Pakistan Atomic Energy Commission (PAEC), the National Grid Company (NGC), and the Central Power Purchasing Agency – Guaranteed (CPPA-G) are set to sign Tripartite Power Purchase Agreements (TPPAs) for Karachi Nuclear Power Plants (K-2 and K-3).
As per news reports, the National Electric Power Regulatory Authority (NEPRA) granted Generation Licenses for K-2 and K-3 in December 2019 and February 2021, respectively. K-2 achieved its Commercial Operations Date (COD) on May 21, 2021, and K-3 on April 18, 2022. Since then, both plants have been supplying electricity to the national grid at economical rates.
During a recent briefing to the Economic Coordination Committee (ECC) of the Cabinet, the Power Division highlighted the importance of K-2 and K-3, both strategically significant base-load plants located in Karachi. The plants, which each have an installed capacity of 1,145 MW, have been constructed and are operated by PAEC.
The Power Division further noted that NEPRA had granted an interim tariff for both plants under a “Take or Pay” basis in July 2021 and May 2022, respectively. Final tariffs were granted in 2022 and 2023, and CPPA-G’s Board has approved the purchase of power from the plants.
For the formalization of the Tripartite Power Purchase Agreements, the ECC approved a standardized draft based on the Power Generation Policy of 2015, incorporating specific project-related changes and performance-based provisions. NEPRA had cleared the signing of these agreements in a letter dated April 3, 2024.
Following the approval of the ECC, the Power Division proposed the signing of separate TPPAs for both K-2 and K-3, which were then approved after brief discussion in the ECC meeting.
