Kot Addu Power Company Limited (PSX: KAPCO) has successfully completed the Initial Tested Capacity (ICT) and Initial Heat Rate Test (HRT) of 495 MW power plant, conducted on September 12, 2025. The Independent Engineer has issued the official test certificate. This marks KAPCO’s formal role as an Independent Power Producer (IPP) supplying electricity to the National Grid. The move is likely to further reduce electricity shortfall in the country. Recently, NEPRA has also approved Rs1.50 Cut in Electricity Tariff for FY2026.
The Tripartite Power Purchase Agreement (TPPA) was signed on June 4, 2025. It was after approval by the National Electric Power Regulatory Authority (NEPRA). NEPRA requires these tests before the TPPA could become effective. With completion of the tests, the TPPA is now effective from September 13, 2025. Thus, it marks the Commercial Operation Date (COD).
Commenting on the milestone, Shahab Qadir, CEO of KAPCO, said: “The COD is a significant milestone for KAPCO and Pakistan’s Power Sector. From this date, KAPCO will supply electricity up to 495 MW from its plant to the National Grid and the Power Purchaser under NEPRA-approved tariff. It has flexible fuel options—RLNG in summer and LSFO in winter. Moreover, our plant will provide reliable and economical power, support grid stability, and contribute to the country’s economic growth.”
KAPCO has received requisite approvals from NEPRA and NTDC, with final tariff determination expected soon. The TPPA ensures structured payments for capacity, operations, and working capital, providing a stable framework for power supply.
