NEPRA Mandates Battery Storage For First 400MW Renewable Wheeling Auction.
✧ GENERATE BRIEFING +
The National Electric Power Regulatory Authority (NEPRA) has mandated Battery Energy Storage Systems (BESS) for all solar and wind power generators participating in Pakistan’s inaugural electricity wheeling auction, while simultaneously doubling the auction capacity from 200MW to 400MW. Under the finalized regulatory framework, qualifying renewable energy facilities must integrate co-located battery storage with a firm capacity equivalent to at least 10% of the associated generation plant's firm capacity. For the upcoming 400MW auction, this translates to roughly 40MW of firm battery capacity and 160MWh of storage capacity, depending on discharge-duration rules.While certain industry stakeholders advocated for a stiffer 20% mandate, NEPRA settled on the 10% threshold to prevent prohibitive upfront costs and safeguard participation levels, particularly for smaller independent power developers. System simulations conducted by the Independent System and Market Operator (ISMO) indicate that the 10% storage integration will decrease renewable energy curtailment by 0.3 percentage points for wind and 1.1 percentage points for solar, with negligible upward pressure on marginal consumer tariffs.
The National Electric Power Regulatory Authority (NEPRA) has made battery energy storage systems (BESS) mandatory for solar and wind projects participating in Pakistan’s first electricity wheeling auction, while doubling the auction size from 200MW to 400MW.
Under the revised framework, renewable energy projects will only qualify if their co-located battery storage has firm capacity equal to at least 10% of the firm capacity of the associated solar or wind facility.
For the 400MW auction, the requirement translates into around 40MW of battery firm capacity and approximately 160MWh of storage capacity, subject to the applicable discharge-duration requirement.
The regulator approved the 10% threshold, despite broader stakeholder support for a 20% requirement. NEPRA said a higher requirement could increase upfront costs and implementation risks and discourage participation, particularly by smaller developers.
According to ISMO simulations, the storage requirement could reduce renewable-energy curtailment by around 0.3 percentage points for wind and 1.1 percentage points for solar, while its impact on marginal electricity prices is expected to remain negligible.
NEPRA has also fixed a non-extendable two-month deadline for submitting proposals in the first auction. Subsequent auctions will have a one-month bidding window. ISMO has been directed to publish its supporting financial model before issuing the first request for proposals.
The regulator said the 10% storage requirement is an initial-phase measure, rather than a permanent threshold. ISMO will assess participation, competition, storage costs and technical performance before proposing any future changes.
