Govt likely to renegotiate terms with K-Electric’s buyer

State minister confident Karachi’s energy woes will be addressed

KARACHI: The government will likely renegotiate the terms and conditions of handing over K-Electric to new investor Shanghai Electric Power Company in the greater interest of consumers and Karachi, which remains the lifeline of Pakistan, said Minister of State for Water and Power Abid Sher Ali on Thursday.

He expressed confidence in Shanghai Electric Power Company, saying it “would surely overcome the power crisis in Karachi.” He was talking to the media on the sidelines of an international conference on “Pakistan’s wind industry - prospects and challenges”.



Last week, Shanghai Electric reached an agreement with Dubai-based Abraaj Group, which held a majority stake in K-Electric, to take control of the power utility for a price of $1.77 billion.

Speaking at the conference, Ali said  that in a short span of 10 years Pakistan had started harnessing the immense potential of alternative and renewable energy resources available in the country.

“At present, 35 wind power projects having cumulative capacity of 1,752.5 megawatts are at different stages of development and operation. At the same time, 12 wind power projects of 590.5MW capacity are supplying electricity to the national grid,” he said.

Climate change and technological advancements have paved the way for switching to green energy the world over. “Pakistan has been giving due attention to fast tracking the development of alternative and renewable energy resources,” said the minister.

National Transmission and Despatch Company (NTDC) Managing Director Dr Fiaz Ahmad Chaudhry said the company would renew its agreement with K-Electric for continued supply of 650MW from the national grid once Nepra determined a revised tariff. “At present, we are supplying power to Karachi despite no legal requirement,” he said.

Transmission lines

Chaudhry added they would start test transmission of Sahiwal’s coal power projects of 1,320MW and Bhikki’s re-gasified LNG-based power plant of 1,180MW next week. “We aim to start commercial production from the two projects sometime in March-April 2017,” he said.



Pakistan has laid transmission lines for supplying 22,000MW in the last 69 years. Now it will lay transmission lines for another 11,000MW in the next three years.

“Building new infrastructure for the transmission of additional power in such a short span of time is a huge challenge,” he said.

Karachi to get another 100MW

Sindh Transmission and Despatch Company CEO Rehan Hamid said the Nooriabad power project would start supplying additional 100MW to K-Electric by December 2016. “Ninety per cent work on transmission lines has been done,” he said. “We have asked the NTDC to allow us to lay transmission lines for about 4,000MW, which will be supplied by wind power projects in the province,” he said. Central Power Purchasing Agency CEO Abid Latif Lodhi suggested that upfront tariff should be determined through bidding.

Published in The Express Tribune, November 4^th, 2016.

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