Govt launches 400MW auction under competitive power market

Pakistan has issued the Request for Proposals for its first Wheeling Auction, a step the Ministry of Energy (Power Division) describes as a move from a single-buyer power market toward competitive wholesale trading. Guidelines issued in 2025 set out an offering of 800 megawatts over five years, with 400MW put up in the opening round. Business Recorder reported that the auction sits under the Competitive Trading Bilateral Contract Market framework.

The process runs in five stages: auction documents, eligibility evaluation, bid evaluation, approval of results and award of quantum. Eligible participants will be able to use the country's transmission and distribution grid to conclude bilateral electricity deals, all through a dedicated auction platform. The Independent System and Market Operator (ISMO) has invited participants and will release guidance materials, supporting resources and a series of explainer videos.

Federal Minister Sardar Awais Ahmad Khan Leghari said the goal had been under discussion for three decades and the government has now moved to practical implementation. Large users consuming more than one megawatt will benefit first, with the gains gradually reaching general consumers. He argued that cheaper competitive power could help industries cut production costs, compete abroad and expand exports.