NEPRA approves inclusion of KAPCO plant in Power Acquisition Plan 2023-27

February 25, 2025 (MLN): The National Electric Power Regulatory Authority (NEPRA) has approved the inclusion of the Kot Addu Power Company Limited’s (KAPCO) power plant in the Power Acquisition Plan (2023-2027) for distribution companies.

The company's power plant will be required in the system until 2027.

Hence, it has been agreed in principle that the PPA for 500 MW (and Switchyard) will be renewed for three years on a hybrid take-and-pay basis, the company's on PSX revealed today.

Under this arrangement, certain fixed costs along with a minimum guaranteed return will be allowed, subject to the availability of the Power Plant.

Additionally, any extra return on equity will be linked to the additional generation of electricity.

After the close of the review period, the Government of Pakistan (GoP) approved the retention of the company's Power Plant.

It also advised the relevant authorities, including NEPRA, Central Power Purchasing Authority (Guarantee) Limited (CPPA-G), and the National Transmission and Dispatch Company Limited (NTDC), to complete the necessary formalities.

These formalities include regulatory requirements for executing the PPA with the company.

In view of these developments, the company has also filed an addendum to the tariff petition before NEPRA for the determination of the final tariff.

Once the company is formally advised of the renewal terms, the company will be seeking appropriate corporate approvals.

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