KARACHI: The K-Electric has announced that the National Electric Power Regulatory Authority (Nepra) has approved the ‘Licensee Proposed Modification’ (LPM) sent by the KE regarding its coal conversion project.
“This is the first such initiative of its kind in Pakistan, where the company is moving towards alternative fuel. According to the LPM application sent to Nepra by the KE, two units of BQPS 1 will be converted from furnace oil to coal,” said the KE through a press statement issued on Friday. The power utility added that Bin Qasim Power Station-I units three and four were of 210 megawatts each and the two would be leased out to an independent power producer called K-Energy, which was formed by the project investors.
“These project investors will be undertaking investment of over $350 million through which new boilers and ancillaries will be constructed along with coal handling equipment. These will be synchronised with K-Electric’s leased units,” the statement added.
It said: “The EPC contract for this project has already been executed with Harbin Electric International, China, back in November 2013."
“The LPM approval is the first major step which shall be followed by tariff approval from Nepra. The KE believes in moving towards alternative sources and cost-effective generation of electricity, where the end-consumer will gain maximum benefits through a cheaper tariff,” the statement added.