A consultative session was arranged by National Electricity Power Regulatory Authority (NERPA) to discuss ways to maximize the utilization of coal (both local and imported) as a cheaper source of electricity generation to reduce power tariffs.
The experts and participants were of the view that coal-fired power plants in Pakistan are importing coal mainly from South Africa and Indonesia. The global economy has been experiencing a commodity super-cycle due to many factors including the current Russia-Ukraine conflict combined with COVID-related logistical issues and coal is among the commodities whose prices have surged many times over the last year.
Accordingly, the power tariffs of coal-based independent power producers (IPPs) are becoming prohibitively expensive, therefore, the authority wants to explore options for optimal utilization of local coal. The session ended with the view to convey the various options to the government for further action.
The session was presided by NEPRA officials, including NEPRA Chairman Tauseef H. Farooqi and NEPRA Members Rafique Ahmad Sheikh and Engr. Maqsood Anwar Khan.
Representatives of the Central Power Purchasing Agency (CPPA-G), Private Power Infrastructure Board (PPIB), Thar Coal Energy Board (TCEB), and Sindh Engro Coal Mining Company (SECMC), IPPs, industrialists, coal importers, and coal transporters attended the session.