NTDC Submits System Operator Licence Application to NEPRA – A Giant Leap Forward for the Power Sector of Pakistan

Islamabad, August 25, 2022 (Online): In a major development, Deputy Managing Director (P&E), National Transmission and Despatch Company (NTDC) called on Chairman NEPRA, Mr. Tauseef H. Farooqi at NEPRA HQ, Islamabad this morning to submit the System Operator (SO)Licenceapplication along with the draft Grid Code, on behalf of NTDC. Mr. Farooqi appreciated the untiring efforts of the NTDC team in preparation of the Grid Code and remarked that this was a fulfilment of the vision laid down by the WAPDA Restructuring Plan 1992.

The submission marks a major milestone in the Competitive Trading Bilateral Contract Market (CTBCM) institutional reforms undertaken, envisioned as a critical action item under the CTBCM implementation roadmap approved by the Authority in November 2020.

The system operator will be responsible for operations, centralized scheduling and despatch of power plants connected to the National Grid. The independence of the system operator will positively usher in cutting edge technology and modern techniques to ensure the transparent and efficient operations and economic despatch along-with effective long-term system planning of power sector of Pakistan.

After input from local and international consultants, the first draft of the new Grid Code was shared with NEPRA at the end of last year. Since then, NEPRA professionals worked tirelessly and engaged in numerous detailed consultative sessions with the NTDC team and local stakeholders to align the new Grid Code with the evolving face of the power sector in the light of CTBCM reforms. The Grid Code 2022, once approved, will supersede the existing Grid Code 2005.It addresses the technological developments in the electric power business, including renewable energy power plants and HVDC.

The Grid Code sets out the guidelines, rules and procedures to be adopted by all stakeholders of the power sector. It is structured toensure the development and operation of the National Grid in an efficient, safe, reliable, and co-ordinated manner.

NEPRA acknowledges the efforts of the NTDC and all other stakeholders that were a part of the development of the SO licence application and the draft Grid Code for achieving the ultimate re-structuring of NTDC as part of the institutional reforms envisaged under CTBCM. Moving forward, NEPRA will process the SO licence application along with the draft Grid Code in accordance with the applicable regulatory framework.