Islamabad, 16 May 2023 (TDI): K-Electric (KE), in its commitment to increasing reliance on indigenous resource-based power generation and providing affordable energy access, has signed a Memorandum of Understanding (MoU) with the Government of Sindh (GoS), Oracle Power, and PowerChina. The partnership aims to explore the potential development of a 2×660 MW coal-fired power project based on Thar coal.
The signing ceremony saw the presence of CEO Moonis Alvi representing KE, Secretary Energy Abu Bakar Ahmed from the Government of Sindh, CEO Naheed Memon from Oracle Power, and Cheng Qiang from PowerChina.
Sindh Minister for Energy Imtiaz Shaikh emphasized the significance of electricity in driving development and progress, expressing optimism about the project’s positive impact on the entire province. The Government of Sindh has pledged full support until the project reaches maturity.
The primary objective of the MoU is to establish a collaborative framework among the partnering parties, laying the foundation for the ambitious power plant. For KE, this initiative aligns with their forward-looking plan to enhance generation capacity through the addition of low-cost, indigenous fuel-based power.
By 2030, the company aims to add a total of 2,200 MW to its generation capacity and increase the share of renewable energy to 30% of the overall energy mix. This generation capacity aligns with KE’s projections for the city, envisioning 5 million customers using 5,000 MW of electricity by FY30.
CEO Moonis Alvi expressed his excitement, emphasizing the company’s commitment to achieving net zero and addressing the energy trilemma of reliability, affordability, and sustainability. He stated that the partnership and future plans would significantly reduce reliance on imported fuels.
KE is also focused on increasing the share of renewable energy in the generation mix to provide affordable and sustainable electricity to customers. These plans are further supported by a comprehensive investment plan of PKR 484 billion, which will strengthen the network and effectively deliver energy to the growing customer base.
CEO Naheed Memon of Oracle Power reiterated the company’s dedication to the development of the CPEC-listed 1320 MW coal-to-power project. She highlighted Oracle Power’s world-class feasibility reports, which serve as benchmark documents for the project’s development.
Oracle Power is pleased to form a strategic relationship with KE as a potential off-taker, with the Government of Sindh playing a facilitating and vital role as a stakeholder.
Representatives from PowerChina emphasized the importance of the Thar Project in utilizing local coal resources and its significance within the China-Pakistan Economic Corridor (CPEC).
PowerChina, along with the guidance and participation of the Sindh Government, KE, and Oracle, pledged their support for the Indigenous Resource-Based Power Generation project’s success.
Oracle Power is an international natural resource and power project developer listed on the London Stock Exchange, while PowerChina is a Fortune 500-listed integrated construction group with a strong track record of completing various projects in Pakistan. They have ongoing projects worth billions of dollars in execution.
Earlier this year, KE also signed an MoU with China Three Gorges South Asia Investment Limited (CTGSAIL) to collaborate on exploring renewable energy projects across the country.