Sustainable, low-cost power crucial for industrial growth

These challenges were discussed at a multi-stakeholder dialogue titled “Threads of Accountability: Traceability and Energy Policy for Textile Competitiveness”, bringing together textile producers, power-sector experts, sustainability and verification professionals, business representatives and renewable-energy stakeholders.

The discussion centered on how Pakistan’s textile industry can engage with a changing power market while maintaining dependable energy supplies and complying with increasingly demanding international sustainability requirements.

Participants said an effective energy transition would require more than liberalizing the electricity market or expanding renewable-energy generation. Transparent tariffs, dependable networks, commercially practical market structures, reliable environmental data, suitable risk-sharing arrangements and stronger coordination between industry, regulators, utilities, financiers and global buyers would be essential.

A key part of the discussion focused on Pakistan’s emerging Competitive Trading Bilateral Contract Market (CTBCM) and what it could mean for industrial consumers. Muhammad Usman Bin Ahmed, Energy Transition Officer at Alternate Development Services (ADS), outlined the practical requirements for industrial participation, including eligibility, competitive procurement, bilateral contracts and wheeling arrangements.

He also drew attention to several commercial and operational considerations within the emerging market, including Use of System Charges (UoSC), security and performance guarantees, SMP exposure, balancing and settlement mechanisms, hybrid bulk power-consumer arrangements and firm-capacity requirements for renewable-energy supplies. He presented a CTBCM readiness toolkit designed to help industrial consumers understand the conditions and practical requirements for entering the competitive market.

The financial viability of wheeling emerged as a major concern. Analysis shared during the dialogue showed that Nepra’s September 2026 determination sets effective UoSC at Rs9.46 per kWh for B-3 consumers and Rs12.32 per kWh for B-4 consumers, including a Rs3.23 per kWh distribution-of-subsidy surcharge. Participants noted that these charges would be a significant factor for industries considering alternative electricity procurement models.