KARACHI: After achieving success in overall operations in power generation, transmission and distribution of electricity, the Karachi Electricity Supply Company (KESC) has taken many initiatives with futuristic approach to maintain uninterrupted supply of power in this economic hub of the country.
Keeping in view the shortage of gas and increasing fuel prices, the KESC has embarked upon a plan to utilize coal resources to overcome these impending challenges and provide electricity to feed its customers.
The KESC Chief Executive Officer, Syed Nayyar Hussain along with his team including Chief Distribution Officer, Syed Muhammad Taha, Chief Generation and Transmission Officer, Arshad Zahidi, Chief Financial Officer, Syed Moonis Abdulah Alvi and Chief of Staff Usama Qureshi, briefed the media persons at KESE headquarters Thursday about the successful operations of the company.
Nayyar Hussain said that KESC was facing multiple challenges at distribution, revenue collection and policy stages, saying that these challenges could be overcome through deliberations with the stakeholders.
He said that KESC has been successful in bringing about positive changes in the electricity system of Karachi and it would continue to do so in future to ensure smooth supply of electricity.
The presentation highlighted the future initiatives that the company is going to take to reduce it dependence on one fuel and utilize other resources for power generation.
The KESC has initiated work on a project to convert the 400 MW of existing furnace oil based capacity into coal-fired plants, resulting in a temporary drop in the dependable capacity.
The Company has signed a Joint Agreement with BEEGL, a consortium of Chinese, Korean and Indonesia companies to fund $220 million for a Coal Conversion Project, starting with two units with a capacity of 200 MW each.
The company has identified a coal mine in Indonesia and long term fuel supply agreement is in advanced stages with Titan Group of Indonesia.
The coal conservation project, expected to be completed by 2016, will be fully equipped to maintain allowable emission limits set by National Environment Quality Standards of Pakistan.
The conservation project will reduce Sulfur Dioxide emissions as compared to furnace oil due to the low sulfur content in the selected coal.
In addition, the company plans to increase efficiency and capacity from converting two existing fully operational open-cycle plants with capacity of 220MW and 180 MW respectively to combined cycle that would result in additional capacity of 47.5 MW by July 2014 and 20 MW by June 2015.
The agreement for the 220MW project has already been signed while contract for the conversion of 180MW is in advanced stage of discussion.
The company has also completed pre-feasibility studies through Biogas Technology provided-Highmark Renewable, Canada for approximately 20 MW power plant.
A separate company, Karachi Organic Energy Limited has been incorporated with Orient as Engineering, Procurement and Construction (EPC) lead.
While land and support for feedstock supply chain being explored with Karachi Municipal Corporation.
Bio Gas Project assumed to have a zero net impact, as any financing will be through separate company.
In addition, the KESC’s 840 MW project for conversion of remaining furnace oil based plants into coal plant is in 2nd Phase while the coal based Mine Mouth Power Plant with capacity of 300 MW is also in inception stage.
The company’s 25MW wind power project is also at inception stage while 500 Burj Coal Power project and Sondha Jherruk Mine Mouth Coal project are also on cards.
Hydro power projects of 800MW are also on discussion stage or MoU for these have been signed with respective companies, the document revealed.
It is pertinent to mention here that KESC was incorporated in 2005 and its ownership was transferred to consortium comprising Al- Jomaih of Saudi Arab and NIG of Kuwait.
Since its operations as private entity, the generation capacity has enhanced by 1,010 MW with additional four new power plants.
Similarly, the average fleet efficiency has increased from 30.6% to 36.7%.
As on today, the 69% of the Karachi city has distribution losses of 18% only.