SECMC employing solar generation to power Thar project site

KARACHI: Sindh Engro Coal Mining Company (SECMC) has planned to have a solar power system to energise the project site in Thar, an official document revealed on Monday.

With a view to increase local indigenisation and cut costs, Reon Alpha Power, a subsidiary of Dawood Lawrencepur Limited, has won the contract to install, construct and operate solar power generation facility for the nameplate capacity of 5MW, it added.

SECMC, developer of coal mine and mine-mouth power plant, will have the option to extend the contract during or after the project, wherein Reon will operate it for the period of 15 years and then handed over the operations to SECMC.

SECMC is a joint venture of Engro Powergen Limited, affiliates and the government of Sindh. It is working on the development of an open cast lignite mine and in Thar Block-II to support future energy needs of the country, the document said.

SECMC has signed a coal supply agreement in Thar Block II with Engro Powergen Thar (Pvt) Limited (EPTL) for supplying 3.8mtpa coal for 30 years. EPTL is setting up a 2x330MW mine-mouth power plant.

In the second phase, the mine will be further expanded to 7.6mtpa and additional 2x330MW will be added, it said. Subsequently, the mine will be taken to its potential of approximately 23mtpa capable of generating approximately 3,960MW.

Currently, the power requirement is being fulfilled by diesel generation, which is not only expensive, but also hedged to volatile global oil prices. The mining company requires power primarily to supply electrical equipment such as coal handling system, MSF, pumps, lighting, telecommunications, water treatment system, etc, it added. Meanwhile, Reon Alpha has approached the National Electric Power Regulatory Authority (Nepra), seeking a generation licence for setting up a 5MW solar power plant in Thar.