NTDC plans a PKR 370 billion expansion plan

Islamabad: On December 27, news sources said that the National Transmission and Despatch Company (NTDC) had asked the National Electric Power Regulatory Authority (NEPRA) to approve a PKR 370 billion investment plan to expand its system and cut losses over the next three years (2023–25).

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The transmission system operator said that 45% (PKR 167 billion) of the investment would be used to move power from new power plants, while 43% (PKR 158 billion) would be used to upgrade, repair, and expand the national grid. The remaining 12% (PKR 24 billion) would be used to develop industrial zones like Dhabeji, Haripur, Swabi, Lahore, and Faisalabad as part of the China-Pakistan-Economic-Corridor.

The company also said that it would spend PKR 114 billion in the fiscal year (FY) 2022-23, PKR 145 billion in FY-24, and PKR 110 billion in FY-25. NTDC also said that it would invest PKR 165 billion in Punjab, PKR 135 billion in Khyber Pakhtunkhwa, PKR 23.5 billion in Sindh, PKR 12 billion in Balochistan, and PKR 34 billion in other areas and sectors.

The NTDC said that the PKR 266 billion it spent on investments during the last investment period (2018–19 to 2022–22) helped cut its transmission and transformational losses from 2.9% to 2.6%. Now, the company is doing better than similar businesses in India and Bangladesh, and it is very close to 2.5% in Sweden and Ukraine.

The NEPRA has agreed to look into the petition and has set a public hearing for January 2, 2023, to see if the proposed investment is worth it and if it can bring techno-commercial benefits, such as removing constraints, making more energy available for wheeling, ensuring supply reliability and continuity, and reducing transmission losses.