Islamabad: (RightNow) Despite efforts to reduce electricity production costs, Pakistan continues to operate expensive power plants. The Power Division states that while low-cost plants are prioritized, expensive ones are used when necessary.

According to the Power Division, expensive plants are utilized when hydropower is low, solar is unavailable, or demand suddenly increases. These plants serve as a backup for the electricity system.

Technical Advisor Syed Faizan Ali Shah highlights the need for grid stability with the rising trend of solar energy. The lack of hydropower in winter and gas shortages pose challenges.

In the fiscal year 2025-26, only 1% of the 5% furnace oil capacity was used. Linking capacity payments to underutilized plants is not entirely accurate.

It is noteworthy that the fiscal year 2025-26 capacity payments included 944 billion in debt repayments, 471 billion in operations and maintenance, and 449 billion in investment returns.