Coal based Power plants

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CPEC; 330MW TEL successfully synchronized with National Grid​

APP
Thu, 4 Aug 2022


BEIJING, Aug 4, 2022 (APP) :The 330MW Thar Energy Limited Power Plant (TEL), a mine-mouth lignite-fired power plant under the China-Pakistan Economic Corridor (CPEC) at Thar Coal Block II, Sindh, was successfully synchronized with the National Grid.

The Project is a joint venture among Hub Power Company Limited (HUBCO), Fauji Fertilizer Company Limited (FFC), and China Machinery Engineering Corporation (CMEC), which is also the EPC contractor, China Economic Net (CEN) reported.

The foreign financing for the Project was arranged via a Chinese syndicate led by China Development Bank whereas the local financing has been arranged via a syndicate led by Habib Bank Limited.

The project started construction in May 2018 from the sponsor’s equity to ensure a timely Commercial Operation Date (COD) and early utilisation of the local resources. The financial close of the project was achieved in January 2020.

Now, the project has successfully reached its commissioning phase and COD is expected by the end of this month. The Thar Energy Limited Plant utilizes indigenous Thar coal sourced by Sindh Engro Coal Mining Company (SECMC), a joint venture initiative of which HUBCO is also a shareholder. The utilization of indigenous fuel is a development that will further revolutionize the Pakistani energy sector.

It will enable the nation to become proficient in supporting its own energy needs through local resources rather than allocating funds to import fuel, which will significantly decrease the country’s import bill.

The TEL power plant has created numerous direct employment opportunities for the locals of Thar and adjoining communities. TEL and Thal Nova (another venture between HUBCO, Thal Limited, Novatex, CMEC, and Descon) have jointly employed over 3,700 locals for the construction.

TEL is the first coal-fired power plant in the country to be run entirely by the Pakistani workforce. Similarly, the Thal Nova power plant is also near completion. Collectively, these two power plants will provide 660 MWs of affordable and indigenous electricity.

 

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Shifting to local coal could save over $800m annually: experts​

Move is expected to ease burden on country’s foreign reserves, reduce electricity tariff

Shahram Haq
August 30, 2022

Industry experts believe the government’s decision to convert three power plants from imported fuel to local coal could result in savings of $175 per tonne which would translate to over $800 million in savings annually from each plant

“The government’s decision to bet on local fuel will not only reduce the country’s import bill, on which fuel imports bear the biggest burden, it will also bring down electricity tariff rates,” predicts an analyst.

On June 15, 2022, Federal Minister for Power Khurram Dastgir Khan said the government had decided to shift from imported coal to Thar coal in order to generate 3,960MW electricity from three coal fired power plants; namely, Sahiwal coal power plant, China Hub coal power plant and Port Qasim coal power plant.

The government has already appointed consultants to work out a feasibility plan in lieu of converting the plants. According to research under taken by the Lahore Chamber of Commerce and Industry (LCCI), Pakistan is ranked seventh in the world with total estimated coal reserves of 185 billion tonnes. In return, the Thar coalfield has 175 billion tonnes of assessed coal reserves, which is the 16th largest coal reserve in the world and can generate 30,000 MW of electricity for the next 100 years.

“The 660MW (2x330MW) power plant that is utilising Thar Coal is a good example of producing cheaper electricity using an available indigenous resource. This is enough to guide our policy makers to start utilising local coal resources as well,” said experts.

Sindh Engro Coal Mining Company (SECMC) is engaged in coal mining from Block-II and is currently extracting 3.8 million tons of lignite annually. SECMC’s capacity of extraction is projected to increase to 7.6 million tonnes by the end of this year while a further increase to 12.2 million tonnes is expected by the end of 2023.

“If the government converts all three aforesaid plants to local fuel, they will require an additional 24 million tonnes of coal from Thar Block-II,” added an analyst.

The inauguration of the 330 MW Hubco power plant, by Sindh Chief Minister Syed Murad Ali Shah, enhanced the district’s electricity generation capacity to 990 MW via Thar Coal which has been added to the national grid after becoming operational.

According to industry experts, there are various way to convert the said plants including a 10-20% mix of Thar coal and imported coal, total conversion from imported coal to Thar coal with significant technical changes, and the use of CFB boilers.

Energy sector stakeholders lauded the government for focusing on available resources such as Thar coal and other indigenous sources calling it “the need of the hour”. The government’s plan to convert the three power plants can safeguard the country’s energy security and will have a positive impact on the national economy as well, they added.

Published in The Express Tribune, August 30th, 2022.

 

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The government, in collaboration with Independent Power Producers (IPP), is set to agree on using 10% indigenous coal to generate electricity. The initiative will help in reducing the electricity generation cost in the country.

IPPs demonstrated their willingness to generate electricity by using up to 10% of domestic coal. The private Power and Infrastructure Board (PPIB) is planning to switch IPPs to Thar Coal. As indigenous coal is far cheaper than imported coal. According to various sources, utilizing up to 10% of the Thar coal for power generation will not require modifications to the existing generation plants.

Pakistan will switch over to domestic coal from imported-coal-based power plants. The Pakistani government has chosen to replace the imported coal used in its current power facilities...

 

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FPCL signs MoU with SECMC for utilizing Thar coal​

By Khalid Aziz | Gwadar Pro Nov 25, 2022



ISLAMABAD, Nov 24, (Gwadar Pro)- The FFBL Power Co. Ltd. (FPCL) signed a Memorandum of Understanding with Sindh Engro Coal Mining Company (SECMC) on Wednesday for the use of Thar coal in the company's power plant in Karachi.It was disclosed by the two companies in separate statements.
In Karachi, FPCL operates a 118-megawatt coal-fired power plant next to the Fauji Fertilizer Bin Qasim Ltd. (FFBL) Fertilizer Complex.
The MoU is a significant step forward in harnessing indigenous resources to achieve better energy prices while reducing the burden on foreign exchange, according to FPCL. This reflects the company's commitment to economic development and strengthening the national economy through reduced reliance on imported energy.
The FPCL power plant provides up to 60 MWs of electricity to K-Electric, the company is in charge of supplying electricity to Karachi. According to the company's website, the remaining electricity is supplied to the FFBL Fertilizer complex.
SECMC operates Pakistan's first open-pit lignite coal mine in the Thar desert, with an annual capacity of 7.6 million tons. The company is a collaboration between the Sindh government, Engro Group and its partners, and China Machinery Engineering Corp (CMEC) under China-Pakistan Economic Corridor (CPEC) initiative. SECMC currently supplies coal to four mine-mouth power plants with a combined capacity of 1,320 MW.

 

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In Sindh's Tharparkar area, a project was launched on Friday to produce 330 MW of power using local coal.

According to Member of Parliament Mahes Kumar Malani, using domestic coal to generate energy would lessen the need for imported fuel. The launch of the project means that around 3,000 MW of power may now be generated from Thar coal.

According to the PPP legislator, 100,000 megawatts of power may be created from Thar's coal resources for 200 years

 

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IPPs bound to use Thar coal first​

Khaleeq Kiani
January 6, 2023

ISLAMABAD: The National Electric Regulatory Authority (Nepra) has made it mandatory for all independent power producers (IPPs) to utilise local coal, particularly from Thar, before opting for imports that would also be contracted in Pakistani rupees.

This has been done through notification of ‘Guidelines for Procurement of Coal on Spot Basis’ issued by the regulator to ensure that procurement of coal on a spot basis is conducted fairly and transparently and is efficient, economical and provides value for money for the consumers.

The IPPs including those based on imported coal would be required to “first ensure whether local coal such as from Thar is available which can be used keeping in view plants’ technical requirement’ and they would estimate total quantity and quality to be procured in the next six months and then contact Thar Coal Energy Board (TCEB) to confirm availability from any of its blocks.

If no local coal is available which meets the desired specifications, then IPPs shall proceed with spot purchases through a transparent process by reaching out to all suppliers through advertised publications with sufficient time given for response. The publication of the advertisement shall be for monthly bidding as well as for pre-qualification of coal traders for an extended period of 3-6 months. The term of bid, whether monthly or 3-6 months, would be decided by IPPs and the “currency of contract shall be in Pakistani rupees.”

Imports are allowed only if specs do not meet plant requirements

The comprehensive Request for Quotation (RFQ) document would include all supply, quality, and payment-related details, along with the grievance redressal procedure for bidders. There would also be minimum acceptance and rejection standards of coal along with the penalty for any deviation from the required quality of coal including ash, moisture and sulphur content etc.

The tendering process would be well-documented and traceable and the quality of coal shall be determined on a weighted average basis of the complete order accepted quantity. Rejected quantity will not be part of the total weighted average.

There would be minimum eligibility criteria for bidders including a bid bond equivalent to five times the price and tendered quantity. The successful bidder would be required to either replace the bid bond with a performance guarantee of 10pc or submit an additional performance bond or guarantee of 5pc.

The IPPs are also required to pre-qualify a pool of coal suppliers for a monthly tendering or extended period of 3-6 months with two years minimum experience of commodity trading and compliance with other coal specifications.

The IPPs shall ensure that the final bid or negotiated price is competitive, market reflective and comparable with that of other power plants. Nepra would have the power to seek justification from the IPPs in case of any abnormal difference in coal prices.

The calculation of benchmark coal price would be worked out in rupees per million British thermal unit (mmBtu). Technical specifications for coal and transportation costs have also been set under the new guidelines including those relating to ship sizes, monsoon and non-monsoon period, taxes and other charges.

Minimum order for spot purchase will be 5,000 tonnes per month and the coal specifications shall be prescribed by each IPP as per its requirements. The selection and award process shall prioritise the lower quoted price irrespective of the volume committed hence enabling a pool of suppliers to complete the requested quantity on a per-month basis.

Published in Dawn, january 6th, 2023

 

[ghazi52]

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The government, in collaboration with Independent Power Producers (IPP), is set to agreement on using 10% indigenous coal to generate electricity. The initiative will help in reducing the electricity generation cost in the country.

IPPs demonstrated their willingness to generate electricity by using up to 10% of domestic coal. The private Power and Infrastructure Board (PPIB) is planning to switch IPPs to Thar Coal. As the indigenous coal is far cheaper than imported coal. According to various sources, utilizing up to 10% of the Thar coal for power generation will not require modifications to the existing generation plants.

Pakistan will switch over to domestic coal from imported-coal-based power plants. The Pakistani government has chosen to replace the imported coal used in its current power facilities

 

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Coal power plant constructed by a Chinese company in Balochistan is completed.
Hub Power Company (Habco) announced that a 1,320 megawatt (MW) coal-powered power plant, under the management of China Power Hub Generation Company (Pvt) Limited (CPHGC) in Balochistan, has obtained its project completion date (PCD).

 

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HUBCO Coal Power Project .. Balochistan .

https://www.facebook.com/video.php?v=1683904418707641

 

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New coal-fired power plant starts operations today​

Business Recorder
Aug 13, 2024

LAHORE: In a significant milestone for Pakistan’s energy sector, a new 660 MW coal-fired power plant in Jamshoro is set to commence operations on August 14, Pakistan’s Independence Day. This project marks a landmark achievement in the country’s energy infrastructure.

The plant, owned by the Government of Pakistan and funded by the Asian Development Bank, features advanced supercritical technology and is designed to enhance energy efficiency and stabilize the national grid. Its strategic location will benefit the industrial hub of Karachi and the southern region.

The plant’s commissioning is a technological advancement and a strategic asset for Pakistan’s energy sector, expected to improve power stability and reliability. K-Electric has expressed plans to acquire the plant in the future, reflecting its anticipated value and impact.

Copyright Business Recorder, 2024

 

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3 imported coal-based IPPs to Thar coal: PPIB seeks details of Chinese Ad hoc Working Group on conversion​

Mushtaq Ghumman
November 9, 2024

ISLAMABAD: The Private Power and Infrastructure Board (PPIB) has sought details of Chinese Ad hoc Working Group constituted to negotiate conversion of three imported coal-fired Chinese power plants established under the China-Pakistan Economic Corridor (CPEC) to local coal i.e. Thar coal, sources close to Managing Director PPIB told Business Recorder.

Sharing the background, the sources said, in a follow-up to the high level visit of Prime Minister Shehbaz Sharif to China from June 4-8, 2024, a delegation of Chinese experts visited Pakistan from July 30 to August 06, 2024, to assess the challenges in Pakistan’s power sector.

The Chinese experts prepared a detailed report of the visit, which was shared by the Embassy of China in Pakistan on 0ctober 7, 2024 with the Ministry of Foreign Affairs (MoFA) and copied to Power Division.

The report has recommended addressing both efficiency and management improvements of Pakistan’s power system and conversion of imported coal based IPPs to Thar coal in parallel. Furthermore, the report indicated that the Chinese energy expert team had drafted an outline of research aimed at alleviating the challenges faced by China sponsored, imported coal-based power plants within the CPEC. However, the draft outline of research has not been shared with the Pakistani side.

Regarding conversion of imported coal based IPPs to Thar coal, Minister of Energy (Power Division) during his visit to China on July 24-26 2024, proposed Vice Administrator of National Energy Administration (NEA) to establish an Ad-hoc Joint Working Group to facilitate further discussions on the conversion.

Accordingly, Parep Beijing through an email dated August 20, 2024 noted that NEA has agreed in-principal to establish an Ad-hoc Working Group in which Chinese side would be represented by officials from NEA’s department of International Cooperation, its Planning Department as well as Chinese Enterprises operating IPPs in Pakistan.

On August 26, 2024, Minister of Energy (Power Division) constituted a Committee to coordinate and work with stakeholders on conversion.

According to Shah Jahan Mirza, the Committee after convening meetings with stakeholders now intends to engage with the Chinese Ad-hoc Working Group for further deliberations. However, the Committee on conversion lacks information regarding the status of Ad-hoc Working Group on the Chinese side, including its members, Terms of Reference (ToRs) and any focal person(s) nominated by the NEA.

After explaining the background, PPIB has requested Power Division to approach Embassy of China in Pakistan through Ministry of Foreign Affairs to acquire details regarding the Ad-hoc Working Group, including its members, ToRs, and NEA’s designated local person(s) for the conversion. Furthermore, ‘Outline of research on alleviating the difficulties faced by China -sponsored, imported coal-based power plants within the CPEC’ may also be solicited to facilitate in-depth research on this initiative and to expedite the finalisation of the joint study.

Finance Ministry is also engaged with local banks to convince them to finance the much desired plan, as the government hopes that this step will reduce overall tariff by Rs 3.5 per unit.

Power Division argues that coal conversion is critical to improve generation capacity and reduce fuel payments per unit, and enable scaling up Thar coalfields, reducing cost of coal per ton, while enhancing energy security.

Initial study was conducted by M/s Fichtner of Germany which supported conversion of plants from imported coal to local Thar coal.

Copyright Business Recorder, 2024

Source:
https://www.brecorder.com/news/4033...of-chinese-ad-hoc-working-group-on-conversion