Under the Wheeling Auction Guidelines 2025, a total quantum of 800 MW will be auctioned over the next five years, with 400 MW being offered in the first auction. The auction will enable eligible participants to access the national transmission and distribution network and engage in bilateral electricity transactions in the competitive market.

The auction will follow a structured five-step process:

1. Issuance of auction documents

2. Evaluation of eligibility

3. Evaluation of bids

4. Approval of auction results

5. Award of quantum

Federal Minister said that the objective of transforming Pakistan’s electricity procurement system into a competitive system has remained under consideration for the past three decades, but the present government has now moved beyond policy commitment and initiated the process of translating this objective into practical action. He said that the first Wheeling Auction is the first practical step in this direction, enabling electricity producers and large consumers to buy and sell electricity directly through a transparent mechanism.

The Federal Minister said that, in the initial phase, large consumers using more than one megawatt of electricity will benefit from the system, while its benefits will gradually extend to general consumers in the coming years. He said that access to relatively cheaper electricity on a competitive basis will provide industry with opportunities to reduce production costs, enhance competitiveness in international markets and increase exports.

The Federal Minister said that the issuance of the RFP is an important step towards establishing a transparent and credible Wheeling Auction process. Every stage, from evaluation of eligibility to the award of quantum, has been clearly defined, and the entire process will be conducted through a dedicated auction platform.

In line with the Federal Minister’s directions, ISMO has invited all eligible participants to actively participate in the process and will support them at every stage through guidance materials and other supporting resources. On the Federal Minister’s direction, ISMO will also release a series of explainer videos to facilitate participants in understanding the auction procedure, proposal submission requirements and use of the auction platform.

The RFP sets out the eligibility criteria, proposal submission requirements, prescribed formats, auction procedure and complete timeline. Interested eligible participants are encouraged to review the RFP carefully and submit complete proposals within the stipulated deadline.

The RFP and associated documents are available on ISMO’s website at www.ismo.gov.pk. Queries or requests for clarification may be directed to auction@ismo.gov.pk.