Some units of Jamshoro, Guddu TPSs: PD proposes retention for system’s stability

ISLAMABAD: The Power Division is said to have proposed retention of some units of Thermal Power Plant (TPS) Jamshoro and TPS Guddu for more years to ensure system stability, well-informed sources told Business Recorder.

Sharing the details, sources said, the Cabinet Committee on Energy (CCoE) on September 10, 2020 decided to close certain Genco power plants in two phases. In Phase-I certain power plants having total capacity of 1,796 MW were approved to be closed immediately. The CCoE decision pertaining to closure of power plants in Phase-I has been implemented.

According to sources, keeping in view the requirements and stability of system, Power Division has proposed that the CCoE decision of September 10, 2020 may be partially reviewed with respect to closure of plants in phase-II to the extent of following power plants for system stability: (i) TPS Jamshoro (unit 1&4). Presently these units are required during low wind generation in summer season to meet the load demand of Discos and KE. This requirement will cease when first unit of Jamshoro coal fired project and 500 kV grid station at KKI is commissioned. The tentative commissioning dates of these projects are September 2022 and March 2023 respectively. Power Division wants that the closure date may be allowed to be extended to March 2023, contingent upon commission of KKI grid; and (ii) 600 MW GE Block of Guddu- units 5 to 10 9E Frame. The block CPGCL Guddu is relatively high in merit order. The present ranking of this block according to Economic Merit Order (EMO) of July 1, 2020 is at number 16, having per unit Energy Purchase Price (EPP) at Rs 8.1939 per unit.

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Power Division maintains that due to maintenance issues, this block faces frequent outages. This block is also needed to meet the system requirements. Power Division has argued that if the maintenance is outsourced under Long Term Service Agreement (LTSA), the following benefits can accrue: (i) recovery of efficiency gap; (ii) reliability of power plants will be ensured; (iii) the problem of frequent outages will be addressed; and (iv) timely availability of parts & services to ensure scheduled and emergent maintenance requirements.

Similar benefits accrued after outsourcing of LTSA/ O&M of Nandipur Power Plant. The analysis of expected benefits pursuant to LTSA through recovery of efficiency and contribution to the system through reliable power generation is as follows: (i) reliable capacity required under tariff or PPA is 550 MW which was same in 2019 but reduced to 487 MW in 2020 and is 395 MW in 2021. However, after LTSA, it was again 550 MW. The plants efficiency should be 36 per cent as per PPA, which was reduced to 35.39 per cent in 2019, 30.22 per cent in 2020 and 27.15 per cent in 2021. With signing of LTSA, it was 36 per cent. The plants availability should be 90.87 per cent as per PPA but it was 93.52 per cent in 2019, 87.27 per cent in 2020 and 43.52 per cent in 2021. Power Division says that after LTSA, its availability is now 90.87 per cent.

The plant’s reliability factor before outsourcing was 425 MW, which was raised to 550 MW after outsourcing. Likewise, its availability was also enhanced to 95 per cent after outsourcing, which was 90 per cent before the LTSA.

The cost of maintenance under LTSA will also have no additional financial impact because the cost of procurement of parts and services will be met through NEPRA allowed tariff for the proposed units/ blocks and improved efficiency.

Power Division argues that the earlier decision of CCoE of September 10, 2020 should be reviewed to retain units 1&4 of TPS Jamshoro till June 2023 and GE Block (units 5-10) of TPS Guddu till 2033. To ensure proper maintenance, higher efficiency and reliable power generation, management will enter in to LTSA for this through competitive bidding process.

Copyright Business Recorder, 2021