There are rising concerns in the renewable power sector as for the past six days, the federal government has stopped all offtake from a number of wind farms that are part of the Jhimpir Wind Corridor.
An investor in the Jhimpir Wind Corridor was quoted in a Dawn report saying that turbines are standing idle as authorities claim that power demand in the country is not sufficient for offtake from the wind farms.
While K-Electric continues to purchase renewable power, the Central Power Purchasing Agency (CPPA) appears to have cut down offtake to zero. Meanwhile, the latter continues to purchase power from producers using coal and regasified liquefied natural gas – which have a far higher environmental cost than renewable resources.
Power plants relying on renewable resources do not have payments for their installed capacity as part of their Power Purchase Agreements with the government. This means that if the government stops offtake of power from them, their revenue is hit harder.
Investors in the Jhimpir Corridor are quoted saying that the financial situation for at least some of the projects is now precarious.