K-Electric asked to renew power supply contract

NTDC’s 650MW supply

KARACHI: The National Electric Power Regulatory Authority (Nepra) has asked K-Electric to renew its contract of importing 650-megawatt electricity, an official said on Monday. 

K-Electric is importing 650MW from the National Transmission and Dispatch Company (NTDC). The agreement to this effect expired in January 2015 and there has been no new contract since then, said the official.

The Nepra advised K-Electric and NTDC to sign a power supply contract if such arrangement is to continue. 

“Without this the import will be ostensibly illegal and unlawful,” the official said.

The Nepra said the inability of K-Electric to effectively increase its generation capacity has made it dependent on external power sources, including the import from NTDC system.

To meet its demand, it has to operate its generation facilities.

K-Electric was required to enhance its generation capacity by 1,000MW over the capacity indicated in its generation licence.

K-Electric has added 1,034MW in the system, however it has decommissioned or permanently closed 685MW of its existing generation capacity.

K-Electric added around 349MW, considering retirement and permanent closure of its generation facilities.

The implementation agreement and the amended implementation agreement bounds K-Electric to make certain investment for refurbishment and development of generation, transmission and distribution sectors.

The power utility commissioned 220MW Korangi combined cycle power plant, 97.31MW gas engines in Korangi, 97.31MW gas engines in SITE, 572.67MW combined cycle power plant in Bin Qasim, 27.5MW steam turbine, 10MW steam turbine in Korangi and 10MW steam turbine at SITE, making a cumulative addition of 1,034MW.

However, the utility closed 125MW Korangi thermal power station (Unit 4), 75MW Korangi town gas turbines power station (Units 1, 2 and 4) and 100MW SITE gas turbines power station (Units 1, 3, 4 and 5) in 2013, while Bin Qasim Unit-4 was closed in 2012. 

K-Electric also retired 125MW Korangi thermal power station (Unit 3), 25 MW Korangi town gas turbines power station (Unit 3) and 25MW SITE gas turbine power station (Unit 2) in 2015, resulting in decommissioning of a cumulative of 685MW generation capacity.