K-Electric seeks Nepra nod to extend lifespan of Bin Qasim power units

K-Electric has approached the National Electric Power Regulatory Authority (Nepra) for approval to extend the operational lifespan of Units 1 and 2 at its Bin Qasim Power Station-I (BQPS I) until a new coal plant, expected to be operational by fiscal year 2027, comes online. 

These thermal power units currently rely on natural gas and expensive fuel oil, adding a significant financial burden.

K-Electric’s request has prompted Nepra to seek public feedback, inviting comments from stakeholders, interested parties, and the general public within a fortnight.

Initially granted on November 18, 2002, K-Electric’s generation license under Section 25 of the Nepra Act, 1997, has undergone several revisions, with the latest amendment approved on September 15, 2021. 

The current application seeks permission to retain the units as a secondary spinning reserve to manage contingency scenarios, dispatching them according to the Economic Merit Order (EMO).

K-Electric argues that this extension is crucial for addressing potential issues such as the unavailability of the NTDC interconnection, forced outages within its generation fleet and independent power producers (IPPs), and shortages of RLNG/gas due to factors beyond its control. 

Additionally, regulatory and governmental approvals for the coal power plant are still pending.