ISLAMABAD: Pakistan Atomic Energy Commission (PAEC), National Grid Company (NGC), erstwhile NTDC, and Central Power Purchasing Agency -Guaranteed (CPPA-G) are to sign Tripartite Power Purchase Agreements (TPPAs) on Karachi Nuclear Power Plants unit 2 and unit 3.
Recently, Power Division briefed the Economic Coordination Committee (ECC) of the Cabinet that Karachi Nuclear Power Plant Unit-2 (“K-2”) and Unit-3 (“K-3”) are constructed by Pakistan Atomic Energy Commission. These were highly significant and strategically important base load plants having installed capacity of 1145 MW each and located in the City of Karachi. The plants are being operated by PAEC.
National Electric Power Regulatory Authority (NEPRA) granted Generation Licence to K-2 and K-3 NPPs on December 09, 2019 and February 16, 2021 respectively. As notified by PAEC, K-2 and K-3 Plants were commissioned and achieved Commercial Operations Date (COD) on May 21, 2021 and April 18, 2022 respectively. Since then, these plants had been providing electricity at the most economical rates to National Grid.
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NEPRA granted interim tariff to K-2 and K-3 projects on “Take or Pay” basis on July 01, 2021 and May 19, 2022 respectively, final tariff on January 14, 2022 and April 12, 2023 respectively and CPPA-G Board also approved purchase of power from these power plants.
According to Power Division, CPPA-G requires formal approval of the Federal Government to sign Tripartite Power Purchase Agreement between PAEC, NTDC and CPPA-G.
In order to formalize such Tri-partite Power Purchase Agreement (“TPPA”), ECC-approved standardized draft TPPA prepared under Power Generation Policy, 2015 had been used as a base document. The ECC was further apprised that project specific changes along with performance-based provisions had been incorporated in the base document.
NEPRA, in its letter of April 03, 2024 had cleared the signing of TPPA for both the projects.
The Power Division submitted the following proposals for consideration and approval of the ECC: (i) Tripartite Power Purchase Agreement to be signed between PAEC, NTDC and CPPA-G for 1145 MW Karachi Nuclear Power Plant Unit-2 (K-2); and (ii) the Tripartite Power Purchase Agreement to be signed between PAEC, NTDC and CPPA-G for 1145 MW Karachi Nuclear Power Plant Unit-3 (K-3).
After brief discussion, the ECC approved the summary submitted by the Ministry of Energy (Power Division for signing of TPPAs between PAEC, NGC and CPPA-G( market operator).
Copyright Business Recorder, 2025
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