FPCCI demands end to curtailments of 12 low-tariff wind power projects

March 12, 2025 (MLN): Serious concerns have been raised by Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), regarding the ongoing curtailment of 12 wind power projects with low tariffs.

He added that this is happening despite their cost-effectiveness and alignment with national energy goals.

Atif Ikram Sheikh has criticized the continued preference for expensive, obsolete power sources, urging the government to adhere to the Renewable Energy Policy 2006.

He emphasized that the current situation is causing significant curtailments, leading to substantial financial losses for wind energy project developers, according to the press release issued today.

This scenario is impacting their ability to service debts and maintain operations and also compromising their return on investment (ROI) – which is jeopardizing future expansions as well.

FPCCI Chief maintained that due to the curtailment issues, confidence among foreign investors will be severely affected; which will directly be impacting any future foreign direct investment (FDI) in the renewable energy sector.

Ultimately, it can lead to project defaults and financial instability, he added.

Atif Ikram Sheikh stressed the importance of creating a stable, consistent and supportive environment for renewable energy; aligning with the Special Investment Facilitation Council's (SIFC) focus on the energy sector.

Meanwhile, Fawad Jawed, Convener of FPCCI’s Central Standing Committee on Renewable Energy, highlighted the economic and environmental advantages of wind power.

He elaborated that wind energy in Pakistan offers clean, affordable electricity at a tariff of Rs13.8 per kWh – which is significantly lower than RLNG, RFO and coal-fired plants.

Fawad Jawed explained that 12 wind power projects in the Jhimpir Wind Corridor, with a combined capacity of 610 MW, have been commissioned since 2021.

However, these must-run plants – as designated by the Renewable Energy Policy 2006 – face frequent curtailments and reduced offtake.

This is a loss of cheap electricity to our nation, he added.

Fawad Jawed noted that it undermines our sustainable energy goals and hinders our progress towards achieving a 50% emissions reduction by 2030 and a 30% renewable energy share in the national grid by 2030 – as outlined in the Alternative & Renewable Energy Policy 2019.

Fawad Jawed explained the economic impact of the curtailments that the wind power plants have the potential to deliver exceptionally cost-effective electricity once they reach their capacity factor of around 38%.

However, underutilization prevents these cost savings from being passed on to consumers, he added.

In the interest of the national economy and power consumers, FPCCI demands an immediate and lasting end to the curtailments for 12 wind power projects which have low tariff.

FPCCI also demands that the Existing Energy Purchase Agreements (EPAs) should be honored.

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