KOT ADDU: Kot Addu Power Company Limited (PSX: KAPCO) has formally signed a Tri-Partite Power Purchase Agreement (TPPA) with the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) and the National Grid Company of Pakistan Limited, marking a key step forward in regularising the company’s future energy sales to the national grid.
According to a stock filing made by the company on Tuesday, the agreement follows regulatory clearance issued by the National Electric Power Regulatory Authority (NEPRA) in a letter addressed to CPPA-G. NEPRA’s approval, dated May 19, 2025, outlines specific technical conditions that must be fulfilled before the TPPA becomes fully effective.
As per these directives, KAPCO is required to carry out an Initial Capacity Test (ICT) and a Heat Rate Test (HRT) to establish baseline performance benchmarks for its generation facility. These tests are crucial in determining the plant’s simple cycle efficiency and heat rate—key parameters in evaluating the cost and efficiency of power generation.
The results of these tests must be verified and validated by an Independent Engineer, whose findings will then be submitted to NEPRA along with the official test reports. Only after this process will the TPPA come into operational effect, enabling KAPCO to begin supplying electricity under the newly established terms.
The signing of the TPPA is considered a major development for KAPCO, one of Pakistan’s largest Independent Power Producers (IPPs), and reflects broader efforts by regulators and power producers to streamline contractual frameworks and align operational benchmarks in the country’s power sector.
