Nestle Pakistan to enter electricity market with thermal generation licenses​

Nestle Pakistan Limited (NPL) is set to enter the electricity market after securing generation licenses from the National Electric Power Regulatory Authority (NEPRA) for two thermal power plants in Punjab.

According to official documents, NPL has established a 21.70 megawatts (MW) generation facility at its factory on Lahore-Sheikhupura Road and a 12.50 MW generation facility at its Khanewal-Kabirwala Road factory. These facilities, being used as captive power plants, now intend to supply electricity to bulk power consumers through a wheeling arrangement, pending the acquisition of an electric supplier license.

NEPRA has directed NPL and its bulk power consumers (BPCs) to agree on a bilateral tariff arrangement that does not affect other consumers or third parties. NPL will be permitted to charge the agreed tariff once it secures the necessary licenses.

NPL operates four production facilities across Pakistan, including factories in Sheikhupura, Kabirwala, Islamabad, and Karachi. The Sheikhupura and Kabirwala factories produce multiple products, while the Islamabad and Karachi plants are dedicated to water production.

NEPRA emphasizes minimizing government intervention in the electric power sector and enhancing the role of the private sector to promote business-to-business (B2B) sales. The authority has approved the Competitive Trading Bilateral Contract Market (CTBCM), which supports B2B electricity transactions, aligning with NPL's plans.

In December last year, NPL inaugurated a 2.5 MW solar power plant at its Kabirwala factory with an investment of PKR 480 million. In January, the company launched a 2.6 MW solar power plant at its Sheikhupura factory.

Nestle Pakistan has announced PKR 2 billion investments in renewable energy, including two biomass boilers and additional solar power plants at other manufacturing sites.

Nestle Pakistan — a subsidiary of Swiss multinational Nestlé S.A. — manufactures, processes, and sells a wide range of products, including dairy, nutrition, beverages, and food items.

For the nine months ending September , the company reported sales of PKR 149 billion and earnings per share of PKR 270.91.