The National Electric Power Regulatory Authority (NEPRA) has finaly approved a generation licence for K-Energy, allowing it to convert generators at Bin Qasim Power Station to run on coal instead of oil.
K-Energy, a subsidiary of K-Electric, has been been set up to undertake the coal conversion project of 420MW at the power plant, the utility said yesterday.
The issue had been pending for over a year and the approval comes as a big boost for K-Electric as it inches towards diversifying fuels it uses to run power plants.
The project is expected to be completed in two and a half years at an approximate cost of $400 million.
“These coal-based units are equipped with emission-controlled technologies in compliance with all applicable local and international environmental regulations,” the company said.
K-Electric has been rehabilitating old plants and units the new management acquired in 2009. With these coal-fired boilers, K-Electric would become the first to generate electricity using coal.
“Issuance of generation licence is a major breakthrough and now Nepra would determine the tariff for the project which will ultimately provide relief to the end consumers.”
The project is unique in its structure. Instead of making a direct investment, K-Electric has leased two units to the special purpose company K-Energy, formed by project sponsors.
The sponsors will invest new coal-specific boilers and auxiliary facilities including coal handling equipment.
Also read: Govt demands K-Electric stop using National grid power
