ISLAMABAD: K-Electric (KE) has requested the Power Division to form a Project Steering Committee (PSC) to evaluate a proposal from the EPC contractor, Harbin Electric International (HEI), for converting the 660-MW Jamshoro coal power plant to run on 100% Thar coal.
In a letter to the Secretary of Power, KE referred to HEI’s detailed proposal submitted on July 9, 2024, affirming the technical viability of the conversion. KE believes this conversion aligns with the Government of Pakistan’s National Electricity Plan 2023, which emphasizes the indigenization of fuel, and could serve as a model for converting other coal power projects from imported to local coal.
Shahab Qader Khan, KE’s Chief Strategy Officer, highlighted the importance of the Activity Matrix for the conversion of JPCL Unit-1, outlined in the “Report on KE Indicative Generation Plan” finalized in November 2023. This matrix calls for the creation of a PSC, including stakeholders from the Power Division, KE, and JPCL, to oversee the project’s conversion.
KE advocates for the proactive formation of the PSC to evaluate HEI’s proposal promptly, ensuring the timely conversion of the Jamshoro plant to Thar coal.
The Finance Division is also engaging with financial institutions to secure funding for converting imported coal power projects to Thar coal. The prime minister has directed the Finance Division to review and potentially revise their current policy against financing coal projects.
The Asian Development Bank (ADB) has set a deadline of August 15, 2024, for the signing of a Power Purchase Agreement (PPA) among K-Electric, Jamshoro Coal Power Limited (JCPL), and GENCO Holding Company Ltd (GHCL) for the 660-MW coal-fired power plant. The ADB has indicated that the latest loan extension to December 31, 2024, is final, stressing the need for the plant’s commissioning within this period to facilitate the remaining $110 million in payments due upon achieving contractual milestones.
This proposal underscores the strategic shift towards utilizing domestic coal resources to enhance energy security and economic stability in Pakistan.
Story by Mushtaq Ghumman
