Punjab Grid Company enters power transmission scene with Nepra license

A green light has been given to a new entrant in Pakistan’s power transmission system, as the National Electric Power Regulatory Authority (Nepra) grants a transmission license to the Punjab Grid Company Ltd (PGCL).

The granted license is valid for 30 years, until November 7, 2053, with the possibility of renewal for additional decades, subject to the regulator’s approval. PGCL is now the third provincial grid company to secure a transmission license, following Sindh and Khyber Pakhtunkhwa.

This recently established subsidiary of the provincial government is set to commence electricity transmission operations throughout the province, with a focus on facilitating power plants—especially those harnessing renewable sources—that currently lack service from the national grid for power evacuation.

Nepra, in its approval, outlined the terms and conditions for PGCL, emphasizing compliance with Nepra Act provisions and other relevant regulations.

Additionally, Nepra instructed PGCL to submit a separate petition for determining the Use of System Charge for its transmission projects.

Despite opposition from distribution companies in Multan, Gujranwala, Lahore, and Faisalabad, Nepra dismissed their concerns and cited significant investments in the country’s power generation sector, especially in renewable energy.

Nepra acknowledged the challenges faced by existing projects in distributing electric power due to infrastructure limitations, emphasizing the need for increased investment in the transmission sector.

Nepra invoked constitutional and legal provisions, such as Article 157(2c) of the Constitution and Section 18A of the Nepra Act, supporting the establishment of PGCL for intra-provincial electricity transmission.

PGCL highlighted Punjab’s substantial role in the national electric power sector, with the province having the highest share in installed generation capacity, number of consumers, total consumption, and revenue collection.

Punjab’s contribution includes an installed generation capacity of 18,524 MW, 26 million consumers, consumption of 83.68 TWh, and revenue collection of Rs1.8 trillion.