Pakistan embraces coal-fired power expansion

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Faced with persistent power outages and dwindling gas reserves, Pakistan is embracing coal-fired power expansion, with a dozen new plants set for construction.

Bloomberg reports that the government is encouraging investment totalling $15bn that looks likely to see 10,000 MW ofcoal-fired power added to the country’s power mix by 2020.

The country will use coal imported from South Africa and Indonesia before it develops and starts to use locally-mined lignite. It is motivated by a need to end power cuts, curb subsidies and comply with aid conditions set by theInternational Monetary Fund. Global investors and local companies including Engro Corp, Lucky Cement Ltd and K-Electric are set to invest heavily to improve the country’s energy security.

Pakistan and the IMF agreed in July 2013 on a loan that has since risen to $6.6bn to boost the nation’s depleted currency reserves and help stabilize its struggling economy. Fixing its energy sector was a key IMF condition for the loan.

Depleted gas reserves are the primary motivator in switching to coal – last year this issue indirectly led to outages that lasted as long as 18 hours per day, and at its peak the summer power deficit reached 6000 MW in the Punjab region.

The Asian Development Bank is lending $900m for a state-owned 600 MW coal-fired power generation unit in Pakistan. China’s Sinohydro Resources Ltd and Al Mirqab Capital SPC, a company controlled by Qatar’s royal family, are building a 1320 MW generator at Port Qasim in Karachi.

Meanwhile, Pakistan also plans to set up 10 power projects to produce a combined 6600 MW at Gaddani, just outside Karachi.

“Our wish is that we make electricity from gas, but we don’t have it and there is no choice other than coal,” Asif Ali Abro, director of projects at the state-owned Private Power and Infrastructure Board, told Bloomberg.

The addition of coal power will change Pakistan’s energy mix to as much as 40 per cent from the fuel in five years from 0.1 per cent at present.

 

[New]

Wind Energy Potential in Pakistan

Solar Energy in Pakistan

Data in 2013

% Coal 0.1
% Natural gas 29
% Oil 35.4
% Hydropower 29.9
% Other renewable 0
% Nuclear power 5.5

 

[New]

Is there any Pakistani power engineer here?
Considering cost factors, renewable generation might seem not a very tempting option these days,
But Currently Nuclear power generation forms only 5.5% of Pakistan's power generation, I know expansion of nuclear generation evolves around many coherent factors, but considering present power shortage in Pakistan, why don't you guys invest on more Nuclear energy production?

 

[shaheenmissile]

Basically Pakistan is

Wind Energy Potential in Pakistan

Solar Energy in Pakistan

Data in 2013

% Coal 0.1
% Natural gas 29
% Oil 35.4
% Hydropower 29.9
% Other renewable 0
% Nuclear power 5.5

The most expensive ways of producing electricity Oil+gas are being used in Pakistan by 65%.
No wonder units are so expensive in the country.

 

[niaz]

Basically Pakistan is

The most expensive ways of producing electricity Oil+gas are being used in Pakistan by 65%.
No wonder units are so expensive in the country.

What are we talking about? Capital cost or running costs? Capital cost of oil & gas fired plant per MW is cheaper than any other. Running costs of hydel power are the cheapest. Solar energy is still the most expensive way of producing electricity on a large scale especially considering that 100 MW capacity plant will produce zero electricity at night and only average 35 MW over the year.

Everyone has 20/20 hindsight. Oil & gas were the cheapest fuels when the plants were conceived about 10 to 15 years ago. As early as January 2005 oil was $40 per bbl and crossed $50 barrier in mid 2005. Oil prices really shot up from 2007 onward. Till then there was no gas shortage in Pakistan either.

High gasoline & diesel prices caused a boom in CNG conversion .This caused the switch of gas from power generation to the transport sector which resulted in increased burning of expensive imported fuel oil by the power plants.It was only after 2005 when coal became the cheapest imported fuel.