Govt to auction surplus electricity for industry

January 29, 2025 (MLN): The government plans to auction surplus electricity in the country, as announced by Minister for Power Sardar Awais Leghari during an event in Islamabad.

The surplus electricity will be allocated to industries, to boost industrial growth and generate new employment opportunities across Pakistan.

He emphasized that surplus electricity would be offered competitively to maximize benefits for both the economy and the industrial sector, as per the press release.

The Minister also discussed the recently introduced National Electric Vehicle (EV) Policy, which aims to encourage the adoption of electric vehicles across the country.

He stated that electricity tariffs for EV charging stations have been significantly reduced to make electric vehicles more affordable and accessible to the public. 

This step aligns with the government’s vision of promoting sustainable energy solutions and reducing environmental impact.

Minister Leghari outlined various reforms in the energy sector, including initiatives to reduce electricity tariffs, eliminate circular debt, and tackle inefficiencies in the existing pricing system, which he called unsustainable.

He also discussed the revision of agreements with Independent Power Producers (IPPs) to ensure greater transparency and sustainability, with similar changes planned for government-owned IPPs in the next phase.

The Minister announced that by 2025, the government would step back from overseeing the electricity trade, allowing consumers and power companies to directly negotiate electricity purchases.

This shift aims to foster competition and benefit all stakeholders.

He also highlighted that industrial estates and economic zones will soon gain the autonomy to manage their power distribution systems, a move designed to reduce inefficiencies and boost industrial activity.

He highlighted that privatization of electricity distribution companies is also underway, and efforts are being made to reduce the tax burden on electricity consumers.

Discussing coal-based power plants operated by Chinese companies, the Minister said these plants would transition from imported coal to locally mined coal from the Thar region.

This shift will lower import costs by effectively utilizing domestic resources, supporting the local economy, and promoting energy self-reliance.

In his closing remarks, Minister Leghari reaffirmed the government’s commitment to ensuring surplus electricity benefits industries, driving economic growth, and advancing Pakistan’s energy sector through sustainable and innovative reforms.

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