Islamabad, May 1, 205: Pakistan has introduced a groundbreaking shift in its power sector with the launch of an independent electricity market system, signaling a move towards greater efficiency and market competition.
The National Electric Power Regulatory Authority (NEPRA) has officially issued a license to the Independent System and Market Operator (ISMO), which now assumes responsibility for the functions previously held by the Central Power Purchasing Agency (CPPA).
This new market model allows consumers to purchase electricity directly from suppliers, breaking away from the conventional reliance on distribution companies.
It aims to increase transparency, boost competition, and gradually decrease the government’s monopoly as the sole buyer of electricity.
Initially, the ISMO will be led by a board of three directors, with plans for further expansion to eleven in the near future.
Syed Zakariya Ali Shah, the Additional Secretary of Power Division, will serve as CEO, alongside Muhammad Fakhar Alam, the Secretary of Power, and Sajjad Haider, the Joint Secretary of Finance, who will act as directors.
This move is in line with the federal cabinet’s decision to restructure the National Transmission and Dispatch Company (NTDC) into three distinct entities, with the ISMO being one of them.
Through this market overhaul, Pakistan seeks to foster competition and improve electricity access for consumers.
Additionally, NEPRA has been holding hearings regarding K-Electric’s (KE) solar projects in Sindh—one at Deh Metha Gar (150 MW) and another at Deh Halkani (120 MW).
These projects are part of KE’s ambitious target to integrate 1,300 MW of renewable energy by 2030, which will reduce dependence on imported fuel and enhance energy affordability.
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The projects are expected to offer the lowest tariff in Pakistan’s renewable energy sector, with bids of PKR 9.8 per unit (about 3.4 US cents) from Kot Addu Power Company Limited (KAPCO).
This innovative initiative represents a significant step toward modernizing Pakistan’s energy sector, ensuring a cleaner, more competitive, and sustainable energy future.
