Federal govt, KE reach agreement for additional 150 MW electricity

KARACHI: The federal government has reached an agreement with K-Electric to provide additional 150 MW electricity f
20 Jun, 2019

KARACHI: The federal government has reached an agreement with K-Electric to provide additional 150 MW electricity from the National Transmission and Dispatch Company (NTDC).

The development came following the contract issue erupted between KE and Tapal Energy.

According to a letter written by Nepra, Tapal Energy (Private) Limited (TEPL) is a RFO-based IPP of 126 MW established under Power Policy 1994 having a 22 years PPA with K Electric (KE) for sale of power from its generation facility. The PPA expired on June 19, 2019. However, both the parties to the PPA are willing to extend the PPA for further five years.

KE produces 2,267 MW and in addition, has arrangements with external power producers for 1,162 MW which includes 650 MW from the National Grid.

Federal Minister for Power, Petroleum and Natural Resources, Omar Ayub Khan twitted that Ministry of power will support the provision of electricity to KE costumers. The contract issues between KE and Tapal energy will not affect the supply of power to Karachi residents.

He added: the NTDC and CPPA on directives of the federal government had signed agreement for additional 150 mw power.

The additional power has been supplied  from Wind power in Gharo Sindh.

Earlier a KE spokesman told Business Recorder that power company is engaged with relevant authorities for a timely resolution of this matter.

It's pertinent to mentioned that KE has been receiving  650 mw from the national grid.

Copyright Business Recorder, 2019

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