330MW Mine-Mouth Project at Thar coal fields: PPIB seeks update from KE on buying process

ISLAMABAD: Private Power & Infrastructure Board (PPIB) has urged K-Electric (KE) to share update on initiation of the procurement process for the development of 330mw Mine-mouth coal-fired project at Thar Coal fields.

Well informed sources told Business Recorder that PPIB wrote a letter to KE on February 7, 2024, in which the power utility company was requested to initiate and complete the grid interconnection and load flow studies of the 330mw Thar coal-based power project at Thar Coalfield for its network in coordination with NTDC within four weeks. However, no progress has been shared with the PPIB so far.

K-Electric, itself, had proposed a joint study with National Transmission and Despatch Company (NTDC) through an independent consultant for evacuation of 300-MW power from Siddiqsons Energy Limited (SEL) plant and power off-take by KE network.

330MW Thar coal-fired project: PPIB to conduct ICB for sale of power to KE sans GoP guarantee

According to KE’s power acquisition program 2024-2030, submitted to National Electric Power Regulatory Authority (Nepra), it intends to develop the project on Thar Coal at Port Qasim using advance coal technologies. Land for the project is already available with KE.

The reason for developing the project at Port Qasim is availability of water due to the vicinity of the location at seashore, availability of interconnection and transmission facilities and expected availability of rail link prior to the start of project construction (feasibility study with Crimson Engineering under the supervision of Pakistan Railway Freight Transportation Company is under way.

KE envisions this project to come online by FY-27/29 in the base case. In order to conduct the fast-track development of the project, KE is also in contact with the various stakeholders like technology providers, contractors, developers, and lenders to create a viable structure keeping into perspective the challenges related to financing of coal projects, due to embargos by Western countries and even China to support offshore coal projects.

Being a feasible and least cost base-load option based on indigenous resources inline with Government of Pakistan’s policy, it is top priority of the utility to ensure the timely development of the coal base power projects, said KE in its power acquisition plan.

However, given the changing international focus towards sustainable development and dwindling support available amongst the international lenders and technology pertaining to support such development, it would remain a steep challenge to timely convince all the stakeholders. KE intends to keep the Authority apprised about the progress regarding the coal power plant development.

K-Electric has also supported competitive bidding of 300MW Thar coal-fired power plant of Siddiqsons Energy Limited.

Private Power and Infrastructure Board had constituted a seven-member special technical committee to take a global view to ascertain whether the government of Pakistan (GoP), as shareholder of its entities, will be better off in financial terms if power purchaser of 300-MW coal project of M/s Siddiqsons Energy Limited (SEL) is changed from CPPA-G to Karachi Electric.

Copyright Business Recorder, 2024