Pakistan’s Competitive Trading Bilateral Contract Market (CTBCM) has moved into implementation, marked by the notification of S.R.O. 92(I)/2026, the creation of the Independent System and Market Operator (ISMO), and preparation of the country’s first large-scale wheeling auction. Most legal and institutional foundations—standardized agreements, Capacity Balancing Mechanism (CBM) procedures, and bilateral trading rules—are now in place. The market’s real success, however, will hinge on whether the commercial terms are attractive enough to draw private investors and industrial consumers.

This research examines two issues shaping that commercial viability: the proposed Use of System Charge (UoSC) and mandatory Battery Energy Storage System (BESS) requirements for renewables. It finds CTBCM remains cost-competitive against typical industrial tariffs across most realistic energy prices, with the proposed UoSC sitting safely below its break-even threshold. It also finds ISMO’s BESS requirement strikes a workable balance, with paybacks of 5–8 years well within typical project lifespans while helping renewables meet firm capacity obligations. The report concludes Pakistan has largely completed its shift from a single-buyer model, and now needs to focus on transparent charges, standardized treatment of storage, and regulatory certainty to attract long-term investment ahead of the first major auctions.