Islamabad, October 19, 2023 – The National Electric Power Regulatory Authority (NEPRA) has successfully concluded a public hearing on K-Electric’s (KE) Power Acquisition Programme (PAP) for the fiscal years 2024-2030.
This important development sets the stage for a robust plan to meet Karachi’s growing energy demands in a sustainable and reliable manner.
The primary goal of the Power Acquisition Programme is to establish a long-term capacity expansion plan for KE’s service territory, which includes Karachi and its surrounding areas. By maximizing the use of renewable and indigenous resources, KE aims to ensure affordable and accessible energy for all its consumers.
KE initially submitted the program to the regulator in early 2023. It complements the company’s ambitious Rs484 billion investment plan designed to bolster its transmission and distribution infrastructure, ensuring the delivery of electricity to the people of Karachi.
The heart of the Power Acquisition Program lies in its commitment to gradually integrate renewable and indigenous power sources, with a capacity of up to 2,200 megawatts. This will include solar, wind, and hydropower projects that will transmit electricity to Karachi under the wheeling regulations prescribed by NEPRA and the government of Pakistan.
Karachi’s electricity demand is projected to grow at a sustained rate of 2 percent per annum, potentially reaching 5,000 megawatts by 2030. This expanded capacity will cater to the power needs of an estimated five million customers, highlighting the critical role KE plays in powering one of Pakistan’s most populous and economically vital cities.
KE’s dedication to sustainability is evident in its target to have renewable energy account for 30% of its overall generation mix. To achieve this ambitious goal, KE has been actively collaborating with various stakeholders, including the World Bank, the Sindh Energy Department, the government of Balochistan, and other prominent players in the power sector development.
The approval of the Power Acquisition Program marks a pivotal milestone in K-Electric’s multi-year tariff (MYT) process. The company voluntarily filed for a non-exclusive license and submitted separate petitions for its generation, transmission, and distribution businesses, aligning itself with best practices and preparing for the impending liberalization of the power sector under the Competitive Trading Bilateral Contracts Market (CTBCM).
About K-Electric (KE):
K-Electric, originally incorporated as KESC in Pakistan in 1913, underwent privatization in 2005. It stands as the sole vertically integrated utility provider within a 6,500 square kilometers territory encompassing Karachi and its neighboring regions. The majority of the company’s shares (66.4%) are listed on the Pakistan Stock Exchange (PSX) and are owned by KES Power, a consortium of investors that includes Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding) of Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan also holds a minority stake (24.36%) in the company, emphasizing its importance within the country’s energy landscape.
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