KARACHI: K-Electric seems committed to resolve power woes of Karachi with the help of Federal government as several developments in this regard have taken place, recently, including the government’s promise of additional 1,400 MW of power to Karachi from the National Grid.
According to information available with Business Recorder, K-Electric, the sole electricity provider to Karachi has stepped-up work on the 900 MW RLNG-based combined cycle power plant at the company’s Bin Qasim Power Complex, the first unit of which is expected to come online by the summer of 2021.
The power plant was conceptualized back in 2017, after the completion of feasibility studies. However, it had been stuck in the process of government approvals and is now finally under construction. The first unit of the 900 MW power plant will be constructed in 18 months and is expected to be ready for commissioning by summer of 2021.
Sources said another 700 MW coal-based plant, had also been planned by the power utility, keeping in mind future growth in Karachi’s power demand, however, it was shelved by the government as it decided to provide additional power to the utility via the national grid.
These power plants were conceptualized in 2017 keeping in view the city’s ever-growing demand and lack of clarity over continuation of supply from the National Grid. It may be noted here that the government pays millions of rupees every year in capacity payments, the efficient thing to do was to provide this power to K-Electric, which the government eventually decided to do in June 2020, and it was seen as a welcome move by all stakeholders.
Sources said work on the 900 MW BQPS III power plant is proceeding at an expedited pace, and gas turbine and steam generator have been shipped, waiting to be received in Karachi and installed after necessary groundwork is done.
From the looks of it, the first unit will be ready to come online by the start of the summer of 2021, in time for peak demand, and the second by the end of 2021.
In response to a query on this, a KE spokesperson said, “The 900 MW RLNG-based power plant located at the Bin Qasim Power Complex is progressing on a fast track as per our commitment with concerned stakeholders. The first unit, which is of 450 MW is expected to undergo its first test fire and synchronization and subsequent commissioning during summer 2021. The state-of-the-art combined cycle power plant will play a pivotal role in addressing Karachi’s supply-demand gap, which will lead to a positive economic impact. It is an integral part of K-Electric’s targeted investments, which are designed to balance Karachi demand and supply gap by the year 2023.”
While work on the construction of the plant proceeds, it is hoped that the government will also play its role in ensuring that the Gas Supply Agreement (GSA) with Pakistan LNG Limited (PLL) for the supply of 150 MMCFD power for BQPS-III is also executed in a timely manner.
National Electric Power Regulatory Authority (NEPRA) has approved the modification in the generation license of K-Electric, and the addition of the 900 MW RLNG powered BQPS-III to the power utility’s generation capacity.
The power utility has committed to laying down the required pipeline for this gas supply from the designated SSGC custody transfer station to the BQPS-III plant. A hearing by the Oil & Gas Regulatory Authority (OGRA) has already been held and it is expected that the necessary approvals for the laying down of this pipeline will be issued shortly.
The power utility has also taken it upon itself to purchase the necessary hardware material for the rehabilitation of 220 kV Jamshoro-KDA circuits owned and maintained by NTDC, which is necessary for the off take of additional power.
The NTDC interconnection facilities’ rehabilitation will be done in time so that KE can evacuate this additional power of up to 350 MW by the coming summer. Further, as an interim measure, the existing supply from the national grid is to be increased to 1100 MW, subject to the completion of required rehabilitation and upgradation works to be carried out by NTDC along with implementation of ‘Cross Trip’ scheme.
Currently, KE receives 650 MW of power from the national grid however the absence of a Power Purchase Agreement (PPA) has remained a contentious issue through several years. With additional MWs being promised to Karachi, NTDC and KE now can finalize the PPA.
Minister for Planning, Development and Special Initiatives Asad Umar had promised earlier this year, that the government would ensure an end to unscheduled loadshedding in the city. Umar committed a total of 2,050 MW of additional power to Karachi by the summer of 2023.
KE spokesman further said the time has come for the government to live up to its commitments and it is hoped that the PPA agreement will be signed at the earliest, along with the resolution of all other impediments including the supply of gas quantities and gas pressure from within design limits of KE’s power plants, as approved by NEPRA and then by the Cabinet Committee on Energy (CCoE) as well.
Copyright Business Recorder, 2020
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