The board of directors of K-Electric (KE) has awarded an EPC contract of around $425 million to a joint venture of Chinese and German firms. They are looking to establish a combined cycle power plant with an installed capacity of 900 megawatts at Bin Qasim.
According to the notification to the PSX, the contract was awarded to a consortium of Siemens and Harbin Electric International, which is expected to add the new power supply to the KE’s system by 2021.
The KE said that the estimated contract value of the incoming project will be around $425 million.
The project will positively contribute to bridging electricity demand-supply deficit in the KE service area.
KE is the only vertically-integrated power utility in the country, serving more than 2.5 million customers across Karachi, Dhabeji, Gharo in Sindh, Uthal, Vinder, and Bela in Balochistan. It generates electricity from its power generation units with an installed capacity of 2,267MW. Also, the utility has arrangements with external power producers for around 1,360MW, including 800MW from the grid.
KE has invested over $2.1 billion across the energy value chain between 2009 to 2018. These investments have resulted in an addition of over 1,057 MW of power generation capacity. It has also resulted in an improvement of overall fleet efficiency from 30.4% in 2009 to 37.4% in 2018, 15.5% points reduction in Transmission and Distribution (T&D) losses and enhanced T&D capacity by 29% and 60% respectively.
National Electric Power and Regulatory Authority (Nepra) said that K-Electric has significantly reduced its transmission and distribution losses as compared to other power distribution companies in the country.
Because of these operational improvements, today, over 70% of the city is exempt from load-shedding with 100% exemption to industries since 2010.