Why Pakistan is locked into overpriced and environmentally damaging power sector contracts

Abstract:

Where does electricity come from? In developing countries, the power sector uses long-term, rigid contracts called power purchase agreements (PPAs) between a private generator and government-owned utilities. These PPAs are not usually competitive, their terms – including payment guarantees by which suppliers get paid even when there is no demand – are often secret, they can last for up to 30 years, and they guarantee the use of fossil fuels far into the future. Sugandha Srivastav tells Tim Phillips about how the privatisation of electricity generation has created a way to move money “from the public coffers to vested interests”.