ISLAMABAD: K-Electric (KE) has sought additional capacity of up to 300-MW from the national grid, increasing supply to 1400-MW, which according to the power utility company, will result in net savings of around Rs 50 billion annually, which will benefit consumers in the form of lower Fuel Charges Adjustments (FCAs) and the GoP in terms of Tariff Differential Subsidy (TDS) requirement, sources close to CEO KE told Business Recorder.
This submission has been sent by CEO KE Syed Moonis Abdullah Alvi to Minister for Power and Petroleum, Muhammad Ali.
According to CEO KE, as per the existing arrangement, between 1000 and 1,100-MW is being supplied to KE from the national grid in accordance with decision of the Cabinet Committee on Energy (CCoE) of August 27, 2020.
CEO KE claimed that subsequent to completion of cross-trip scheme at NKI grid and rehabilitation of KDA-Jamshoro transmission line in 2021, the equipment/ interconnection capacity of power drawl from the national grid increased to 1,300-1,400-MW, i.e., 850-MW from NKI and 550-MW from Jhimpir-2 with induced N-1 contingency, as KE tie- in line of KDI Jamshoro was enhanced by NTDC by reconnecting KDA to Jhampir-2 to Jamshoro.
Accordingly, based on equipment capacity, KE can off-take additional 200-300 MW electricity from the national grid subject to adequate voltage profile in 220-kV network of Jhimpir/ Jamshoro alongside availability of despatch from wind power plants.
This additional supply of 200-300 MW to KE from the national grid would not only reduce the cost of power in KE system, but also result in reduction/ help absorb the capacity cost in the national grid, especially considering the relatively low power demand experienced in the national grid in recent times.
Based on estimates, with additional supply of 200-300 MW to KE from the national grid, will result in net savings of around Rs 50 billion annually, which will benefit consumers in the form of lower Fuel Charges Adjustments (FCAs) and the GoP in terms of Tariff Differential Subsidy (TDS) requirement.
After explaining the background, KE has requested Power Division to consider supply of additional 200 to 300 MW to it over and above the existing 1,000 to 1,100 MW.
The sources said, government has already agreed on firm capacity of 1000-MW for K-Electric, adding that additional capacity will be on pro-rata basis. This arrangement will be for ten years as the power utility company will have to add own generation during period.
KE has submitted a three-tier Indicative Generation Plan (IGP) to the federal government, in the hope of facilitation from Islamabad for the smooth execution of the entire process.
Under the Indicative Generation Plan ( IGP), KE outlined its strategy with the foremost plan being to target those existing assets that can be made productive, with minimal incremental investments; thus, benefiting the entire country by reduction in existing burden of spare capacity and ensure better utilisation.
Finance Division has also asked Power Division to place longstanding issue of KE before the Cabinet Committee on Economic Revival (CCER).
Finance Minister, Dr Shamshad Akhtar sources said, took up the issue of KE with the Prime Minister, who has desired that the highlighted issue may be taken up in the meeting of CCER.
Copyright Business Recorder, 2023