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Tailored IPP audits, SEZ development vital for efficient power sector management

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Ijaz Kakakhel
Islamabad

Targeted solutions for power generation issues, based on case-by-case evaluations and audits of independent power producers (IPPs), along with strategic efforts to optimize the use of the country’s installed generation capacity and stimulate electricity demand through special economic zones (SEZs), can lead to more equitable and efficient outcomes for both producers and consumers.

To achieve targeted solutions, a more transparent and tailored approach is essential. A case-by-case evaluation of IPPs is crucial, as each operates under distinct financial and operational conditions. Similarly, conducting phase-wise, priority-based audits of individual IPPs would more effectively address contractual and operational challenges by focusing on their specific issues.

Moreover, efforts should prioritize increasing electricity demand, particularly by accelerating the development of SEZs, which offer a strategic opportunity to boost power consumption and improve sectoral efficiency.

This was discussed during a consultative meeting on “Unpacking the Issues in IPP Contracts: Insight from Experience and Emerging Scenarios,” held at the Institute of Policy Studies (IPS), Islamabad. The insights were shared by NaveedSiddique, a consultanting Engineer with diversified experience in various subsector of power sector of Pakistan. including Ministry, regulatory authority, vertically integrated utility, and IPPs, Khalid Rahman, chairman IPS, Mirza Hamid Hassan, former federal secretary, water and power, and AsadMahmood, a renewable energy expert.

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