The National Electric Power Regulatory Authority (NEPRA) has approved revised performance benchmarks for K-Electric’s 900-megawatt (MW) Bin Qasim Power Station-III (BQPS-III) following independent testing of both generating units, aligning the plant’s operational standards with its actual field performance.
The revised benchmarks, approved through an order issued on July 6, 2026, establish updated net generation capacity and net heat rate standards that will be used to assess the plant’s efficiency and determine future electricity tariffs.
According to the regulator, the revised benchmarks are based on findings from independent engineers who evaluated the plant under standardized operating conditions.
Independent Testing Conducted
The decision follows comprehensive performance tests carried out on the 900MW combined-cycle power plant, which comprises two 450MW generating units.
The facility primarily operates on Re-gasified Liquefied Natural Gas (RLNG), with high-speed diesel (HSD) serving as a backup fuel during emergencies or interruptions in gas supply.
NEPRA said the tests were conducted after the plant had accumulated several years of commercial operating hours to assess its actual efficiency under normal operating conditions.
The regulator noted that updating the benchmarks is necessary to ensure tariff calculations reflect the plant’s current operating performance rather than its original engineering specifications.
Performance Degradation Considered
According to NEPRA, the plant has experienced natural performance degradation over time compared with the original engineering, procurement, and construction (EPC) guarantees provided during commissioning.
Independent engineers informed the regulator that gradual efficiency losses are common in combined-cycle gas turbine power plants as equipment ages.
The authority accepted this assessment and revised the operational benchmarks accordingly to better represent the plant’s current performance.
Operational Factors Affect Efficiency
NEPRA also noted that multiple operational and environmental factors influence the efficiency of modern power plants.
These include ambient weather conditions, fuel quality, grid stability, and operational practices such as frequent shutdowns and restarts.
The regulator further observed that variations in RLNG quality can directly affect electricity generation capacity and fuel efficiency.
These considerations were incorporated while determining the revised benchmarks.
Revised RLNG Performance Benchmarks
For RLNG-based operations, NEPRA approved a net generation capacity of 453.40MW for Unit-1, exceeding K-Electric’s requested benchmark of 449.808MW.
The regulator also approved a net heat rate of 6,384.46 British thermal units (Btu) per kilowatt-hour (kWh) for Unit-1, marginally lower than the company’s proposed 6,386.92 Btu/kWh, indicating slightly better fuel efficiency.
For Unit-2, NEPRA approved a net capacity of 454.92MW, also higher than the requested 449.808MW.
The approved net heat rate for Unit-2 remained 6,388.13 Btu/kWh, matching the company’s proposed benchmark.
These figures will serve as the official performance standards for RLNG operations at the power station.
Benchmarks Approved for Diesel Operations
NEPRA also finalized revised benchmarks for operations using high-speed diesel (HSD), which is utilized as an alternative fuel.
For Unit-1, the regulator approved a net generation capacity of 359MW, compared with K-Electric’s requested 357.479MW.
The net heat rate was set at 6,661.85 Btu/kWh, improving upon the company’s proposed 6,738.56 Btu/kWh.
For Unit-2, NEPRA approved the requested net capacity of 357.479MW.
However, it reduced the approved net heat rate to 6,681.86 Btu/kWh, compared with K-Electric’s proposed 6,739.63 Btu/kWh, reflecting improved expected fuel efficiency during diesel operations.
Updated Degradation Factors Approved
As part of the order, NEPRA also approved revised degradation factors to account for the gradual decline in plant performance over time.
The regulator set the degradation factor at 1.000 for zero operating hours.
After 1,790 operating hours, the approved degradation factor was 1.00685 for net capacity and 0.9961 for net heat rate.
These values will be used in future assessments of the plant’s performance and corresponding tariff calculations.
Importance of BQPS-III
The Bin Qasim Power Station-III is one of K-Electric’s most significant generation assets.
The 900MW combined-cycle facility was developed to improve electricity generation efficiency while reducing dependence on expensive furnace oil and other high-cost fuels.
Operating primarily on RLNG enables the plant to lower fuel costs, improve efficiency, and reduce emissions compared with older thermal power stations.
The facility also plays a vital role in supplying electricity to Karachi, Pakistan’s largest commercial and industrial center.
Impact on Future Tariffs
The revised performance benchmarks are expected to play an important role in future tariff determinations for K-Electric.
These benchmarks are used by NEPRA to calculate fuel costs, operational efficiency, and allowable revenues under the utility’s tariff framework.
By updating the benchmarks based on independent technical evaluations, the regulator aims to ensure tariff calculations accurately reflect the plant’s actual operating performance rather than theoretical design specifications.