K-Electric (KE) has raised serious concerns over the exclusion of its five renewable energy projects from the Indicative Generation Capacity Expansion Plan (IGCEP) 2024, which is in its final stages of development.
According to a news report, the projects, including solar and hybrid initiatives, were notably absent despite their advanced regulatory approvals and potential economic benefits.
In a letter to Power Minister Sardar Awais Leghari, KE detailed the status of its projects and interactions with the National Transmission and Dispatch Company (NTDC).
The Karachi-based power utility claimed that NTDC did not share the draft IGCEP 2024 results with KE for review and consent, despite multiple requests. KE highlighted that its submissions for the draft IGCEP, sent to NEPRA in April 2024, were not considered, undermining its renewable energy plans.
The utility underscored its commitment to reducing fuel costs and its generation cost base by incorporating renewable energy into its portfolio.
The company has spent years obtaining approvals for its Request for Proposals (RFPs) for these projects, which NEPRA approved earlier this year after extensive deliberations.
The approved projects include a 150MW solar initiative at Winder and Bela, a 200MW hybrid power project at Dhabeji, a 150MW solar power plant in Malir, and a 120MW solar plant in West Karachi.
KE emphasized that these projects, which secured the lowest renewable energy tariffs through open competitive bidding, promise annual energy savings of Rs13 billion and foreign exchange savings of $87 million.
During a NEPRA hearing on December 11, 2024, KE discovered that the projects remained excluded from the latest IGCEP draft, even after several revisions since April. The utility warned that such omissions undermine regulatory processes and erode market confidence among investors.
KE further criticized NTDC for prioritizing less advanced PC-1 projects in the IGCEP as “Committed” capacity despite limited progress, while KE’s ready-to-implement projects remain sidelined. The company argued that the inclusion of its projects in IGCEP 2024 is crucial to ensure timely benefits, including displacing costly imported fuels and offering fiscal relief to the government.
