Transition Towards Competitive Trading Bilateral Contract Markets in Power Sector of Pakistan

The power sector of Pakistan is integrated as the single buyer model of energy trade, where the centralized dispatch of power is implemented. From the vertically integrated and centralized structure of the power sector of Pakistan, now the transformation is being made towards the competitive trading model of the electric markets. The concept of new regime of power markets shall be transiting to involve low cost energy into the integrated mix of energy and shall allow the competitiveness in context of tariff and type of source. The Energy Desk of IPS has prepared an issue brief that demonstrates the roadway towards the transition and importance of the new model in catering the long associated issues with the power sector of Pakistan.