Delayed completion of transmission lines: NTDC may incur loss of $1b to national exchequer

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AMER SIAL

 

 

The government may have to pay an estimated $1 billion in capacity payment for electricity purchase from three power producers from next year onwards if the National Transmission and Despatch Company (NTDC) did not timely complete the transmission lines, an official source revealed.

Three under-construction power plants include the Sahiwal Coal Power Plant of 1320 MW, the Port Qasim Power Plant of 1320 MW and three LNG based power plants of cumulative 3600 MW being built in Sheikhupura, Jhang and Kasur by the government itself, to overcome the power shortage.

These plants are expected to be operational by second quarter of 2017. The laying of transmission lines, as per NEPRA’s latest report, seems impossible, the source said adding that in that case the capacity charges could be in billions of rupees. The government, he said, needed to take steps to complete the essential transmission line projects on urgent basis.

The NEPRA’s report compiled after detailed visit on NTDC’s ongoing projects said that most of the developmental works of the company were delayed. The commitment charges were being paid due to delay in execution of projects that was a drain on public exchequer.

The regulator further noted in its report that the transmission system should be in place six months before commercial operation of power plants to ensure seamless testing and its economic benefit during the testing phase, but major transmission lines and transformation system projects were behind the schedule by six months to three years.

It means that about 4,500MW of additional power generation capacity would be available in 2017-18, but sufficient transmission facilities would not be there to effectively absorb it, resulting in its dispersal on unreliable alternate lines. The shortfall would, therefore, come under control in major load centres of Punjab but loadshedding would not completely end in the whole of Punjab, Sindh and Balochistan.

Major generation projects like the 1,320 MW coal project at Port Qasim, 1,320 MW Sino-Sindh Resources, 660 MW Engro Thar Coal and 1,320 MW Jamshoro Coal are scheduled to reach the production stage before June 2017, but enabling conversion, switching and transmission systems would not be completed before June 2018. The Lahore-Matiari transmission line which is a must for evacuation of 4,500 MW of electricity from Thar and Port Qasim to Lahore and upcountry is yet to take off.

1 COMMENT

  1. National Transmission and Despatch Company Ltd (NTDC) has completed the construction work of two 500 kV transmission lines under its China Pakistan Economic Corridor (CPEC)
    projects, it was officially declared.

    The transmission lines are ready to evacuate power from 1200 MW RLNG Bhikki Power Plant and 1320 MW Sahiwal Coal Fired Power Plant. Thus cumulative 2520 MW power will be inducted in national grid once the aforesaid power plants start their generation, an
    official statement issued by the media wing of NTDC on Friday said. A 500 kV transmission line with 2.64 km length has been linked with Lahore-Gatti circuit from switchyard of 1200 MW Bhikki Power Plant. Whereas another 5 km long 500 kV transmission has been connected with Sahiwal-Lahore transmissions line and both the projects have been completed before time.

    Managing Director Dr Fiaz A. Chaudhry has said that NTDC is expeditiously pursuing its transmission line and grid stations projects. Interconnections for 1200 MW RLNG Balloki, 1200 MW Haveli Bahadur Shah, 660 MW Engro-Thar Coal Fired Power Plant will be completed before the commissioning of these power plants.

    He said that in the light of directions of government, the Port Qasim Power Plant would be operational 3 months prior to its deadline and evacuation of power is required for the same.
    Hence, temporarily 132 kV grid station and transmission line will be constructed and connected with K-Electric network as an interim arrangement to fulfill the requirement.

    Dr Fiaz A. Chaudhry appreciated the NTDC engineers and contractor for early completion of both projects and directed to boost up the work on other ongoing projects, the statement added.

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