Latest news with #TPPA
Business Recorder
7 days ago
- Business
- Business Recorder
TPPAs set to be signed for Karachi Nuclear Power Plants K-2, K-3
ISLAMABAD: Pakistan Atomic Energy Commission (PAEC), National Grid Company (NGC), erstwhile NTDC, and Central Power Purchasing Agency -Guaranteed (CPPA-G) are to sign Tripartite Power Purchase Agreements (TPPAs) on Karachi Nuclear Power Plants unit 2 and unit 3. Recently, Power Division briefed the Economic Coordination Committee (ECC) of the Cabinet that Karachi Nuclear Power Plant Unit-2 ('K-2') and Unit-3 ('K-3') are constructed by Pakistan Atomic Energy Commission. These were highly significant and strategically important base load plants having installed capacity of 1145 MW each and located in the City of Karachi. The plants are being operated by PAEC. National Electric Power Regulatory Authority (NEPRA) granted Generation Licence to K-2 and K-3 NPPs on December 09, 2019 and February 16, 2021 respectively. As notified by PAEC, K-2 and K-3 Plants were commissioned and achieved Commercial Operations Date (COD) on May 21, 2021 and April 18, 2022 respectively. Since then, these plants had been providing electricity at the most economical rates to National Grid. 1,100MW K-3 inaugurated, China praised NEPRA granted interim tariff to K-2 and K-3 projects on 'Take or Pay' basis on July 01, 2021 and May 19, 2022 respectively, final tariff on January 14, 2022 and April 12, 2023 respectively and CPPA-G Board also approved purchase of power from these power plants. According to Power Division, CPPA-G requires formal approval of the Federal Government to sign Tripartite Power Purchase Agreement between PAEC, NTDC and CPPA-G. In order to formalize such Tri-partite Power Purchase Agreement ('TPPA'), ECC-approved standardized draft TPPA prepared under Power Generation Policy, 2015 had been used as a base document. The ECC was further apprised that project specific changes along with performance-based provisions had been incorporated in the base document. NEPRA, in its letter of April 03, 2024 had cleared the signing of TPPA for both the projects. The Power Division submitted the following proposals for consideration and approval of the ECC: (i) Tripartite Power Purchase Agreement to be signed between PAEC, NTDC and CPPA-G for 1145 MW Karachi Nuclear Power Plant Unit-2 (K-2); and (ii) the Tripartite Power Purchase Agreement to be signed between PAEC, NTDC and CPPA-G for 1145 MW Karachi Nuclear Power Plant Unit-3 (K-3). After brief discussion, the ECC approved the summary submitted by the Ministry of Energy (Power Division for signing of TPPAs between PAEC, NGC and CPPA-G( market operator). Copyright Business Recorder, 2025
Business Recorder
05-06-2025
- Business
- Business Recorder
KAPCO signs TPPA with CPPA-G, NGCPL
KARACHI: Kot Addu Power Company Limited (KAPCO) has signed a Tri-Partite Power Purchase Agreement (TPPA) with Central Power Purchasing Agency (CPPA-G) and National Grid Company of Pakistan Limited (NGCPL). The development was disclosed in a notice to the Pakistan Stock Exchange (PSX) on Wednesday. Last month, on May 20th, The National Electric Power Regulatory Authority (NEPRA) approved the tripartite agreement, governing electricity sales from KAPCO's 1,600 MW power plant in Kot Addu, Punjab. According to KAPCO's notice, NEPRA granted approval of the TPPA on May 19, 2025, subject to certain conditions being met. The conditions include conducting an Initial Capacity Test (ICT) and Heat Rate Test (HRT) to benchmark efficiency, with an independent engineer evaluating and determining Simple Cycle Efficiency/Heat Rate numbers. Once these requirements are fulfilled, the TPPA will become effective for the operational phase of the power plant. Meanwhile, NEPRA had granted a provisional tariff to KAPCO on a Take-or-Pay basis last month after a public hearing on April 8, 2025. Incorporated in 1996, KAPCO operates a multi-fuel fired power station with the capacity of 1,600 MW, selling electricity to the Water and Power Development Authority (WAPDA) under a Power Purchase Agreement (PPA). Copyright Business Recorder, 2025
Business Recorder
04-06-2025
- Business
- Business Recorder
KAPCO signs tripartite power agreement
The Kot Addu Power Company Limited (KAPCO) has signed a Tri-Partite Power Purchase Agreement (TPPA) along with the schedules with the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) and National Grid Company of Pakistan Limited. KAPCO shared this development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday. Last month, the National Electric Power Regulatory Authority (NEPRA) approved a tripartite agreement between CPPA-G, KAPCO and National Grid Company of Pakistan Limited to govern electricity sales from KAPCO's power plant. Incorporated in Pakistan on April 25, 1996, as a public limited company, KAPCO's principal activities are to own, operate and maintain a multi-fuel fired power station with fifteen generating units with a nameplate capacity of 1,600 MW in Kot Addu, Punjab. The company sell the electricity produced to a single customer, the Water and Power Development Authority (WAPDA) under a Power Purchase Agreement (PPA).
Business Recorder
20-05-2025
- Business
- Business Recorder
NEPRA approves KAPCO's tripartite power agreement
The National Electric Power Regulatory Authority (NEPRA) has approved a tripartite agreement between Central Power Purchasing Agency (Guarantee) Limited (CPPA-G), Kot Addu Power Company Limited (KAPCO) and National Grid Company of Pakistan Limited that will govern electricity sales from KAPCO's power plant. KAPCO disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Tuesday. 'We are pleased to advise that the NEPRA vide letter dated May 19, 2025 addressed to the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) has granted approval of the TriPartite Power Purchase Agreement (TPPA) between the CPPA-G, KAPCO and National Grid Company of Pakistan Limited along with the schedules,' read the notice. However, before the TPPA can officially become effective, certain conditions set by NEPRA must be met, the listed company said. 'The directions of NEPRA as stipulated in its letter dated May 19, 2025 are to be complied with for signing of the TPPA, which, inter alia, include the conduct of Initial Capacity Test (ICT) and the Heat Rate Test (HRT) for bench marking efficiency and an independent engineer is to evaluate and determine Simple Cycle Efficiency/Heat Rate numbers which are to be submitted before NEPRA along with ICT and HRT Reports.' Once these requirements are met, the TPPA will become effective for the operational phase of the power plant, KAPCO said. Last month, NEPRA granted a provisional tariff to KAPCO on a Take-or-Pay basis after a hectic debate at a public hearing on April 8, 2025. Incorporated in Pakistan on April 25, 1996, as a public limited company, KAPCO's principal activities are to own, operate and maintain a multi-fuel fired power station with fifteen generating units with a nameplate capacity of 1,600 MW in Kot Addu, Punjab. The company sell the electricity produced to a single customer, the Water and Power Development Authority (WAPDA) under a Power Purchase Agreement (PPA).
