In a significant boost for renewable energy and power sector reform, the National Electric Power Regulatory Authority (NEPRA) has approved K-Electric’s (KE) Bid Evaluation Reports (BERs) for three major clean energy projects and its plan for integrating into the competitive electricity market.
The approvals cover two solar photovoltaic projects: a 100 MW plant at Bela and a 50 MW plant at Winder, Balochistan. Master Textile Mills Limited (MTML) emerged as the winning bidder for both, offering highly competitive tariffs of Rs. 11.2071/kWh and Rs. 11.6508/kWh respectively, among the lowest solar rates secured in Pakistan. NEPRA also approved the BER for KE’s innovative 220 MW site-neutral hybrid power project at Dhabeji Grid Station.
NEPRA rigorously reviewed KE’s competitive bidding processes for all projects. The regulator confirmed full compliance with the National Competitive Bidding Tariff Regulations (NCBTR-2017) and its own directives, highlighting the process as “transparent and visible.” Key factors included KE’s use of the SAP ARIBA platform, public website disclosures, timely communication with bidders, and crucially, the absence of any formal complaints throughout the process.
The regulator imposed a strict condition: any financial losses due to delays in project execution, whether caused by KE or the bidder, must not be passed on to consumers. This safeguard must be explicitly included in the project agreements.
NEPRA also approved KE’s detailed plan for integrating into the Competitive Trading Bilateral Contract Market (CTBCM), marking a crucial step towards power sector liberalization. However, this integration is contingent upon finalizing the commercial allocation of KE’s existing power purchase agreements and establishing a capacity invoicing mechanism for power supplied from the national grid once CTBCM commences. KE will need to file a revised tariff petition aligned with the CTBCM framework.
These approvals pave the way for KE to formally notify MTML and advance the solar projects, significantly increasing renewable generation capacity in its system and displacing more expensive power sources, ultimately aiming for consumer cost savings and reduced foreign exchange outflow. The Dhabeji hybrid project and CTBCM integration represent major steps towards a more modern and competitive power market for Karachi.
