Karachi, May 12, 2023: Committed to increasing reliance on indigenous sources of energy production to provide access to affordable energy for all, K-Electric inked a Memorandum-of-Understanding (MoU) with Government of Sindh (GOS), Oracle Power, and PowerChina for the potential development of 2×660 MW coal-fired power project based on Thar coal.
KE was represented by CEO Moonis Alvi, while Secretary Energy Abu Bakar Ahmed was present from the Government of Sindh, CEO Naheed Memon from Oracle Power and Cheng Qiang from PowerChina.
Oracle Power is an international natural resource and power project developer listed on London’s stock exchange, while PowerChina is a Fortune 500 listed integrated construction group which has completed over 40 various projects in Pakistan with a total contract value of approximately USD 6 billion, and an additional 43 projects worth USD 7.5 billion currently under execution.
Speaking on the occasion, Sindh Minister for Energy Imtiaz Shaikh stated “Electricity is a fundamental driver of development and progress, and this collaboration is a big step in this direction. Once operational, this project will immensely benefit the entire province which is why we are committed to provide our full support until its maturity.“
The main objective of the MoU is to provide a collaborative framework for the partnering parties, setting the stage for the establishment of this ambitious power plant. For KE, this move aligns with the company’s forward-looking plan of enhancing its generation through addition of low-cost, indigenous fuel based power. The company has shared its vision of adding a total of 2,200 MW to its generation capacity by 2030, and increase its share of renewable energy to 30% of the overall mix. The inclusion of such generation capacity also aligns with KE’s future projections for the city, which envisages a customer base of 5 million using 5,000 MW of electricity by FY30.
CEO KE Moonis Alvi also shared his excitement on the occasion, stating that “As a company, our ambition and initiatives are towards achieving net zero, and tackling the energy trilemma which balances reliability, affordability and sustainability of energy supply. Our current partnership and our future plans will greatly enable us to reduce our reliance on imported fuels. Moving forward, we are also enhancing our share of renewable energy in the generation mix to provide affordable and sustainable electricity to the customers. These plans are further complemented by our comprehensive investment plan of PKR 484 billion, which will strengthen the network and deliver energy effectively to our growing customer base.”
CEO Oracle Power Naheed Memon reiterated her company’s commitment to the development of the CPEC-listed 1320 MW coal-to-power project. She shared that Oracle has produced world-class feasibility reports which became benchmark documents for its development. Oracle Power is very pleased to have formed a strategic relationship with KE as a potential off-taker and the Government of Sindh as a facilitator and important stakeholder.
Representative from PowerChina shared that the development of the Thar Project is of great importance to Pakistan in the sense of utilizing the local coal resource. Oracle 1320MW Coal Power Project is listed as one of the priority energy projects under China Pakistan Economic Corridor(CPEC). With the guidance and participation of the Sindh Government, together with KE and Oracle, PowerChina will provide support for the success of the project.
Earlier this year, KE also entered into an MOU with China Three Gorges South Asia Investment Limited (CTGSAIL) to collaborate on exploring renewable energy projects across the country.
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005 KE is the only vertically integrated utility in Pakistan supplying electricity within a 6500 km square territory including Karachi and its adjoining areas. The majority shares (66.4%) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a minority shareholder (24.36%) in the company.