Pakistan implements an independent electricity market system.
Pakistan has initiated a novel independent electricity market system, signifying a transformative change in power trade.
The National Electric Power Regulatory Authority (NEPRA) has officially issued a license to the Independent System and Market Operator (ISMO), which now assumes the responsibilities of the Central Power Purchasing Agency.
This autonomous power market concept enables consumers to get electricity directly from providers, departing from conventional distribution firms.
The enhancement aims to foster efficiency and openness in power trading, progressively diminishing the government’s exclusive role as the sole purchaser of electricity.
The Independent System and Market Operator will initially be governed by three directors, with plans for future expansion to eleven directors.
Syed Zakariya Ali Shah, Additional Secretary of the Power Division, will assume the role of CEO, while Secretary Power Muhammad Fakhar Alam and Joint Secretary Finance Sajjad Haider will serve as directors.
This action corresponds with the federal cabinet’s resolution to restructure the National Transmission and Dispatch Company into three separate organizations.
The recently formed Independent System and Market Operator will be among them.
Through the implementation of this independent power market system, Pakistan aims to foster competition and enhance electricity accessibility.
Read More: NEPRA holds hearing on KE’s utility-scale solar initiatives
The National Electric Power Regulatory Authority (NEPRA) held hearings about K-Electric’s (KE) two utility-scale solar initiatives: a 150 MW project at Deh Metha Gar and a 120 MW project at Deh Halkani in Sindh.
These efforts were components of KE’s ambitious strategy to incorporate 1,300 MW of renewable energy into its generation portfolio by 2030, with the objective of diminishing dependence on imported fuels and improving energy affordability, according to the power utility.
The Deh Metha Gar and Deh Halkani projects obtained the most competitive tariff proposals in Pakistan’s renewable energy sector at PKR 9.8 per unit (about 3.4 US cents) from Kot Addu Power Company Limited (KAPCO).
