Power Purchase Agreements

Power Purchase Agreements

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Pakistan’s first corporate PPA at Sindh Engro Coal Mining Company (SECMC)

Safeguard your future
electricity prices

Power Purchase Agreements (PPAs) are between the purchaser (i.e. a private company or a state-owned local utility) and a power producer (i.e. Reon Energy Limited) to secure the payment stream. PPAs, which are generally for the time period of 15 years, safeguard the future

electricity prices at a predetermined price while offering the quickest way to achieve your sustainability goals. PPA creates a win-win scenario for both the producer and the consumer as it mitigates the risk of uncertainty in energy prices and guarantees offtake for the producer.


Our diversified experience in renewable energy project development gives us an edge to help you navigate the complexity of PPA contracts. Browse through the case study beneath to find out how companies have benefitted from a PPA.

Project Size:5 MW

Contract Type: Take or pay for 15-years at fixed rate per unit (Built Own Operate Model)

Tariff Structure: Fixed Rate Tariff

The Situation:

Sindh Engro Coal Mining Company Limited (SECMC) is a joint venture of Engro & Affiliates and Government of Sindh. The Mining activity in Thar Block-II requires electrical power that is partially being supplied through Solar Power Plant on BOOT basis for the period of fifteen (15) years. During the earlier years of operation, the power requirement of the mine was being fulfilled by diesel generation. Due to high fuel costs and global oil price volatility, SECMC entered into the first Private Power Purchase Agreement (PPA) with an approved Generation License from NEPRA.


  • 5MW solar based power generation system with civil structures and auxiliaries
  • Complete solar based power generation with monitoring, control and synchronization with existing diesel gensets


  • Roughly 40-50% reduction in cost per unit for diesel power displaced by solar energy

Project Size:1.8 MW

Contract Type: Take or Pay for 15 years (Built Own Operate Model)

Tariff Structure: Discounted Rate as compared to Off-Peak Grid Tariff

The Situation:

Procter and Gamble Pakistan has a goal of purchasing 100% renewable electricity globally by 2030 and has been aggressively pursuing renewable energy avenues. P&G Pakistan, to achieve this goal and mitigate rising electricity tariffs over the years requested an OpEx solution for renewable energy at commercially discounted rates versus grid. The project was implemented towards the end of 2020.


  • NEPRA approved Generation License for Solar based Power Generation System procured with end-to-end solar plant being installed with complete monitoring, control, and synchronization
  • Agreement signed on PPA basis to achieve renewable targets, reduce costs, and save on Capex for P&G Pakistan.


  • 2.8 GWh of annual energy units displaced by solar energy i.e., equivalent to 1,800 Tons of carbon savings annually
  • Roughly 30-40% reduction in cost per unit for grid displaced by solar energy

Power Purchase Agreements

A PPA can roughly be executed within a 10-months’ time frame after the issuance of the Letter of Intent (LOI).

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