ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has introduced the “Concurrence Regulations 2026”, establishing a comprehensive framework to regulate and streamline approvals for new power generation projects across Pakistan.
Issued through SRO 692(I)/2026 under the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, the regulations have come into immediate effect. They introduce a mandatory requirement for prior regulatory concurrence before any generation project can proceed, strengthening oversight and aligning investments with national energy needs.
However, the new rules do not apply to prosumers operating under the NEPRA Prosumer Regulations 2026.
Structured Approval Process Introduced
Under the new framework, all entities planning to establish power generation facilities must submit detailed applications to NEPRA. These must include comprehensive technical, financial, environmental, geological, hydrological, and safety assessments, along with prescribed documentation and processing fees.
The Registrar will conduct an initial review within 15 working days to assess completeness. Incomplete submissions may be returned or conditionally accepted for correction within a limited timeframe. Once accepted, applications will be formally registered, assigned tracking numbers, and summaries published in newspapers to invite public feedback and objections.
Time-Bound Decision Making
NEPRA is required to decide on complete applications within 28 working days, although extensions may be granted with proper justification. During the evaluation process, the authority may request additional information, hold hearings, or seek input from third parties before issuing a final decision.
Stricter Evaluation Criteria
The regulations grant NEPRA broad powers to approve or reject projects based on multiple factors, including:
- Demand and supply dynamics
- Economic and financial viability
- Technology suitability
- Environmental impact
- Grid compatibility and system requirements
Projects may be declined if deemed unnecessary, financially unviable, incompatible with the grid, or if more suitable competing proposals are available.
Additional Scrutiny for Hydropower Projects
For hydroelectric developments, NEPRA will also assess potential impacts on river systems, including irrigation, drinking water supply, and flood control. Projects must demonstrate that all required federal and provincial approvals have been secured.
Post-Approval Compliance
Once concurrence is granted, any changes in project capacity, technology, or interconnection parameters will require fresh approval. Developers are also obligated to notify NEPRA of any changes in company structure or details within 14 days.
Enhancing Transparency and Planning
Officials state that the new regulations aim to improve transparency, discourage speculative or unplanned investments, and ensure that future power projects are aligned with Pakistan’s long-term energy strategy and infrastructure capacity.
The framework also empowers NEPRA to issue clarifications and directives to address implementation challenges, reinforcing its central role in shaping the country’s evolving power generation landscape.
Story by Mushtaq Ghumman
