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Govt under fire for ignoring KE’s least cost  renewable energy projects in energy blueprint 2025-35

by AMG
May 4, 2025
in Energy
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ISLAMABAD : The government’s decision to exclude renewable energy project of K-Electric (KE)  from the  IGCEP 2025-35 approved by the Prime Minister, Shehbaz Sharif is being criticised in social media groups.

 According to one of the participants of a Group, stated that  IGCEP, TSEP, PAP and DIPs etc. are the regulatory plans and have to be aligned with each other and prepared under the Grid Code and other regulatory applicable documents and submitted every year for Nepra approval. These four plans are subject to stakeholders consultation and regulatory approvals before they are enforced no where policy or cabinet approvals are required.

 ” There is clear confusion one can say PM is consented but this plan is not approved by him, this to be corrected as no approval of the policy side and parliament required for these business plans.

  ” Nepra have to still approve these plants and we are hearing IGCEP is updated not sure of TSEP. Let the two plans to come Nepra and let it to be public for any other comments. It’s clear that the draft IGCEP was taken by NTDC for seeking blessings or consent not sure if it was really required under any applicable framework,” he opined.

 The participant further stated that n 18th amendment have no link and requirement to these institutional plans approval, electricity is federal subject and Discos are owned by Federal.

Principally, utilities are independent for their power plans, procurements and network investments to meet their capacity obligations and network expansions for affordable power and reliable delivery systems. In the context of privatization of Discos and liberalization of the market these institutional and regulatory plan should independently be prepared and decided as these have substantial impact on consumer end tariff.

” The entities at own to decide as future demand and energy projections have downward trend and accordingly procurement and network expansion to be adjusted downward irrespective of the commitment with any generation projects that impacts consumer end tariff and fiscal space,” he maintained.

 Rehan Jawed, questioned ” why the lowest bid utility scale solar / hybrid plants were kept of IGCEP and expensive ones were included”. .

 Replying to Mr. Jawed the participant(name deliberately being kept hidden) stated that is a valid question of the system planning from NTDC as SO and can be raise and clarified during the regulatory approval of the IGCEP and more of that KE at own may take it forward being the SoLR obligated for its capacity obligations, one think clearly I know from regulatory framework the planner has to be independent and can’t allocate the capacity obligations of one SOLR.

Another participant, Naveed Siddique stated;(i)  IGCEP and TCEP are supposed to be approved concurrently?? Was it not decided like it more than a year back? ;(ii) IGCEP approval by PM in absence of CM and or their concurrence?? ; (iii) .PM office not routing it through Assemblies (both National and Provincial – and Standing Committees)?? ; and (iv) 18th Amendment respected??

Another participant, stated ” these are questions which answers and these need answers … Warna” .

 The participant( who was also involved in discussions on IGCEP in different meetings was of the view ” I can only clarify the applicable regulatory and policy provisions and requirements with regards to the power system planning as there are vague.

Rehan Jawed who represents KATI at different forums argued that the  bottom line is KE  and Karachi is being penalised for bringing low cost solar power to Pakistan which could save 10 – 12 billion in a year .

It is important to mention, the names of federal and provincial officials have not been mentioned deliberately.  Ends

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