K-Electric is the only vertically-integrated power utility in Pakistan. It produces electricity from its own generation units with an installed capacity of 2,267 MW (including units 3 & 4 at Bin Qasim Power Station 1, slated for coal conversion). It also has Power Purchase Agreements for 1,064 MW from various Independent Power Producers, the Water and Power Development Authority, the Karachi Nuclear Power Plant and through imports.
Generation Capacity Enhancement
Over the last few years, KE has enhanced its generation capacity by approximately 1,057 MW and improved its overall fleet efficiency by 22%. KE now generates almost 50.3% of the electricity it distributes through its own systems.
The company’s capacity enhancement of 1,057 MW is based on the following:
Korangi and SITE
Improvement in Fleet Efficiency: 22%
- Addition of newer, more efficient plants
- Highest ever fleet efficiency of 40.3% in Feb 2014
- Increase in efficiency by 10.1% with the addition of GE Jenbacher units (SITE & Korangi) and 220 MW CCPP in Jan-Dec 2010 compared to Jan-Dec 2008
- Installation of Korangi Combined Cycle Power Plant Steam turbine (27.5 MW)
- Combined cycle operation of the Korangi Gas Turbine Power Station and the SITE Gas Turbine Power Station
K-Electric continues to expand its generation portfolio. This includes projects being developed by external developers as pure IPPs, and projects where KE shall acquire equity (partial or whole) and is directly involved in the development phase.
900 MW BQPS III Power Project
KE has initiated a 900 MW project for an RLNG-based power plant at our Bin Qasim site, at an estimated cost of USD 1 billion. 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, comprising the construction of four grids. The first phase of 450 MW is expected to be commissioned by mid-2018 and the target for the second 450 MW phase is the end of 2019.
(350 x 2) MW DPKPGL Coal Power Project
K-Electric is developing a (350 x 2) MW coal power project in Port Qasim. A Joint Development Agreement has been signed with China Datang Overseas Investment Co. Ltd (CDTO) and China Machinery Engineering Corporation (CMEC), wherein CDTO is taking 51% equity share in the project; 25% equity is being contributed by CMEC and 24% by KE. The land has been acquired and technical studies on the land have been completed by KE. 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. The upfront tariff for the project was approved by NEPRA in August 2016. KE is presently working on the PPA modalities with DPKPGL along with various financing options. Financial Close is expected during FY 2018, followed by construction.
52 MW FFBL Coal Power Plant
K-Electric has entered into a strategic partnership with Fauji Fertilizer Bin Qasim Limited (FFBL) for procuring 52 MW of coal-based power. A Power Purchase Agreement between KE and FPCL (FFBL Power Company Limited) was signed in April 2017, followed by Take & Pay Tariff approved by NEPRA. The first coal power plant constructed on CFB technology was commissioned in May 2017.
Sindh Nooriabad Power Company (Gas)
Sind Nooriabad Power Company (Pvt.) Limited (SNPC) and Sind Nooriabad Power Company (Pvt.) Limited Phase-II (SNPC-II) are developing 50 x 2 (100) MW gas-fired power plants at Nooriabad, Sindh. Both these companies are sponsored by the Government of Sindh (GoS) and Technomen Kinetics (Pvt.) Limited. In this regard, KE has initialled Power Purchase Agreements with SNPC and SNPC-II. NEPRA issued tariff determination for SNPC/SNPC-II, against which the latter filed a tariff review petition, currently under review with NEPRA. The transmission lines for this project are being developed by Sindh Transmission and Dispatch Company. The 100km transmission line double circuit has been constructed. The plant construction is also complete and close to commissioning.
Engro Powergen (RLNG)
KE and Engro Powergen are in the process of developing a 450 MW RLNG-fired power plant at Port Qasim, wherein KE will be the power off-taker. A new special purpose company Kolachi Portgen (Pvt.) Ltd. (KPL) has been established by Engro Powergen to undertake this project. Power supply from the project is expected to be available to KE from FY 2020. 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 its first renewable project, a 50 MW solar power plant, to be commissioned at Gharo for supply of power to KE. 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 the load centres, such that energy can directly be consumed in the area through the 132 kV network. KE is working with Western Electric Limited to set up a 300 MW embedded power plant at Northern Bypass with Commercial Operation Date expected in 2019. KE is also working with Orient Power for a 200 MW embedded power plant at Baldia under an IPP Structure and its COD is expected by end 2019. KE will also have an option of 24% equity in Orient Kolachi (Baldia).
Captive Power Plants
As a fast-track solution to bridge the demand-supply gap in the power sector, KE purchases surplus power from various small and large-scale captive power plants set up by industrial-scale users. Recent development includes Lotte Chemicals Pakistan Limited that would be supplying 11-14 MWs to KE.
Other Strategic Initiatives
K-Electric continues to expand its generation portfolio by developing projects with external developers as IPPs, by taking partial equity stake in new projects (IPPs) and through self-generation.