Pakistan has opened bidding for its first competitive electricity wheeling auction, offering 400 megawatts in the initial phase. The Independent System and Market Operator (ISMO) issued the Request for Proposals on 20 September 2026, with submissions due by 20 November.
The auction forms part of the Competitive Trading Bilateral Contract Market (CTBCM). It will let large consumers, mainly industries using more than one megawatt, buy power directly from generators of their choice anywhere in the country. Electricity will still travel through the national grid, but the buyer and seller can agree prices and terms between themselves instead of relying only on the local distribution company.
The government plans to auction a total of 800 megawatts over five years. In this first round, no single participant can take more than 160 megawatts, or 20 percent of the offered capacity. A company may develop one plant up to that size or spread its allocation across several smaller plants in later yearly auctions, as long as the overall limit is not crossed.
Energy Minister Awais Leghari described the move as a practical step away from the old single-buyer system in which the government purchased almost all power. He said producers and consumers can now deal directly through a transparent process. The competitive market will start with big users and is expected to expand to ordinary households in the coming years.
Success will depend on clear rules, fair grid charges and enough participation from both generators and buyers.