QUETTA: Pakistan has approved the import of an additional 100 megawatts (MW) of electricity from Iran, increasing the total power supply for Balochistan’s coastal region to 204MW.
The move aims to improve electricity availability in Gwadar and nearby districts, where the national grid currently provides only 40 to 45MW of uninterrupted electricity.
According to officials, the National Electric Power Regulatory Authority (Nepra) approved revised tariff and transmission agreements between the Central Power Purchasing Agency Guarantee Limited (CPPA-G) and Iran’s state-owned electricity company TAVANIR on May 13.
Nepra approved Amendments 7, 8, and 9 to the bilateral electricity import agreement after the arrangement had earlier received approval from the Economic Coordination Committee (ECC) in August 2023.
Under the revised agreement, Pakistan will continue importing 104MW from Iran and will additionally receive 100MW through the Polan-Gabd transmission corridor.
The additional electricity is expected to strengthen power supply in Gwadar, Jiwani, and other areas of Makran division.
Pakistan will construct a new 28-kilometre 230kV double-circuit transmission line to connect the Iranian supply with the Jiwani-Gwadar power infrastructure, while Iran will deliver electricity through its own transmission network.
Nepra also approved a revised oil-linked tariff formula for imported electricity. Under the mechanism, the base rate has been fixed at 3.6 US cents per kilowatt-hour, with additional charges linked to international oil prices.
Officials said that at an estimated oil price of 60 dollars per barrel, the tariff would stand at approximately 8.4 US cents per unit.
The regulator highlighted the strategic importance of Iranian electricity imports for Pakistan’s southwestern coastal belt, warning that unreliable power supply could negatively impact economic activity and development projects linked to Gwadar.
During the hearing, Quetta Electric Supply Company (QESCO) informed Nepra that without Iranian imports, the national grid could currently supply only 40 to 45MW of uninterrupted electricity to Gwadar despite emergency operational measures.
QESCO also informed the regulator that several shunt reactors had already been activated at Dadu, Khuzdar, Panjgur, and Turbat grid stations to improve voltage stability.
The company said Automatic Voltage Regulators (AVRs) had also been installed at Gwadar Door and Deep Sea Port feeders, while a contract had been awarded to the OMS-Burqaab consortium for regional voltage stability studies and implementation work.
Officials added that plans are underway to install a STATCOM reactive power compensation system within the next 24 months to improve long-term grid stability in the region.
Nepra directed CPPA-G, QESCO, Independent System & Market Operator (ISMO), and National Grid Company (NGC) to jointly submit a six-month roadmap for future electricity supply in Balochistan’s coastal areas.
The roadmap will include plans related to system reliability, national grid integration, local power generation, electricity demand forecasts, and institutional coordination to ensure long-term energy security in the region.