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 around 1,360 MW which includes 800 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 10 years old
- All Gas Engines/Gas Turbine Plants in KE are now in Combined Cycle Operation
- Additionally, 52MW and 101 MW added to Fleet through commissioning of FFBL Coal Plant and Sindh Nooriabad Gas Plant IPP respectively. In addition, 50 MW of solar power generation was added through Oursun Solar, towards the end of 2018.
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. The first phase of 900 MW is expected to be commissioned as combined cycle in the 4th quarter of FY 2021. The process of procurement of RLNG for the project is also underway.
(350 x 2) MW DPKPGL Coal Power Project
To diversify its fuel mix in power generation, the Company is planning a 700 MW coal fired power plant at Port Qasim, Karachi, under an IPP structure, for which an upfront tariff was issued in 2016. Further, NEPRA awarded the generation license to the project in May 2017 and an MoU with the state-owned China Machinery Engineering Corporation (CMEC) has been signed for the development of the 700 MW coal power plant. Moreover, land has also been acquired for the project and Commercial Operations Date (COD) is expected in the 4th quarter of FY 2022.
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 2023. 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. In this regard, the Company’s first ever Energy Purchase Agreement (EPA) was initialed in FY 2017 and the power supply from Oursun Solar started towards the end of 2018.
In addition to Oursun Solar, Gharo Solar a 50 MW solar IPP, is under construction and is expected to be commissioned by the end of 2nd quarter of FY 2020.
KE is also conducting a system study to determine its renewable energy mix and expand its renewable portfolio, mainly in wind and solar.
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, and in this regard an option of supply of 11-14 MWs from Lotte Chemicals Pakistan Limited is also being pursued.