Pakistan announces first 400 MW auction — Dawn
Pakistan has announced its first 400 MW wheeling auction under the Competitive Trading Bilateral Contracts Market (CTBCM) model. The mechanism is intended to allow large, primarily industrial consumers to choose an electricity supplier anywhere in the country rather than relying solely on state-owned distribution companies, Dawn reports.
The announcement was issued by the Independent System and Market Operator (Ismo), a subsidiary of the Power Division. The operator invited potential participants to submit bids for operations under CTBCM. The deadline for submissions is November 20, 2026.
First phase of auctions
The 400 MW auction is the first phase of a plan to hold auctions for a total of 800 MW over five years. The maximum aggregate allocation for one participant is 160 MW, or 20% of the total volume. This limit applies to all annual auctions during the five-year period, rather than separately to each power plant or auction.
A participant may develop or acquire one generating facility with guaranteed capacity of up to 160 MW, or several facilities of different capacities within subsequent annual auctions. At the same time, its total allocated capacity must not exceed 160 MW, and each facility must meet the auction requirements and capacity obligations.
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Direct market deals
Energy Minister Awais Ahmad Khan Leghari described the launch of the mechanism as a shift from a single-buyer model to a competitive electricity market. According to him, the government will no longer participate in procuring generation capacity, while producers and consumers will be able to buy and sell electricity directly.
Initially, the system will be applied to industrial and large consumers, including those consuming more than 1 MW. The minister said the market would be gradually expanded so that consumers have more opportunities to choose suppliers.
The announcement was preceded by conditional approval of the indicative generation capacity expansion plan for 2025–2035. It provides for the addition of 26,045 MW of capacity, the retirement of 2,577 MW of existing capacity, and projected spending on additional generation capacity of $47.08 billion.
