K-Electric is the only vertically-integrated power utility in Pakistan. It produces electricity from its own generation units with installed capacity of 2,267 MW and in addition, has arrangements with external power producers for 1,162 MW which includes 650 MW from the National Grid.
Generation Capacity Enhancement
Through investments of over USD 1 Billion in Generation business, KE has enhanced its generation capacity by 1,057 MW since 2009 and the overall fleet efficiency has improved from 30.4% to 37.4% (FY09 vs. FY18); Max 40.3% achieved in Feb ’14.
The company’s capacity enhancement of 1,057 MW is based on the following:
Korangi and SITE
Improvement in Fleet Efficiency: 23%
- Average fleet efficiency improved from 30.4% to 37.4% (FY-09 vs. FY-18)
- c. 45% capacity is less than 9 years old
- All Gas Engines/Gas Turbine Plants in KE are now in Combined Cycle Operation
- Additionally, 52MW and 104 MW added to Fleet through commissioning of FFBL Coal Plant and Sindh Nooriabad Gas Plant IPP respectively
K-Electric continues to expand its generation portfolio through own generation, projects being developed by external developers as pure IPPs, and projects where KE shall acquire equity stake within an IPP.
900 MW BQPS III Power Project
KE has initiated a 900 MW project for an RLNG-based power plant at Bin Qasim site, along with associated grid expansion projects. This will supplement the power needs of Karachi and add value to the economy through better and sustainable power to business and industry. The project, known as BQPS III, also includes an upgrade to associated transmission infrastructure, including the construction of four grids. The first phase of 450 MW is expected to be commissioned by mid-2020 followed by completion of 900 MW by the end of same year.
(350 x 2) MW DPKPGL Coal Power Project
K-Electric is developing a (350 x 2) MW coal power project in Port Qasim. A Shareholders’ Agreement has been signed with China Datang Overseas Investment Co. Ltd (CDTO) and China Machinery Engineering Corporation (CMEC), wherein CDTO has a 51% equity share in the project; 25% equity is being contributed by CMEC and 24% by KE. Land has been acquired and technical studies on the land have been completed by KE. Further, a Bankable Feasibility Study has been completed by the ZheJiang Electric Power Design Institute.
Additionally, a local project company, ‘Datang Pakistan Karachi Power Generation Limited’, has been formed. Various options are being evaluated on the financial front and negotiations for project agreements are at an advanced stage. In addition, the project has also received term sheets for the debt portion, with combination of both local and foreign debt. Further, upfront tariff for the project was approved by NEPRA in August 2016 and Port Qasim Authority (PQA) has provided its principle approval for provision of LOI for construction of dedicated coal unloading jetty.
Financial Close is expected during FY 2019.
450 MW RLNG Project
KE will be the power off-taker in a 450 MW RLNG-fired power plant which is expected to be available from FY 2021. KE currently has an equity option in this project for up to 24%.
KE is engaged in seeking potential partners and sponsors to promote technological development, construction, operation and maintenance of solar and wind power plants within its franchise area. KE has signed two renewable projects; 50 MW solar power plants each, to be commissioned at Gharo for supply of power to KE. The first plant is expected to achieve COD by the end of 2018. KE is also conducting a system study to determine its renewable energy mix and expand its renewable portfolio, mainly in wind and solar.
KE has already started development of embedded generation plants, up to a capacity of 500 MW. These projects will mainly be developed on dual fuel technology at the mouth of load centres, such that energy can be directly consumed in the area through the 132 kV network. KE is working with Orient Power for a 200 MW embedded power plant at Baldia under an IPP Structure. Expected COD by mid of 2020.
Further, KE is also working with Western Electric Limited to set up a 200 – 250 MW embedded power plant at Northern Bypass with COD expected in 2021.
Captive Power Plants
As a fast-track solution to bridge the demand-supply gap, KE purchases surplus power from various small and large-scale captive power plants set up by industrial-scale users. Recent developments in this regard include Lotte Chemicals Pakistan Limited. KE will add 11-16 MWs to its capacity through captive power plants.