Sindh Plan Competitive Power Market for Cheaper Electricity

Sindh to Introduce Competitive Electricity Market for Cheaper Power

Sindh is set to introduce its competitive electricity market, aiming to deliver cheaper power than K-Electric (KE), according to provincial energy officials at the Multi-Stakeholders Conference on Competitive Electric Market in Pakistan.

Under the plan, electricity will be generated within Sindh, transmitted via the Sindh Transmission and Dispatch Company (STDC), and priced by the Sindh Electric Power Regulatory Authority (SEPRA) instead of the National Electric Power Regulatory Authority (NEPRA). SEPRA’s staff has already been appointed, with its formal notification expected this month. The initial supply will be directed to the K-IV project grid, focusing on powering economic zones.

Officials noted that hybrid energy parks will help reduce tariffs, while global best practices are being adopted to address the province’s energy challenges. Expanding industrial activity is seen as a solution to high capacity charges of Independent Power Producers (IPPs), with several contracts already reviewed to provide relief to consumers.

Sindh has requested federal approval to appoint two representatives on KE’s board, highlighting the province’s current lack of representation. The government has also signed an agreement with KE for solar power supply and urged prioritization of renewable energy over costly fuel-based electricity.

The conference, hosted by Renewables First and the Pakistan Business Forum (PBF), advocated replacing the monopolistic single-buyer model with a competitive electricity market. Speakers emphasised the importance of operationalizing the long-approved Competitive Trading Bilateral Contracts Market (CTBCM) as essential for ensuring affordable power for consumers.