NEPRA introduces “Concurrence Regulations 2026” for power projects

ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) has introduced new “Concurrence Regulations 2026” for power generation projects.

According to the SRO 692 (I)/2026 – NEPRA Concurrence Regulations 2026, aimed at tightening oversight of new power generation projects and standardising the approval process for setting up generation facilities in Pakistan.

The regulations, issued under the powers of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, came into force immediately and introduce a formal mechanism requiring prior regulatory concurrence before any new generation project can proceed.

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These regulations shall not apply to prosumers seeking concurrence under the National Electric Power Regulatory Authority (Prosumer) Regulations, 2026

According to the framework, any person or company intending to establish a generation facility will now be required to submit a detailed application to NEPRA, accompanied by comprehensive technical, financial, environmental, geological, hydrological and safety assessments.

The application must be filed through a prescribed format along with a processing fee and supporting documents.

The Registrar will initially review applications for completeness within 15 working days, after which incomplete submissions may be returned or allowed limited time for correction. Once deemed complete, applications will be registered, assigned a tracking number, and a summary of the proposed project will be published in newspapers to invite public comments and objections.

NEPRA will then take up complete applications for final consideration, which is to be decided within 28 working days, though extensions may be granted with recorded reasons. The regulator may also seek additional information, call applicants for hearings, or invite third-party input before making a final decision.

Under the new rules, NEPRA has been given broad authority to approve or reject projects based on multiple criteria, including demand assessment, economic justification, technology suitability, environmental impact, and system requirements. Applications may be declined if the regulator finds that a proposed project is not justified in terms of power sector needs, financial viability, or grid compatibility, or if better competing proposals exist.

For hydroelectric projects, NEPRA will also evaluate potential impacts on river systems, including irrigation, drinking water, and flood control considerations, while ensuring that necessary approvals from federal and provincial authorities are in place.

Once concurrence is granted, any subsequent change in a project’s capacity, technology, or interconnection parameters will require fresh approval from NEPRA. Generators are also required to notify the regulator of any changes in company details within 14 days.

Officials say the new framework is designed to bring greater transparency, prevent unplanned or speculative generation investments, and ensure that new projects align with Pakistan’s long-term energy planning and infrastructure capacity.

The regulations also empower NEPRA to issue clarifications and directions in case of implementation difficulties, reinforcing its central role in shaping the country’s power generation landscape.

Copyright Business Recorder, 2026