Govt invites bids for first 400MW wheeling auction, says it is exiting power procurement

Dawn reported that the government has announced the first wheeling auction, offering 400 megawatts of electricity under the Competitive Trading Bilateral Contracts Market (CTBCM). The offer was published by the Independent System and Market Operator (Ismo), a Power Division subsidiary, and will let large industrial users, for the most part, select generators across Pakistan instead of relying on one state-owned distributor. Interested parties have until November 20, 2026 to submit their proposals.

Power Minister Awais Ahmad Khan Leghari described the step as a historic move toward a competitive electricity market, away from the single-buyer model. He said the government is stepping back from procurement and will neither sell power nor buy it from producers in the traditional way. Under the plan, 800MW will be auctioned over five years, with each participant capped at 160MW cumulatively.

Separately, last week's conditional approval of the indicative generation capacity expansion plan for 2025-35 envisages 26,045MW of capacity additions and the retirement of 2,577MW, at a projected cost of $47.08bn. According to a NEPRA decision, transmission needs over the planning horizon total about $10.65bn, including $4.6bn for ongoing or committed projects.