Units 1 & 2 of Bin Qasim: KE moves Nepra for extension, renewal of service life

ISLAMABAD: K-Electric has approached the National Electric Power Regulatory Authority (NEPRA) for extension/renewal in useful life of unit 1 & 2 of Bin Qasim Station (BQPS-1).

According to the regulator, K-Electric Limited (KEL) has submitted an application for extension/renewal in the useful life of two units of BPQS-1 in its generation licence of November 18, 2002) in terms of the Regulation-II of NEPRA Licencing (Application, Modification, Extension and Cancellation) procedure Regulations, 2021.

In this regard, a notice seeking comments of general public, interested/affected persons and relevant stakeholders was published on August 06, 2024

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As per the existing Generation Licence, the useful life of Unit No. 1&2 of BQPS-I expired in October 2023. KEL requested to extend the same for another period of four years i.e. till 2027.

According to NEPRA, the power utility company is expecting demand to grow at a steady pace from FY 2025 till FY 2027, for which KEL has planned additions. However, as per prudent utility practices, KEL requests the Authority to allow it to retain Unit No. 1&2 of BQPS-I till the new coal plant becomes operational, which is expected by FY 2027, as a secondary spinning reserve as well as to enable KEL to avoid increased load management during the peak summer season in case of any untoward eventuality.

The KE maintains that this request is made given the contingency requirement that may arise due to: (i) any unavailability of NTDC interconnection; (ii) any forced outages of the generation fleet of KEL and IPPS; (iii) RLNG/gas shortfall due to reasons beyond KE’s control; and (iv) pending regulatory and government approvals around the envisaged local coal plant. Units No. 1&2 of BQPS-I shall be operated based on an Economic Merit Order (EMO) to serve any contingency requirements and maintain a secondary spinning reserve to cater to any emergencies. The availability of these units will also alleviate the constraints of low gas pressure and help in avoiding the utilization of expensive HSD.

The NEPRA has asked all stakeholders, interested/affected persons and the general public to offer their comments in favor or against the request of KEL for extension in the term/useful life of Unit No. 1&2 of BQPS-I in its Generation Licence.

As comments from stakeholders are received, NEPRA will conduct a public hearing to approve or disapprove the request of KEL.

Copyright Business Recorder, 2024