The Pakistan Solar Association (PSA) has voiced strong opposition to K-Electric’s (KEL) request to extend the operational life of Units 1 and 2 at the Bin Qasim Power Station-I (BQPS-I) until 2027. In a detailed letter to the National Electric Power Regulatory Authority (NEPRA), the PSA raised concerns about the economic and environmental implications of this extension.
K-Electric, it is petition has justified the extension by citing the need for these units to serve as a secondary spinning reserve, ensuring reliable power supply during peak demand periods and mitigating potential contingencies like gas shortages or outages in other generation fleets. However, PSA is of the view that extending the life of these outdated and inefficient units is economically unviable.
The Association has pointed out that the cost per unit of electricity from BQPS-I is significantly higher than from newer Independent Power Producers (IPPs) and power imports from the National Grid, making the extension inconsistent with national energy policies focused on efficiency and reducing capacity payments.
The PSA has also highlighted the extremely low utilization rates of these units—0.48% and 1.53%, respectively—questioning their contribution to Karachi’s energy supply, given the substantial capacity costs incurred. Furthermore, a merit order analysis suggests that continuing operations at these units is less economical compared to other power generation options available to K-Electric.
Beyond economic concerns, the PSA emphasized the need for K-Electric to expedite its net metering process to encourage the adoption of solar energy.
Amir Chaudhry, Chairman of the PSA, expressed concern over the extended time K-Electric currently takes to process net metering applications. While other distribution companies in the country typically complete these applications within two weeks, K-Electric’s process averages around four months. Chaudhry noted that this delay poses a challenge to the broader adoption of solar energy in Karachi, particularly in a city where limited rooftop space due to vertical living makes efficient solar installation even more critical.
“Improving the speed of the net metering process is more than just a procedural improvement—it’s an essential step toward supporting Pakistan’s renewable energy goals,” Chaudhry remarked. He highlighted the numerous benefits of distributed solar PV systems, noting that they not only help lower operational costs and enhance grid stability but also contribute to reducing the country’s reliance on fossil fuels, which is crucial for a sustainable energy future.
The PSA further underscored the broader benefits of solar energy, including reduced operational costs, lower reliance on costly fuel imports, and significant environmental advantages. Solar PV is considered a key component in Pakistan’s strategy to reduce greenhouse gas emissions, enhance energy security, and comply with international climate commitments.
The PSA has urged NEPRA to reject K-Electric’s proposal to extend the life of BQPS-I Units 1 and 2, advocating instead for a shift towards more sustainable and economically viable energy solutions like distributed solar PV. The association stressed that this transition would not only align with Pakistan’s long-term energy and environmental goals but also contribute to a more resilient and self-sufficient energy future for the country.
