ISLAMABAD: The Pakhtunkhwa Energy Development Organisation (PEDO) has challenged the exclusion of two key hydropower projects from the Indicative Generation Capacity Expansion Plan (IGCEP) 2025–35, filing a petition in the Islamabad High Court (IHC) against federal energy authorities.
The petition, submitted through Advocate Irfan Muawar Gill, was admitted by the court, which subsequently issued notices to the federal government, the Independent System and Market Operator (ISMO), and the National Electric Power Regulatory Authority (NEPRA).
PEDO argued that Pakistan’s power sector planning framework underwent a major constitutional shift in 2021 when the IGCEP was formally brought under the jurisdiction of the Council of Common Interests (CCI). Prior to that, the IGCEP largely functioned as a technical planning document without binding constitutional or inter-provincial consensus.
According to the petition, the CCI’s intervention ensured transparency, predictability, and equal treatment of provincial energy projects while strengthening investor confidence in the country’s power sector.
The petitioner stated that during its 48th meeting held on September 13, 2021, the CCI introduced a binding classification system for projects under IGCEP, dividing them into “Committed Projects” and “Indicative/Candidate Projects.”
PEDO maintained that the classification carries constitutional protection under Article 154(7), leaving no authority to the federation, NEPRA, ISMO, or subordinate bodies to arbitrarily alter or ignore the approved criteria.
The petition argued that under the NEPRA Act 1997, National Electricity Policy 2021, and National Electricity Plan, projects designated as “Committed” carry important legal, regulatory, and financial implications. Such projects are required to possess approved PC-I documentation, secured financing arrangements, and necessary regulatory clearances.
PEDO claimed that its two hydropower schemes — the 157MW Madyan Hydropower Project and the 88MW Gabral Kalam Hydropower Project — fully satisfy all conditions required for inclusion as “Committed Projects.”
According to the petition, both projects received PC-I approval from the Executive Committee of the National Economic Council (ECNEC) on October 1, 2020, and secured concessional international financing through agreements with the World Bank under the Khyber Pakhtunkhwa Hydropower and Renewable Energy Development Programme before the March 2021 cut-off date.
The organisation argued that these facts were formally documented and never disputed by any relevant authority, making the projects’ inclusion in IGCEP constitutionally protected and mandatory.
The petition further highlighted that both hydropower projects are flagship clean energy initiatives of the Khyber Pakhtunkhwa government. Designed as run-of-river schemes in Swat, the projects aim to generate affordable and environmentally sustainable electricity without constructing large dams.
PEDO stated that the inclusion of these projects would help reduce dependence on imported fuels, lower circular debt, and contribute toward Pakistan’s climate resilience and energy security objectives.
The petitioner requested the court to declare the exclusion of the two projects from the “Committed Projects” category in IGCEP 2025–35 as illegal, unconstitutional, and without lawful authority.
It also urged the court to direct NEPRA and ISMO to include and retain both projects in the final IGCEP 2025–35 and future expansion plans unless their status is changed through a lawful decision of the CCI.
Additionally, PEDO challenged the retrospective application of a new condition requiring at least 10 percent physical and financial progress to maintain “Committed” status, arguing that the criterion was unlawful and beyond legal authority.
The petition further requested the court to direct NEPRA to reject, remand, or strike down unlawful portions of IGCEP 2025–35 and ensure the plan is reconsidered in accordance with the Constitution, applicable laws, and CCI decisions after providing a fair hearing to the petitioners.
Story by Mushtaq Ghumman
