KE in contact with business associations, highlights power supply challenges

July 10, 2020

The K-Electric has been in close contact with the leading business associations and entities of Karachi since the beginning of COVID-19 and the resulting lockdown, said a press statement issued by...

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The K-Electric has been in close contact with the leading business associations and entities of Karachi since the beginning of COVID-19 and the resulting lockdown, said a press statement issued by the power utility on Thursday.

It said KE representatives had held these meetings to highlight the challenges in respect of the power supply situation in Karachi. The meetings were held with the KIF, KATI, SITE, FBATI, SSHATI, NKATI and Pak Fisheries among others.

According to the statement, the peak energy demand crossed 3,500 megawatts due to high temperatures and humidity in Karachi, the power supply remained affected due to a shortage of fuel to the KE and IPPs that supply energy to the KE.

“The power generation also faced challenges on the wind and solar renewables side, reason being overcast skies and low wind pressure. The issue was further compounded due to non-availability of the KANNUP power plant since the start of July 2020. This very gap between the supply and demand has necessitated load management regime, especially during the night when discretionary electricity demand is high.”

The statement added: “While KE has always unequivocally supported industries and prioritised services to them by becoming the first utility in Pakistan to implement 100% load-shed exemption to industries, the current shortage situation is unprecedented. KE has to extend all possible relief to residents during late hours in the night and hence appreciates the support and patience of industries in these challenging times. While the company has been striving to ensure maximum supply, it is however highly dependent on the provision of required fuel to both KE and the IPPs.

“KE has been consistently briefing leaders of Karachi-based industries on the importance of power supply to residential consumers given the COVID-19 pandemic, even though this decision negatively impacts the company’s financial position, cash flows and profitability.”

The power utility also briefed the industrial stakeholders about its plans to meet the demand growth for electricity and future investment plans of the company. The KE will invest over $2 billion in additional generation and downstream power infrastructure over the next three years. Also, a new 900MW RLNG-based power plant will be ready to be commissioned by summer 2021.

The KE is also working on interconnections to evacuate additional 1400MW from the national grid in the coming years, the approval for which was only received last month by the CCOE.



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