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ISLAMABAD: Facing serious duck-curve challenges, the government has decided to make Battery Energy Storage System (BESS) mandatory as part of the upcoming auction of 800MW of surplus power capacity at a wheeling charge to help stabilise electricity supply.
After more than 30 years’ delay, the government has announced the auction process for a notional 800MW capacity to gradually move towards a competitive energy market and is currently engaging with the private sector to finalise the bidding schedule.
Based on these engagements, particularly with prospective auction participants for feedback on different aspects of the wheeling auction framework, the state-run Independent System and Market Operator (ISMO) under the power division has now proposed three major changes to the Wheeling Auction Process to ensure smooth implementation of wheeling and the auction framework.
The first one is the mandatory BESS requirement as part of the auction. Under this, the auction participants would be required to include a BESS of a minimum 10pc firm capacity with their solar or wind generation technologies. “This proposal is being made in order to not only address grid challenges including curtailment and duck curve but also beneficial for the auction participants as it improves their returns”, the ISMO said in its request to the National Electric Power Regulatory Authority (Nepra) for approval. The regulator has sought stakeholders’ comments within seven days before approval.
