KE, Sindh govt sign MoU to develop coal-fired power project

KARACHI: K-Electric has inked a memorandum of understanding (MoU) with Sindh government, Oracle Power, and PowerChina for development of a 2x660 megawatt coal-fired power project based on Thar coal, a statement said on Monday.

KE was represented by CEO Moonis Alvi, while Secretary Energy Abu Bakar Ahmed was present from the Government of Sindh, CEO Naheed Memon from Oracle Power, and Cheng Qiang from PowerChina.

Oracle Power is an international natural resource and power project developer listed on London’s stock exchange, while PowerChina is a Fortune 500 listed integrated construction group which has completed over 40 various projects in Pakistan with a total contract value of approximately $6 billion, and an additional 43 projects worth $7.5 billion currently under execution.

Speaking on the occasion, Sindh Minister for Energy Imtiaz Shaikh said “Electricity is a fundamental driver of development and progress, and this collaboration is a big step in this direction. Once operational, this project will immensely benefit the entire province which is why we are committed to provide our full support until its maturity.”

The MoU is aimed to provide a collaborative framework for the partnering parties, setting the stage for the establishment of the power plant. For KE, the move aligns with the company's forward-looking plan of enhancing its generation through addition of low-cost, indigenous fuel based power. The company has shared a vision of adding a total of 2,200MW to its generation capacity by 2030, and increase its share of renewable energy to 30 percent of the overall mix.

The inclusion of such generation capacity also aligns with KE’s future projections for the city, which envisages a customer base of 5 million using 5,000MW of electricity by FY30.

“As a company, our ambition and initiatives are towards achieving net zero, and tackling the energy trilemma which balances reliability, affordability and sustainability of energy supply,” CEO KE Moonis Alvi said, adding the current partnership and their future plans would enable KE to reduce its reliance on imported fuels.

“Moving forward, we are also enhancing our share of renewable energy in the generation mix to provide affordable and sustainable electricity to the customers. These plans are further complemented by our comprehensive investment plan of Rs484 billion, which will strengthen the network and deliver energy effectively to our growing customer base,” Alvi said.

CEO Oracle Power Naheed Memon shared her company’s commitment to the development of the CPEC-listed 1320MW coal-to-power project.

She stated that Oracle had produced feasibility reports, which became benchmark documents for its development. “Oracle Power is very pleased to have formed a strategic relationship with KE as a potential off-taker and the Government of Sindh as a facilitator and important stakeholder.”

Representative from PowerChina shared that the development of the Thar Project is of great importance to Pakistan in the sense of utilising the local coal resource. Oracle 1320MW Coal Power Project is listed as one of the priority energy projects under China Pakistan Economic Corridor(CPEC).

Earlier this year, KE also entered into an MoU with China Three Gorges South Asia Investment Limited to collaborate on exploring renewable energy projects across the country.