ISLAMABAD: The country is likely to face severe power crisis as fuel oil stocks of around one dozen Independent Power Producers (IPPs) are only for a few days, well informed sources CPPA-G told Business Recorder.
The IPPs, sources said, have conveyed to the government that they are unable to purchase fuel due to liquidity crunch. In addition, RLNG supply has also been reduced to the power plants.
"National Power Control Centre (NPCC) has warned us that if the current situation continues, load management will be imminent," the sources added.
Some plants are operating on gas whereas some power plants are being supplied furnace oil due to shortage of gas. Saphire Power plant is being run on diesel. The plant has old diesel oil stocks and a generation cost of Rs 13 per unit and is on merit order. M/s Orient Power Plant is not being operated. However, some IPPs are accusing NPCC of violating economic merit order.
According to sources in CPPA-G, since the system demand is touching maximum values under prevailing hot weather, all IPPs are directed to maintain fuel stocks as per provision of Power Purchase Agreements (PPAs) to meet system load demand.
However, many power plants are showing their inability to maintain fuel inventory owing to huge outstanding dues receivable from the power purchaser and ongoing scarcity of Residual Fuel Oil (RFO) and Low Sulphar Furnace Oil (LSFO) in the country.
The matter of fuel storage ha already been brought into the notice of Ministry of Energy by the National Power Control Centre.
The sources said, fuel stock position as on June 26 of various plants show that fuel stocks with Kot Addu Power Plant (Kapco) stood at 15695 MT which is sufficient for only for 2.9 days, Lalpir, 972-7 MT for 0.5 days, Pakgen-1856 MT for 0.9 days, SABA-2509 MT for 3.6 days, Karachi Electric Limited (KEL) 929 MT, 1.3 days, Hubco (Narowal) - 7360 MT, 7.4 days, LibertyTech - 2393 MT, 2.4 days, NPL - 3900 MT, 3.9 days, NCPL -2743 MT, 2.7 days, Jamshoro - 54772 MT, 13.6 days and Muzaffargarh - 51982 MT for eight days.
The Ministry of Energy has been informed that owing to increasing system load, reduction in RLNG gas quota by SNGPL from 1100 mmcfd to 600 mmcfd and water indents by Irsa, the despatch has been given to RFO operated Gencos's thermal power plants to meet the system requirements.
The sources said, Gencos have also been advised to build their respective fuel stock in accordance with their relevant PPAs so that system load maybe met conveniently.
"If above 11 power plants fail to contribute to generation in the system on account of fuel shortage, then severe power shortfall could result which could lead to load management bridging the gap between supply and demand and to cope with networks constraints for system stability," the sources quoted NPCC as conveying to the CPPA-G.
CPPA-G has been requested to resolve the issue and all IPPs/ Gencos are advised to maintain fuel stock in accordance with their respective PPAs so that any eventuality due to power shortfall could be averted and system could run smoothly and reliably.
Meanwhile, industry noted that gas/RLNG fixed plants are providing base load generation for the last three days on diesel as fuel. The power generated on diesel is the most expensive in the country. In the meanwhile, gas/RLNG pressures have fallen so much that industrial units cannot operate.
"Domestic gas supply has been curtailed due to the non-lifting of crude which is a necessary by-product of gas production. Domestic gas fields as a consequence have been shut as all storage for crude is full," industry sources added.
Sufficient RLNG was not procured to meet the decrease in domestic production of gas.
The recent hike in petroleum product prices was necessitated by the loss of domestic gas production to allow refineries to restart and not make a Rs 20 loss on every litre produced as petroleum product prices internationally are way below local cost of production of refineries which were paid international prices for production and as they were losing money they had reduced operations.
The Energy sector is completely lost due to lack of planning foresight and co-ordination within the Power & Petroleum Ministries, sources told this correspondent. "The extra cost of generation from diesel will be charged to consumers through the fuel price adjustment i.e. the consumer will bear the cost of inefficiency through higher electricity tariffs and the country's loss/delay of exports will hit the textile sector/balance of payment," said industry sources.
Comments
Comments are closed.