The Council of Common Interests (CCI) has approved a long-term plan for power generation, Federal Energy Minister Hammad Azhar said on Monday.
Hammad said the Indicative Generation Capacity Expansion Plan (IGCEP) model was approved at a meeting of the CCI presided over by Prime Minister Imran Khan and attended by chief ministers and federal ministers.
IGCEP is a long-term plan for power generation, which allows power to be added to the grid when needed and when it is being provided at the least cost, Hammad Azhar wrote on Twitter.
He said that in future electricity would be generated from cheap fuel on a competitive basis.
The approval of the IGCEP would entail elimination of expensive power generation, which would prevent non-transparent power contracts in future, Azhar wrote.
Criticising the previous governments, Azhar wrote that had the plan been approved in 2005, issues like circular debt could have been avoided.
A large part of circular debt originates from excess capacity payments that run into hundreds of billions each year. And expensive power purchase contracts of past.
IGCEP model seeks to eliminate both in future by adding capacity only when needed & through competitive auction. https://t.co/PZIRsosQBf— Hammad Azhar (@Hammad_Azhar) September 6, 2021
