ISLAMABAD, March 9 (Alliance News): K-Electric (KE) has clarified its generation costs and power procurement strategy for December 2024, stating that 21% of electricity procured by CPPA-G (2,171 MW) came from RLNG plants, while KE’s RLNG-based generation stood at 19% (252 MW), with fuel costs comparable to national grid plants.
According to a KE spokesperson, lower winter demand led the utility to balance supply from the NTDC network using cost-efficient plants.
The spokesperson emphasized that if KE had received its committed quota of natural gas, its fuel cost could have been reduced to Rs 8/kWh, just 40% of what it was in December 2024.
The statement further noted that focusing solely on fuel costs provides an incomplete picture, as total power purchase costs—including capacity payments—show that the national grid’s rate stands at approximately Rs 27/kWh, which is comparable to KE’s rates.
KE highlighted that its fuel costs appear higher than CPPA-G’s because it lacks nuclear and hydro power plants in its system and does not receive sufficient indigenous or low-Btu gas.
The spokesperson acknowledged NEPRA’s observation that KE is committed to procuring cheaper power from NTDC, a goal supported by the completion of KKI and Dhabeji Grid, which will allow KE to increase drawl from NTDC to 2,000 MW once confirmed. KE is also in discussions with NTDC to enhance power supply reliability and efficiency.
Additionally, KE is actively working on rationalizing energy costs and has issued 640 MW of renewable energy RFPs, with competitive bidding concluded and Bid Evaluation Reports submitted to NEPRA.
