K-Electric to retire Korangi and Site Gas Turbine Power Plants

September 23, 2025 (MLN): K-Electric Limited (PSX: KEL), Pakistan’s largest private power utility, has announced plans to decommission two of its thermal power generation facilities as part of a strategic decision to optimize its generation fleet.

In its 1259th meeting held on September 23, the company’s Board of Directors approved the early retirement of the Korangi Thermal Gas Turbine Power Station (KTGTPS) and the Site Gas Turbine Power Station (SGTPS).

The company said it will now seek approval from the National Electric Power Regulatory Authority (NEPRA) by filing a Licensee Proposed Modification (LPM) to its Generation License No. GL/04/2002, in line with the applicable regulatory framework.

KEL has assured that the proposed early retirement/decommissioning of KTGTPS and SGTPS will not adversely affect the company's ability to meet its demand-supply obligations.

The utility has already taken concrete steps to ensure adequate supply for its consumers through strategic capacity additions and grid enhancements.

To maintain reliable power supply to Karachi's consumers, KE has implemented several key initiatives:

New Generation Capacity: The company has successfully added the 900 MW Bin Qasim Power Station III (BQPS III) to its generation portfolio, significantly bolstering its power production capabilities.

Enhanced Grid Connectivity: KE has increased its interconnection capacity with the National Grid, enabling higher off-take of electricity from the national transmission system to supplement local generation.

The decommissioning process will follow established regulatory procedures.

KEL plans to file a Licensee Proposed Modification to its Generation License No. GL/04/2002 with the National Electric Power Regulatory Authority (NEPRA), ensuring full compliance with applicable regulatory frameworks.

K-Electric Limited serves as the sole power utility for Karachi, Pakistan's largest city and economic hub.

The company operates an integrated power system encompassing generation, transmission, and distribution services to millions of consumers across the metropolitan area.

The retirement of these thermal units aligns with global trends toward cleaner and more efficient power generation technologies, as utilities worldwide transition away from older, less efficient thermal plants.

This strategic decision reflects KE's commitment to maintaining reliable power supply while optimizing its generation portfolio for improved operational efficiency and environmental sustainability.

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