CPPA-G sourced 21% & K-Electric 19% of power from RLNG in Dec 2024

March 09, 2025 (MLN): CPPA-G procured 21% of its electricity (i.e., 2,171 MW) from RLNG plants within the national grid in December 2024.

In comparison, KE generated 19% of its electricity (i.e., 252 MW) from RLNG, with fuel costs comparable to those of power plants operated by KE during the same period, says the spokesperson for K-Electric.

The spokesperson further clarifies reports regarding its generation cost during December 2024 and the power utility’s drawl from the national grid.

Demand during the month had become low due to the winter season, and KE managed its supply from the NTDC appropriately, according to the press release issued today.

“KE matched the low demand with a balanced supply from the NTDC network, using plants where the cost is comparable to other plants run by the NTDC network”, the spokesperson added.

It is pertinent to highlight that if KE could have received its quota of natural gas as was committed, the cost of fuel could have fallen to Rs8/kWh, a mere 40% of what it was during December 2024.

Delving into details, at this instant, it is pertinent to highlight that comparing only fuel costs – as done in the report – may not provide a holistic view.

A comprehensive analysis, including capacity payments, shows that the total power purchase cost of the national grid is approximately Rs27/kWh. In comparison, the power purchase cost of KE would be similar.

In terms of fuel cost of electricity, the KE system, when compared with CPPA-G, is higher because unlike CPPA-G, KE does not have availability of Nuclear- or Hydro-based power plants in its fleet, nor is KE provided sufficient supply of Indigenous or Low Btu gas to operate its own plants.

When it comes to operating RLNG plants, KE’s procurement of electricity is similar to that of the national grid.

As rightly highlighted by the esteemed member of NEPRA, KE remains committed to procuring cheaper power from NTDC and the same has been demonstrated by completion of KKI and Dhabeji Grid by virtue of which the drawl from NTDC can be increased to around 2,000 MW, the confirmation of which is awaited from NTDC.

At the same time, KE is actively engaging with NTDC and seeking its valuable cooperation to ensure a more seamless and efficient power supply.

Through mutual collaboration and ongoing dialogue, KE aims to enhance the reliability and stability of the system for the benefit of all stakeholders.

Additionally, KE is actively working to rationalize its energy costs for which the company has already issued 640 MW of renewable RFPs.The 

Competitive Bidding Process has been concluded, and the Bid Evaluation Reports for these projects have been submitted as per the directions of NEPRA.

K-Electric (KE) is a publicly listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005, KE is the only vertically integrated power utility in Pakistan, supplying electricity to Karachi and its adjoining areas.

The majority shares (66.4%) of the company are owned by KES Power, a consortium of investors including Al-Jomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF).

The government of Pakistan is also a shareholder (24.36%) in the Company, while the remaining are listed as free float shares.

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