Evacuation of power from SEL plant, off-take by network: KE suggests joint study with NTDC thru private consultant

ISLAMABAD: K-Electric has proposed a joint study with National Transmission and Despatch Company (NTDC) through an independent consultant for evacuation of 300 MW power from Siddiqsons Energy Limited (SEL) plant and power offtake by KE network.

This is with reference to the letter having reference number 738-737/DMD (SO)/NPCC, where NTDC expressed concerns regarding the integration of the 330 MW SEL into the NTDC Network and the power offtake by KE via NTDC-KE interconnections, the power utility noted.

The KE, in addition to its existing interconnections at NKI and KDA/Jamshoro, is further enhancing the interconnection capacity which would increase the power offtake capability of KE from NTDC network to around 2600 MW. This includes the new 220kV Dhabeji and 500kV KKI Grid Stations which are under construction.

KE seeks more electricity from national grid

Recognizing the demand and supply projections, which also include contract with National Grid for the supply of power and adhering to the terms and conditions outlined in the Interconnection Agreement (ICA) and Power Purchase Agency Agreement (PPAA) between KE and CPPA-G/NTDC, KE is actively collaborating with the SEL team to secure a bilateral contract for 30 years.

“While the concerns raised by NTDC may be genuine, we believe it is important to focus on the solutions available for the interconnection, whereby NTDC can deliver power from SEL to KE via its planned interconnections with the National Grid as detailed below,” said the KE.

Further, as per the minutes of the technical committee (TC), the NTDC is required to provide the ToRs and scope of the study that is to be conducted.

The KE maintained that in order to move forward, study shall be initiated at the earliest which will determine the apt way forward and would suggest key actions for all relevant stakeholders.

Responding to NTDC with respect to unit commitment and security-constrained economic dispatch, the system operator highlighted that slow ramping machines/Thar coal plants are used as load following generators.

To cope the issue, if the load balancing is manageable with existing plants, the commercial implications of operating the plants at partial load needs to be apprised and approved by the Authority.

Additionally, if necessary, fast-ramping sources, which are internationally utilized to mitigate the intermittencies of renewable plants and variations on the load side, need to be planned and incorporated by the System Operator and NTDC.

The KE is actively involved with SEL to cater for the KE system’s future demand growth, believing that the

SEL plant’s operation will not adversely affect the dispatch of existing CPPA-G’s plants, as KE will off-take an equivalent amount of power through KE-NTDC interconnections. The anticipated timeline for the commercial operations of SEL is after FY-27, by which time, the demand of KE and other Discos in southern region is expected to grow accordingly.

Moreover, the issues highlighted by NTDC would be applicable for any addition of generation in southern region, until the resolution of transmission constraints. This is also critical as it is one of the major impediments in availing the economical and abundant resources of Thar, available to generate least cost reliable power for the end-consumer.

The power utility company further explained that operating reserve policy will apply according to the approval by the NEPRA Authority. The commercial impact of startup/shutdown and partial loading will be dealt as per the Market Commercial Code and Grid code.

Furthermore, the System Operator will be responsible for demonstrating the dispatch and operations of all the plants in accordance with security-constrained economic dispatch with the relevant evidence and as per the prevalent regulations and prudent norms on a nondiscriminatory basis.

Port Qasim and China Power Hub have bilateral contracts with CPPA-G. These plants were planned and integrated into the National Grid considering the demand of the National Grid, excluding KE. KE will not be held responsible for any obligation of take-or-pay contract of fuel for these plants. However, KE will assume complete responsibility for the contractual obligations with SEL on its part.

With respect to outage of the NTDC network, KE is of the view that it acknowledges that NTDC, as the Transmission Network Operator, may need specific outages to maintain the transmission system.

However, scheduled transmission outages must be planned in advance, and the Authority will approve a certain number of hours on account of both Forced and Scheduled transmission outages. The detailed mechanism for planning outages will be outlined in the Wheeling Agreement, which will also be approved by the Authority.

The outages due to climate conditions, as highlighted by the NTDC, shall be managed by the Transmission network operator as per the International best practices and the provisions of the Grid Code. Further, the outage allowance will be approved by the Authority and the same will be discussed in detail under the Wheeling Agreement.

The acceptance or rejection does not lie with CPPA-G since SEL will be dispatch according to the merit order and/or considering the demand of KE Network. Similarly, the merit order and dispatch will be as per the provisions of Grid Code.

With respect to system protection, KE has stated that SEL will be connected to the NTDC network, and as a result, the protection settings will align with those of the NTDC network.

However, technical parameters, encompassing normal and contingency operating conditions, will adhere to the Grid Code.

For a more in-depth evaluation of technical parameters, KE and NTDC must initiate a study through an independent consultant for the evacuation of the SEL plant and power off-take by KE network. This study will include Load Flow Study, Short Circuit Study, and Dynamic Stability assessment.

On outage of the NTDC network, KE has clarified that it acknowledges that NTDC, as the Transmission Network Operator, may need specific outages to maintain the transmission system. However, scheduled transmission outages must be planned in advance, and the Authority will approve a certain number of hours on account of both Forced and Scheduled transmission outages.

The detailed mechanism for planning outages will be outlined in the Wheeling Agreement, which will also be approved by the Authority.

Therefore, considering the escalating electricity demand in Karachi and KE’s role as the Supplier of Last Resort (SOLR), ensuring economical and reliable supply of power to its consumers of paramount importance.

Accordingly, KE in its business plan has catered for the induction of power plants and base load corridor for renewable plants lies near KE’s service territory enabling direct offtake by KE, evacuation of baseload plants on Thar coal can only be made through NTDC’s system.

KE envisions actively off taking this resource for power generation and the interconnection between KE and the National Grid will be strategically utilized to off-take power effectively wheeled through the NTDC network.

Copyright Business Recorder, 2023