Business

Pakistan Introduces Mandatory NEPRA Approval for New Power Plants

The National Electric Power Regulatory Authority has introduced the new Concurrence Regulations 2026, making prior approval mandatory for all new power generation projects in Pakistan.

The rules, issued through SRO 692(I)/2026 under the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, have come into effect immediately.

Under the new framework, any company or individual planning to set up a power generation facility must obtain formal concurrence from NEPRA before proceeding.

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Applicants will now be required to submit detailed proposals covering technical, financial, environmental, geological, hydrological, and safety aspects along with a processing fee.

The Registrar will review applications within 15 working days for completeness. Once approved, the project details will be published in newspapers to invite public feedback and objections.

NEPRA will then take up the application for final decision, which is expected within 28 working days, although the timeline may be extended if required.

The regulator has been given broad powers to approve or reject projects based on demand, economic viability, technology, environmental impact, and system compatibility.

Applications can be rejected if projects are not aligned with sector needs, lack financial justification, or if better alternatives are available.

For hydropower projects, additional scrutiny will be applied, including impacts on irrigation, drinking water, and flood control, along with necessary approvals from relevant authorities. Once approval is granted, any change in project capacity, technology, or system connection will require fresh clearance from NEPRA.

Officials said the new regulations aim to bring more transparency, prevent unplanned investments, and ensure that power projects align with national energy planning.

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Published by
Muhammad Bilal