Daily Times

KARACHI: The existing energy mix of the country is heavily skewed towards the thermal power plants, mainly operating on imported fossil fuel while the continuous import of fossil fuel not only creates pressure on the precious foreign exchange reserves of the country but is also an environmental concern, said National Electric Power Regulatory Authority (NEPRA).

In order to achieve sustainable development it is imperative that indigenous renewable energy resources are given priority for power generation and their development is encouraged, it added.

The Energy Security Action Plan 2005 approved by the government of Pakistan, envisages that at least five percent of total national power generation capacity (i.e. 9,700MW) to be met through renewable energy resources by 2030.

Accordingly, the NEPRA has granted generation licenses to three bagasse-based generation facilities/co-generation, including Jauharabad Sugar Mills Limited (JSML), Two Star Energy (Private) Limited (TSEPL) and Mehran Energy Limited (MEL).

The JSML is maintaining and operating a bagasse-based captive power plant at its mill located in Khushab, Punjab. The existing capacity of the said power plant is 7MW, which is being enhanced to 21.44MW. JSML offered the concerned distribution company/utility of its area supplying surplus electric power from the above mentioned CPP.

Similarly, the TSEPL intends to set up a 49.80MW bagasse-based power project to Kamalia, Punjab. The TSEPL will be a 2 x 24.90MW bagasse-based generation facility/co-generation facility/power plant. The net efficiency of the proposed generation facility/co-generation facility/power plant will be at least 24.50 percent.

The sponsor for the TSEPL, Umer group, is engaged in different portfolios of investment, including textile, footwear, dairy, leather, building construction and power generation.

Meanwhile, the MEL intends to set up a 26.50 MW bagasse-based power project, in Tando Allah Yar district, Sindh. The MEL is a 100 percent owned subsidiary of the the Mehran Sugar Mills Limited (MSML). The sponsors for the MEL and MSML have interest in diversified businesses, including sugar, molasses, distillery, food, renewable energy, bulk storage, etc. The existing sugar mill in the name of the MSML with a crushing capacity of 13,000 TCD is located on Tando Adam Road, Tando Allah Yar district, Sindh.

As part of the said facility, MSML owns, operates and maintains a generation facility/captive power plant (CPP) with an installed capacity of 14.06MW.

The MSML has been supplying 4-5MW to the Hyderabad Electric Supply Company (HESCO) from the said generation facility through a power purchase agreement.

Published in Daily Times, September 28^th 2017.