Pakistan's Energy & Water - News and Updates

[niaz]

I was watching TV and the Caretaker Minister for Power said that if the oil fired plants are converted to coal, the cost of electricity will come down from 18 to 8 Rs per unit.

In this sort of a situation, what if the government keeps the price of the unit at around 12-15 for a few months, just to recover some money...the cost of production will be much less than the cost that a consumer has to pay, but it would ensure that the government is getting some extra money.

Is this theory applicable? @niaz...

It is difficult to comment on somebody else’s statement without having full knowledge about exactly what was said and in which context.

I work in the international environment where it is assumed that all coal-fired plants have flue gas desulfurization equipment (scrubbers) or dry sorbent injection systems installed to comply with the Mercury and Air Toxics Standards. Higher coal prices, lower wholesale electricity prices (often tied to natural gas prices), sometimes makes investment in such equipment uneconomical.

Also the efficiency of power generation from gas means it competes with coal even when it costs 1.5 times as much. “When the ratio of natural gas prices to coal prices is approximately 1.5 or lower, a typical natural gas-fired combined-cycle plant has lower generating costs than a typical coal-fired plant.” “In general, combined-cycle (gas) units are considered to be more flexible than steam turbines. They can ramp their output up and down more easily, and their start-up and shutdown procedures involve less time and expense.

It cannot be denied that coal prices have historically been lower and more stable than oil and gas prices. Coal is likely to remain the most affordable fuel for power generation in many developing and industrialised countries for decades. I have no data on imported coal cost into Pakistan. I am aware that coal prices have been falling in recent months. Per last data with me Australian thermal coal price was about $100 per metric ton FOB. Let us assume that its landed price in Karachi is about $120 per metric. As a rough estimate 1870 KWH cost about $120 or 6.5 cents per KWH. Fuel oil is about $100 per bbl. which makes about only 542 KWH or 18.4 cents per KWH. On this basis coal is definitely much cheaper and it ties in with the Minister's statement that it costs about 18 rupees per unit to produce electricity from imported furnace oil.

According to the article quoted by Hon. Zialulislam it would require an investment of about $1.565-billion. Yes GOP could keep the unit price at current levels to recoup the investment.

By the way, nothing was said about the investment required to install scrubbers and other flue cleaning systems on the existing steam turbine power plants. How much will that cost? Or do we think that it is okay to pollute Pakistani air and endanger health of Pakistani citizens for the sake of cheaper electricity?

As I have posted earlier, in my view it is unwise to invest $1.6 billion and still depend upon imported coal? I would rather invest this money on Thar coal development and then convert steam turbine plant boiler into burning Thar brown coal once it becomes available. However it is a must that all new power plants should only use coal or petroleum coke as fuel.

 

[niaz]

I just got my bill in the UK from EDF Energy. Unit electricity cost is 13.23 pence per KWh for residential consumers. This comes to about Rs 20 per unit. In addition there is a standing charge of 25 pence or about Rs 37.50 per day. There could be a slight variation among different companies.

Unit cost price consists of:

48% - Cost of electricity
23% - cost of transmission/delivery from the power plant to the consuming house.
16%- Operating cost (profit margin for the electric supply company)
8%- social & environmental surcharge
5%- VAT (Value added tax for UK gov't)

How does it compare with Pakistani electricity charges?

 

[Argus Panoptes]

I just got my bill in the UK from EDF Energy. Unit electricity cost is 13.23 pence per KWh for residential consumers. This comes to about Rs 20 per unit. In addition there is a standing charge of 25 pence or about Rs 37.50 per day. There could be a slight variation among different companies.

Unit cost price consists of:

48% - Cost of electricity
23% - cost of transmission/delivery from the power plant to the consuming house.
16%- Operating cost (profit margin for the electric supply company)
8%- social & environmental surcharge
5%- VAT (Value added tax for UK gov't)

How does it compare with Pakistani electricity charges?

You do not tell us the total amount of energy consumed or the total bill Sir @niaz . In Pakistan, the cost per unit rises steeply with increasing consumption, while in the West I think that larger consumers get lower prices. So there is no linear or direct comparison between the two situations, unless we also know the total number of units consumed at any given level of billing.

 

[ejaz007]

Closure of three IPPs cause loss of Rs 15bn

LAHORE: The national grid could have 100 megawatts of free electricity immediately by simply substituting 200mw generation from WAPDA’s Genco plants to three private plants, Japan, Saba and SEPCOL without any additional cost. Three independent power plants have been forced to shut down their plants since September 2012 due to petty disputes that await immediate resolution. The plants include 120 MW Japan Power at Raiwind, 110 MW Sepcol at Raiwind and 120 MW Saba Power at Sheikhupura. The total power production is 350 MW. These plants run on furnace oil and sell electricity to the ministry of water and power and the National Transmission and Dispatch Company at the rate of Rs 14.80 / KWh. Surprisingly, substituting the electricity from these three IPPs, the ministry for water and power, WAPDA and NTDC are running their own GENCO plants which are producing electricity at the rate of Rs 22 to 23 per unit thus reflecting a burden of Rs 7-8 per unit on the national exchequer. Power experts told Daily Times These GENCOs including Jamshoro, Muzaffargarh and Guddu Power Plants are producing power at Rs 22 per unit and 300 MW production means an expense of Rs 4.8 billion a month. Whereas Saba Power, Japan and Sepco are producing electricity at Rs 15 per unit and 300 MW production means an expense of Rs 3.2 billion a month. The difference of Rs 7 per unit has caused an excess payment of Rs 1.6 billion a month for running Jamshoro, Muzaffargarh and Guddu instead of these IPPs. Due to this the national exchequer has suffered a loss of about Rs 15 billion since September 2012 and counting. As a justification for switching generation to its own plants, NTDC has cited fuel grammage recovery loss by the three IPPs. Ignoring for a moment that inadequate fuel tariff has resulted in such loss and the IPPs have absorbed these losses by taking a hit on their capacity payments: Fuel Grammage Loss by these IPPs is Rs 100 million per month whereas running Genco plants means additional expenditure of Rs 1.6 billion per month. Moreover by using the same quantity of oil Gencos produce 200 MW electricity whereas there three private IPPs produce 300 MW of electricity, thus reflecting 100MW additional power. Still further, dual fired IPPs are run on High Speed Diesel (HSD) when gas is not available (which is mostly not available) while Saba, SEPCOL and Japan run on the much cheaper High Furnace Oil (HFO): Cost per unit of plants run on HSD is Rs 26 per unit whereas cost per unit of plants run on HFO is Rs 14.80 per unit. To provide immediate relief in load shedding, the target should be to generate maximum electricity out of scant financial resources which policy has not been followed by the ministry of water and power and NTDC. staff report

Daily Times - Leading News Resource of Pakistan

 

[ejaz007]

PM seeks Chinese investment in energy sector
* Nawaz asks visiting Chinese business delegation to install solar power plants in Pakistan
Staff Report



ISLAMABAD: Prime Minister Nawaz Sharif on Thursday invited the Chinese companies to invest in the energy sector of Pakistan as the country is experiencing a severe power shortage.

In a meeting with the five-member delegation led by China North Industries Corporation (NORINCO) Chairman Wang Yitong, which called on him, the prime minister invited the company, which produces solar power plants, to install solar power plants in Pakistan. The prime minister assured the Chinese delegation that his government was ready and will extend all possible support and cooperation to NORINCO to expedite the process so that work on these projects can start in earnest.

The NORINCO chairman congratulated Prime Minister Nawaz on the assumption of his office. Yitong briefed the prime minister that his company was one of the 500 largest state-owned enterprises in terms of assets and revenue and deals in various areas, including petroleum, mining, engineering and infrastructure projects. He informed the prime minister that after successful visit of Chinese Premier Li Keqiang to Pakistan, they have received special support of the Chinese government and leadership to boost business relations between the two friendly countries and undertake projects in Pakistan.

Prime Minister Nawaz recalled that during the recent visit of the Chinese premier to Pakistan, he had very useful and fruitful talks with him and termed the visit of the NORINCO delegation as a testimony that these relations were being further solidified, strengthened and expanded. The prime minister said that Pakistan had vast areas in Balochistan and south Punjab which have sunshine round the year and there was ample land available for installation of solar power plants in the country.

During the meeting, the prime minister also discussed the possibility of installation of solar energy plants in Balochistan where population is thin, scattered and at distances. This, he said, would help save laying of transmission lines which have a prohibitive cost. Prime Minister Nawaz also offered NORINCO to look into mining and setting up of coal power plants at sites in Thar, Balochistan and Punjab where coal is available. The work on the mining and setting up of thermal power plants, the prime minister said, can be carried out simultaneously so that the power can be produced as quickly as possible.

The prime minister also offered NORINCO to look into the exploration of iron ore in the country. He also discussed the possibility of projects for running underground trains in Karachi, Lahore and twin cities of Rawalpindi and Islamabad in order to facilitate commuters in these cities. The NORINCO chairman said that his company was serious and keen to take up projects in Pakistan. In this connection, he informed the prime minister that on his return to China, he would immediately despatch his team of experts to Pakistan to initiate discussions and take these ideas forward.

The meeting was attended by Punjab Chief Minister Shahbaz Sharif, Minister for Water and Power Khawaja Muhammad Asif, Minister for Planning and Development Ahsan Iqbal and senior officials of the Prime Minister’s Office.

Meanwhile, in a separate meeting with Chief Election Commissioner (CEC) Justice (r) Fakharuddin G Ebrahim, the prime minister said that the government firmly believed in strengthening and sustaining the democratic institutions of the country. Ebrahim congratulated the prime minister on assuming his office. Chief of Army Staff General Ashfaq Parvez Kayani and Chief of Air Staff Air Chief Marshal Tahir Rafique Butt also called on the prime minister and discussed professional matters, overall security situation in the country and matters relating to national security.

Daily Times - Leading News Resource of Pakistan

 

[muse]

Chinese investment? While Chinese citizens are murdered without any Pakistani response toward the murderers? Really? Coal?

What's the heart of the mess? Our "Awaaam Pasand" will not be able to accept that we lose tax payer money as if it was water - below is something to consider:



Power minister
Dr Farrukh Saleem
Sunday, June 23, 2013


Capital suggestion



Sir, there are 12 government-run registered companies that collectively lose Rs400 billion a year. They are: Lesco, Gepco, Iesco, Fesco, Mepco, Hesco, Qesco, Pesco, Jamshoro Power, Central Power, Northern Power and Lakhra Power. Sir, if you are the de facto appointing authority of the chief executive officers of the dirty dozen, then the Rs400 billion burden is on your shoulders.

Sir, your experts are telling you three things: our fuel mix is not right; we will convert furnace oil-boilers to coal and that we need to jack up the tariff by a wholesome 70 percent. This is all hogwash; pies in the sky.

To begin with, developing huge coalmines require billions of dollars – billions that we don’t have. Second, conversion kits will cost a couple of billion dollars – billions that we don’t have. Third, no one will finance the burning of coal. Fourth, the supply-chain infrastructure will cost billions of dollars – billions that we don’t have. Finally, the PPP doubled the tariff with no end to circular debt (higher tariff means more theft). Sir, none of that is ever going to happen to any significant degree to make much of a difference.

Sir, a single 500 MW plant needs 3,337,000 kg of coal a day. Consider this: we will need 100,000 tons of coal a day and our current production is 8,000 tons a day. We need billions of dollars to set up a complete supply-chain of thousands of coal-carrying trucks and thousands of rail freight bogies connecting the port and the power plants. Can China help? We may be able to convert a few hundred megawatts, but please don’t hold out for pies in the sky.

Dear Minister, some 200 so-called state-owned enterprises (SOEs) lose Rs500 billion a year. Of the 200 SOEs, a total of 12 manage to lose Rs400 billion a year; 80 percent of the entire loss. Sir, take care of the dirty dozen and you would have taken care of 80 percent of the *****. Of the Rs400 billion, 50 percent is theft and the other 50 percent is owed by various governments, federal and provincial.

Sir, the federal government, its attached departments, autonomous and semi-autonomous bodies, joint staff headquarters, military dairy farms, the President’s House, the PM’s Secretariat, the residence of chairman senate, residences of federal ministers, the Election Commission, the Supreme Court, the Federal Police, the Intelligence Bureau and the FIA all owe billions.

Dear Minister, Sindh owes Rs61 billion, Punjab Rs9 billion, AJK Rs20 billion and the KESC Rs50 billion. Of the Rs400 billion loss, one-half is theft (and inefficiencies); electricity theft, transformer theft, cable theft and furnace oil theft (the other half is owed by the government and the private sector).

Sir, the good news is that you will be able to find strategic partners/operators for the Gencos. Sir, the good news is that there is market appetite for the distribution companies. There is just no way that you – or your ministry – can restructure the Discos; they must be privatised straight away. Start with the best – Fesco, Gepco, Lesco and Iesco – where bill-collection losses are 1.5 percent, 1.5 percent, 4 percent and 4.2 percent, respectively. Next, professionalise Nepra.

Dear Khawaja Sahib, coal is baloney and ‘baloney is the lie laid on so thick you ought to hate it and blarney is flattery laid on so thin most ministers love it’.



The writer is a columnist based in Islamabad. Email: farrukh15@hotmail.com

 

[ejaz007]

To pay off Rs370 bn dues under circular debt by June 30: Dar


ISLAMABAD: Federal Finance Minister, Senator Ishaq Dar Sunday reaffirmed the government’s resolve to eliminate the vicious circular debt by announcing to pay it off by August 12.

Speaking from the floor of National Assembly, Senator Dar said the total amount of circular debt stood at Rs508 billion as of May 31 and vowed to pay off Rs370 billion by June 30 to partially settle the private sector dues. “The entire circular debt will be cleared by August 12,” he pledged.

He maintained that his government will look right into the International Monetary Fund’s (IMF) eye while negotiating a loan deal with it. “No dictation will be taken from it (IMF),” he added.

The Finance Minister said that the people will be taken into confidence over the agreement with the IMF and vowed to repay the loan obtained by the previous government.

He said the details of the pact reached with the IMF will also be made available on the Federal Finance Ministry’s website.

To pay off Rs370 bn dues under circular debt by June 30: Dar - thenews.com.pk

 

[Argus Panoptes]

A 370 billion payment is only a stop gap measure. The total circular debt is now over 900 billion.

 

[ejaz007]

Pak-French hydropower project inaugurated in KP
Staff Report



ISLAMABAD: With the collaboration of France, the Jabban Hydropower Plant, Khyber Pakhtunkhwa (KP) was inaugurated here on Wednesday and France is planning for more such cooperation in the near future with Pakistani government.

The Jabban Hydropower Plant is the oldest large hydropower plant in Pakistan but its activities were stopped in 2006 after a fire. A soft loan agreement of 26.5 million euros or Rs 3.5 billion was signed in 2010 between the French Development Agency (AFD) and government of Pakistan to rehabilitate this plant and to build capacities in the hydropower sector.

Ambassador of France Philippe Thiébaud, AFD, Asia Vice President Grégory Clémente and Ministry Water and Power Secretary Anwar Ahmad Khan inaugurated this project.

The Jabban Hydropower Project is located on Swat Canal in Malakand Division. This run-of-river hydropower plant was built in 1937, and as such it is the oldest large hydropower plant in Pakistan. It discontinued its production after a fire broke out in November 2006.

With the participation of highly qualified engineers from WAPDA and NESPAK the infrastructure was rehabilitated and the capacity increased from 19 megawatts (MW) up to 22 MW. During construction, 200 people were employed at the worksite, directly benefiting local population of Malakand District. After rehabilitation, the plant will employ 50 workers, and will provide electricity to more than 240,000 people.

The total cost of the project was estimated at 25 million euros or Rs 3.4 billion. In July 2009, AFD signed with government of Pakistan a soft loan of 26.5 million euros, out of which 25 million euros is allocated for the Jabban Project, and 1.5 million euros for building capacities on the hydropower sector. This loan is being implemented by WAPDA, AFD’s main partner in the country. The Jabban Project, constructed by a Pakistani company, should deliver its full capacity to the grid by September 2013, without expected over cost or delays.

The Jabban Hydropower Project generates renewable energy, and therefore mitigates climate change, by reducing the emissions of greenhouse gases. As a rehabilitation project, it did not entail negative environmental and social impacts, and no land acquisition or relocation of people was necessary. Finally, and most importantly, it answers to the need of reducing the cost of energy generation, and adds capacity to the national grid, therefore directly addressing the current energy crisis in Pakistan.

As a member of the group of Friends of Democratic Pakistan (FoDP), France is very sensitive to the welfare of the Pakistani population and is committed to implementing sustainable development projects in renewable energy and in water sectors.

The exceptional potential of the country in terms of hydropower, as well as the success of this first operation, encourages France and Pakistan to jointly engage in other projects in the future. AFD Group is fully committed in promoting sustainable hydropower in Pakistan, in close cooperation with public and private operators, through co-financing with, among other donors, European Union and German cooperation. AFD has already committed funding for the studies of the multipurpose Mohmand / Munda dam project, as well as for the construction of the Jaggran-II and Harpo hydropower projects. In addition, AFD has a portfolio of identified hydel projects under study, for a total capacity of more than 1,100 MW.

France, through AFD, is fully committed to contribute to resolve the energy crisis, and also looks forward to continuing interventions in KP, a province in need of support for its social and economic development.

Daily Times - Leading News Resource of Pakistan

 

[SBD-3]

 

[darkinsky]

http://www.defence.pk/forums/econom...chistan-suitable-wind-energy.html#post4507098

Renewable energy: KESC, Aman Foundation to set up bio-gas plant


KARACHI:
The International Finance Corporation (IFC) has signed a joint development agreement with the Karachi Electric Supply Company (KESC), the Aman Foundation and their collaborative initiative, Karachi Organic Energy Limited (KOEL). The three will co-develop the largest bio-gas power plant of its kind, in what is being called a ‘waste to energy project’ based in the Landhi Cattle Colony in Karachi, said a press release issued here.
The IFC’s support will come in the form of IFC InfraVentures, an early-stage equity investment fund which supports infrastructure projects in developing countries. It will work hand-in-hand with the KESC and Aman Foundation and will provide a share of the seed capital, aiming at attracting subsequent financing at a later stage.
The plant will convert approximately 4,200 tons of cattle waste and 700 tons of food waste per day to bio-gas, which will be utilised for power generation at a facility with an installed capacity of up to 30 megawatts (MW).

The residual organic content is expected to be processed into over 100,000 tons per annum of soil amendment (low-nutrient organic fertiliser). The project, with a total investment of approximately $80 million, will be developed in two phases with installed capacities of 15MW each.
“This project is a prime example of how innovation can be used to tackle some of Pakistan’s most pressing development issues,” Director IFC for the Middle East and North Africa Mouayed Makhlouf said, according to the release.

 

[Jango]

84MW New Bong Escape hydropower project: Country?s first hydel IPP begins operation

Bong Escape hydro project has started power production from today.

Seems something like Ghazi Brotha, a Run of the river project downstream of a major dam.

 

[salman77]

Pakistan’s first Solar Park on its way

Punjab Minister for Mineral Development and Energy Sher Ali will sign a Memorandum of Understanding (MoU) with a Chinese company on July 25 to establish Pakistan’s first Solar Park near Lahore on 5,000 acres of land.

The move will help reduce the shortfall of energy upon its completion.

He was speaking to the participants at inauguration ceremony of Pakistan’s first Solar Panel Assembly Plant organised by TESLA Industries.

TESLA PV Chief Executive Officer (CEO) Aamir Hussain, Head of Alternative Energy Development Board of Pakistan Dr Basharat Hassan, Islamabad Chamber Ex-President Zafar Bakhtawar, renowned Architect Khalid Abdul Rehman, Rana Adeel, TESLA PV GM Mubarak Hussain and others were also present on the occasion.

The minister appreciated the efforts of TESLA PV to make the country self sufficient in manufacturing solar panels and said the government would extend full support to the investors in solar energy sector. “All developed nations have advanced in getting electricity from sun and they were making progress through this natural source of energy,” he added.

He said that the government was eager to adopt every possible source of energy to combat the present energy crises in the country. “Some 43 wind energy projects were under construction in Punjab aimed at reducing the energy crises,” he informed. He also encouraged the investors to come forward and invest in the energy sector where they would be given full cooperation from the government.

TESLA PV CEO said that solar panel manufacturing plant had a capacity of 4 MW per year and would be increased to 10 MW in the year 2014. “Local manufacturing of these panels will not only make tem affordable but will also help solar users to buy A grade quality Mono and Poly panels. It will also help reduce the foreign exchange being spent in import of these panels from other countries,” he added. Moreover, he said that the company will be producing 100, 150, 200, 250 watt Mono and Poly Solar panels which will be available country wide from Monday.

He further stated that the shortfall of electricity in Pakistan was playing havoc with the economy and disturbing social life. He explained that the solar energy system can help combat many deficiencies and steer the country towards the path of progress.

Highlighting its benefits he said, “With one time investment, our industrial units can get rid of load shedding and billing of electricity for ever, rather they can sell the surplus electricity to WAPDA by installing import, export electricity meters.” -

Pakistan's first Solar Park on its way | Pakistan Today | Latest news | Breaking news | Pakistan News | World news | Business | Sport and Multimedia

 

[Jango]

What is the loadshedding situation for you guys?

In Islamabad, it didn't go for three straight days when it rained (over the weekend), and before and after that, it was only one hour all day, i.e one hour loadshedding in 24 hours (around 2 PM).

So what's the situation like in other parts of the country?
@Leader, @Jazzbot, @AstanoshKhan, @hasnain0099, @cb4, @darkinsky etc.

 

[SBD-3]

What is the loadshedding situation for you guys?

In Islamabad, it didn't go for three straight days when it rained (over the weekend), and before and after that, it was only one hour all day, i.e one hour loadshedding in 24 hours (around 2 PM).

So what's the situation like in other parts of the country?
@Leader, @Jazzbot, @AstanoshKhan, @hasnain0099, @cb4, @darkinsky etc.

Zero here