ISLAMABAD: Following the solar energy-based independent power producers (IPPs), bagasse-based IPPs have also agreed to sign amended power purchase agreements with the government.
The signing of the amended purchase agreements will slash the existing tariffs to a considerable extent.
According to details, eight bagasse-based IPPs will sign an amended deal of power tariff with the government, whereas both sides will sign the amended agreement after endorsement from the federal cabinet.
“The new power agreement will also require approval from the governing boards of the bagasse-based IPPs,” sources added.
Solar-based IPPs that had signed memoranda of understanding in August 2020 had recently reached an agreement with the government negotiation team for signing amended agreement to slash power tariffs.
It is to be mentioned here that a negotiation team of the government is currently in talks with IPPs over their dues payment mechanism and signing the amended PPAs.
