Pakistan’s power sector has long been a story of overcorrection. For years, the debate centred on supply shortages, with policymakers rushing to add generation at any cost. Today, the pendulum has swung the other way: surplus capacity, idle plants, and consumers crushed by capacity payments.
The key requirement for ensuring a stable electricity supply nationwide under all circumstances is effective system planning. The Indicative Generation Capacity Expansion Plan (IGCEP) provides a roadmap to enhance energy security, sustainability, and affordability while considering policy and macroeconomic factors. Since 2021, the System Operator (SO) under the National Transmission and Despatch Company (NTDC) has diligently prepared annual updates to this plan.
By design, the IGCEP is a least-cost plan.
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