ISLAMABAD: K-Electric (KE) has formally requested the National Electric Power Regulatory Authority (NEPRA) to amend its generation licence to allow the early retirement and decommissioning of two of its aging thermal power plants—Site Gas Turbine Power Station (SGTPS) and Korangi Gas Turbine Power Station (KTGTPS).
In its application, KE maintained that retiring the plants ahead of schedule will not undermine its ability to meet electricity demand or affect the quality of service to consumers. The company assured the regulator that the proposed modification “will not adversely affect KE’s demand–supply obligations,” as detailed in its submission.
According to KE, both SGTPS and KTGTPS, along with ICGTPS, were added to the utility’s generation portfolio in 2009 following the privatization of K-Electric in 2005. Under the Implementation Agreement with the Government of Pakistan, the plants—comprising 32 engines of 3.041 MW each—were to receive dedicated local gas supply from SSGC.
Although gas supply remained adequate until 2018, dwindling natural gas reserves disrupted consistent and sufficient pressure required for optimal operations. To bridge this gap, the Cabinet Committee on Energy in April 2018 directed KE to shift these power plants to RLNG supply. Despite the transition, KE said the plants continued to face supply and pressure constraints—particularly over the past two years.
Meanwhile, KE has significantly expanded its generation and supply capacity. The company commissioned the 900 MW BQPS-III power plant and upgraded interconnection infrastructure, enhancing its capability to draw over 2,000 MW from the National Grid. KE has since entered long-term agreements with CPPA-G and the National Grid Company to ensure secure off-take from the national system.
KE emphasized that retiring SGTPS and KTGTPS will not burden consumers with additional costs. Instead, the move will eliminate capacity payments associated with inefficient plants, which “will not be passed onto consumers,” the utility noted.
Reaffirming its position, KE said the early decommissioning “will neither compromise the company’s ability to discharge its license obligations nor affect its demand–supply capability.” The company maintains that investments in new generation and enhanced grid connectivity have positioned it to ensure reliable and affordable electricity for Karachi.
The power utility added that the proposed modification is aligned with its long-term strategy of delivering improved service quality and operational efficiency to its consumers.
