Pakistan Atomic Energy Commission (PAEC) is demanding a Power Purchase Agreement (PPA) similar to the ones executed with Chashma series Nuclear Power Plants (NPPs).
Accrording to sources PAEC has approached Power Division to influence National Transmission and Despatch Company (NTDC) into signing a bilateral PPA with K-2 in line with the existing practices of Chashma NPPs
Previously when the draft Power Purchase Agreement of Karachi Nuclear Power Plant Unit-2 was submitted to CPPA-G on November 14, 2019, it responded that the Board of Directors has decided that all future PPAs shall be tripartite (PAEC, NTDC and CPPA-G being three parties).
Later MD NTDC proposed to CEO CPPA-G that tripartite regime was interim and both NTDC and CPPA-G should implement the new regime as per approved market model and plan. After receiving the approval from PAEC, the MD NTDC was asked for consent for a bilateral agreement (PPA) between CPPA-G and PAEC based on existing practice of Chashma series Nuclear Power Plants.
K-2 was connected to national grid on March 17, 2021 and achieved its COD (Commercial Operation Date) on May 21, 2021. PAEC has to return foreign loan of this project which will be due from July 2022. K-2 is one of the base load plants which need to be operating continuously and fulfilling minimum grid.