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, with a focus on powering economic zones.
Officials said 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 bring relief to consumers.
Sindh has also requested federal approval to have two representatives on KE’s board, highlighting the province’s current lack of representation. Additionally, the government has signed an agreement with KE for solar power supply and urged the utility to prioritise renewable sources over costly fuel-based electricity.
The conference, hosted by Renewables First and the Pakistan Business Forum (PBF), called for replacing the monopolistic single-buyer model with a competitive market. Speakers emphasised the need to operationalise the long-approved Competitive Trading Bilateral Contracts Market (CTBCM), a move they said is essential for ensuring affordable power for consumers.
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