K-Electric to Get 500-800MW Supply from Nuclear Plants Through National Grid
K-Electric (KE) has signed agreement to secure additional supply of 500-800MW from nuclear power plants through national grid by summer 2024.
In this regard, K-Electric (KE) has awarded the Engineering, Procurement and Construction (EPC) contract 500/220 kV KANUPP-K-Electric Interconnection (KKI) Grid to Siemens (Pakistan) Engineering Company Limited.
The development is another milestone toward securing Karachi’s future energy needs, and the signing ceremony between Siemens and KE was held at the latter’s Head Office.
The KKI Grid will be the addition of the fourth interconnection in KE’s network following the existing NKI and KDA Grids and the upcoming Dhabeji Interconnection. The estimated value of the EPC contract is around $84 million.
KE had also entered into an agreement in February 2022 for the construction of a 220 kV double circuit transmission line for the evacuation of power from the KKI Grid.
The KKI Interconnection will enable KE to off-take 500 to 800 MW of electricity from the National Grid from the summer of 2024 (the KKI Grid’s evacuation capacity is more than 1,000 MVA). Additionally, the infrastructure enhancement will improve system stability and reliability for consumers.
As per the National Electric Power Regulatory Authority’s (NEPRA) State of Industry Report 2021, KE had registered a sales growth of 25 percent among its industrial consumers in 2021, which was almost 11 percentage points higher than the rest of the country. Coupled with a sustained investment of over Rs. 430 billion since privatization, Karachi’s need for energy is increasing rapidly.
Cognizant of the current and evolving demands, KE has been working actively with the Government of Pakistan and especially the Ministry of Energy under the guidance of the NEPRA to bolster its infrastructure to enable Karachi to receive additional power from the National Grid.
Chief Generation and Transmission Officer KE, Abbas Husain, stated, “KE is fully committed towards [sic] supporting Karachi’s energy ambitions. We are not only working with multiple stakeholders to cater [to] the current demand, but also continue to innovate our services to cater [to] the growth. We are grateful to the Federal Government, Ministry of Energy, and our regulator NEPRA for their continued patronage and support. This spirit of collaboration and consensus is integral to the sustainability of Pakistan’s economic and strategic hub”.
CEO and MD Siemens Pakistan, Markus Strohmeier, also expressed his happiness, stating, “This project is another significant step to strengthen Karachi’s development as [a] modern industrial and economic metropolis. Through KKI Interconnect, we are increasing and securing stable access to electricity for the greater society, who’s [sic] future is built on reliable energy supply”.
KE has also achieved the first fire on the first unit of its flagship RLNG-based 900 MW Bin Qasim Power Station 3 (BQPS-III). Upon commissioning, this landmark project will significantly increase KE’s generation capacity while also enhancing the efficiency of KE’s generation fleet. The plant is utilizing the latest in turbine technology and is anticipated to be among Pakistan’s top five most efficient generation units upon completion.
KE is also aligned with the federal government’s vision of increasing the share of renewable energy in its generation mix with the planned addition of almost 1,100 MW of green energy by 2030, subject to required approvals.