ISLAMABAD: As Pakistan battles rising fuel prices and a widening energy shortfall, the Independent System and Market Operator (ISMO) has issued a revised Economic Merit Order (EMO) — a crucial document that lays bare the true cost of powering the country.
The latest EMO, issued in coordination with the Central Power Purchasing Agency (CPPA-G), aims to optimise electricity dispatch based on real-time fuel prices. The merit order assumes ideal plant performance — full-load efficiency, uninterrupted fuel availability, and zero outages. In practice, dispatch decisions are rarely so straightforward. Fuel stock positions, especially for RFO-based plants, are often outdated or unavailable, while dedicated gas plants have strict minimum-dispatch clauses written into their contracts.
The cheapest power plant in the merit order is Uch-I, generating electricity at Rs3.113/kWh. Liberty Power follows it at Rs5.1206/kWh. Next comes Thar Coal Block-I with a generation cost of Rs 5.5171/kWh, followed by Engro Thar Power at Rs6.5174/kWh, Thar Energy Limited at Rs6.5273/kWh, and Thal Nova at Rs6.5300/kWh.
Following these are gas-based plants such as the 747 MW Guddu (Combined Cycle), producing electricity at Rs9.664/kWh. Then comes Foundation Power at Rs11.1201/kWh, Lucky Electric Power Company at Rs11.3800/kWh, and Engro Powergen Qadirpur at Rs11.6533/kWh. Port Qasim, an imported coal-based plant, follows closely at Rs11.8668/kWh.
The Uch-II plant, when its generation exceeds 152,375 MWh, produces electricity at a slightly higher cost of Rs12.1679/kWh. Jamshoro (coal) follows at Rs13.5756/kWh, while the 747 MW Guddu (Open Cycle) plant costs Rs13.8450/kWh. Uch-II, another gas-based plant, generates at Rs14.4844/kWh, while Engro Qadirpur (gas bdr/PEL) comes in at Rs14.5812/kWh.
Moving higher, Sahiwal Power produces at Rs16.6498/kWh. RLNG-based plants such as NPPMC-HBS (Combined Cycle) generate at Rs19.6565/kWh, followed by NPPMC–Baloki (Combined Cycle) at Rs19.8565/kWh, and QATPL–Bhikki (Combined Cycle) at Rs20.0131/kWh. Punjab Thermal Power (RLNG) comes next at Rs20.4755/kWh, and China Power Hub Generation Company (coal) at Rs20.7993/kWh.
Liberty Power, after crossing 61,904 MWh, rises to Rs21.4105/kWh. Other RLNG-based plants include Orient Power Company Ltd at Rs24.2531/kWh, Nandipur (Combined Cycle) at Rs24.6553/kWh, Halmore Power at Rs24.7171/kWh, Sapphire Electric Company at Rs24.7627/kWh, and Saif Power at Rs24.8272/kWh.
Next, KAPCO Block-I (RLNG) costs Rs26.0660/kWh, followed by KAPCO Block-II (LSFO) at Rs26.7396/kWh. The same block on RLNG rises to Rs28.0167/kWh, and on LSFO again to Rs29.0167/kWh. Then comes Nishat Power Limited (RFO) at Rs29.2416/kWh, Altern Energy Ltd (Phase II, RLNG) at Rs29.3130/kWh, and FKPCL (RLNG) at Rs29.3233/kWh.
Costs rise further with K-Electric (RFO) at Rs31.0875/kWh, followed by Davis Energy (RLNG) at Rs32.1463/kWh, Nishat Chunian Power Ltd (RFO) at the same Rs32.1463/kWh, and Narowal Power (RFO) at Rs32.1587/kWh. Altern Energy (Phase I, RLNG) then jumps sharply to Rs36.9650/kWh.
At the high-cost end, Attock Gen (RFO) generates at Rs43.2591/kWh, while NPPMC-HBS (Combined Cycle, HSD) rises to Rs44.3070/kWh. Liberty Power (RFO) follows at Rs45.9370/kWh, and Punjab Thermal Power (HSD) at Rs53.8368/kWh. QATPL–Bhikki (Combined Cycle, HSD) is also among the highest at Rs51.7161/kWh, while NPPMCL-Baloki (Combined Cycle, HSD) comes in at Rs53.4577/kWh.
Among the most expensive are Orient Power (HSD) at Rs58.0221/kWh, Halmore Power (HSD) at Rs58.4464/kWh, Sapphire Electric Power (HSD) at Rs58.5967/kWh, and Saif Power (HSD) at Rs58.7404/kWh. Topping the list as the most expensive plant is Engro Powergen Qadirpur (HSD) at a staggering Rs72.8483/kWh.