[SMM Flash] Pakistan launches first electricity wheeling auction solicitation, with an initial phase planned to open 400 MW for competitive procurement

Published: Sep 21, 2026 09:56

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On September 20, Pakistan's Minister for Power announced that the power sector has solicited proposals for the country's first electricity wheeling auction, advancing the industry's transition from a single-buyer model to a competitive market. Under the competitive bilateral contract market mechanism, enterprises and industrial users will be able to purchase electricity directly from generators on a competitive basis and transmit the purchased power through the grid. The arrangement plans to auction 800 MW of electricity over the next five years, with 400 MW of competitive procurement to be opened in the first phase.

In its initial stage, the new mechanism will primarily target industrial and large-scale users, particularly those with power consumption exceeding 1 MW, with market coverage to be gradually expanded thereafter. Under the current model, the government centrally procures electricity and supplies it to users; the reform will enable generators and users to directly enter into power purchase and sale transactions, increasing users' options for choosing suppliers. The power sector will implement the initiative based on the principles of transparency and competition, and the relevant auction is currently in the proposal solicitation stage.

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