ISLAMABAD: K-Electric (KE) is reportedly in shock over reports indicating that its five renewable energy projects (wind and hybrid) are not part of the Indicative Generation Capacity Expansion Plan (IGCEP) 2024, which is in its final stages, well-informed sources told Business Recorder.
The power utility company has conveyed its concerns to the Minister for Power, Sardar Awais Leghari, alongside previous correspondence outlining the current status of its projects and interactions with the National Transmission and Dispatch Company (NTDC).
According to KE, in its initial review of the draft IGCEP 2024, submitted to Nepra in April 2024, several critical submissions made by KE were not considered. Additionally, NTDC did not share the draft IGCEP 2024 results with KE for review, and consent before submitting them to Nepra, despite multiple requests from KE.
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KE’s letter highlights its plans to incorporate renewable energy into its fleet as part of efforts to reduce fuel costs and lower its generation cost base.
The company has gone through a lengthy process to obtain approval for its Request for Proposals (RFPs) for renewable energy projects over the past few years.
Nepra granted approval for the following RFPs in early 2024 after thorough deliberations, multiple hearings, stakeholder consultations, and compliance with all regulatory requirements:
(i) 150MW Solar Projects in Winder and Bela sites – Approval date: February 24, 2024; reports submitted: August 28, 2024;
(ii) 200MW (AC Peak) Hybrid Power Project at Dhabeji – Approval date: March 15, 2024; reports submitted: October 26, 2024;
(iii) 150MW Solar Power Plant at Malir, Karachi – Approval date: February 29, 2024; reports submitted: November 7, 2024; and
(iv) 120MW Solar Power Plant at West Karachi – Approval date: February 29, 2024; reports submitted: December 9, 2024.
These projects were also approved by Nepra on May 17, 2024, as firm projects under KE’s Power Acquisition Programme (PAP). After receiving these approvals, KE successfully completed the first tariff bidding process in Pakistan, as well as, the bidding for these five renewable energy projects across Sindh and Balochistan.
KE believes that these projects represent a landmark achievement for Pakistan’s power sector, having secured the lowest tariffs for renewable energy through open competitive bidding.
The utility asserts that these projects will result in annual energy savings of approximately Rs 13 billion and foreign exchange savings of $87 million, displacing the need for imported fuels.
Despite this, KE has repeatedly informed NTDC of its renewable energy portfolio and urged the company to include these projects in the IGCEP 2024. KE believes that failing to include its renewable projects in the plan would be detrimental not only to KE and its consumers but also to market confidence and potential project investors. Moreover, it would render the entire regulatory process futile.
KE recently learned during a Nepra hearing for the Winder and Bela Bid Evaluation Report on December 11, 2024, that these renewable projects were still not included in the draft IGCEP 2024, despite multiple revisions since its initial submission in April 2024. Furthermore, NTDC has not shared or discussed any of these iterations with KE for review and comments.
“These projects will not only make energy more affordable but also lead to savings by displacing costly fuels at both the KE fleet level and for NTDC. Additionally, they will provide the government with much-needed fiscal space and significant foreign exchange savings, offering overall economic benefits,” KE’s letter stated.
KE further emphasised that its renewable energy projects are at a much more advanced stage compared to some PC-1 projects, which are categorised as “Committed” under the IGCEP, despite limited practical progress. Therefore, KE argues that its renewable projects should be included in IGCEP 2024 as “Committed” capacity and be expedited for timely benefits.
“We request that these projects be included as ‘Committed’ capacity in the revised IGCEP 2024. Furthermore, the final IGCEP document should be shared with KE prior to its submission to NEPRA for approval,” the letter concludes.
Copyright Business Recorder, 2025
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