Grid Stability, Infrastructure Reinforcement Vital To Boost Power Wheeling

News Desk

Islamabad: In order to stimulate power wheeling in Pakistan, there is a need to build a secure and fair method for cost determination in a regulated market, ensure grid stability, and strengthen the transmission and distribution infrastructure, said K-Electric General Manager Special Projects Alia Idris.

The energy experts on Wednesday were of the view that power-wheeling is crucial to producing clean and affordable energy in order to enhance power productivity by reducing production cost for the industrial sector.

The experts made the remarks at a public-private dialogue titled “Power Wheeling Reforms for Offtake of Renewable Energy: Options and Challenges for Pakistan’s Corporate Sector” organised by Sustainable Development Policy Institute (SDPI).

Competitive Trading Bilateral Contract Market (CTBCM), National Electric Power Regulatory Authority (NEPRA) Consultant Gul Hassan Bhutto said that CTBCM and power wheeling would get beyond the barriers that NEPRA had been unable to remove since 1992 in order to make the electricity market competitive. The wholesale power market aims to align policy and regulatory frameworks, provide non-discriminatory access to all market participants, attract investments, increase efficiency, and reduce power tariffs.

Gul Hassan added that wheeling enables meeting energy demand by transporting power from point of generation to point of demand. Additionally, this would result in bilateral agreements and auctions, a drop in consumer prices, increased creditworthiness, a departure from national guarantees, and integrated system planning.

Central Power Purchasing Agency (CPPA)Manager, Market Design and Development Ahmed Tanvir Qazi said that CTBCM enabled a fair and affordable power supply while keeping in mind the interests of all stakeholders. This was done by taking a comprehensive look at how each CTBCM decision affects each stakeholder and, ultimately, the economy.

SDPI Senior Advisor Dr Hassan Daud Butt emphasised the importance of overcoming legal and regulatory obstacles and embracing all energy producing sources to improve power wheeling in Pakistan.

In especially for the industrial and export sector, Dr Hassan emphasised openness and assuring delivery on the plans, which must be formulated and carried out in conjunction with indigenous specialists.

Alia Idris informed that in order to generate, transmit, and distribute power, K-Electric intended to invest Rs 500 billion and inject 30 per cent of its energy from renewable sources by 2030. She also called for increased cooperation with National Transmission & Despatch Company (NTDC).