Indian Journal of Science and Technology

Abstract

Objectives: The present study discusses the history and challenges faced by Independent Power Producers (IPPs) in Pakistan from 1990 to 2015. For this purpose, data has been taken from IPPs yearly books, Private Power & Infrastructure Board and National Electric Power Regularity Authority. The study is qualitative in nature, so descriptive analysis is used. Data are presented in the form of tables and figures and analyze by looking the policies adopted by government of Pakistan in different time periods and its impacts on the performance of IPPs. Methods/Findings: The study highlights the performance of IPPs rather than the whole energy sector of the economy. IPPs are contributing significant role to fulfill the requirements of energy needs all over the world particularly in Pakistan i.e. 30 percent of the overall energy production but no proper work have been done. The second different is that IPPs in their production, transmission and pricing is different from the regular energy sector that it totally deals with NEPRA rather than general public. So, this study is unique in a sense that it not only highlights the issues and problems faced by IPPs because of government policies but also because of their own internal problems. Application: The study concluded that IPPs are basically facing two main problems i.e. problem of scarcity of liquidity and high cost per production because most of the IPPs use furnace oil and diesel for their production, which is very much costly. 

Keywords: Cost Per Production, Independent Power Producers (IPPs), Energy Production, Liquidity, Transmission