The energy sector plays a key role in the development and growth of the economy by ensuring an adequate, secure and cost-effective supply of energy and utilizing energy resources efficiently. The past couple of years have certainly not been ideal for the country in general and the power sector in particular. Last year, the COVID-19 pandemic halted global trade causing a disruption in fuel transportation; this year, the ongoing regional conflict has resulted in fuel shortages all over the world resulting skyrocketed fuel prices globally. Both scenarios had implications for Pakistan. However, the Company in collaboration with the Power Division and Generation Companies successfully encountered the fuel shortages (for electricity generation) without adding the financial burden on the end consumers of electricity.
CPPA-G remained instrumental in assisting the Power Division in evaluation and packaging for facilitation of gas-electricity switching in winter season, assistance in development of National Electricity Plan in collaboration with various stakeholders, evaluation for optimization and deployment of accelerated solar & wind technologies in the system to substitute expensive imported fuel, wholesale electricity prices and end consumer tariff analysis of IGCEP, Load Management plan, energy efficiency plan, fuel procurement for power generation, formulation of strategic roadmap in consultation with DISCOs, FOREX estimations for power sector, distributional incidence analysis on household Integrated Economic Survey, conducted by Pakistan Bureau of Statistics to evaluate energy equity, social welfare and direct effects on inflation (CPI) on account of increasing electricity prices, development of Oracle APEX based Wholesale Electricity Model (WEM) and Actual Data Visualization Model (ADVM) in collaboration with IT department, for power purchase price projections and power sector data reporting.
In 2021-22, CPPA-G continued to progress with the targeted market reforms, leading Pakistan towards a competitive wholesale electricity market, and was able to step on a landmark achievement. On 31st May 2021, CPPA-G was granted Pakistan’s first ever license as “Market Operator” of the competitive wholesale electricity market by NEPRA along with the approval of Market Commercial Code and launch of a 6-month trial phase for the test run of the market. This is one of the biggest milestones achieved so far in pursuit of a competitive wholesale electricity market regime in Pakistan. Once the systems, tools and all allied services have been thoroughly tested during the test run phase, the market will be launched formally. This new strategic alignment will ultimately reduce the financial burden on the end consumers in terms of reduced electricity prices resulting from competition and create the foundation for a self-sustaining and successful power sector.
CPPA-G also continued to invest in professional development and innovation with their global and local partners to build a better future. This year CPPA-G took the lead on capacity building of power sector professionals and carried out essential specialized trainings for all the power sector entities through its “Power Sector Centre of Excellence” (PSCE) established in collaboration with a leading university in Pakistan. This also included the largest Electricity Market Professional (EMP) Program ever conducted which saw participation from the power sector entities across Pakistan.
All such achievements were not possible without full dedication of the CPPA-G management and the committed support of the CPPA-G Board. I am proud of what CPPA-G has achieved in the FY 2021-22 and confident that the Company will continue its journey for the Power Sector support. As Chairman of the Board, I would continue to support CPPA-G towards its transformation that would bring a brighter tomorrow for our nation by reforming the wholesale electricity market operations. I welcome all stakeholders to be a part of this future.