Pakistan’s power producer Kot Addu Power Company Limited (KAPCO) on Tuesday informed that the National Electric Power Regulatory Authority (NEPRA) has approved the inclusion of its power plant in the Power Acquisition Plan (2023-2027) for distribution companies.
The IPP disclosed the development in its notice to the Pakistan Stock Exchange (PSX).
KAPCO stated that progress has been made on the renewal of the company’s Power Purchase Agreement (PPA) following negotiations with the National Task Force on Implementation of Structural Reforms (Power Sector).
“Due to system requirements, the NEPRA has already approved the inclusion of the company’s power plant in the Power Acquisition Plan (2023- 2027) for distribution companies whereby the company’s power plant is required in the system till 2027,” it said.
“Hence, it has been agreed in principle that the PPA for 500 MW (and switchyard) will be renewed for three years on hybrid take-and-pay wherein certain fixed costs along with a minimum guaranteed return will be allowed subject to availability of the power plant; and extra return on equity will be linked with additional generation of electricity.”
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The IPP said following the review period closure, the government approved the retention of the company’s power plant and advised the relevant authorities including NEPRA, Central Power Purchasing Authority (Guarantee) Limited (CPPA-G) and the National Transmission and Dispatch Company Limited (NTDC) for completing formalities (including regulatory) for the execution of the PPA with the company.
“In view of these developments, the company has also filed an addendum to the tariff petition before NEPRA for determination of final tariff. Once the company is formally advised of the renewal terms, the company will be seeking appropriate corporate approvals,” read the notice.
KAPCO power plant is Pakistan’s largest combined cycle power plant. The plant comprises 10 multi-fuel-fired gas turbines and five steam turbines.
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