300MW Thar coal project: PPIB urges KE to expedite feasibility, other studies

ISLAMABAD: The Private Power & Infrastructure Board (PPIB) has urged K-Electric (KE) to expedite the feasibility, power evacuation, and load flow studies of 300-MW Thar-coal fired project to initiate RFP and ensure its completion as per the deadlines, sources close MD PPIB told Business Recorder.

The Executive Committee of the Special Investment Facilitation Council (SIFC) in its meeting held on October 23 and 24, 2023, directed PPIB to initiate a competitive bidding process for development of a new 330-MW Thar coal-based power project at Thar coalfield, on behalf of K-Electric (KE).

In compliance, PPIB on December 6, 2023 requested KE to conduct a feasibility study for the preparation of an RFP. In response, KE through its letter of December 8, 2023 sought PPIB’s guidance on the possibility of utilising the bankable feasibility study and other related documentation from Siddiqsons Energy Limited (SEL)’s 330-MW Thar coal project.

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However, during a meeting held at Power Division on December 24, 2023, utilising SEL’s work for another project was not supported due to ongoing litigation. Consequently, it was proposed to conduct an independent feasibility study, which was conveyed to KE through a letter, along with request to provide updated status on the feasibility study, data collection and land acquisition from GoS. In response, KE informed on January 17, 2024 that SECMC would require two to three months to complete its internal approval process for the provision of land coordinates for the project.

Regarding grid interconnection and load flow studies, PPIB approached NTDC for procurement of requisite data pertaining to power evacuation and transmission facilities. In response, NTDC informed that since the power from the project will be evacuated to KE’s network, hence KE would be responsible for conducting these studies.

On taking up the matter with KE on February 7, 2024 and March 12, 2024, KE in its letter of March 14, 2024, agreed to undertake the studies after receipt of land coordinates from SECMC, which was subsequently provided by SECMC on March 27, 2024.

According to Managing Director PPIB, despite subsequent requests from PPIB on April 4 and 29, 2024 for status updates, KE on May 2, 2024 instead requested PPIB’s assistance regarding Thar coal availability, which is important, but is not required at this stage. Therefore, PPIB on May 14, 2024 again emphasised KE to prioritise conduct of feasibility study to meet target COD of 2027, as outlined in KE’s Power Acquisition Plan and SIFC’s decision.

In the meanwhile, while discussing fate of 330-MW SEL’s Thar Coal Project, PPIB constituted a committee headed by Secretary Energy, Sindh, with representatives from PPIB, NTDC, KE and SECMC. The Committee in its meeting held on June 5, 2024, in addition to discussing SEL’s project, agreed that NTDC and KE would jointly address power evacuation issues for 330-MW mine mouth coal project at Thar.

In the meeting, KE committed to engage a consultant to complete the feasibility study, by September 2024. Additionally, while communicating concerns regarding inclusion of the project in IGCEP, KE through its letter of June 5, 2024 informed PPIB that NTDC had not optimised the subject project in its draft IGCEP 2024 and sought PPIB’s advice on the way forward.

Copyright Business Recorder, 2024