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January 10, 2020

K-Electric to decommission two units at Bin Qasim plant

Business

January 10, 2020

KARACHI: K-Electric Limited (KE) has decided to decommission Unit-3 and Unit-4 of Bin Qasim Power Station (BQPS-I) as soon as the 900MW RLNG based BQPS-III comes online by

second quarter of 2021, it said on Thursday.

A company official said these two units of 210MW each were being decommissioned due to

frequent low plant availability, high cost of fuel and low efficiencies.

“These proposed changes will help optimise the fuel mix, improve generation efficiency, enhance reliability, and reduce reliance on old thermal based generation and IPPs (independent power producers), which will ultimately benefit the consumers in the form of lower tariffs,” the company said in a communication to the power sector regulator.

According to an official document, peak demand within KE's service area during FY20 is expected to be 3,392 MW, whereas the maximum supply is seen to be around 3,155 MW.

Even though the KE had added 1,057MW in its generation capacity during the last ten years along with addition of around 400MW from external sources, yet the shortfall in FY20 was expected to be around 250MW, the document said.

Further, the utility, in its document, said, “Rapid growth in the population of metropolis along with setting up of SEZs (Special Economic Zones), and industrial parks within KE's service territory are expected to result in significant increase in electricity demand, such that the peak demand is expected to reach around 4,700MW by 2023”.

“To address the existing power shortfall and considering the rising demand, the KE has planned additions of around 2,800MW of generation capacity, including renewables, in the next four years through its own as well as external sources,” it said.

In addition, the KE said it was in discussions with federal government for additional supply from the national grid.

In the event of failure to add additional supply from the national grid, the KE would pursue other options including earlier-than-planned commissioning of 450MW RLNG project etc, the power company said.

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