated for closure have not been made publicized. The Energy Ministry said it is currently evaluating the potential impact on the profit margins of the remaining IPPs as part of the negotiation process.

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The evaluation is important for shaping the future of operations landscape of the IPPs.

Officials from the Ministry also stated that it was unnecessary to release the results of the negotiations with all the IPPs to come. Instead, the government intends to publicise the outcomes in a strategic manner, facilitating a more structured approach to implementing any changes that may result from the discussions.

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The ongoing negotiations with the IPPs are part of a comprehensive strategy aimed at improving the efficiency and reliability of the national energy sector.