ISLAMABAD : Member (Tech) Rafique Ahmad Shaikh, has advised both the NTDC and KE to join hands to increase cheap supply from National Grid to Karachi through resolution of interconnection issues.
According to him, in December 2024, overall electricity sales in KEL declined by 6.6% year-on-year. Industrial sales, in particular, fell by 5.7% compared to December 2023 and experienced a significant 9.7% decrease compared to November 2024. This sharp decline in industrial demand requires immediate attention from stakeholders.
He also added that in December 2024, KEL’s own power plants contributed 19% to its energy mix, while purchases from other Independent Power Producers (IPPs) and Captive Power Plants (CPPs) accounted for 7%, and NTDC supplied 74% of the total electricity. Notably, the cost of generation within the NTDC system is significantly lower at Rs. 9.60/kWh, compared to KEL’s own generation cost of Rs. 18.63/kWh. With NTDC possessing surplus generation capacity and its facilities situated dose to KEL, it is crucial for both KEL and NTDC to prioritize and accelerate the interconnection works and studies between their systems.
This will help optimize cost-efficiency and improve overall system performance. In the current interconnection arrangement, KEL’s power drawl capacity from NTDC is limited to approximately 1,600 MW. However, in December 2024, KEL’s actual drawl from NTDCL averaged 985 MW (62% of the available capacity). This less drawl pushed out-of-merit generation from KEL’s own power fleet, leading to inefficiencies and under-utilisation of the efficient resources and undermining the existing infrastructure capacity utilization.
In addition , the contractual obligation for RLNG purchases by KEL is also adversely impacting its generation mix. Therefore, KEL, along with other relevant stakeholders, should carefully consider all available primary energy and power resources before entering into any firm contracts. Such contracts should be structured to ensure the optimal utilization of all available resources, taking into account factors such as cost efficiency, reliability, and sustainability.
Furthermore, NTDC, in its role as System Operator (SO) and planner, must adopt a more proactive approach by conducting comprehensive system studies in collaboration with all stakeholders. NTDC should actively present its assessments during KEL’s monthly Fuel Charge Adjustment (FCA) hearings and propose solutions to enhance the economic efficiency of the power system. As Transmission Network Operator (TNO), NTDC must also prioritize the completion of the K2 and K3 transmission lines. This will help maximize the effectiveness and efficiency of the power sector while ensuring optimal operations of generation facilities. Key obstacles—such as the limited transfer capacity between the two systems, the pending grid study required under the Interconnection Agreement between NTDC and KEL, and the delayed construction of the K2 and K3 transmission lines—must be addressed without further delay. Ends
