Secretary Power Division Rashid Langrial has reported that as a result of the Pakistani Rupee’s depreciation, which has gone from 100 to 300 against the US Dollar, capacity payments have doubled, rising from Rs. 1,082 billion to Rs. 2,152 billion.

In a tweet posted on Monday, the official stated, “Foreign-funded dollar-denominated IPPs have had the most significant impact.”

He also noted, “Capacity payments for domestically funded RLNG plants have risen by 60%, while payments for foreign-funded coal plants have surged by 145%.”

Capacity Payment doubled as dollar rose from PKR 100 to 300.

Foreign-funded dollar-denominated IPPs have contributed the most.

Locally funded RLNG plants’s capacity payment has increased by 60 % while foreign-funded coal plants’ payment has gone up by 145 %.

Policy lessons ? pic.twitter.com/HbEhpYvEIn

— Rashid Langrial (@Rashidlangrial) September 18, 2023

Data reveals that when the exchange rate was at Rs. 100 per US dollar, the capacity payment for foreign-funded projects stood at Rs. 3,218 per kilowatt per month (kW/M), while local-funded projects incurred a capacity payment of Rs. 1,436 per kW/M. However, as the Pakistani Rupee depreciated to 300 per US dollar, the capacity payments for foreign-funded projects have risen to Rs. 7,097 per kW/M, and for local-funded projects, it’s now Rs. 1,857 per kW/M.

The total de-rated available capacity within the system, excluding K-Electric, is 36,277 megawatts (MW), with foreign-funded projects contributing 21,374 MW and local-funded projects providing 14,903 MW.

With the exchange rate at 300 Pakistani Rupees per US dollar, the capacity payments for both local and foreign-funded projects are as follows: