K-Electric sheds 96MW capacity to cut costs

By Israr Khan
|
September 24, 2025
View of the KE headquarters in Karachi. — FacebookK-Electric/File

ISLAMABAD: K-Electric Ltd. said Tuesday it will decommission two outdated gas turbine power stations in Karachi to cut costs and boost efficiency, without disrupting supply to its 3.4 million customers.

The board-approved decision targets the Site Gas Turbine Power Station and the Korangi Town Gas Turbine Power Station, which together account for about 96 megawatts of capacity but have struggled with dwindling gas supplies and rising maintenance costs since 2018.

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By retiring the units early, the company expects to streamline operations, optimize fuel use, and focus resources on its high-efficiency generation fleet. The company will formally file a petition before the NEPRA to take its nod on it.

K-Electric assured investors in a regulatory filing that Karachi’s growing demand will remain fully met. The utility has bolstered its capacity with the state-of-the-art 900-megawatt Bin Qasim Power Station III and strengthened national grid linkages through agreements with the Central Power Purchasing Agency and National Transmission and Despatch Co. These moves, the management said, provide redundancy and resilience, ensuring no adverse impact from the retirements.

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