Nepra announces decision regarding KE's investment plan for the next 7 years

 

K-Electric Secures Approval for $2 Billion Investment Plan to Boost Karachi's Power Grid

Karachi's power utility, K-Electric (KE), has received a green light from the National Electric Power Regulatory Authority (NEPRA) for its ambitious Transmission & Distribution (T&D) Investment Plan. This plan outlines a strategic investment of $2 billion over the next seven years (FY 2024-FY 2030) to modernize Karachi's power infrastructure and meet the city's growing energy demands.

Investing in a Stronger Future

This investment plan is a crucial step towards ensuring a reliable, stable, and safe power supply for Karachi's residents and businesses. Since privatization, KE has already invested PKR 544 billion, which has demonstrably improved service delivery. This past investment has led to a doubling of both KE's customer base and their power consumption, while also achieving a significant reduction in T&D losses (more than 50%).

Priorities and Focus Areas

The newly approved plan prioritizes several key areas for investment:

• Growth: KE aims to expand its network to cater to new customers and support Karachi's development.
• Energy Loss Reduction: Continued focus on minimizing energy losses within the T&D network will improve overall efficiency.
• Network Rehabilitation & Maintenance: Upgrading and maintaining existing infrastructure is essential for long-term reliability.
• Safety: Enhancing safety measures across the network remains a top priority.
• Digitization: KE plans to leverage advanced technologies like Advanced Metering Infrastructure (AMI), Distribution Management Systems (ADMS), and Meter Data Management Systems (MDMS) to streamline operations and improve transparency.

Strengthening Transmission and Expanding Capacity

The plan also includes the development of new grids and transmission lines. This will not only strengthen the overall reliability of KE's network but also allow for the integration of additional power from the National Grid, further bolstering Karachi's power supply.

Building a Sustainable Future

"This investment plan complements our Power Acquisition Program, which targets a 30% share of renewable energy in our generation mix by 2030," stated KE CEO Moonis Alvi. "We are committed to providing affordable and sustainable energy solutions for Karachi."

KE has also secured regulatory approval for procuring 640MW of renewable energy, a critical step towards achieving their renewable energy goals.

Looking Forward

KE is currently reviewing NEPRA's decision in detail and remains committed to working collaboratively with all stakeholders. The company emphasizes the importance of maintaining a sustainable and cost-reflective tariff structure to ensure the successful execution of this transformative investment plan. This plan positions KE to deliver a more reliable, efficient, and sustainable power supply for the future of Karachi.