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Kot Addu Power Company (KAPCO): KAPCO useful life beyond PPA – By Taurus Research

  • By: Taurus Securities Limited

  • - Published: Tuesday, 07 July 2020
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<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Kot Addu Power Company (KAPCO) Limited was constructed by WAPDA between 1985-1996 with a generation capacity of 1,600MW, and is currently moving towards the last year of its Power Purchase Agreement (PPA) signed with Government. The PPA is scheduled to expire on 26th June 2021. However, KAPCO still has a useful life of 5-10 years which can be utilized after the expiry of its current PPA to generate power for the country on a &ldquo;Take and Pay&rdquo; basis, specially during summers when demand is at its peak.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">After the commencement of RLNG imports in the country, the fuel mix of KAPCO&rsquo;s plant has shifted towards RLNG i.e. 77% share in FY19 from 9% in FY15. M...

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