ISLAMABAD: Pakistan Atomic Energy Commission (PAEC) has approached Power Division to press National Transmission and Despatch Company (NTDC) for signing of bilateral Power Purchase Agreement (PPA) with K-2 based on existing practice of Chashma series Nuclear Power Plants (NPPs).
PAEC, Member (Power), Saeed-ur-Rehman, in a letter to Secretary Power Division, has apprised that draft Power Purchase Agreement of Karachi Nuclear Power Plant Unit-2 was submitted to CPPA-G on November 14, 2019. CPPA-G informed PAEC that as per decision of Board of Directors, all future PPAs shall be tripartite (PAEC, NTDC and CPPA-G being three parties).
According Member (Power), PAEC, PAEC submitted the draft tripartite PPA of K-2 on July 9, 2021. After submission of the tripartite draft PPA, two review meetings were held between PAEC, NTDC and CPPA-G to negotiate the PPA. However, on December 8, 2021, MD NTDC proposed to CEO CPPA-G that tripartite regime was interim and both NTDC and CPPA-G should implement the new regime as per approved market model and plan.
NTDC letter was shared by CPPA-G with PAEC for comments and based on PAEC comments CPPA-G requested MD NTDC for consent for a bilateral agreement (PPA) between CPPA-G and PAEC based on existing practice of Chashma series Nuclear Power Plants.
K-2 was connected to national grid on March 17, 2021 and achieved its COD (Commercial Operation Date) on May 21, 2021. PAEC has to return foreign loan of this project which will be due from July 2022.
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Some of the electricity generation plants connected to the national grid act as base load plants operating continuously and fulfilling minimum grid demand while others operate only when required i.e., peaking plants. However, Nuclear Power Plants are designed for ‘breaker to breaker’ operation.
The energy cost of NPPs is very low compared to other thermal power plants. Moreover, K-2/ K-3 projects (2 x 1100 MW) started back in 2013. These NPPs are strategic and base load plants with GoP approved PC-1. PPA for this project falls in the old regime (prior to CTBCM regime).
Copyright Business Recorder, 2022
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