In energy sector economics, what is the primary purpose of ‘capacity payments’ within power purchase agreements?

By Ahmed Akber

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Last Updated 13 Aug 2026

A. Reimbursing the actual cost of fuel consumed

B. Covering fixed costs to ensure generation availability

C. Funding the expansion of transmission networks

D. Providing direct electricity subsidies to consumers

📚 Topics: Pakistan Current Affairs

🎯 Exams: CSS NTS PMS UK_CS

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