Conversion to coal Will do good to power

Government of Pakistan (GoP) seems to have decided to convert all existing and new power plants to Thar Coal versus earlier plans of using imported coal. This is in line with the agreement between Pakistan Electric Power Company (Pepco) and Sindh Engro Coal Mining Company (SECMC).

Pakistan’s present power generation mix with 40% power coming from imported furnace oil is not sustainable and is reflected in country’s inability to utilize 100% of its generation capacity due to paucity of funds for buying furnace oil. Our furnace oil based energy tariff has gone up from 1.8 cents in mid 90s to over 15 cents at present. Thar has enormous energy potential. SECMC’s Thar Block 2 – only 1% of all Thar coal, can keep producing 4,000 MW for next 50 years. Total foreign exchange savings for 4,000 MW of Thar coal based power plants is estimated at over US $50bn for project life.

SECMC has studied Thar coal to confirm its technical, commercial and environmental viability. Government approvals have been obtained and mining is likely to start soon. G/o Sindh is working to complete the infrastructure. Mining time matches well with power generation project at Jamshoro. Genco is planning to convert Jamshoro’s oil based power plants, which will not only yield cheaper power, but also improve existing plants’ efficiency and make it a model for other Gencos and independent power producers (IPPs).

After Jamshoro, the Genco will also convert its Muzaffargarh units to Thar coal. This decision will unlock Thar’s potential and will enable GoP to meet country’s power requirements and produce other chemicals including petroleum products and urea. This will help GoP save billions of dollars spent on oil imports and thus have funds for developing industrial sector and the well being of people.