K-Electric’s Bin Qasim plants get 5-year extension in useful life

KARACHI: The National Electric Power Regulatory Authority (Nepra) has granted a five-year extension in the useful life of Unit-I and Unit-II of K-Electric’s Bin Qasim Power Station (BQPS) till September 30, 2023.

The K-Electric Limited had approached the government to allow power generation from its two 420MW plants for another five years. In July 2018, the K-Electric filed an application with the National Electric Power Regulatory Authority, seeking five-year extension in the useful life of Unit-I and Unit-II of its Bin Qasim Power Station (BQPS-I), whose useful life, as per the generation licence, was due to expire in August 2018 and August 2019, respectively.

The power units, each having 210MW of installed capacity, were commissioned in 1983 and 1984, respectively. The KEL plans addition of over 3,000MW of generation capacity through its own fleet, as well as power purchases from the independent power producers.

“Until such time the planned projects materialise it is important that the existing fleet is maintained and utilised to its maximum, considering the current shortfall in supply and rising demand of the city of Karachi and its adjoining areas,” the utility said.

The K-Electric has more than 2.5 million connections across residential, commercial, industrial and agricultural sectors, while it is serving more than 20 million people in and around Karachi.

It maintained that further operation through enhancement in useful life of the units will not have any additional impact on the fuel cost. The company is authorised to pass on the fuel and power purchase cost to consumers in line with the Nepra’s determined benchmarks under the KEL’s multi-year tariff. Currently, units I and II are a part of the KEL’s generation fleet.

The K-Electric Limited continues to receive a large number of new connection applications on a daily basis, increasing the demand for electricity. The growing power demand calls for addition in generation capacities, as well as tapping into surplus power available from the captive units.