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185b tons reserves can produce 100,000MW for 300 years
Tanvir Siuddiqi
IslamabadAfter having failed to bridge the gap between supply and demand of power by resorting to sweeping measures like having two-day holidays and closing business centers early in the evening, the government is understood to be contemplating to tap the Thar coal reserves to produce energy on a war footing.
The decisions taken at the recent Energy summit presided by the Prime Minister Syed Yusuf Raza Gilani and attended by all the Chief Ministers at Islamabad have proved worthless. The massive crisis of power shortage continues with widening gap between supply and demand leading to excessive load shedding due to which the countrys economy is badly suffering. The violent street agitation against power shortage continues unabated with more and more industries closing down and huge labour force laid-off.
However, technical experts say that the problem can be overcome if the countrys leadership agrees to a single point agenda of utilising untapped energy potential found in Pakistan.
The Thar coal reserves alone are estimated at 185 billion tons having the potential to produce 100,000 MW for 300 years, which is the solution of the power crisis.
Relevantly, the absence of regulatory regime for Thar coal is one of the barriers in determining tariff for coal-fired power plants to be set up at Thar. In the past a Chinese company, which had reached an advance stage of setting up a power plant at Thar, was refused a reasonable tariff by a federal agency, which compelled the company to pack off. According to sources, the Thar Coal and Energy Development department is preparing detailed information guidelines, which will provide specific information on legal and regulatory framework as well as commercial benefits to the national and international investors participating in international bidding for Thar Coal Block I.
The board has decided to offer 20 per cent Internal Rate of Return (IRR) to firms which achieve financial close before Dec 31, 2015 for power plants based on Thar coal. It will offer 25 per cent IRR to firms, which achieve financial close by 2014.
Two international and two local companies are working in various Thar blocks to set up coal-fired power plants. A UK firm Cougar Energy is exploiting Block III for underground coal gasification, which will lead to a 400mw power plant.
UK firm Oracle Gas Fields also plans to develop 1.4 billion tons coal in Block V1 integrating the mine with the construction of a mine-mouth power plant.
The Thar Coal Power Project (TCPP) would attract over $20 billion foreign investment within next six months. According to the sources. Sharjeel Memon, one of the SCABs governors, a host of interested companies from United States, China, Britain, Singapore, South Korea, Germany, Poland, Australia etc would invest over $20 billion in the Tharparkar-based energy project.
Relevantly there are massive energy potential of coal and water in Pakistan and Nepal, South Asian countries including India, Pakistan, Nepal, Bangladesh and Bhutan can pool their financial resources and technical expertise and start mega energy projects in Pakistan and Nepal and develop a consensus energy distribution formula for meeting their energy needs. There are many examples of power sharing among countries of Africa, Latin America, Central Asia and South East Asia and South Asian countries should also take benefit from such arrangements.
185b tons reserves can produce 100,000MW for 300 years
Tanvir Siuddiqi
IslamabadAfter having failed to bridge the gap between supply and demand of power by resorting to sweeping measures like having two-day holidays and closing business centers early in the evening, the government is understood to be contemplating to tap the Thar coal reserves to produce energy on a war footing.
The decisions taken at the recent Energy summit presided by the Prime Minister Syed Yusuf Raza Gilani and attended by all the Chief Ministers at Islamabad have proved worthless. The massive crisis of power shortage continues with widening gap between supply and demand leading to excessive load shedding due to which the countrys economy is badly suffering. The violent street agitation against power shortage continues unabated with more and more industries closing down and huge labour force laid-off.
However, technical experts say that the problem can be overcome if the countrys leadership agrees to a single point agenda of utilising untapped energy potential found in Pakistan.
The Thar coal reserves alone are estimated at 185 billion tons having the potential to produce 100,000 MW for 300 years, which is the solution of the power crisis.
Relevantly, the absence of regulatory regime for Thar coal is one of the barriers in determining tariff for coal-fired power plants to be set up at Thar. In the past a Chinese company, which had reached an advance stage of setting up a power plant at Thar, was refused a reasonable tariff by a federal agency, which compelled the company to pack off. According to sources, the Thar Coal and Energy Development department is preparing detailed information guidelines, which will provide specific information on legal and regulatory framework as well as commercial benefits to the national and international investors participating in international bidding for Thar Coal Block I.
The board has decided to offer 20 per cent Internal Rate of Return (IRR) to firms which achieve financial close before Dec 31, 2015 for power plants based on Thar coal. It will offer 25 per cent IRR to firms, which achieve financial close by 2014.
Two international and two local companies are working in various Thar blocks to set up coal-fired power plants. A UK firm Cougar Energy is exploiting Block III for underground coal gasification, which will lead to a 400mw power plant.
UK firm Oracle Gas Fields also plans to develop 1.4 billion tons coal in Block V1 integrating the mine with the construction of a mine-mouth power plant.
The Thar Coal Power Project (TCPP) would attract over $20 billion foreign investment within next six months. According to the sources. Sharjeel Memon, one of the SCABs governors, a host of interested companies from United States, China, Britain, Singapore, South Korea, Germany, Poland, Australia etc would invest over $20 billion in the Tharparkar-based energy project.
Relevantly there are massive energy potential of coal and water in Pakistan and Nepal, South Asian countries including India, Pakistan, Nepal, Bangladesh and Bhutan can pool their financial resources and technical expertise and start mega energy projects in Pakistan and Nepal and develop a consensus energy distribution formula for meeting their energy needs. There are many examples of power sharing among countries of Africa, Latin America, Central Asia and South East Asia and South Asian countries should also take benefit from such arrangements.
185b tons reserves can produce 100,000MW for 300 years
