VoxDev Development Economics
S4 Ep48: The high price of Pakistan’s polluting power contracts
Nov 27, 2024
Sugandha Srivastav, a Researcher at the University of Oxford specializing in power purchase agreements in developing countries, joins the discussion to unveil the complexities of Pakistan's electricity contracts. She highlights how opaque PPAs lock the country into long-term, costly fossil fuel agreements, draining public resources. The conversation dives into the detrimental financial impact on Pakistan's economy, the shift from public to private sector management, and the urgent need for reforms towards sustainable energy solutions.
29:47
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The rigid structure of long-term power purchase agreements in Pakistan distorts market incentives, leading to high electricity costs and public debt.
- Renegotiating or litigating against harmful power contracts could facilitate access to affordable, cleaner energy and better distribute risks.
Deep dives
The Importance of Affordable Electricity
Access to affordable electricity is crucial for economic development in developing countries. The goal is to achieve universal access to electricity, which is a cornerstone for improving living standards and fostering growth. However, high electricity costs hinder this progress, prompting a need for insights into why affordability remains a challenge. New research reveals that the structure of power purchase agreements (PPAs) plays a significant role in driving up these costs, ultimately affecting the population's ability to access and utilize electricity.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
