KE’s BQPS-III: Nepra orders independent performance audit

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has ordered third-party performance tests of K-Electric (KE) Bin Qasim Power Station-III (BQPS-III), a 900 MW combined cycle power plant, aimed at assessing its capacity and heat rate benchmarks.

According to a notification issued on August 6, 2026, the authority published its earlier decision dated July 6, 2026, in exercise of powers under the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997.

Some of the intervenors from Karachi had urged Nepra time and again to conduct performance audit of BQPS-III power plant of the power utility.

BQPS-III comprises two combined-cycle units of 450 MW each, operating on a dual-fuel system with RLNG as the primary fuel and high-speed diesel (HSD) as backup. The plant supplies electricity to KE’s 220 kV network.

READ MORE: KE’s Bin Qasim Power Station-III: Nepra okays revised performance benchmarks

The performance tests, conducted by independent engineers, evaluated the plant’s net capacity and heat rate under base-load conditions using both RLNG and HSD fuels. Tests on RLNG were carried out in February and May 2023, while HSD-based tests were conducted in early 2024.

The authority noted that the objective of these tests was to determine gross and net heat rates and capacity in line with approved procedures, applying correction factors for site conditions such as temperature, humidity, and pressure.

Test results showed that Unit-2 operating on RLNG achieved a net output of approximately 453.67 MW with a net heat rate of 6112.42 kJ/kWh (LHV basis). On HSD, Unit-1 and Unit-2 recorded net outputs of about 352.46 MW and 350.39 MW, respectively, with comparatively higher heat rates.

Nepra highlighted that performance comparisons with Engineering, Procurement and Construction (EPC) guaranteed values are not straightforward due to differing boundary conditions, including plant ageing and operating hours. The independent engineer observed that degradation over time, environmental factors, fuel quality, and grid conditions significantly impact plant performance.

The report further underscored that grid instability, frequency fluctuations, and frequent start-stop cycles can adversely affect both efficiency and operational life of the plant. Additionally, deviations in RLNG quality may lead to variations in output and heat rate.

Nepra reiterated that any tariff adjustments related to such plants would be limited to heat rate and auxiliary parameters, as per its earlier determinations, and must be based on verified performance test results.

The authority also directed that all concerned entities, including KE, must strictly comply with court orders while implementing the decision.

The notification forms part of Nepra’s broader regulatory oversight to ensure transparency, efficiency, and accountability in power generation performance across the country.

Copyright Business Recorder, 2026