ISLAMABAD   -   While the government is planning to retire its inefficient and aged power plants, K-Electric has sought National Electric Power Regulatory Authority (NEPRA) approval for extension in the operational life of more than 40 years old Units 1 and 2 of its Bin Qasim Power Station-I (BQPS I).

In a petition submitted to the National Electric Power Regulatory Authority (NEPRA), KE sought approval to extend the operational life of Units 1 and 2 of its Bin Qasim Power Station-I (BQPS I) until the new coal plant becomes operational, expected by the fiscal year 2027. The Unit 1 and 2 of Bin Qasim Power Station-I (BQPS I) were installed in 1983 and 1984 respectively. The KE cost of power generation is almost 200 percent higher than the national grid. The federal government is providing Rs 170 billion subsidy to KE to make the tariff uniform with the rest of the country. The federal government is planning to retire five inefficient and aged power plants, however, the KE wants extension for four decades old and most expensive power plants.

The generation cost from Unit 1 and 2 of Bin Qasim Power Station-I (BQPS I) is almost double than the generation cost of BQPS-III. KE was originally granted a generation license (GL/04/2002) on November 18, 2002, under Section 25 of the NEPRA Act, 1997. The license has undergone several modifications, with the latest, Modification XI, granted on September 15, 2021. In the application, KE requested permission to retain the units as a secondary spinning reserve to handle contingency requirements. These units would be dispatched in line with the Economic Merit Order (EMO). KE emphasized that the extension is crucial to address potential unavailability of the NTDC interconnection, forced outages of its generation fleet and independent power producers (IPPs), and RLNG/gas shortfalls due to reasons beyond KE’s control. Additionally, regulatory and government approvals for the coal power plant are still pending.

KE asserts that the availability of these units would help mitigate issues caused by low gas pressure and avoid the use of expensive High-Speed Diesel (HSD). This measure is also expected to prevent increased load management during peak summer seasons in case of any unforeseen events, the company said. NEPRA has now sought public comments from stakeholder, interested/affected persons and general public in favor or against the K-Electric’s request within two weeks.