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ISLAMABAD: K-Electric has approached the National Electric Power Regulatory Authority (NEPRA) for extension/renewal in useful life of unit 1 & 2 of Bin Qasim Station (BQPS-1).

According to the regulator, K-Electric Limited (KEL) has submitted an application for extension/renewal in the useful life of two units of BPQS-1 in its generation licence of November 18, 2002) in terms of the Regulation-II of NEPRA Licencing (Application, Modification, Extension and Cancellation) procedure Regulations, 2021.

In this regard, a notice seeking comments of general public, interested/affected persons and relevant stakeholders was published on August 06, 2024

Supply from Jhimpir Wind Farm to go down: KE seeks 60 MMCFD more gas to operate BQPS-II

As per the existing Generation Licence, the useful life of Unit No. 1&2 of BQPS-I expired in October 2023. KEL requested to extend the same for another period of four years i.e. till 2027.

According to NEPRA, the power utility company is expecting demand to grow at a steady pace from FY 2025 till FY 2027, for which KEL has planned additions. However, as per prudent utility practices, KEL requests the Authority to allow it to retain Unit No. 1&2 of BQPS-I till the new coal plant becomes operational, which is expected by FY 2027, as a secondary spinning reserve as well as to enable KEL to avoid increased load management during the peak summer season in case of any untoward eventuality.

The KE maintains that this request is made given the contingency requirement that may arise due to: (i) any unavailability of NTDC interconnection; (ii) any forced outages of the generation fleet of KEL and IPPS; (iii) RLNG/gas shortfall due to reasons beyond KE’s control; and (iv) pending regulatory and government approvals around the envisaged local coal plant. Units No. 1&2 of BQPS-I shall be operated based on an Economic Merit Order (EMO) to serve any contingency requirements and maintain a secondary spinning reserve to cater to any emergencies. The availability of these units will also alleviate the constraints of low gas pressure and help in avoiding the utilization of expensive HSD.

The NEPRA has asked all stakeholders, interested/affected persons and the general public to offer their comments in favor or against the request of KEL for extension in the term/useful life of Unit No. 1&2 of BQPS-I in its Generation Licence.

As comments from stakeholders are received, NEPRA will conduct a public hearing to approve or disapprove the request of KEL.

Copyright Business Recorder, 2024

Comments

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Notsurprised Aug 20, 2024 07:17am
We have over supply so why should and old plant be extended? Confusing!
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faisal Khan Aug 20, 2024 09:53am
So we have excess capacity but still want to keep plant with useful life overruns... Great.. and the main reason sought is contingency of NTDC interconnection that might not arise at all.
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M.amin malik Aug 20, 2024 10:27am
Since govt will surely extend the contract without any regard to public interest , we can only request that atleast terms of contracts re capacity charges should be abolished.
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AAN Aug 20, 2024 01:56pm
There is no harm to extend the license but the point is how much fixed charges ke is going to ask for that. Definitely all the income including investment and loan already recovered as units are of 70
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Waheed ud din Aug 21, 2024 01:09pm
Please make sure that extension should based on new term and conditions that are favourable to consumers.
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