In a major step toward reforming the power sector, Pakistan has officially launched a new independent electricity market system. This marks a significant move away from the old setup where the government was the only buyer of electricity.
The National Electric Power Regulatory Authority (NEPRA) has issued a license to the newly formed Independent System and Market Operator (ISMO). This new body will now handle power trading and take over the responsibilities of the Central Power Purchasing Agency.
This new system allows consumers such as businesses or industries to buy electricity directly from power suppliers instead of relying solely on government run distribution companies. The goal is to bring more efficiency, fairness and competition into the energy sector.
At the initial stage ISMO will be run by a team of three directors:
- Syed Zakariya Ali Shah (Additional Secretary, Power Division) as CEO
- Muhammad Fakhar Alam (Secretary, Power Division)
- Sajjad Haider (Joint Secretary, Finance)
This move is part of a larger federal cabinet decision to restructure the National Transmission and Dispatch Company (NTDC) into three separate entities. ISMO is one of those key entities and will play a big role in reshaping how electricity is managed and sold in Pakistan.
Meanwhile NEPRA also conducted hearings on K-Electric two large solar energy projects in Sindh:
- 150 MW at Deh Metha Gar
- 120 MW at Deh Halkani
These projects are part of KE broader goal to include 1,300 MW of renewable energy in its system by 2030.
Both projects secured the lowest tariff rates in Pakistan renewable energy sector just PKR 9.8 per unit (about 3.4 US cents) offered by Kot Addu Power Company Limited (KAPCO).
