Islamabad: Energy experts have called for the swift transition of Captive Power Plants (CPPs) to the national grid system, emphasizing its importance for the energy sector’s sustainability and alignment with national policies. This move aims to increase power demand, reallocate natural gas supplies, and reduce capacity payments, thereby enhancing the overall efficiency and economic stability of Pakistan’s energy landscape.
According to Institute of Policy Studies, these recommendations emerged during a session titled “Energy Priorities in Crisis: Navigating Gas Supply Cuts to Captive Power Plants in Pakistan,” which focused on assessing the government’s commitment to phasing out gas supplies to CPPs in line with International Monetary Fund agreements. The experts highlighted the inefficiencies associated with CPPs and the potential benefits of transitioning to the grid, which include reduced electricity costs and increased grid stability.
Wali Farooqui from IPS noted the significant natural gas consumption by CPPs, advocating for their integration into the grid to stimulate national power demand. Bilal A. Shaikh emphasized the need for accurate efficiency assessments, while Abu Bakar from Amreli Steels criticized policy delays and called for market reforms to ensure competitive energy pricing.
Rehan Jawed highlighted the economic burden of inefficient CPPs on the industrial sector, advocating for incentives to encourage their transition to the grid. Asad Mahmood underscored the importance of improved governmental coordination and data-driven policy adjustments. Asim Riaz and Ameena Sohail stressed the necessity of establishing transparent and equitable energy markets to prioritize efficient resource allocation.
The session concluded with a consensus on the need for policy reforms that facilitate the transition of CPPs to the national grid and promote efficient energy utilization. The experts urged the government to implement these recommendations promptly to bolster energy security and industrial competitiveness.