Suleman Shehbaz, son of Pakistan’s Prime Minister, has addressed reports concerning capacity payments to Chiniot Power Limited.
The IPP reportedly received capacity payments totalling 630 million rupees. The breakdown of these payments is as follows: 308 million rupees in January 2024 at 63% capacity, 231 million rupees in February at 65% capacity, and 99.9 million rupees in March at 27% capacity.
In response to recent reports, Suleman Shehbaz addressed the public via Twitter to clarify Chiniot Power Limited‘s financial transactions. He explained that the plant’s payments do not constitute “capacity payments” as traditionally defined within the energy sector.
Shehbaz clarified that Chiniot Power Limited only receives payments for the electrical units it supplies to the grid. He stressed that the plant earns no payments when it is not operating and strongly denied claims that bagasse plants benefit from capacity payments like his. Bagasse, a byproduct of sugarcane, is a local and sustainable fuel source for generating electricity.
Shehbaz highlighted the advantages of using local fuels such as bagasse instead of imported options like furnace oil, coal, or gas. He argued that this approach enhances energy sustainability and economic self-sufficiency in Pakistan.
Further contributing to the discussion, Khawaja Asif, a prominent figure in the energy sector, stated that Chiniot Power Limited has a capacity of 62 MW, which constitutes less than 1% of Pakistan’s total electricity generation capacity. He supported Shehbaz’s assertion that the plant does not receive capacity payments and confirmed that the Shehbaz Sharif family does not own any additional power plants.
Asif advocated for establishing more energy projects in Pakistan that utilize local resources like bagasse and do not involve capacity payments, thereby supporting the country’s move towards more sustainable and economically beneficial energy solutions.
