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KESC to have coal-based power plant

STAFF REPORT KHI: Karachi Electric Supply Company (KESC) has signed a JOINT Development Agreement (JDA) with Sindh Coal Energy Limited (SCEL) and Oracle Coalfields PLC (Oracle) of UK which is engaged in coal exploration, mining and production, for establishing a coal-based power plant, reference to tapping the indigenous Thar coal reserves for power generation.

The agreement defines the respective responsibilities of each party and marks another key milestone for KESC following the signing of the MoU with Oracle for the Thar Coal Power Project - a venture that aims to develop a mine-mouth coal-powered generation facility at Block VI Thar Coal Fields having an initial capacity of 300 MW and potential upside of 1100 MW.

With this deal, KESC aims at not only bridging the prevailing power demand–supply gap, but also has an objective towards translating this benefit into a lower tariff end user tariff, as compared to power generation via the 3.7 times more expensive furnace oil.

Sindh Coal Energy Ltd and Oracle have completed the coal-mine feasibility study and are in the process of carrying out an Environment and Social Impact Assessment whereas KESC is engaged in short-listing proposals received from leading international consulting firms for design of the Power Plant.


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