ISLAMABAD: Private Power and Infrastructure Board (PPIB) is to conduct a round of competitive bidding on behalf of K-Electric (KE) for 330-MW Thar coal-fired project of Siddiqsons Energy Limited (SEL), well informed sources told Business Recorder.
The issue of SEL coal power plant along with KE’s interest in acquiring power from it came under discussion at a high-level meeting wherein it was decided to expedite the process to finalise the bidding.
“The off-taker of 330 MW Siddiqusons Energy Limited, Thar coal power plant, has changed from CPPA-G to KE, without any government guarantees. PPIB is to conduct a round of competitive bidding on behalf of KE.
Government of Sindh will interact with KE regarding provision of land. National Transmission and Despatch Company (NTDC) will provide transmission facility. SEL may also participate in the competitive bidding,“ the sources added.
Recently, K-Electric proposed a joint study with NTDC through an independent consultant for evacuation of 330-MW power from Siddiqusons Energy Limited (SEL) plant and power off-take by KE network.
KE, in addition to its existing interconnections at NKI and KDA/ Jamshoro, is further enhancing the interconnection capacity which would increase its off-take capability E from NTDC network to around 2600-MW. This includes the new 220kV Dhabeji and 500kV KKI grid stations which are under construction.
Recognising the demand and supply projections, which also include contract with the 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 itself and CPPA-G/ NTDC, the KE is actively collaborating with the SEL team to secure a bilateral contract for 30 years.
National Power Control Centre (NPCC), the system operator, has expressed concerns regarding the integration of the 330-MW SEL into the NTDC Network and the power off-take by KE via NTDC-KE interconnections.
“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,” said the KE in a letter in response to NPCC letter.
The KE maintained that in order to move forward, a study shall be initiated at the earliest which will determine the appropriate way forward and 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 with 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 utilised 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 its 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 it 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 that approval by Nepra. 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 non discriminatory basis.
Copyright Business Recorder, 2023