ISLAMABAD: The Pakistan Renewable Energy Coalition (PREC) has urged the government to implement the Competitive Trading Bilateral Contracts Market (CTBCM) immediately to ensure fairness in electricity supply across all consumer categories.
PREC, a coalition of 16 allied organizations, is a key player in the ongoing effort to create a greener, more sustainable energy future for Pakistan. Coalition partners include organizations such as the Centre for Peace and Development Initiative (CPDI) Islamabad, CSIDC Karachi, SDPI Islamabad, Alternate Development Services (ADS) Islamabad, LUMS Energy Institute Lahore, Darya Lab Karachi, NUST Islamabad, IDSP University of Community Development Campus Quetta, Renewable First (RF) Islamabad, Zazik Islamabad, Policy Research Institute for Equitable Development (PRIED) Islamabad, Indus Consortium Islamabad, Civil Society Support Program (CSSP), Pakistan Environment Trust Islamabad, The Knowledge Forum (TKF), and Climate Action and Energy Access (CAEA) Islamabad.
In a letter to Ali Pervaiz Malik, the Minister of State for Finance (who also briefly held the additional charge of Minister of State for Power), the coalition emphasized the urgent need to implement the CTBCM, which remains unavailable to consumers despite commitments made to development partners such as the IMF and World Bank.
PREC stressed that the government must recognize the implications of the European Union’s Carbon Border Adjustment Mechanism (CBAM), which will be fully implemented by 2026. The CBAM will significantly affect Pakistan’s key export sectors, especially industries reliant on fossil fuels, potentially reducing their competitiveness in the EU market unless they invest in green technologies. CTBCM offers a solution to this challenge.
The CTBCM would allow bulk power consumers (those using 1 MW or more) to choose affordable, clean electricity from suppliers of their choice. This market structure would also relieve the government of the burden of take-or-pay contracts, sovereign guarantees, and additional liabilities. Furthermore, CTBCM aligns with Pakistan’s 2030 Nationally Determined Contributions (NDCs), which include a target to shift to 60% renewable energy, ban coal imports, and expand nature-based solutions.
CTBCM was officially approved by the Economic Coordination Committee (ECC) of the Cabinet in 2015, with a high-level design approved by NEPRA in 2019. Since then, major milestones have been achieved, including the preparation of a market commercial code, a six-month test run, and endorsement by the Council of Common Interests (CCI) under the National Electricity Plan in 2023. However, despite these efforts, commercial operations have yet to begin.
In a recent multi-stakeholder conference organized by PREC, industry leaders, developers, and financiers advocated for the prompt implementation of CTBCM. Signed copies of their charter of demands, supported by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), All Pakistan Textile Mills Association (APTMA), Karachi Chamber of Commerce and Industry (KCCI), and Korangi Association of Trade and Industry (KATI), have been shared with the Minister of State for Finance.
The letter, initially sent in October 2024, has now been forwarded to the Power Division, which is responsible for executing the long-awaited CTBCM. PREC has requested the Minister of State for Finance to raise the issue at all available forums and push for immediate implementation without further delay.
