Pakistan's 660MW Jamshoro coal-fired power plant has been operating at 6pc capacity since its commissioning in May, underscoring weak electricity demand and broader structural challenges in the country's power sector, according to think tank the Institute for Energy Economics and Financial Analysis (IEEFA).
The imported coal-fired plant, part of a state-owned generation facility in Sindh province of Pakistan, was built with international financing led by the Asian Development Bank. It has been operating at low capacity at a time when the national grid currently has a surplus of 10–12GW, IEEFA said in its report released last week.
The plant's weak operational metrics has capped growth potential of Pakistan's overall coal imports. The country's thermal imports are estimated at 752,000t in December, up from 503,000t a year earlier, according to data analytics firm Kpler.
Low utilisation rates also exacerbate financial stress in the sector, as power tariffs must rise to cover capacity charges to operate the plant, IEEFA said in its report. Capacity payments are fixed charges owed to generators regardless of output.
Expansion scrapped
Jamshoro Power has dropped plans to add another 660MW coal-fired unit at the facility, which also includes 880MW of gas- and oil-fired power plants.
The company has moved to exclude the generating license for the second 660MW coal unit from the project, citing lack of funds for construction, power regulator Nepra said in a notice to stakeholders.
Jamshoro Power company was originally licensed to operate two 660MW units, but only one was built and entered commercial operation in May.
The company has also proposed de-licensing its four oil-fired generation units, which have a combined capacity of 880MW.
