ISLAMABAD – In a key development for Pakistan’s energy sector, the Economic Coordination Committee (ECC) has approved the signing of Tripartite Power Purchase Agreements (TPPAs) for the Karachi Nuclear Power Plants Unit-2 (K-2) and Unit-3 (K-3), each with an installed capacity of 1,145 MW.
The agreements will be signed between the Pakistan Atomic Energy Commission (PAEC), National Grid Company (NGC)—formerly NTDC—and the Central Power Purchasing Agency-Guaranteed (CPPA-G), the market operator.
According to a briefing by the Power Division, K-2 and K-3 are strategic baseload facilities located in Karachi and operated by PAEC. NEPRA granted generation licenses to the plants in December 2019 (K-2) and February 2021 (K-3), with commercial operations beginning on May 21, 2021, and April 18, 2022, respectively.
The nuclear plants have been supplying electricity to the national grid at some of the most economical rates. NEPRA initially granted interim tariffs on a “Take or Pay” basis, followed by final tariff determinations in January 2022 and April 2023. CPPA-G’s Board has already approved procurement of power from both units.
The TPPA will be based on the standardized draft prepared under the Power Generation Policy 2015, with project-specific and performance-based amendments. NEPRA cleared the draft agreements in April 2024.
The ECC approved the Ministry of Energy’s proposals, paving the way for the formal execution of TPPAs to ensure reliable, clean, and affordable power from these nuclear plants.
Story by Mushtaq Ghumman
