Pakistan launches independent electricity market system

ISLAMABAD: In a groundbreaking move in power trading, Pakistan has launched a new independent power market system.

The National Electric Power Regulatory Authority (NEPRA) has officially licensed the Independent System and Market Operator (ISMO), which now assumes the role of the Central Power Purchasing Agency.

This independent power market system allows consumers to purchase power directly from suppliers, bypassing traditional distribution companies.

The improvement is designed to promote efficiency and transparency in power trading, gradually reducing the role of the government as a power buyer.

Initially, the Independent System and Market Operator will operate under the leadership of three directors, which will be expanded to eleven in the future.

Additional Secretary Power Division Syed Zakaria Ali Shah will serve as CEO, while Secretary Power Muhammad Fakhar Alam and Joint Secretary Finance Sajjad Haider will assist as directors.

The move is in line with the federal cabinet’s decision to restructure the National Transmission and Dispatch Company into three entities.

The newly established independent system and market operator will be one of them.

By implementing this independent electricity market system, Pakistan intends to announce competition and improve access to electricity.

The National Electric Power Regulatory Authority (Nepra) held a hearing on two utility-scale solar projects of K-Electric (KE), a 150 MW project in Deh Methagar and a 120 MW project in Deh Halkani in Sindh.

The power utility said the moves were part of KE’s ambitious plan to integrate 1,300 MW of renewable energy into its generation portfolio by 2030, with the aim of reducing dependence on imported fuel and increasing energy affordability.

The Deh Metha Gur and Deh Halkani projects received the lowest tariff bid in Pakistan’s renewable energy sector from Kot Addu Power Company Limited (Copco) at PKR 9.8 per unit (approximately 3.4 US cents).