Pakistan: The National Electric Power Regulatory Authority (NEPRA) has approved the Integrated System Plan (ISP) 2025-35, outlining $47.13 billion in planned electricity generation and transmission investments through 2035.
The plan, submitted by the Independent System and Market Operator (ISMO), projects peak electricity demand to increase from 26,950 megawatts in 2025 to 35,521MW by 2035.
It envisages 26,045MW of new generation capacity, including 17,485MW of committed capacity and 8,560MW identified through optimisation, while 2,577MW of existing capacity is expected to be retired.
Transmission upgrades under the plan are estimated to cost an additional $10.65 billion.
What did NEPRA approve and reject?
NEPRA rejected a proposed $900 million Battery Energy Storage System investment, saying its cost had not been assessed through ISMO’s optimisation model. The regulator called for a technical study before the proposal could be reconsidered.
The regulator also declined to endorse a K-Electric transmission interconnection planned for 2028, saying the proposed timeline was unrealistic because the project would require about five years to complete.
NEPRA directed ISMO to address issues in the plan, including clarification of calculations and differences in tariff projections, before preparing its next version.
What concerns were raised about the power plan?
NEPRA members raised concerns about the removal of several hydropower projects from the plan, including projects at Gabral Kalam, Madyan, Kalam Asrit and Asrit Kedam.
Stakeholders also raised concerns over Pakistan’s existing generation capacity, saying the country has a surplus of around 15,000-20,000MW while power plants operate at about 45% utilisation.
NEPRA member Amina Ahmed said around 640MW of renewable projects secured through K-Electric auctions had remained outside ISMO’s planning for more than a year despite regulatory queries.
NEPRA Chairman Waseem Mukhtar also noted that daytime demand from the national grid had fallen to around 12,000MW as consumers increasingly use solar power and other alternatives.