ISLAMABAD: The country’s wind power plants are reportedly facing increased curtailments by the Independent Market System Operator (IMSO) despite signing revised agreements at the government’s insistence, well-informed sources told Business Recorder . Recently, Liberty Wind Power 2 Limited (LWP2) raised serious concerns over sustained and significantly increased curtailments imposed by the system operator on its 50 MW wind power project located at Jhimpir. According to the company, the frequency, duration and unpredictability of these curtailments have sharply reduced the volume of electricity dispatched from the plant, resulting in a significant decline in project revenues. READ ALSO: Power Cement to set up 7.5MW wind captive power plant under Rs1.5bn deal with BCEM The company warned that the resulting cash flow shortfall could place serious pressure on the project’s financial position and its ability to meet scheduled debt-servicing obligations. “If this trend continues, there is a real risk of default under the financing agreements,” said LWP2 Chief Executive Officer Kashif Hanif in a letter to Chief Executive Officer of CPPA-G, Rihan Akhtar. The company maintained that the situation is commercially unsustainable and undermines the viability of the project. According to LWP2, the continued and disproportionate curtailment of the project violates the renewable energy policy framework applicable to the plant. It cited Section 8.2.1 of the Policy for Development of Renewable Energy for Power Generation, 2006, which states that it is mandatory for power distribution utilities to purchase all electricity offered by renewable energy projects. The company also referred to the Amendment Agreement to the Energy Purchase Agreement (EPA), executed in Islamabad on October 7, 2025. Under Article 2.3 of the agreement, the Government of Pakistan committed to facilitate the resolution of curtailment-related issues affecting the project. The relevant clause states: “GoP shall facilitate to address the issue of curtailment.” According to LWP2, this commitment was a fundamental assurance aimed at safeguarding the project’s financial stability and maintaining lenders’ confidence. However, the company said curtailments have continued to increase even after it agreed to the renegotiated tariff in good faith. It added that the expectation was that the revised arrangement would address operational and commercial concerns, but the curtailments have instead intensified. The company has requested urgent intervention to immediately reduce and rationalise curtailments, ensure implementation of the facilitation commitment under Article 2.3 of the amendment agreement, and provide priority dispatch and must-run treatment to the project in line with the Renewable Energy Policy and the EPA. LWP2 warned that if timely remedial action is not taken, the company reserves the right to pursue remedies available under the EPA, the amendment agreement, financing documents and applicable law. Earlier, Din Energy Limited (DEL) and other wind power plants had written similar letters to the ISMO. Copyright Business Recorder, 2026