Nepra endorses K-Electric’s seven-year investment plan

The National Electric Power Regulatory Authority (Nepra) has endorsed K-Electric’s 7-year Transmission and Distribution Investment Plan till FY2030 which is aimed at catalyzing the company’s efforts to reduce losses in transmission and distribution, drive growth in its customer base, and bolster the power utility’s infrastructure to meet current demands and future needs, reported 24 NewsHD TV channel.

Nepra has decided to audit K-Electric’s Investment Plan from a third party with its terms of reference for the audit. Moreover, the KE has been directed to present his performance indicator report.

During 7 years, KE is expected to invest Rs392.49 billion in the power system while KE will invest Rs136 billion in the power distribution process.

Earlier, KE said in a statement that investment in power utility infrastructure is essential to ensure a smooth, stable, safe, and uninterrupted supply of electricity to a growing number of customers.

Since privatization, investment of Rs 544 billion has enabled KE to double its customer base, double the power consumption of this customer base, and more than halve its T&D losses.

It said that the plan was submitted in accordance with regulatory guidelines and a hearing was held in March 2023 where KE management apprised stakeholders regarding the projects being planned from FY2024 to FY2030. For this period, KE has clearly identified priorities and projects for investment areas such as growth, energy loss reduction, network rehabilitation, maintenance, and safety.

Digitization is also a central area of focus in these operational areas. The investment plan outlines projects to install more AMRs and implement technology such as Advanced Distribution Management Systems and Meter Data Management Systems to strengthen internal processes and introduce more transparency as well, it added.

On the transmission front, the plan envisages the addition of grids and transmission lines which will further strengthen the reliability of KE’s network and enable the offtake of additional power from the National Grid, the company said.

Commenting on NEPRA’s endorsement, CEO KE Moonis Alvi stated, “Over the next 7 years, we are looking to invest $2 billion in Transmission and Distribution to manage Karachi city’s needs through targeted investments and tech-based interventions”. He acknowledged the efforts of all stakeholders who have been a part of this journey and who will continue to work with KE to modernize the infrastructure.

The investment plan complements the company’s Power Acquisition Program through which KE has outlined its vision to achieve a 30% share of renewable energy in its generation mix by 2030. In this regard, the company has also received regulatory approval on RFPs of 640MW renewable projects which is another critical link in the mission to enable access to affordable energy for all.

Reporter: Awais Kiyani