Pakistan launches first electricity auction to create competitive power market

Pakistan has initiated a transition from a centralized single-buyer model to a competitive electricity market. The Power Division has issued a Request for Proposals (RFP) for the nation’s first electricity wheeling auction under the Competitive Trading Bilateral Contract Market (CTBCM) framework.

Under this new mechanism, industrial and large-scale consumers—specifically those using more than one megawatt—will be able to purchase electricity directly from power producers. This shift aims to increase transparency and reduce the government's role in electricity procurement. Federal Minister for Energy Sardar Awais Ahmad Khan Leghari stated that the government will no longer be compelled to purchase electricity, nor will producers have the right to force the government to buy their supply.

The plan involves auctioning approximately 800 megawatts of electricity over the next five years, with the initial auction offering 400 megawatts. The National Electric Power Regulatory Authority (NEPRA) has been developing the CTBCM framework to facilitate these direct transactions between producers and consumers.