KE’s Bin Qasim Power Station-III: Nepra okays revised performance benchmarks
ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved revised performance benchmarks — net capacity and net heat rates — for K-Electric’s 900MW Bin Qasim Power Station-III (BQPS-III), following a third-party performance evaluation of both units.
The order, issued on July 6, 2026, pertains to independent performance testing of the combined cycle plant, comprising two 450MW units operating primarily on RLNG, with high-speed diesel (HSD) as backup fuel.
READ ALSO: Service life of BQPS-I units: PSA opposes KE’s extension plea
According to Nepra, the performance tests—conducted by independent engineers—were aimed at determining the plant’s net capacity and heat rate under standardised conditions, in line with regulatory requirements for tariff adjustments and efficiency validation.
The regulator noted that the tests were carried out after substantial operating hours, resulting in performance degradation compared to the original engineering, procurement, and construction (EPC) guarantees. Independent engineers highlighted that such degradation is typical in gas turbine-based combined cycle plants and must be factored into tariff considerations.
Nepra further observed that environmental conditions, fuel quality, grid stability, and operational practices—including frequent start-stop cycles—have a measurable impact on plant efficiency and output. The report also emphasised that variations in RLNG quality can directly affect both heat rate and power generation.
The authority reiterated that performance testing is a critical requirement for tariff determination, adding that adjustments in fuel cost components would be based on verified heat rates, subject to regulatory approval. Any improvement beyond EPC guarantees could result in favorable adjustments, while inefficiencies would limit tariff benefits.
The order has been forwarded to the federal government for notification in the official Gazette within the stipulated timeframe under the Nepra Act.
K-Electric (KE) had sought approval of revised guaranteed figures based on degradation factors and operational realities; however, the regulator’s decision underscores strict adherence to independently verified performance metrics.
For RLNG-based operations, Nepra approved the following benchmarks: for Unit-1, net capacity has been set at 453.40 MW against KE’s request of 449.808 MW, while the net heat rate has been determined at 6,384.46 Btu/kWh compared to KE’s requested 6,386.92 Btu/kWh. The degradation factor has been set at 1.000 at zero operating hours, and 1.00685 for net capacity and 0.9961 for net heat rate at 1,790 operating hours.
For Unit-2, Nepra approved a net capacity of 454.92 MW as against KE’s request of 449.808 MW, while the net heat rate has been maintained at 6,388.13 Btu/kWh, in line with KE’s submission.
For HSD-based operations, Nepra approved a net capacity of 359 MW for Unit-1 compared to KE’s request of 357.479 MW, while the net heat rate has been set at 6,661.85 Btu/kWh against KE’s requested 6,738.56 Btu/kWh. For Unit-2, the net capacity has been approved at 357.479 MW, as requested by KE, whereas the net heat rate has been determined at 6,681.86 Btu/kWh compared to KE’s requested 6,739.63 Btu/kWh.
“The heat rate and capacity values, as determined above, are approved. The degradation and part-load adjustment curves/tables, duly endorsed by the Independent Engineer (IE)—OMS—and Owner’s Engineer (OE)—NESPAK—are also approved. The exclusion of 1,404 operating hours (as per DCS counters) for degradation adjustment of Unit-1 is approved,” the authority stated in its decision.
The BQPS-III plant is a key component of KE’s generation fleet, designed to enhance efficiency and reduce reliance on expensive fuels. The latest determinations are expected to have significant implications for future tariff adjustments and operational benchmarks in the power sector.
Copyright Business Recorder, 2026