The power utility company in Pakistan, K-Electric, has approached the National Electric Power Regulatory Authority (NEPRA) to extend or renew the useful life of Unit 1 and Unit 2 of the Bin Qasim Power Station (BQPS-1).

According to the regulator, K-Electric has applied to extend or renew the useful life of these two units, which are part of its generation license issued on November 18, 2002. The application was submitted by Regulation-II of NEPRA’s Licensing (Application, Modification, Extension, and Cancellation) Procedure Regulations, 2021.

In this regard, NEPRA published a public notice on August 06, 2024, seeking comments from the general public, interested/affected persons, and relevant stakeholders.

The existing generation license for BQPS-1 had the useful life of Unit 1 and Unit 2 expiring in October 2023. K-Electric has now requested to extend the useful life of these two units for an additional four years, until 2027.

According to NEPRA, the power utility company K-Electric (KEL) is expecting steady growth in electricity demand from the fiscal year 2025 to 2027. To meet this anticipated demand, KEL has planned to add new generation capacity.

However, as a prudent utility practice, KEL has requested NEPRA to allow it to retain Unit 1 and Unit 2 of the Bin Qasim Power Station (BQPS-I) until the new coal-fired power plant becomes operational, which is expected by fiscal year 2027. KEL wants to use these two units as a secondary spinning reserve and to help avoid increased load management during the peak summer season in case of any unforeseen events.

KEL has maintained that this request is made to address potential contingencies, such as:

• Unavailability of the National Transmission and Dispatch Company (NTDC) interconnection;
• Forced outages of KEL’s and Independent Power Producers’ (IPPs) generation fleet;
• Shortfall in RLNG/gas supply due to reasons beyond KEL’s control;
• Pending regulatory and government approvals for the planned local coal-fired power plant.

KEL has stated that Units 1 and 2 of BQPS-I will be operated based on an Economic Merit Order (EMO) to serve any contingency requirements and maintain a secondary spinning reserve to address emergencies. The availability of these units will also help alleviate the constraints of low gas pressure and avoid the utilization of expensive High-Speed Diesel (HSD).

NEPRA has invited comments from all stakeholders, interested/affected persons, and the general public regarding K-Electric’s (KEL) request for an extension or renewal in the term/useful life of Unit 1 and Unit 2 of the Bin Qasim Power Station (BQPS-I) as part of its generation license.

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