In a crucial step for Pakistan’s energy security, the Economic Coordination Committee (ECC) of the Cabinet has approved the signing of formal Tripartite Power Purchase Agreements (TPPAs) for the Karachi Nuclear Power Plant Units 2 and 3 (K-2 and K-3). The agreements will be finalized between the Pakistan Atomic Energy Commission (PAEC), the National Grid Company (NGC, formerly NTDC), and the Central Power Purchasing Agency-Guaranteed (CPPA-G).
The approval, granted during the ECC meeting chaired by the Finance Minister, follows a briefing by the Power Division. The two strategically vital plants, each boasting an installed capacity of 1,145 megawatts (MW), were constructed and are operated by PAEC. K-2 commenced commercial operations in May 2021, followed by K-3 in April 2022. Despite being operational and supplying electricity to the national grid “at the most economical rates” for years, formal TPPAs had been pending.
The Power Division informed the ECC that CPPA-G required federal government approval to sign the agreements. The standardized TPPA draft, previously approved by the ECC under the Power Generation Policy 2015, served as the base document, incorporating project-specific changes and performance-based provisions. The National Electric Power Regulatory Authority (NEPRA) had already cleared the signing of the TPPAs in April 2024, having previously granted generation licences and final tariffs to both plants.
The ECC approved the Power Division’s specific proposals: signing the TPPA for the 1,145 MW K-2 plant and the TPPA for the 1,145 MW K-3 plant. This formalization, based on a “Take or Pay” principle, secures the long-term contractual framework for the purchase of power generated by these significant base-load plants, providing revenue certainty and solidifying their role in Pakistan’s energy mix.
