Power regulator mandates battery storage for solar, wind projects in first wheeling auction

The National Electric Power Regulatory Authority has made battery energy storage systems compulsory for solar and wind projects bidding in Pakistan's first electricity wheeling auction. According to Business Recorder, the regulator also raised the auction size from 200MW to 400MW. Under the revised rules, renewable projects qualify only if co-located storage carries firm capacity equal to at least 10% of the generation facility's firm capacity.

The regulator accepted the 10% threshold even though stakeholders had backed 20% during consultations, citing possible upfront costs and reduced participation by smaller developers. ISMO's simulations suggest the storage rule could cut renewable curtailment by 0.3 points for wind and 1.1 points for solar across the system, with negligible effect on marginal prices. At project level, the same modelling suggested that a 10% storage share could lift equity returns for solar and wind plants serving B-3 and B-4 buyers.

The regulator set the 10% level as an initial phase rather than a permanent threshold, and ISMO must examine how the rule affects bidders, rivalry, storage expenses and technical results before proposing any future change. For the first auction, bid submission is fixed at two months from RFP publication with no extension. A three-member grievance committee chaired by the managing director of the Private Power & Infrastructure Board (PPIB) will decide complaints within four weeks.