Govt notifies rules to govern electricity import

KARACHI: The government on Friday notified rules to enable power distribution companies to import electricity from foreign countries in order to curtail energy deficit that, at times, reaches 6,000 megawatts. 

In March, the National Electric Power Regulatory Authority (Nepra) announced the rules and sought feedback from stakeholders in a month. The rules, notified by Nepra, will govern electricity import from foreign countries in view of growing power demand and distribution sector’s interest in transmission from across the border.

The Nepra (Import of Power) Regulations 2017 provide procedures for the import of electricity from foreign countries as well as generation facilities, located in Azad Jammu and Kashmir, Gilgit Baltistan and territories where the existing Nepra Act is not applied.

Under the new regulations, a buyer or importer will file an application with the authority for tariff determination and based on that the importer will execute power purchase agreement with electricity exporter.

The government has already allowed import of 1,300 megawatts of electricity from central Asian states under the Casa-1,000 power project. The lines will be laid over 1,200-kilometre and electricity will be imported from the beginning of May to the end of September every year, which will ease the electricity deficit in summer when the demand is usually at its peak.

The electricity import is expected to begin from 2019 as the estimated time for laying power transmission lines from the exporting countries to Pakistan is 40 months. Initially, electricity between 1,000MW and 1,300MW will be imported from the Kyrgyz Republic and Tajikistan to Pakistan and Afghanistan. Pakistan will use the major share, while Afghanistan will utilise approximately 300 megawatts.

Pakistan is keen to develop relationship with the energy-rich central Asian states to overcome power shortages in the country. The country is already importing more than 100-megawatt of electricity from neighbouring Iran. The government has planned to increase the quantum manifold. 

The electricity demand continues to outpace the supply and deficit, which at times crosses 6,000-megawatt. An increase in electricity demand is directly linked to economic growth. With growth in all economic sectors, it is expected that the demand for electricity will substantially rise in the coming years. Growth was recorded at 5.3 percent, highest in the past one decade.