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MPS Preview: High for Longer

K-Electric failed to “effectively increase” power generation capacity: NEPRA report

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According to its “State of Industry Report 2017’, National Electric and Power Regulatory Authority is of the view that K-Electric has failed to effectively increase its power generation capacity, while its recovery position continues to worsen.

According to the report, during the fiscal year 2016-17, K-Electric produced a total of 10,147 GWh electricity through its own power plants, a decrease of about 176 GWh over the previous fiscal’s 10,323 GWh power generation.

NEPRA also reported that K-Electric has become increasingly dependent on external power sources, particularly the National Transmission and Dispatch Company (NTDC), and independent power producers (IPPs).

As per the report, “during the fiscal year 2016-17, in addition to purchasing power from IPPs, K-Electric imported around 650 MW of power from NTDC on a regular basis.”

Despite the expiration of the power purchase agreement between NTDC and KEL, power is still being supplied to meet the requirements of K-Electric consumers, the report added.

By March 2018, KE had an installed capacity of 2,261 MW though its own power plants, but due to aging and depreciation of generation facilities, KEl’s present capacity is being reported at 1,973 MW.

Independent Power Producers (IPPs) and Captive Power Plants (CPPs) add another 442 MW to the K-Electric system, with Karachi Nuclear Power Plant (KANUPP) contributing 137 MW and NTDC providing 650 MW to the K-Electric System.

Posted on: 2018-07-31T13:06:00+05:00

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