Pakistan's First Coal Power Project Starts Functioning

[nahtanbob]

So? They ain't Whites either.

Has anyone claimed Whites to be Asian ?

 

[Arsalan]

I still worry about the effect of the mounting circular debt plaguing the power sector. Adding additional generating capacity is comparatively the easy part.

Cheap electricity added to national grid will resolve that circular debt issue. Cannot see any other alternative!

 

[valkyr_96]

Cheap electricity added to national grid will resolve that circular debt issue. Cannot see any other alternative!

How is it going to be cheap when we have guaranteed higher than industry average returns to setup the powerplants? Circular debt is a national crisis this is some sort of liquidity management.

 

[ALi Rizwan]

Sahiwal Coal Power plant was the first not Thar it's 3rd

I think he mean First Power Plant using Local Coal.

Cheap electricity added to national grid will resolve that circular debt issue. Cannot see any other alternative!

Cheap electricity is never on Govt priority List. Genius Govt. will install more turbines in Terbala Bacause WB will fund. Although dam storage is going down. On the other hand ignore KB Dam where WB has no problem to fund & is more suitable compared to other(Near Load, Less Line Loss, No Massive Distribution lines required, less risk of earth quake, More water flow etc). Not to forget KP want more money from dams and oppose KB on other hand. Would be great if provincial Govt. partially fund such projects.

 

[VCheng]

Cheap electricity added to national grid will resolve that circular debt issue. Cannot see any other alternative!

The problem with the circular debt is not the price of the electricity, but to ensure that the producers are paid in time for the electricity supplied.

 

[CrazyZ]

The problem with the circular debt is not the price of the electricity, but to ensure that the producers are paid in time for the electricity supplied.

You need an improved settlements process. In parts of the west, wholesale electric markets are settled at the end of week. That way, under payments (or overpayments) can be identified and addressed before it becomes a huge problem.

 

[VCheng]

You need an improved settlements process. In parts of the west, wholesale electric markets are settled at the end of week. That way, under payments (or overpayments) can be identified and addressed before it becomes a huge problem.

What you say is well known, but does Pakistan have the governance mechanisms that can implement that solution? The record suggests that it does not, even with this new government in place.

 

[Syed1.]

I heard Pakistan production has reached 36-38MW and in the next 2-3 years it is expected to rise to 42-45MW, but maximum consumption is around 25MW. So where is this extra capacity going?

 

[CrazyZ]

I heard Pakistan production has reached 36-38MW and in the next 2-3 years it is expected to rise to 42-45MW, but maximum consumption is around 25MW. So where is this extra capacity going?

As far as ive read, the plan is to get up to 4000 mw of Thar coal generation online. In theory the number can be much larger considering the size of the lignite reserves. But we have to get more water to area since generators requires water for cooling. I advocate the use of recycled waste water for this task.

 

[niaz]

Here is a sobering article on the coal-based power generation.

Quote
The long shot of ‘black gold’
Sohaib R. MalikApril 06, 2019

The writer is an analyst specialising in energy policy and political economy.

AT a recent rally in Thar, Prime Minister Imran Khan thundered that the desert region’s abundant coal reserves — its ‘black gold’ — would bring prosperity to the people there. Coming from a self-proclaimed environmentalist, these words are not only disappointing, but potentially dangerous. In fact, they may pose an existential threat to not only the people of Thar and Sindh, but the entire nation.

When the prime minister launched the Clean Green Pakistan initiative last October and promoted the idea of the ‘10 Billion Tree Tsunami’, it triggered a sense of optimism among those who care deeply about the nation’s sustainable future. Perhaps for the first time, it appeared as if the reins of the state were finally taken over by someone who was driven by a vision that encompassed the long-term well-being of the people and not just his own re-election. That optimism seems to be eroding now.

It is a fact that the people of Thar are devoid of economic opportunities. With a population of 1.7 million — 75 per cent live below the poverty line, which shoots up with every drought — the region’s welfare should be our policymakers’ top priority. The available choices, however, should be evaluated on the basis of a criterion that ensures multidimensional development. In this regard, coal is possibly the least potent means of all.

What plans are in place to offset the looming damage of coal-related commercial activities for Thar?

To start with, Thar’s coal deposits comprise inferior quality lignite and sub-bituminous characteristics. The Geological Survey of Pakistan analysis proves that these are among our least-valued coal grades due to the high moisture content and low heating value. Furthermore, of the oft purported ‘reserves’ of 175bn tonnes, less than 5pc are measured and the rest are theoretical estimates. The proven reserves of 7bn tonnes are not fully recoverable either.

The PML-N administration built an entire case on the massive coal power buildout on the basis that the fleet will provide cheap electricity and improve the balance of payment. If the present government believes in a fraction of that narrative, it must realise that it is misled. The operational and permitted plants vividly indicate why tariffs shouldn’t be accorded for coal power producers in the future.

Between 2015 and 2016, the National Electric Power Regulatory Authority granted tariffs to developers for about 9,500MW of coal capacity. Over 60pc of that capacity will burn imported fuel because policymakers agreed that it is a better alternative to Thar’s lignite. Moreover, coal power producers were guaranteed an overly lucrative rate of return, which could be higher than the rates offered for other technologies during that period and was awarded at the behest of the federal government.

Since imported fuel cost is over half the total tariff, these plants could worsen our trade imbalance through 2050 and generate expensive electricity. A case in point is the 1,320MW Sahiwal plant, which produced power for Rs11.25/kWh in February 2019, compared to the originally estimated tariff of 8.2 Rs/kWh. The cost for the consumer soars if the equity and loan repayments are repatriated in a foreign currency since the rupee has depreciated substantially.

On the technical front, coal power plants offer some merits which are overvalued by bureaucrats who usually run the show in ministries. With uninterrupted fuel supply, coal plants can provide electricity without varying generation and load. The so-called baseload characteristic of these plants causes inflexibility because they should keep running regardless of the electricity demand. Notwithstanding the fact that our power demand is highly seasonal ranging between 25,000MW to 10,000MW, depending on the weather— the politicians and bureaucrats professed the need for baseload generation and permitted an excessive capacity of coal-fired power projects.

The coal power value chain emits large amounts of pollutants and clean water is among the key input requirements for thermal power stations. If employed, the Tharis will be paid poorly to ensure “commercial viability” of the mines. While at work, the miners will be exposed to chemical substances and coal dust that cause a host of lung and respiratory diseases. For those who escape these miseries, the stacks of power stations will emit enough sulphur, nitrogen, carbon dioxide and mercury that they will be worse off by not leaving their ancestral lands.

On behalf of the Tharis, it is worth asking the provincial and federal authorities: when coal projects are building infrastructure to consume trillions of litres of water every year, why do the locals not have access to clean drinking water? What mitigation plans are in place to offset the looming damage of coal-related commercial activities for the Thar region and for the rest of the country? The pitiful irony is that the functionaries and politicians who are wrestling to take the ‘credit’ for Thar’s recently built coal power project blame each other for the region’s destitution, and its starving children.

Surely, the people of Thar deserve better. They would be better served not by earning a few thousand rupees while mining for some billionaire corporates of Karachi and Beijing, but by economic opportunities that do not jeopardise their health and environment — and are identified in consultation with them.

Interestingly, at the same rally, the prime minister lauded Thar’s solar energy endowment. He rightly noted that instead of constructing a miles-long grid, solar power is a cost-effective technology for the region’s power needs. I wish someone in the audience had asked that since such a commendable realisation exists, why are the policymakers in Karachi and Islamabad drawing up plans for the local villages’ displacement. Why is the rest of the country being deprived of this ‘yellow gold’ (solar energy), which is available through the length and breadth of the country? Arguably, Clean Green Pakistan and massive coal mining in Thar cannot go hand in hand. We will have to choose one or the other.

The writer is an analyst specialising in energy policy and political economy.

Twitter: @sohaibrmalik

Published in Dawn, April 6th, 2019
UnQuote.

I would like to add only one comment. Mr Shoaib Malik declares " The so-called baseload characteristic of these plants causes inflexibility because they should keep running regardless of the electricity demand. Notwithstanding the fact that our power demand is highly seasonal ranging between 25,000MW to 10,000MW, depending on the weather— the politicians and bureaucrats professed the need for baseload generation and permitted an excessive capacity of coal-fired power projects."

This is correct because Sind & southern Punjab normally need more power in very hot summer months due to using of air conditioners, whereas northern Punjab, parts of KPK, northern Baluchistan & AK would consume more power during winter months because nights are longer and electric heaters used to keep warm. However, since there are also many gas-based and /or furnace oil based plants already in existence in Pakistan; the above problem is easily overcome by simply using coal burners as base-load and gas burners on standby to cater for the seasonal power demand.

 

[CrazyZ]

Here is a sobering article on the coal-based power generation.

Quote
The long shot of ‘black gold’
Sohaib R. MalikApril 06, 2019

The writer is an analyst specialising in energy policy and political economy.

AT a recent rally in Thar, Prime Minister Imran Khan thundered that the desert region’s abundant coal reserves — its ‘black gold’ — would bring prosperity to the people there. Coming from a self-proclaimed environmentalist, these words are not only disappointing, but potentially dangerous. In fact, they may pose an existential threat to not only the people of Thar and Sindh, but the entire nation.

When the prime minister launched the Clean Green Pakistan initiative last October and promoted the idea of the ‘10 Billion Tree Tsunami’, it triggered a sense of optimism among those who care deeply about the nation’s sustainable future. Perhaps for the first time, it appeared as if the reins of the state were finally taken over by someone who was driven by a vision that encompassed the long-term well-being of the people and not just his own re-election. That optimism seems to be eroding now.

It is a fact that the people of Thar are devoid of economic opportunities. With a population of 1.7 million — 75 per cent live below the poverty line, which shoots up with every drought — the region’s welfare should be our policymakers’ top priority. The available choices, however, should be evaluated on the basis of a criterion that ensures multidimensional development. In this regard, coal is possibly the least potent means of all.

What plans are in place to offset the looming damage of coal-related commercial activities for Thar?

To start with, Thar’s coal deposits comprise inferior quality lignite and sub-bituminous characteristics. The Geological Survey of Pakistan analysis proves that these are among our least-valued coal grades due to the high moisture content and low heating value. Furthermore, of the oft purported ‘reserves’ of 175bn tonnes, less than 5pc are measured and the rest are theoretical estimates. The proven reserves of 7bn tonnes are not fully recoverable either.

The PML-N administration built an entire case on the massive coal power buildout on the basis that the fleet will provide cheap electricity and improve the balance of payment. If the present government believes in a fraction of that narrative, it must realise that it is misled. The operational and permitted plants vividly indicate why tariffs shouldn’t be accorded for coal power producers in the future.

Between 2015 and 2016, the National Electric Power Regulatory Authority granted tariffs to developers for about 9,500MW of coal capacity. Over 60pc of that capacity will burn imported fuel because policymakers agreed that it is a better alternative to Thar’s lignite. Moreover, coal power producers were guaranteed an overly lucrative rate of return, which could be higher than the rates offered for other technologies during that period and was awarded at the behest of the federal government.

Since imported fuel cost is over half the total tariff, these plants could worsen our trade imbalance through 2050 and generate expensive electricity. A case in point is the 1,320MW Sahiwal plant, which produced power for Rs11.25/kWh in February 2019, compared to the originally estimated tariff of 8.2 Rs/kWh. The cost for the consumer soars if the equity and loan repayments are repatriated in a foreign currency since the rupee has depreciated substantially.

On the technical front, coal power plants offer some merits which are overvalued by bureaucrats who usually run the show in ministries. With uninterrupted fuel supply, coal plants can provide electricity without varying generation and load. The so-called baseload characteristic of these plants causes inflexibility because they should keep running regardless of the electricity demand. Notwithstanding the fact that our power demand is highly seasonal ranging between 25,000MW to 10,000MW, depending on the weather— the politicians and bureaucrats professed the need for baseload generation and permitted an excessive capacity of coal-fired power projects.

The coal power value chain emits large amounts of pollutants and clean water is among the key input requirements for thermal power stations. If employed, the Tharis will be paid poorly to ensure “commercial viability” of the mines. While at work, the miners will be exposed to chemical substances and coal dust that cause a host of lung and respiratory diseases. For those who escape these miseries, the stacks of power stations will emit enough sulphur, nitrogen, carbon dioxide and mercury that they will be worse off by not leaving their ancestral lands.

On behalf of the Tharis, it is worth asking the provincial and federal authorities: when coal projects are building infrastructure to consume trillions of litres of water every year, why do the locals not have access to clean drinking water? What mitigation plans are in place to offset the looming damage of coal-related commercial activities for the Thar region and for the rest of the country? The pitiful irony is that the functionaries and politicians who are wrestling to take the ‘credit’ for Thar’s recently built coal power project blame each other for the region’s destitution, and its starving children.

Surely, the people of Thar deserve better. They would be better served not by earning a few thousand rupees while mining for some billionaire corporates of Karachi and Beijing, but by economic opportunities that do not jeopardise their health and environment — and are identified in consultation with them.

Interestingly, at the same rally, the prime minister lauded Thar’s solar energy endowment. He rightly noted that instead of constructing a miles-long grid, solar power is a cost-effective technology for the region’s power needs. I wish someone in the audience had asked that since such a commendable realisation exists, why are the policymakers in Karachi and Islamabad drawing up plans for the local villages’ displacement. Why is the rest of the country being deprived of this ‘yellow gold’ (solar energy), which is available through the length and breadth of the country? Arguably, Clean Green Pakistan and massive coal mining in Thar cannot go hand in hand. We will have to choose one or the other.

The writer is an analyst specialising in energy policy and political economy.

Twitter: @sohaibrmalik

Published in Dawn, April 6th, 2019
UnQuote.

I would like to add only one comment. Mr Shoaib Malik declares " The so-called baseload characteristic of these plants causes inflexibility because they should keep running regardless of the electricity demand. Notwithstanding the fact that our power demand is highly seasonal ranging between 25,000MW to 10,000MW, depending on the weather— the politicians and bureaucrats professed the need for baseload generation and permitted an excessive capacity of coal-fired power projects."

This is correct because Sind & southern Punjab normally need more power in very hot summer months due to using of air conditioners, whereas northern Punjab, parts of KPK, northern Baluchistan & AK would consume more power during winter months because nights are longer and electric heaters used to keep warm. However, since there are also many gas-based and /or furnace oil based plants already in existence in Pakistan; the above problem is easily overcome by simply using coal burners as base-load and gas burners on standby to cater for the seasonal power demand.

Sounds like an anti-coal lobbyist that wants us to put up solar panels.

1) The current development blocks make up the 7 billion in proven reserves....but the coal reserves cover a much larger area which has been explored with drill borings...there is strong confidence that the rest of the coal reserve are there.

2) Lignite is used for power generation in Europe, USA, and China....Many experts have assessed Thar coal has viable for power generation....especially with the latest CFB tech.

3) Lignite coal can be gasified and used to make fertilizer, petrochemicals and even petrol. I see this as the biggest opportunity to provide low cost fertilizer to our agriculture sector after the current round of PKR devaluation.

4) Solar should be increased as well....I don't oppose solar... no one should.

5) imported coal for power generation is the cheapest option after thar coal and hydro-power. Much cheaper than imported oil.

 

[CrazyZ]

To start with, Thar’s coal deposits comprise inferior quality lignite and sub-bituminous characteristics. The Geological Survey of Pakistan analysis proves that these are among our least-valued coal grades due to the high moisture content and low heating value. Furthermore, of the oft purported ‘reserves’ of 175bn tonnes, less than 5pc are measured and the rest are theoretical estimates. The proven reserves of 7bn tonnes are not fully recoverable either.

Below is a slide from a presentation on the Thar coal reserves. There needs to be a certain density of drill holes needed to be considered "proven" by international norms. Only the first development blocks have been investigated to this level, however drilling were carried out in the rest of the field....enough to provide confidence that the reserves are indeed present. Even if a fraction is economically extractable, the amount is big enough to help move Pakistan toward energy independence.

 

[valkyr_96]

Below is a slide from a presentation on the Thar coal reserves. There needs to be a certain density of drill holes needed to be considered "proven" by international norms. Only the first development blocks have been investigated to this level, however drilling were carried out in the rest of the field....enough to provide confidence that the reserves are indeed present. Even if a fraction is economically extractable, the amount is big enough to help move Pakistan toward energy independence.

View attachment 551729

Well in the GE video they were happy to say that Pakistan has sufficient coal reserves to last a long time. They have some new tech to harness inferior quality coal.

 

[HAIDER]

What's so great about coal power plant in 21st century? We should be getting away from this shit.. We are doing the opposite.

Yeah i know they produce less emissions than old generation plants but still poison is poison doesn't matter if it served in less quantity.

that is tragedy ...world is shutting down coal plants and we started to kill our own people with CO in our own atmosphere ..... always too late in adopting technology .... sad

 

[CrazyZ]

that is tragedy ...world is shutting down coal plants and we started to kill our own people with CO in our own atmosphere ..... always too late in adopting technology .... sad

Not correct. Coal is dying in the USA because of cheap shale gas. Coal is booming in developing countries.