ENERGY
Small is big business, at least in the power sector. The recent growth of small power plants in Pakistan using various energy technologies is a testament to the statement. National Electric Power Regulatory Authority (Nepra) has so far issued 158 generation licenses of cumulative installed capacity of 3,488MW, which constitutes about 15 percent of total installed capacity at national level, whereas many other applications are in process. These Small Power Producers (SPPs), Captive Power Producers (CPPs) and Co-Generation Power Projects are each of capacity ranging from one megawatt up to maximum 56MW (higher capacity projects have not been taken into account), based on small hydropower, solar, wind energy, bagasse/biomass, and coal-, gas-, oil-, and dual-fuel fired power plants.
Pakistan has a huge potential of renewable energy resources; hydro, biomass, solar and wind, estimated to generate some hundreds of thousands of megawatt electricity. Following the global trend, the government had established Alternative Energy Development Board (AEDB) in May 2003 to develop and promote power generation units in private sector using renewable and alternative energy resources, which would be efficient, affordable and environmentally sustainable. Policy for Development of Renewable Energy for Power Generation was launched in December 2006 aiming at increasing the share of renewable energy (RE) in the total electricity mix.
Sadly, the AEDB was unsuccessful to attract investment in the subsector, and, resultantly, there could be no significant progress to install power units based on small hydropower, wind and solar resources, for a long time, in spite of issuing a number of letters of interest (LOI) and letters of support (LOS) to prospective investors.
It was only in 2008 that the vast potential of using bagasse/biomass for power generation was assessed, and need to capitalise on its many economic, social and environmental benefits at rural level was duly realized by the government. Globally, we are the fifth largest sugarcane producing nation, having a potential of generating some 2,000MW electricity utilising latest technologies. Subsequently, the government announced National Policy for Power Co-Generation by Sugar Industry through Private Power & Infrastructure Board (PPIB), offering various incentives and concessions for setting up bagasse-based power plants on fast track.
Six proposals of various sugar mills for setting up cogeneration power plants each with a capacity of above 50MW as Independent Power Producer (IPP) were finalised. Somehow, AEDB was again entrusted to promote bagasse/biomass-based power plants, and the Framework for Power Co-Generation 2013 (Bagasse/Biomass) was announced by the government, extending the scope of Renewable Energy Policy 2006 to bagasse, biomass and waste-to-energy projects.
The World Bank (WB) and the Asian Development Bank (ADB), in particular, have supported these efforts as harbinger of renewable and alternative energy projects, especially the use of biomass/bagasse. One of the WB assistance is to develop RE resource maps, biomass resource mapping being one of the major components of the project. A Biomass Resource Assessment Study was carried out, and a Biomass Atlas developed with focus on Punjab and Sindh provinces. The Biomass Atlas presents both theoretical and technical potentials of crop residues of five major crops (ie wheat, cotton, rice, sugarcane and maize).
Theoretical generation potential of crop processing residues has been estimated at 25.3 million tons a year with an equivalent thermal energy potential of 62,785 GWh annually. Bagasse accounts for 64.9 percent of this energy potential, followed by rice husk with 20.0 percent, maize cobs with 10.3 percent and maize husk with 4.8 percent.
In addition, theoretical potential of crop harvesting residues has been estimated at around 114 million tons a year with an equivalent thermal energy potential of 456,440 GWh annually. The Biomass Atlas also presents the potential for implementing power plants at the biomass producing sites (such as sugar mills, rice mills, municipal solid waste landfills, and dairy farms etc) as well as the potential for greenfield power plants using crop harvesting residue feedstock. Based on the existing uses of the residues, the technical potential of crop harvesting residues was estimated at about 25.1 million tons a year or 96,890 GWh/year of thermal energy. The report confirms that bagasse offers the highest potential as fuel for cogeneration plants at the 86 existing sugar mills, with an installed cumulative capacity of about 1,840MW.
In recent years, therefore, there has been exponential growth of bagasse/biomass-based power projects. Many sugar mills are already engaged in electricity production for their self-use and supplying surplus power to the electricity distribution companies. However, there was no bagasse-based power generating facility connected with the national grid until 2013-14, whereas bagasse-based power units with an installed capacity of 70MW in 2014-15 generated and supplied 308 GWh to the national grid, and currently, total installed capacity is over 145MW. Four power generation units established under the (Policy) Framework for Power Co-Generation 2013 (Bagasse/Biomass) are in operation, including JDW Sugar Mills (II), District Rahim Yar Khan, of 26.35MW Installed capacity commissioned in June 2014; JDW Sugar Mills (III), District Ghotki, Sindh 26.35MW commissioned in October 2014; RYK Mills, District Rahim Yar Khan, Punjab 30MW in March 2015, and Chiniot Power Plant (Sharif Group), District Chiniot, Punjab (62.4MW) in November 2015.
Another nine power projects of cumulative installed capacity of over 270MW, based on bagasse/biomass technology, are currently in advanced stages of implementation. These are Hamza Sugar Mills (15MW), The Thal Industries Corporation (Layyah Sugar Mills) (41MW), The Thal Industries Corporation (Safina Sugar Mills) (20MW), Alliance Sugar Mills (19MW), Almoiz Industries (36MW), Etihad Power Generation (67MW), Shahtaj Sugar Mills (15MW), Chanar Energy (22MW) and RYK Energy (36MW).
These Small Power Producer (SPP) projects, which are based on upfront tariff announced by Nepra, are scheduled for commissioning during the years 2017 and 2018. In addition, AEDB has recently issued LOI to seven projects; Ansari Powergen with installed capacity of 30MW, Bandhi Powergen 30MW, TAY Powergen 30MW, Faran Sugar Mills 25MW, Shakarganj Mills(1) 40MW, Shakarganj Mills(2) 60MW, and Indus Sugar Mills 25MW, all with the projected commercial operation dates (COD) in 2019. These SPPs or CPPs will either sell their electric power to national grid or to bulk power consumers/electricity distribution companies (DISCOs).
Other bagasse/biomass power projects being developed as SPPs under RE Policy include SSJD Bioenergy, Mirpurkhas of 12MW; Lumen Energia, Jhang 12MW; and Pak Ethanol, Tando Muhammad Khan of 9.132MW capacity. Generation licenses issued to CPPs, some using furnace oil during off-crushing season, also include Shakarganj Mills, Jhang (8.512MW); Indus Sugar Mills, Rajanpur (11MW); Colony Mills, Multan (28MW); Brothers Sugar Mills, Kasur (13MW); Al-Noor Sugar Mills, Shaheed Benazirabad (36.8MW); RYK Mills, Rahim Yar Khan (18MW); Sheikhoo Sugar Mills, Muzaffargarh (18MW); Ashraf Sugar Mills, Bahawalpur (24.5MW); Al-Abbas Sugar Mills, Thatta (15MW); Deharki Sugar Mills, Ghotki (18MW); Tando Allayar Sugar Mills, Tando Allahyar (12MW); Ittefaq Sugar Mills, Pakpattan (11MW); Digri Sugar Mills, Mirpurkhas (6MW); Fatima Sugar Mills, Kot Addu (120MW); Kamalia Sugar Mills, Toba Tek Singh (17MW); Ramzan Sugar Mills, Chiniot (12MW); Noon Sugar Mills, Sargodha (14.8MW); Fatima Energy, Muzaffargarh (120MW); Faran Sugar Mills, Tando Muhammad Khan (13MW); Chambar Sugar Mills, Tando Allahyar (5MW); Ranipur Sugar Mills, Khairpur (25.5MW); Unicol Limited, Mirpurkhas (6.6MW); Habib Sugar Mills, Benazirabad (13.5MW); Mehran Sugar Mills, Tando Allahyar (14MW); Shahmurad Sugar Mills, Thatta, (15.25MW); Sanghar Sugar Mills, Sanghar (13.5MW); Mirpurkhas Sugar Mills, Mirpurkhas (8.5MW), and Shakarganj Energy, Jhang (31.5MW).
To facilitate optimal use of bagasse/biomass energy resources, the government institutions have adopted salutary measures. State Bank of Pakistan offers financing for power plants using RE up to 20MW installed capacity. Likewise, Nepra has announced a high upfront tariff for new bagasse-based cogeneration power plants ie levelised tariff of cents 10.6202 per kWh based on 30-year term to promote new and efficient plants with latest high-pressure boiler technology.
The writer is the ex-chairman of the State Engineering Corporation
