The imported-coal-based Sahiwal power plant, the first power generation project developed under the multi-billion-dollar China-Pakistan Economic Corridor (CPEC) framework, is set for inauguration by Prime Minister Nawaz Sharif this month during tests and trials of the power station, which will achieve commercial operations and connected to national grid by June. Located at Qadirabad, the project of combined gross installed capacity of 1,320MW (2x660MW), and net installed capacity of 1,227MW, was originally scheduled to attain full operational capacity by December 2017.
ENERGY
A part of the 9HA gas turbine during assembly at the General Electric manufacturing facility in Belfort, France.
The imported-coal-based Sahiwal power plant, the first power generation project developed under the multi-billion-dollar China-Pakistan Economic Corridor (CPEC) framework, is set for inauguration by Prime Minister Nawaz Sharif this month during tests and trials of the power station, which will achieve commercial operations and connected to national grid by June. Located at Qadirabad, the project of combined gross installed capacity of 1,320MW (2x660MW), and net installed capacity of 1,227MW, was originally scheduled to attain full operational capacity by December 2017.
Based on supercritical coal combustion boiler technology, the green-field project is being set up by the Chinese as an Independent Power Producer (IPP) at an estimated cost of $1,800 million. The project history is rather interesting, as it was initiated by the Private Power and Infrastructure Board (PPIB) under the Power Generation Policy 2002 as part of the short-term capacity addition programme.
On June 6, 2013, Nepra (National Electric Power Regulatory Authority) had announced upfront tariff for the power plants based on local and imported coal. Subsequently, PPIB received expression of interest from China Western Power (CWPC) having signed an understanding in November 2013 to set up Sahiwal project of 1,320MW on imported coal costing $1,500 million, to be completed in 30 months.
Nonetheless, the government of Punjab got hands on the project that was then to be established by its special-purpose vehicle company--Punjab Power Development Co under its Energy Department, on fast track. It was planned to invite international bids on EPC (engineering, procurement and construction) plus finance (suppliers’ credit) basis. But somehow, letter of interest was issued to a Chinese company in March 2014. Groundbreaking ceremony of the project was performed by Prime Minister Nawaz Sharif on May 30, 2014.
The project however did not materialise for the unknown reasons. It was only with the launching of the CPEC in April 2015 that the project was revived by the government of Punjab, and a consortium of Huaneng Shandong and Shandong Ruyi were allowed to establish the project as an IPP on build-operate-transfer (BOT) basis.
Huaneng Shandong has 51 percent shares and Shandong Ruyi 49 percent shares in the project, providing 20 percent equity, while the balance 80 percent project cost is being financed by the Chinese banks under CPEC. Intriguingly, Nepra had approved and issued tariff notification on March 31, 2015 on the precondition that the project would be based on local coal as mine-mouth project, or near coastal area in case of using imported coal, or using a combination of indigenous and imported coal.
However, Nepra allowed power generation license to the company on June 10, 2015 on imported coal basis but located in Qadirabad, though ensuring manageable transportation of the imported coal to site.
Yearly consumption of coal for Sahiwal power plant will be around 4.48 million tonnes, depending on its quality, which amounts to over 13,000 tonnes per day on a 340-day operation.
A dedicated facility for transportation of coal from Karachi port to Sahiwal power plant is being developed with the support of Pakistan Railways. Meanwhile, logistics require a complete supply-chain of thousands of trucks and hundreds of railway wagons every day for transporting huge quantities of coal from Karachi port to Qadirabad. Currently, Karachi port handles two million tonnes coal annually, whereas Karachi port facilities are being upgraded to increase its capability to import coal in larger quantities.
There exist genuine concerns about environmental degradation caused by the power plant operations, which have not been adequately addressed, as it would adversely affect some of the best agricultural land in Punjab as well as the health of people and livestock.
The total incremental concentration of conventional and hazardous pollutants of the power station will be a major source of carbon dioxide emission and effluents, and impact air quality and water resources. When in operation, the power station will be the first conventional thermal power generating facility in Pakistan with supercritical boiler and steam turbine. The plant will install air emission control equipment, including electrostatic precipitators to reduce ash and sulphur emissions, and flue gas desulphurization unit.
However, it is yet to be seen as to how successful and effective the working of the environmental mitigation equipment would be, given the local conditions, circumstances and lack of checks as experienced in the case of various cement plants spewing cement dust in the air. Also, handling and storage of coal in large quantities, as well as residual ash of combustion process, will result in huge emissions of air pollutants. The Ministry for Climate Change has recently taken serious note of the situation, whereas the national and provincial environmental protection agencies remain ineffective.
Daily requirement of water for its operations is 60,000 cubic metres or 60 million litres that would have negative impact on current and future water requirements for agricultural purposes in particular, besides impact of waste water disposal. On the other hand, in spite of numerous concessions and exemptions granted to the Chinese sponsors, the government of Pakistan will purchase electricity at levelised tariff of Cents 8.3601 per kWh for useful life of 30 years of power station. This is against the declared policy of the government aiming to provide affordable electricity to the consumers.
Other imported-coal-based power projects being constructed under the early-harvest projects of CPEC include 1,320MW (2x660MW) Port Qasim Electric Co at Port Qasim, Hubco (1x660MW) at Hub, and 300MW project in Gwadar. Energization of Port Qasim project is scheduled in October this year, with first unit of 660MW to be online in December, whereas the second unit of 660MW is scheduled for power generation in June 2018.
The project is being established by a joint venture of Sinohydro Resources Ltd of China and Al-Mirqab Capital of Qatar at $1,980 million. Likewise, financial close of Hubco project, at an estimated cost of $970 million, is in advanced stage. It is projected to achieve commercial operations by December 2018. The 300MW imported coal-based power project to be installed in Gwadar by China Commercial Construction is in initial stages.
Port Qasim and Hubco power projects will also employ supercritical technology, which is no more state-of-the-art technology. Now it is ultra-supercritical technology the world over, with main characteristics of high power generation efficiency, equipment reliability, fuel saving, operational flexibility, and low-carbon advanced technology. Besides the western countries, China and India have also established many coal-fired power plants based on ultra-supercritical technology.
In recent years, China has added some 120,000MW coal-based power generation on ultra-supercritical technology that China has already mastered. Similarly, India has more than 64,000MW installed capacity based on ultra-supercritical technology, having developed design and manufacturing knowhow for local manufacturing of equipment based on advanced technology.
To facilitate the use of coal in an environmentally favourable and economically viable manner, it is imperative to employ in future the most advanced technology, lest Pakistan continues to lag behind even its neighbouring countries insofar as acquiring the latest clean coal technology is considered.
The writer is retired chairman of the State Engineering Corporation
