ISLAMABAD   -   The National Electric Power Regulatory Authority (NEPRA) has approved K-Electric’s Power Acquisition Programme (PAP) for five years(2024-28), instead of the company’s submitted seven years plan (2024-2030).

The Authority has noted that KEL has submitted a seven-year PAP spanning from FY 2024 to FY 2030, despite the requirement for a five-year plan as per Regulation 6 (1) of the Procurement Regulations, which states: “a supplier of last resort shall prepare a rolling five-year power acquisition programme on an annual basis,” said a determination issued here by NEPRA.

“The Authority has thus considered the PAP submitted by KEL for the specified five-year period until FY 2028. Regarding alignment with the IGCEP, a comparison between the IGCEP 2022-31 and the proposed capacity additions in the PAP has been made. While there are variations between individual years’ capacity and timelines, the overall proposed capacity additions based on the CO in the PAP are aligned with the IGCEP 2022-31 for the planning horizon of FY 2024 — FY 2030.”

Concerning compliance with the CO, KEL is compliant for the period FY 2023 — FY 2027, as confirmed by the MO. However, due to the CO report’s horizon not extending to FY 2028, compliance for that year cannot be confirmed. Notably, compliance status is not mandatory for FY 2028 as it falls within the indicative period. Regarding the preparation of the PAP in line with the TSEP and other relevant plans, it is noted that TSEP is yet to be formally submitted by the NTDC. However, KEL’s electric power evacuation arrangements for projects have been finalized, and investment plans for interconnection/evacuation arrangements have been approved by the Authority. KEL is directed to coordinate with NTDC for the timely preparation and submission of TSEP to ensure evacuation arrangements for proposed projects are duly integrated with the NTDC power system and any strengthening with regards to the stability, exibility and ancillary services are accounted for. Meanwhile, a statement issued here said that this approval represents a pivotal development in KE’s strategy to enhance the reliability and sustainability of power supply in Karachi. KE’s PAP outlined a comprehensive plan to ensure a stable power supply by integrating renewable energy, local fuel, and power off-take from the national grid. This ambitious programme aligns with the NEPRA approved IGCEP 2022-2031, National Electricity Policy 2021 and the National Electricity Plan 2023-2027.

A significant focus of the approved plan is the integration of renewable energy. KE aims to add 1,282 MW of renewable energy, including solar and wind projects, by 2030. This includes a notable 270MW solar PV project in Karachi and a 200 MW hybrid plant near the Dhabeji Grid Station. These projects are expected to significantly contribute to the city’s energy mix, promoting sustainability and reducing the carbon footprint.

Additionally, the PAP includes capacity addition on local coal which will diversify the energy mix and reduce reliance on imported fuels. The PAP also details KE’s agreements to import additional power from the national grid which will also improve grid utilization, benefitting the regulated consumers as well as the sector at large.