A high-powered cabinet sub-committee on energy transition on Wednesday adopted a phased decommissioning schedule for all remaining quick-rental and emergency liquid-fuel power plants operating across the national grid.
The strategic roadmap terminates non-competitive capacity-payment contracts upon expiration, replacing expensive heavy fuel oil generation with baseload natural gas, renewable solar installations, and cross-border hydro imports from Nepal.
Officials estimate the retirement will save the national exchequer over $1.2 billion annually in fuel subsidy liabilities while lowering bulk electricity generation tariffs across industrial export zones.
