Pakistan introduces independent electricity market system

Marking an innovative shift in power trading, Pakistan has launched a new independent electricity market system.

The National Electric Power Regulatory Authority (NEPRA) has formally granted a license to the Independent System and Market Operator (ISMO), which now takes over the Central Power Purchasing Agency’s role.

This independent electricity market system lets consumers buy electricity straight from suppliers, moving away from traditional distribution companies.

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

In the beginning, the Independent System and Market Operator will function under the leadership of three directors, which will further expand beyond eleven in the future.

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

This step aligns with the decision of the federal cabinet to rearrange the National Transmission and Dispatch Company into three entities.

The newly established Independent System and Market Operator will be one of them.

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

Read More: NEPRA conducts hearing for KE’s utility-scale solar projects

The National Electric Power Regulatory Authority (NEPRA) conducted hearings on K-Electric’s (KE) two utility-scale solar projects—a 150 MW project at Deh Metha Gar and a 120 MW project at Deh Halkani in Sindh.

These initiatives were part of KE’s ambitious plan to integrate 1,300 MW of renewable energy into its generation portfolio by 2030, aiming to reduce reliance on imported fuels and enhance energy affordability, the power utility said.

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