Islamabad 31 July: The 969 MW Neelum-Jhelum Hydropower Project is expected to remain non-operational until at least mid-2027 due to severe structural damage in its tunnel, NEPRA was told during a recent hearing.
The Central Power Purchasing Agency (CPPA-G) informed the authority that the project suffered a tunnel collapse in 2024, making restoration efforts lengthy and complex.
Originally commissioned in 2018 at a cost of Rs 500 billion, the plant has faced recurring issues. It was shut down in May 2024 after a major rock burst damaged the tunnel system, following a similar shutdown in 2022 due to tail race blockage.
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NEPRA and energy stakeholders raised concerns over the ongoing financial impact. Consumers have been paying higher tariffs due to increased reliance on thermal and imported power. The current estimate puts the additional burden at Rs 0.54 per unit, amounting to over Rs 167 billion in just one year.
WAPDA has proposed either a full tunnel reconstruction, which could cost over Rs 250 billion and take years, or partial rehabilitation at an estimated Rs 20 billion. Meanwhile, a judicial inquiry is underway to investigate engineering, design, and construction lapses.
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The outage of this strategic power plant has strained the national grid and intensified electricity costs, with full restoration now unlikely before 2027.
