KARACHI: K-Electric Ltd (KE) and Hub Power Company Ltd (HUBCO) signed a memorandum of understanding (MoU) on Tuesday to explore the opportunity for off-take of electricity from HUBCO’s Hub plant after its conversion to local Thar coal.
The MoU was signed by KE’s chief executive officer Moonis Abdullah Alvi and HUBCO’s chief executive officer Kamran , a statement said.
“This is in line with KE’s long-term strategy to induct power generation from indigenous sources into its energy mix. In this regard, the company is exploring the viability of Thar coal-based power generation projects,” the KE said. HUBCO’s Hub Power-station is a 1292 MW (4 X 323 MW), residual fuel oil-based plant, which has maintained high standards of operations since 1997.
Both companies have shown their commitment to work collaboratively towards conducting the requisite efforts needed for the timely conversion and integration of the project with KE’s network, it added.
“Today’s signing is another reflection of our intent to tackle the energy trilemma head-on, enabling access to affordable and reliable power to our growing customer base,” Alvi said. He said KE had proven itself to be a preferred off-taker for the independent power producers in Pakistan, due to its superior creditworthiness and its history of fulfilling the commitments made with its stakeholders.
“We are looking at a future where we substitute our reliance on imported fossil fuels with indigenous sources, creating a more resilient power value chain,” Alvi said.
He also said the Power Acquisition Program that KE had submitted with its regulator was balancing baseload requirements with renewable energy. Kamal said the proposed conversion of Hub power plant to Thar coal would play a crucial role in decreasing reliance on imported fuels, while offering a sustainable energy solution for the people of Karachi.
