Rupee Crash Has Doubled Capacity Payments for Power Projects: Secretary

Due to the Pakistani Rupee’s (PKR) depreciation from 100 to 300 against the US Dollar, capacity payments have doubled from Rs. 1,082 billion to Rs. 2,152 billion, according to Secretary Power Division Rashid Langrial.

In a tweet on Monday, the official said, “Foreign-funded dollar-denominated IPPs have contributed the most”.

“Locally funded RLNG plants’ capacity payment has increased by 60% while foreign-funded coal plants’ payment has gone up by 145%,” he added.

Data shows that when the rupee/$ rate was at Rs. 100, the capacity payment for foreign-funded projects was Rs. 3,218/kW/M, while capacity payment for local-funded projects was Rs. 1,436/kW/M. Since the PKR hit 300/$, the capacity payments for foreign-funded projects have increased to Rs. 7,097/kW/M and Rs. 1,857/kW/M for local-funded projects, respectively.

The total de-rated available capacity in the system, excluding K-Electric, is 36,277 MW (foreign-funded 21,374 MW, local-funded 14,903 MW).

With PKR at 300/$, the capacity payments for both local and foreign-funded projects are:

Project, Capacity Payment (With PKR At 100) Payment (With PKR At 300)

WAPDA, 8578 MW Rs. 147 billion Rs. 147 billion

Coal, 6,777 MW Rs. 262 billion Rs. 643 billion

Nuclear, 3,266 MW Rs. 235 billion Rs. 510 billion

Hydel, 2,215 MW Rs. 102 billion Rs. 255 billion

Renewable, 2,887 MW Rs. 129 billion Rs. 260 Billion

RLNG, 4,687 MW Rs. 87 billion Rs. 139 billion

GENCOs, 1,638 MW Rs. 23 billion Rs. 46 billion

policy, 3,491 MW Rs. 55 billion Rs. 86 billion

policy, 2,739 MW Rs. 42 billion Rs. 66 billion

TOTAL Rs. 1,082 billion Rs. 2,152 billion

Source: Pro Pakistani