Jamshoro power station
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Jamshoro power station is an operating power station of at least 450-megawatts (MW) in Jamshoro, Sindh, Pakistan with multiple units, some of which are not currently operating. It is also known as GENCO-I power station, GENCO-I power station Lot-II (Unit 6), Lot-1 (Unit 5).
Location
Table 1: Project-level location details
| Plant name | Location | Coordinates (WGS 84) |
|---|---|---|
| Jamshoro power station | Jamshoro, Sindh, Pakistan | 25.472222, 68.266111 (exact) |
The map below shows the exact location of the power station.
Unit-level coordinates (WGS 84):
- Unit 5, Unit 6: 25.472222, 68.266111
- Unit 1-1, Unit 2-1, Unit 2-2, Unit 2-3: 25.472717, 68.265811
Project Details
Table 2: Unit-level details
| Unit name | Status | Fuel(s) | Capacity (MW) | Technology | CHP | Start year | Retired year |
|---|---|---|---|---|---|---|---|
| Unit 1-1 | operating[1] | fuel oil[2] | 250[2] | steam turbine[2] | not found | 1990[2] | 2023 (planned) |
| Unit 2-1 | operating[1] | gas, fuel oil[2] | 200[2] | steam turbine[2] | not found | 1989[2] | 2023 (planned) |
| Unit 2-2 | retired[1][3][4] | gas, fuel oil[2] | 200[2] | steam turbine[2] | not found | 1990[2] | 2022[4] |
| Unit 2-3 | retired[1][3][4] | gas, fuel oil[2] | 200[2] | steam turbine[2] | not found | 1991[2] | 2022[4] |
| Unit 5 | construction | coal - subbituminous | 660 | supercritical | – | 2023 | – |
| Unit 6 | permitted | coal - lignite | 660 | supercritical | – | 2029 | – |
CHP is an abbreviation for Combined Heat and Power. It is a technology that produces electricity and thermal energy at high efficiencies. Coal units track this information in the Captive Use section when known.
Table 3: Unit-level ownership and operator details
| Unit name | Owner | Parent |
|---|---|---|
| Unit 1-1 | Jamshoro Power Company Limited (JPCL, GENCO-I)[2] | Pakistan Electric Power Company (PEPCO) [100.0%] |
| Unit 2-1 | Jamshoro Power Company Limited (JPCL, GENCO-I)[2] | Pakistan Electric Power Company (PEPCO) [100.0%] |
| Unit 2-2 | Jamshoro Power Company Limited (JPCL, GENCO-I)[2] | Pakistan Electric Power Company (PEPCO) [100.0%] |
| Unit 2-3 | Jamshoro Power Company Limited (JPCL, GENCO-I)[2] | Pakistan Electric Power Company (PEPCO) [100.0%] |
| Unit 5 | Jamshoro Power Co Ltd (JPCL) [100.0%] | – |
| Unit 6 | Jamshoro Power Co Ltd (JPCL) [100.0%] | – |
Project-level coal details
- Coal source(s): 80% imported sub-bituminous; 20% domestic lignite
Background
Jamshoro Power Station is a thermal power plant fueled by natural gas and fuel oil located near Sindh. It is operated by the Jamshoro Power Company (GENCO-I). It consists of one 250 MW unit (fuel oil) and three 200 MW units (fuel oil and natural gas). [5]
Coal Units
In February 2014, the Asian Development Bank (ADB) agreed to loan US$900 million to the government of Pakistan for a project to install a 600 MW supercritical coal-fired power plant at Jamshoro.[6] In addition to the $900 million ADB loan, Pakistan also secured $220 million from the Islamic Development Bank.[7]
The 600 MW supercritical coal-fired power generation plant, using an 80/20 blend of imported sub-bituminous coal and domestic lignite when available, would allegedly be in accordance with international and national environmental standards. [8][9]
By 2015, the project had changed to construction of a new 660-MW coal-fired unit and switching of an existing fuel oil-based 660 MW power plant to supercritical coal technology,[7] at a total cost of US$1.7 billion. In June 2015, officials of the Asia Development Bank told the Cabinet Committee on Energy that completion of the two units of the plant by 2018 and 2019 would not be possible because of the ADB's lengthy financing process.[10]
As of February 2016, construction was still not scheduled to begin until Q1 2017 at the earliest. ADB officials complained that regulators had been slow in processing applications for bids, and that financing for a rail link had yet to be secured.[11] In May 2016, the Ministry of Water and Power invited bids on a engineering, procurement, & construction (EPC) contract for the project.[12][13]
As of January 2017, proposals from construction contractors were under review, with that review expected to be concluded in Q2 or Q3 2017.[14] In April 2017, Jamshoro Power signed a memorandum of understanding with Sindh Engro Coal Mining Company for supply of lignite coal from the Thar Block II coalfield (where the Hubco Thar Block II minemouth power station would be located) to the future Jamshoro coal plant.[15]
In September 2017, it was reported that less than $10 million or just 1.1% had so far has been disbursed by ADB. There were also issues with the construction of coal receiving and transporting infrastructure for the power station, because both the parties were still in the process of finalising those arrangements.[7]
In March 2018, the engineering, procurement and construction (EPC) contract for the first 660 MW unit was awarded to a joint venture of Siemens and Chinese Harbin Electric International (HEI). The EPC for unit 2 would be signed once the financing arrangement was finalized. Unit 1 was planned for 2022.[16] The EPC cost was 40% less per megawatt than coal plants negotiated as part of the China-Pakistan Economic Corridor coal projects, leading to public pressure to review the PPAs in the CPEC.[17]
In May 2019, the Islamic Development Bank assured the Pakistani government of its ongoing support for the project.[18]
Construction work began on unit 5 in 2019.[19] Commissioning was planned for 2023.[20]
In July 2020, the Sindh energy department recommended the federal power ministry design and run unit 6 on only indigenous Thar Coal.[21]
In late 2020, the Pakistan government was debating whether to shelve unit 6 of Jamshoro due to slow progress.[22]
In June 2021, the Federal Minister for Finance and Revenue Shaukat Tarin noted that the government proposed Rs118 billion in the Budget 2021-22, including Rs22 billion earmarked to complete the already started coal fired power plant project in Jamshoro. The announcement appeared to reference both units.[23]
Pakistan’s Indicative Generation Capacity Expansion Plan 2021-30 approved by the National Electric Power Regulatory Authority in September 2021 only listed Unit 5, scheduled for completion by October 2022.[24]
Two sources stated that the Unit 5 extension could come online by the end of 2022.[25][26] As of July 2022, progress on site was reported at 91%.[27] As of January 2023, one media source from September 2022 stated that the completion date had now been revised to June 2023.[28]
Based on the financing news below, Unit 6 was considered shelved as of early 2022. However, media references continued to imply that the second unit of the expansion (Unit 6) was still a possibility, even though no progress was reportedly made by the Energy Ministry for the EPC.[28]
K-Electric (KE) also expressed interest in purchasing power from the additional unit in September 2022. In order to meet the rising power need of the city of Karachi, KE was planning to optimize its fuel mix through inducting a combination of renewable and base load plants based on indigenous resources like local coal. KE expressed its strong interest in the new unit and noted it was willing to oversee its further development "in case GoP wishes not to undertake any future development."[29]
Pakistan’s Indicative Generation Capacity Expansion Plan 2022-31 released in September 2022 included Unit 6 in modeling. It was listed as an "optimized" project for commissioning by July 2029 in the "High Demand Scenario."[30]
Potential conversion to domestic coal
In September 2023, AsiaPak International, the new owner of utility company K-Electric, was reportedly lobbying the Pakistan government for approval to convert Unit 5 to operate solely on domestic lignite from the Thar coal fields. AsiaPak International was an investor in the Block-1 Thar lignite mine.[31] If approved, Unit 5 could begin commercial operations using domestic coal by September 2024. K-Electric also maintained interest in developing an additional 660 MW unit (Unit 6).[32]
According to reporting from December 2023, the CEO of Jamshoro Power Co. Ltd. (JPCL) asked the Pakistan Power Division to engage an "independent consultant for a comprehensive financial and technical analysis to evaluate the feasibility and economic advantages of the conversion option." Converting the plant to operate on local Thar lignite instead of imported sub-bituminous coal was expected to delay commercial operation of Unit 5 by 18 months and cost an additional $60–$105 million. Furthermore, the EPC contractor reportedly lacked experience in converting the ultra-supercritical boiler to run on lignite.[33] One legal expert noted that a conversion would require more overall coal to generate the same amount of power, as Thar coal has a lower calorific value than imported sub-bituminous coal.[34]
In April 2024, the government of Pakistan announced their intent to convert all coal plants currently using imported coal to run on domestic coal.[35]
New Technical Committee for second unit (Unit 6)
In January 2023, it was reported that K-Electric (KE) proposed three structures for its participation in the second proposed 660 MW unit, saying it could be fast-tracked by structuring the transaction under a "G2G framework" with Saudi Arabia. A "Technical Committee" of stakeholders conducted meetings and site visits for the expansion in December 2022 and January 2023. A report identified the following key considerations:[36]
- (1) Clarity of available Financing for Unit-2: "Considering that this is one of the most crucial elements of the transaction, KE has requested all concerned agencies of the Government of Pakistan (GoP) to retain interest of the existing sovereign funds, like the Saudi Fund for Development (SDF), and Kuwait Fund for Arab Economic Development (KFAED) for the development of Unit-2 in private mode." (...)
- (2) Separation of Common Facilities: "Since both Units of the Project were designed to be operated as a combined facility, many common facilities were included in the project design. To develop unit-2 in a distinct private structure, separation amongst the common facilities is critical from both technical and regulatory perspectives."
- (3) Change of Design: "Both units of the Project have been designed to utilize mix of imported and local coal (80% imported sub-bituminous coal and 20% local Thar lignite coal). As Unit-2 is now conceived on 100% local coal, critical design modifications will be required for development of Unit-2, based upon detailed studies."
- (4) Lender’s Consent: "Consent of Asian Development Bank (ADB) that is the existing lender of the project will be essential for the separation of Unit-1 and 2 of the projects."
- (5) Scheme of Power Evacuation by KE: "A detailed study will be required for this purpose to gain firm clarity on the most optimal scheme for power evacuation."
At a March 2023 meeting of the technical committee, the Pakistani government ruled out providing a guarantee for the project.[37]
Financing
Unit 5: In March 2014, financial closure was achieved for unit 5 after US$1,120 million in loans were secured from the Islamic Development Bank (US$220 million) and Asian Development Bank (US$900 million).[7] US$380 million in equity is being provided by the Government of Pakistan.[38][39]
Unit 6: In 2019 financial closure was achieved with US$303 million in debt from the Islamic Development Bank (US$100 million), Saudi Fund for Development (US$91 million), Kuwait Fund for International Development (US$40 million), the OPEC Fund for International Development (US$72 million).[40][41] In early 2022 it was reported that IsDB and OPEC fund pulled out and as such financing did not become effective.[41]
Slow progress reported by Asian Development Bank
Two years after arranging loans from international lending agencies, the project still could not begin construction, according to a report by the Asian Development Bank (ADB). The report stated: "As of January 2016, no construction, rehabilitation or remediation activities had commenced on the site and none is envisaged to commence until the first quarter of 2017."[39]
Among the issues identified by the ADB report was that the Ministry of Water and Power had wasted significant time in finishing the bid documents. In addition, the coal receiving facility at Port Qasim had not secured financing and there was no allocation in the Public Sector Development Programme's current budget for the facility.[39]
Criticism of ADB's role
In May 2017, attendees at ADB's Annual Meeting in Yokohama criticized the Bank's funding of coal power projects, specifically singling out the Jamshoro project for criticism.[42] In October 2018, in response to criticism, Yongping Zhai, the director of the Asian Development Bank's Energy Division, named the Jamshoro plant as the last coal-fired power project that ADB had committed to funding (in 2013): "The last such instance was five years ago in Pakistan, where we supported the Jamshoro supercritical coal-fired power plant, which prior to our investment was running on highly-polluting heavy fuel oil."[43]
Expansion
In November 2019, it was reported that financial close for unit 6, amounting to US$303 million, had been achieved. Islamic Development Bank would contribute US$100 million, Saudi Fund for Development US$91 million, Kuwait Fund for International Development US$40 million, and the OPEC Fund for International Development US$72 million.[40]
In February 2022, it was reported that the Islamic Development Bank (IsDB) and OPEC Fund were said to have cancelled loans amounting to US$172 million for one 660 MW unit on the request of Government of Pakistan. An Economic Affairs Division (EAD) letter dated October 18, 2021 reportedly conveyed a government request to cancel "Lot-II" (presumably unit 2) financing. According to IsDB’s Officer in charge, Hammad Hundal, Jamshoro project was approved by the Bank on April 11, 2019 and the financing agreement was signed on November 22, 2019 but the project was never declared effective since all required effectiveness conditions were not fulfilled. As such, no disbursement has been made against the project.[41]
In April 2023 it was reported that financing of Unit 6 under the new structure proposed by K-Electric (see 'Technical Commitee' section above) faces challenges.[44] Due to the current embargo on coal financing by Western and Chinese lenders, it is vital to retain Saudi Fund for Development (SFD) and Kuwait Fund for Arab Economic Development (KFAED). Asian Development Bank (ADB) is also mentioned as a potential lender.[44]
Involuntary resettlement
According to the Project Detail sheet, the project was set to involve involuntary settlement, described as follows:[9]
- "Approximately 100 acres of land belonging to 18 landowners (with a total of 106 family members) is required for an ash pond at Jamshoro TPS. Consultations were held with the owners and they are willing to negotiate with JPCL on the price. A land acquisition and resettlement plan was prepared and disclosed on ADB?s website on 19 September 2013; it will be updated to reflect the final list of owners and price agreed between the owners and JPCL."
Articles and Resources
References
- ↑ 1.0 1.1 1.2 1.3 (PDF) https://web.archive.org/web/20240125191232/https://nepra.org.pk/publications/State%20of%20Industry%20Reports/State%20of%20Industry%20Report%202022.pdf. Archived from the original (PDF) on 25 January 2024.
{{cite web}}: Missing or empty|title=(help) - ↑ 2.00 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 https://web.archive.org/web/20220129083057/http://jpcl.com.pk/tps-jamshoro-info/. Archived from the original on 29 January 2022.
{{cite web}}: Missing or empty|title=(help) - ↑ 3.0 3.1 (PDF) https://web.archive.org/web/20240201132902/https://www.nepra.org.pk/licensing/Licences/IGCEP/LAT-01%20NTDC%20IGCEP-2022-31%2001-02-2023%201550-90.PDF. Archived from the original (PDF) on 01 February 2024.
{{cite web}}: Check date values in:|archive-date=(help); Missing or empty|title=(help) - ↑ 4.0 4.1 4.2 4.3 (PDF) https://ntdc.gov.pk/ntdc/public/uploads/services/planning/power%20system%20statistics/Updated%20Version%20of%20Power%20System%20Statistics-May%202023.pdf.
{{cite web}}: Missing or empty|title=(help) - ↑ State of Industry Report 2020, Pakistan National Electric Power Regulatory Authority (NEPRA)
- ↑ "ADB Provides $900 Million for Jamshoro Power Project," Asian Development Bank News and Events, February 12, 2014
- ↑ 7.0 7.1 7.2 7.3 "$900m ADB loan stuck in red tape," The Express Tribune, September 19, 2017
- ↑ "IDB approves 220m for Jamshoro Power Project," Dawn, March 30, 2014
- ↑ 9.0 9.1 "47094-001: Jamshoro Power Generation Project - Project Data Sheet (PDS): Details," Asian Development Bank, accessed March 2015
- ↑ Zafar Bhutta, "Coal Based Energy Delay in Financing Slows Down Jamshoro Power Project," Express Tribune, July 22, 2015
- ↑ "Jamshoro coal power plant: Work yet to begin as project delay enters third year," Express Tribune, February 16, 2016
- ↑ "Govt to invite bids for $1.7b Jamshoro coal plants," Express Tribune, May 7, 2016
- ↑ "Invitation for Technical Proposals: Jamshoro Power Generation Project," Asian Development Bank, May 6, 2016
- ↑ "Environmental Monitoring Report: PAK: Jamshoro Power Generation Project," Asian Development Bank, January 2017
- ↑ "Jamshoro Power inks pact with SECMC for lignite purchase," Dawn, April 2, 2017
- ↑ "Jamshoro to have Pakistan's first 'supercritical coal-fired plant'," The Tribune, March 30, 2018
- ↑ "Cost of CPEC coal power projects per MW 40pc higher," The News, May 9, 2018
- ↑ "IsDB expresses readiness to finance Jamshoro Coal Fired Power Plant," Radio Pakistan, May 2, 2019
- ↑ "PAK: Jamshoro Power Generation Project," ADB Environmental Monitoring Report, July 2019
- ↑ "ARAKO has delivered its special product to Japan and Pakistan," Arako website, September 30, 2020
- ↑ "Power ministry urged to run JPCL plant-II on Thar Coal," Brecorder, July 17, 2020
- ↑ "Pakistan asked to abandon coal," Energy Central, November 11, 2020
- ↑ "Govt proposes Rs 118bn budget to enhance energy distribution," Dunya News, June 11, 2021
- ↑ “Indicative Generation Capacity Expansion Plan 2021-30,” National Transmission and Despatch Company, September 2021
- ↑ “Trial run of Lucky, Thar power plants begins,” Dawn, January 30, 2022
- ↑ “State of Industry Report 2021,” National Electric Power Regulatory Authority, October 2021
- ↑ "Coal-fired Jamshoro power plant: MoF to issue LoC for Rs10bn loan pact with Faysal Bank". www.brecorder.com. July 15, 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ 28.0 28.1 "Overheads in Jamshoro Power Generation Project Surge to $274 Million". propakistani.pk. September 30, 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Jamshoro coal power plant (Genco-1): KE interested in purchasing power". www.brecorder.com. September 21, 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Approval of IGCEP 2022 and onward submission to NEPRA," NTDC, September 14, 2022
- ↑ "Pakistani company to convert Jamshoro plant from imported to local coal for cheaper power generation," Arab News, September 12, 2023
- ↑ "AsiaPak to switch Jamshoro power plant to indigenous Thar coal," The News International, September 12, 2023
- ↑ "Conversion of plant to Thar coal: JPCL CEO asks PD to take informed decision," Business Recorder, December 8, 2023
- ↑ "Jamshoro Power Plant faces technical, environmental hurdles in coal switch: experts," The News International, February 25, 2024
- ↑ "‘All plants to shift to local coal’," The Express Tribune, April 16, 2024
- ↑ "Jamshoro coal-fired power plant unit: KE proposes three participation structures," Business Recorder, January 26, 2023
- ↑ "Exclusive: Govt, K-Electric in talks for development of 660MW Unit-II of Jamshoro Coal," Profit, April 5, 2023
- ↑ "Preview of Jamshoro Supercritical Coal-Fired Power Plant Expansion (Lot-I) (600MW)," IJGlobal, accessed September 21, 2020
- ↑ 39.0 39.1 39.2 "Jamshoro Coal Plant in Limbo," Energy Central, May 5, 2016
- ↑ 40.0 40.1 "New Jamshoro power plant reaches $303mln financial close," The News, November 22, 2019
- ↑ 41.0 41.1 41.2 "660-MW Jamshoro coal power plant: $172m loans cancelled on GoP plea," brecorder, February 14, 2022
- ↑ "Asian Development Bank Grilled by NGOs for Coal Investments," Climate Tracker, June 9, 2017
- ↑ Yongping Zhai, "No place for 'dirty energy' in ADB’s climate vision," Asian Development Bank press release, October 2018.
- ↑ 44.0 44.1 "Exclusive: Govt, K-Electric in talks for development of 660MW Unit-II of Jamshoro Coal". pakistantoday.com.pk. April 5, 2023.
{{cite web}}: CS1 maint: url-status (link)
Additional data
To access additional data, including interactive maps of the power stations, downloadable datases, and summary data, please visit the Global Coal Plant Tracker and the Global Oil and Gas Plant Tracker on the Global Energy Monitor website.
