LAHORE, September 29, 2026: The Punjab government is considering participation in Pakistan’s first 400-megawatt electricity wheeling auction as part of efforts to expand competitive power supply options for industries, attract clean energy investment and reduce dependence on conventional electricity procurement arrangements.
The proposed participation was reviewed at a high-level meeting of the Punjab Energy Department chaired by Provincial Energy Minister Malik Faisal Ayub Khokhar. Officials examined the financial and commercial implications of entering the auction, alongside plans to facilitate open access to the electricity network and the development of a competitive power market.
The discussions focused on expected electricity tariffs, grid usage charges, financial viability, potential risks and bidding arrangements. The government has also engaged an external financial adviser to assess whether participation would be commercially and economically feasible.
Punjab explores competitive electricity supply for industries
Addressing the meeting, Faisal Ayub Khokhar said open access wheeling could help establish a more transparent and competitive electricity market by creating opportunities for industrial and commercial consumers to obtain power from alternative suppliers.
He said Punjab was exploring the mechanism to improve electricity supply options for businesses while supporting industrial expansion and investment.
Under an electricity wheeling arrangement, power can be transmitted from a generator to an eligible consumer through an existing electricity network, subject to applicable regulatory requirements and network charges.
The mechanism can allow qualifying consumers to negotiate electricity purchases with suppliers rather than relying exclusively on traditional supply arrangements. However, the final cost depends on the agreed energy price, grid charges and other applicable fees.
Khokhar said the provincial government wanted to align its energy policies with changing market requirements and explore opportunities to make electricity procurement more competitive.
He maintained that reliable power supply and commercially viable electricity prices were important considerations for industrial development and broader economic activity.
Clean energy portfolio central to Punjab’s strategy
The meeting also examined how Punjab could use its growing clean energy portfolio to benefit from emerging electricity market arrangements.
According to the energy minister, the government is working to improve the economic value of its clean energy resources while encouraging further investment in power generation projects.
He said competitive market arrangements and open access wheeling could create additional opportunities for renewable energy developers and electricity consumers.
The provincial government is also examining how these arrangements could support sustainable energy development without compromising financial viability.
Khokhar said Punjab intended to pursue reforms that would encourage industrial activity, attract investment and improve efficiency in the energy sector.
Electricity tariffs, grid charges and auction risks reviewed
Managing Director Punjab Power Development Board (PPDB) Saniya Owais briefed participants on the proposed wheeling auction and the regulatory and commercial considerations associated with open access electricity transactions.
Her briefing covered electricity tariffs, transmission and distribution network charges, and other factors relevant to participation in the auction.
Officials assessed potential electricity prices and the financial implications of using the existing grid to deliver power under competitive supply arrangements.
The meeting also considered commercial risks, economic feasibility and the bidding strategy Punjab could adopt if it decides to participate.
These assessments are intended to help determine whether the proposed arrangement could offer practical financial benefits to the province and eligible electricity consumers.
No final decision on Punjab’s participation or bidding terms was announced following the meeting.
Financial adviser engaged to assess auction participation
To support the evaluation process, the Punjab government has engaged Punjab Financial Advisory Services (PFAS) as an external financial adviser.
PFAS will assist in reviewing the financial, commercial and economic aspects of the province’s potential participation in the 400MW wheeling auction.
The assessment is expected to inform decisions concerning bidding arrangements, cost considerations and financial exposure.
Officials also discussed preparations for Punjab’s possible involvement in the Competitive Electricity Market and the administrative and commercial requirements associated with open access arrangements.
The meeting was attended by Secretary Energy Muhammad Ajmal Bhatti, Additional Secretary Development Shahid Farooq, Additional Secretary Administration Rai Muhammad Yasir Bhatti, Chief Energy Power Muhammad Yasin and PPDB Managing Director Saniya Owais.
Additional Secretary Administration Rai Muhammad Yasir Bhatti, Chief Energy Power Muhammad Yasin, CEO Punjab Thermal Power Limited Salman Zakaria, CEO Punjab Energy Efficiency and Conservation Agency Abdul Rehman and CEO Punjab Power Development Company Limited Adnan Mudassar were also among the participants.
Punjab’s consideration of the auction comes as the provincial government explores ways to expand electricity procurement options for industrial consumers and improve the commercial use of its clean energy resources. The outcome will depend on the financial assessment, applicable market arrangements and the terms of the auction.