KE seeks Nepra’s approval to extend Bin Qasim Power Plant’s lifespan

ISLAMABAD: The K-Electric has approached the National Electric Power Regulatory Authority (Nepra) for approval to extend the operational lifespan of Units 1 and 2 at its Bin Qasim Power Station-I (BQPS I). The utility plans to keep these thermal power units running until a new coal plant, projected to be operational by fiscal year 2027, comes online.Currently, BQPS-I relies on natural gas and costly fuel oil, making it a significant financial burden. K-Electric’s request has prompted the Nepra to seek public feedback, inviting comments from stakeholders, interested parties and the general public within a fortnight.

K-Electric’s generation license, initially granted on November 18, 2002, under Section 25 of the Nepra Act, 1997, has undergone several revisions, with the latest amendment, Modification XI, approved on September 15, 2021. The current application seeks permission to retain the units as a secondary spinning reserve to manage contingency scenarios, dispatching them according to the Economic Merit Order (EMO).

The company argues that this extension is crucial for addressing potential issues such as the unavailability of the NTDC interconnection, forced outages within its generation fleet and independent power producers (IPPs) and shortages of RLNG/gas due to factors beyond its control. Furthermore, the regulatory and governmental approvals for the coal power plant remain pending.

K-Electric emphasizes that maintaining these units will mitigate the impacts of low gas pressure and avoid the costly use of High-Speed Diesel (HSD). This measure is also anticipated to prevent increased load management during peak summer seasons in case of unforeseen events. The company insists that extending the operational life of these units aligns with consumer interests. The application, submitted under Regulation 13 of the NEPRA Licensing (Application, Modification, Extension, and Cancellation) Procedure Regulations, 2021, includes all required documentation. K-Electric has pledged to adhere to all regulatory terms and provisions.