Pakistan launches first 400MW competitive electricity wheeling auction
The government announced a 400 MW wheeling auction under the Competitive Trading Bilateral Contracts Market, allowing large consumers to buy power directly from producers.
Pakistan’s Power Division, through its subsidiary ISMO, released an RFP for a 400 MW wheeling auction, the first under the long-delayed Competitive Trading Bilateral Contracts Market. The submission deadline is set for November 20, 2026. Power Minister Awais Ahmad Khan Leghari described the initiative as a historic step toward a market-based electricity sector, moving the state out of direct power procurement.
Companies may acquire up to 160 MW of firm capacity over the five-year auction horizon, either via a single plant or multiple projects, provided the total does not exceed the limit. The auction targets large industrial users, with plans to eventually extend competitive purchasing to all consumers. The reform aims to increase transparency, lower costs, and boost the competitiveness of Pakistani industry.
Why it matters
It marks Pakistan's shift to a market-driven power sector, potentially lowering electricity costs for industry.
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