south korean energy
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South Korean energy firm seeks PM Shehbaz’s …

In a letter addressed to the prime minister, Korea South-East Power Co. Ltd. (KOEN) said it had spent nearly a decade developing two run-of-the-river hydropower projects on the Swat River in Khyber Pakhtunkhwa but remains unable to move forward because of unresolved regulatory approvals.

The company, a subsidiary of Korea Electric Power Corporation (KEPCO), is developing the 229-megawatt Asrit Kedam and 238-megawatt Kalam Asrit hydropower projects. Together, the projects represent an investment of approximately $1 billion, with the company already investing around $25 million in feasibility studies, surveys, and other preparatory work.

According to KOEN, the projects have met all major government requirements since development began in 2016. The company signed a memorandum of understanding with the Khyber Pakhtunkhwa government, obtained letters of intent from the Pakhtunkhwa Energy Development Organization (PEDO), completed feasibility studies, secured a power generation licence from the National Electric Power Regulatory Authority (Nepra), and maintained all required financial guarantees.

Despite fulfilling these requirements, KOEN said the tariff determination for the projects has remained pending for nearly three years. The company noted that Nepra conducted a public hearing on its tariff petition in July 2023, but a final decision has yet to be issued.

The company said it repeatedly approached Nepra and later appealed to the Nepra Appellate Tribunal, which directed the regulator to decide the tariff matter. However, KOEN claims that the tribunal’s order has still not been implemented.

Adding to its concerns, the company said both hydropower projects have been excluded from the draft Indicative Generation Capacity Expansion Plan (IGCEP) 2025–35. KOEN warned that if the revised plan is approved without the projects, its proposed investment could remain stalled indefinitely.

In its appeal, the company urged the prime minister to intervene and ensure a timely tariff determination while allowing the projects to continue under Pakistan’s Power Generation Policy 2015, the framework under which the investment was originally made.

KOEN also stated that it understands Pakistan’s current surplus electricity generation and is willing to align the commercial operation of the projects with the country’s future energy requirements rather than adding unnecessary capacity.

The issue comes as Pakistan and South Korea continue discussions aimed at strengthening bilateral trade and investment ties through a proposed Comprehensive Economic Partnership Agreement (CEPA). Analysts say resolving regulatory bottlenecks will be crucial for maintaining investor confidence and attracting future foreign direct investment into Pakistan’s energy sector.

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