Additional power for summer 2021: KE urges government to finalise arrangement

ISLAMABAD: Karachi Electric (KE) has urged thr federal government to finalise arrangements for additional power from NTDC for summer 2021 and onward to meet its requirements.

In a letter to Tabish Gauhar, SAPM on Power, who has not been made member of the ECC's committee on Industrial Support Package (ISP), KE's CEO, Syed Moonis Abdullah Alvi, appreciated the government for approving Power Purchase Agreement for additional power supply of 350-450 MW from NTDC/CPPA to KE to take power from the existing interconnection to 1100 MW for summer 2021-2022 and appreciate the efforts and continued support of CCoE.

According to the letter, KE has started working diligently on all the activities related to additional power supply of 350-450 MW from NTDC/CPPA and purchase orders to vendors for procurement of hardware material on behalf of NTDC to expedite the rehabilitation of 220KV KDA-Jamshoro line have been issued so that power will be available to KE from the national grid by March 2021 (total supply from KDA-Jamshoro and NKT circuit will be 1,100 MW).

"As agreed, the hardware material (insulators and fittings) under the purchase orders will be made available starting November 2020 to enable NTDC's installation work," he added.

"We are also in discussion with NTDC and CPPA for finalization of an agreed 25 years, 1400 MW base-load Power Purchase Agreement (PPA) for which Ministry of Energy support is also required," he said.

With respect to long-term power purchase of 1400 MW, KE has referred to its earlier letter of August 5, 2020 wherein the power utility had requested for revision of CCoE decision of June 19, 2020 to incorporate the following agreed arrangement of long-term additional power of 1,400 MW to meet its requirements: (i) 450 MW from Dhabeji 220 kV interconnection by FY-22;(ii) 150 MW from Gharo-Dhabeji 220 kV Interconnection by FY-23 and ;(iii) 800 MW from 500 kV KKI Interconnection by FY-23.

The KE further stated that it has noted that the text of the CCoE's decision of August 27, 2020 does not cover the agreed arrangement and hence would request for necessary clarity on CCoE's decisions of June 19, 2020 and August 27, 2020 in line with the agreed arrangement, so that necessary contractual modalities for the required 1,400MW additional power can be finalized.

Considering the strict timelines, KE has already started work on all activities related to long-term additional power of 1,400 MW.

The updated status is as follows ;(i) Dhabeji 220KV Grid-KE has awarded contracts for construction of Dhabeji 220 kV grid and Transmission line and construction works has commenced on this project with targeted construction timeline of 18 months;(ii) 500KV KKI Grid- KE has hired an independent consultant for preparation of tender documents and bid evaluation for award of contracts for construction of 500 kV KKI grid and transmission line.

The land required for the project has been identified and KE is in discussion with the Government of Sindh for finalization of it and ;(iii) NTDC's Interconnection Works- to connect KE's grid with NTDC network the following interconnection works are required to be constructed by NTDC: (a) NTDC's transmission line for interconnection would be required to connect NTDC network with KE's Dhabeji 220KV G/Station; (b) another "Gharo - Dhabeji" Interconnection line is required to connect NTDC's Gharo Grid with KE's Dhabeji Grid and ;(c) loop-in loop-out portion of transmission lines of NTDC K2/K3 - PQEPCL circuits to KKI grid.

The power utility is of the view that due to delay in tariff notification of KE's planned 700 MW coal project which has now been denied immediate clarification on arrangement of long- term supply of additional power of 1,400 MW from national grid is very critical to ensure that power needs of consumers of Karachi are met.

KE has sought the government support to ensure that the long-term supply of additional power of 1,400 MW is available to KE as per agreed timelines, including clarity on CCoE's decisions dated June 19, 2020 and August 27, 2020, confirmation on agreed arrangement and early finalization of PPA by CPPA and NTDC as per CCoE decisions dated June 19, 2020 and August 27, 2020 and timely completion of NTDC's interconnection works.

Copyright Business Recorder, 2020