KARACHI: In order to address the shortfall of 400 MW and cater for future increase in power demand, K-Electric (KE) has sought generation license modifications for the useful life of units 1 and 2 installed under Bin Qasim Power Station-I (BQPS-I) Power Project.
KE has also sought the approval of Power Acquisition Request (PAR) for purchase of up to 4MW from International Industries Limited (IIL).
According to the details, KE has already submitted formal requests with National Electric Power Regulatory Authority (NEPRA). In this connection, a hearing has been scheduled by NEPRA on July 18 at Nepra Towers, Islamabad to discuss KE’s PAR.
Moreover, NEPRA has also invited the stakeholders interested and the general public to submit their comments in favor or against the license modification request of KE.
KE, in its license modification request to NEPRA, stated that since 2009, KE had added 1,057 Megawatts (MW) of efficient power generation, as a result of which, KE’s average fleet efficiency had improved from 30 percent in Financial Year (FY) 9 to 37 percent in FY17.
KE stated that there was a shortfall of approximately 400 MW against peak demand and in order to address this shortfall and cater for future increase in power demand, KE had embarked on various new projects.
According to KE, it had undertaken rehabilitation of Units 1 and 2 of BQPS I in order to ensure adequate supply of power to meet the growing demand of the city.
According to the license modification request, KE wishes to extend the useful life of two of its units namely Units 1 and 2 in Bin Qasim Power Station – I (BQPS-I).
The aforementioned two identical units, each of 210 MW installed capacity, were commissioned in the year 1983 and 1984 respectively. The useful lives of these two units, as per Generation License, are due to expire in August 2018 and August 2019 respectively.
KE, in its request, proposed that the useful life of Units 1 and 2 be extended for five years and be revised to August 2023 and August 2024 respectively.
“The expected useful life of the Units 1 and 2 of BQPS – I is due to expire in August 2018 and August 2019 respectively. However, through major and minor rehabilitation it is estimated that the Units can operate reliably for another five years after the expiry of their current licensed term,” claimed KE in its request.
In the request, KE clarified that Units 1 and 2 were a part of KE’s generation fleet and further operation through enhancement in useful life of these units will not have any additional impact on the fuel cost to be passed through to consumers.
In another development, KE has requested the NEPRA to approve KE’s PAR for purchase of up to 4MW from IIL and determine a power sale and purchase tariff based on a ‘Take and Pay’ arrangement.
KE further claimed that the power produced by IIL is based on natural gas and is currently cheaper than power purchased by KE from Tapal Energy, Gul Ahmed Energy and Anoud Power. According to KE, the power cost of IIL is cheaper than KE’s self-generation from BQPS I.
“Based on above, the purchase of power from IIL is expected to benefit the consumers as the cost of such purchase is lower than marginal power produced using furnace oil”, said KE.
Published in Daily Times, July 5th 2018.