K-Electric Plans Rs484 Billion Investment for 1,200 MW Boost in Karachi's Power Grid

In a recent hearing session at the National Electric Power Regulatory Authority (NEPRA), K-Electric's Chief Financial Officer, Aamir Ghaziani, revealed the utility's ambitious investment plan of Rs484 billion. This substantial investment aims to introduce over 1,200 megawatts (MW) of renewable energy to Karachi's power grid.

Highlighting K-Electric's commitment to enhancing Karachi's power infrastructure, Ghaziani mentioned that the company has already invested Rs544 billion ($4.4 billion) in improving electricity in the city. This significant investment has propelled Karachi's power generation capacity by an impressive 1,957 megawatts.

Moreover, K-Electric's fleet efficiency has seen a remarkable improvement, rising from 30% in 2005 to 42% in 2023. The management shared expectations of further enhancement, targeting a fleet efficiency of 49% with the addition of a new 900 MW RLNG (Regasified Liquefied Natural Gas) plant.

Since privatization, K-Electric has achieved noteworthy milestones, doubling transmission and distribution capacity while halving line losses. The company emphasized its commitment to service reliability by investing in IT and technology-based interventions. These include innovative initiatives like the use of the Geographical Information System (GIS) and the deployment of 60,000 smart meters, providing greater visibility into power consumption trends.

NEPRA conducted the hearing to evaluate K-Electric's petition for a non-exclusive distribution license and supplier license for the next two decades in its service territory, covering Karachi, Dhabeji, Gharo in Sindh, and Balochistan's Hub, Bela, and Vinder regions.

During the discussions, a significant focus was placed on tariffs, with participants expressing satisfaction with the network and associated services. The management's commitment to leveraging technology for modernizing infrastructure and improving service delivery was also emphasized.