Local group seeks licence to set up 330MW coal-fired plant

KARACHI: A joint venture of Thal Group and Novatex Limited applied with the National Electric Power Regulatory Authority (NEPRA) for a licence to set up a 330-megawatt coal-fired power plant in the Thar coalfield of Sindh, a document said on Monday.

The joint venture, Thal Nova Thar Pvt Ltd approached the NEPRA for the mine-mouth lignite-fired power plant licence. The group will develop the proposed power plant at the Block-II of the desert. The plant will be fed with the lignite from the adjacent mine, owned and operated by Sindh Engro Coal Mining Company (SECMC).

The provincial government is taking initiatives to set up coal-fired power plants based on indigenous Thar coal to mitigate the power shortage in the country, especially in the province. Thar Coal and Energy Board of Sindh is developing Thar coal as a major source of power generation for energy as well as economic security, and as a hub of petrochemical industry to generate 5,000MW by 2020 to achieve affordable and reliable electricity.

Six energy companies are already operating in the desert, estimated to have 180 billion tons of coal. As much as 8,680MW is expected to come online by 2021. 

Sino-Sindh Resources, a joint venture of Chinese and provincial governments, is operating at the Block-II and planned to set up four 330MW of power plants. 

SECMC Pakistan planned to set up 3,960MW generation facility in the three phases. Asia Power UK planned to set up two 660MW of power plants at the Block-II.

Harbin Electric China planned 1,320MW plants at the Block-IV.

UCG Project is developing two 50MW generation facility at the Block-V and Oracle Coalfields of UK will develop two 330MW of power plants at the Block-VI.

The country is currently facing an acute electricity shortage for a number of reasons. The power outages are experienced throughout the year, peaking at up to 12 hours per day in some areas of the country. This results in disruption to the everyday public life, but more importantly its severe impact is on the provision of civic amenities, commercial activities and agricultural and industrial outputs.

Presently, the electricity shortfall in the country stands at 5,000MW. Pakistan's peak electricity demand is projected to increase four to five percent over the next 10 years.

Strategies must be developed to improve the capacity within the country to meet the expected electricity demand over the next decade. Thus, it is essential to improve the fuel mix to make electricity more affordable in the short- to medium-term and improve the energy security.