ISLAMABAD: The Pakistan Solar Association (PSA) has opposed extension in operational life of Units 1 and 2 at the Bin Qasim Power Station-I (BQPS-I) until 2027.
K-Electric, in its petition, justified the extension by citing the need for these units to serve as a secondary spinning reserve, ensuring reliable power supply during peak demand periods and mitigating potential contingencies like gas shortages or outages in other generation fleets. However, PSA argued that extending the life of these outdated and inefficient units is economically unviable.
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 requested 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.
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The Association pointed out that the cost per unit of electricity from BQPS-I is significantly higher than from newer Independent Power Producers (IPPs) and power imports from the National Grid, making the extension inconsistent with national energy policies focused on efficiency and reducing capacity payments.
The PSA also highlighted the extremely low utilization rates of these units—0.48% and 1.53%, respectively—questioning their contribution to Karachi’s energy supply, given the substantial capacity costs incurred. Furthermore, a merit order analysis suggests that continuing operations at these units is less economical compared to other power generation options available to K-Electric.
Beyond economic concerns, the PSA emphasized the need for K-Electric to expedite its net metering process to encourage the adoption of solar energy.
Amir Chaudhry, Chairman of the PSA, expressed concern over the extended time K-Electric currently takes to process net metering applications. While other distribution companies in the country typically complete these applications within two weeks, K-Electric’s process averages around four months.
Chaudhry noted that this delay poses a challenge to the broader adoption of solar energy in Karachi, particularly in a city where limited rooftop space due to vertical living makes efficient solar installation even more critical.
The PSA further underscored the broader benefits of solar energy, including reduced operational costs, lower reliance on costly fuel imports, and significant environmental advantages. Solar PV is considered a key component in Pakistan’s strategy to reduce greenhouse gas emissions, enhance energy security, and comply with international climate commitments.
The PSA urged NEPRA to reject K-Electric’s proposal to extend the life of BQPS-I Units 1 and 2, advocating instead for a shift towards more sustainable and economically viable energy solutions like distributed solar PV. The Association stressed that this transition would not only align with Pakistan’s long-term energy and environmental goals but also contribute to a more resilient and self-sufficient energy future for the country.
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 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.
Copyright Business Recorder, 2024
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