Thar Energy Limited power station
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Thar Energy Limited power station is an operating power station of at least 330-megawatts (MW) in Singhara, Thatta, Sindh, Pakistan. It is also known as Thar Block II power station Unit 3, TEL Power Plant.
Location
Table 1: Project-level location details
| Plant name | Location | Coordinates (WGS 84) |
|---|---|---|
| Thar Energy Limited power station | Singhara, Thatta, Sindh, Pakistan | 24.806214, 70.400501 (exact) |
The map below shows the exact location of the power station.
Unit-level coordinates (WGS 84):
- ': 24.806214, 70.400501
Project Details
Table 2: Unit-level details
| Status | Fuel(s) | Capacity (MW) | Technology | Start year |
|---|---|---|---|---|
| operating | coal: lignite | 330 | CFB | 2022[1] |
Table 3: Unit-level ownership and operator details
| Owner | Parent |
|---|---|
| Thar Energy Ltd [100%] | Hub Power Co Ltd [60.0%]; Fauji Foundation [30.0%]; China National Machinery Industry Corp [10.0%] |
Project-level coal details
- Coal source(s): Thar block II
Background
The Thar Energy Limited power station and the ThalNova power station were formerly the second phase of the Thar Block II power station, but have become spun off into two separate projects, with separate ownership.
In October 2016, the National Electric Power Regulatory Authority (Nepra) accepted a generation license application from Thar Energy Limited (TEL) for a 330 MW mine-mount plant located in Thar Block II. The project was estimated at US$497.7 million. It was set to be financed mainly by debt raised from Chinese financial institutions, with the remainder raised from Pakistani banks.[2][3][4]
The project was permitted in May 2016.[5] The Private Power and Infrastructure Board issued a letter of support for the project in December 2016.[6]
In March 2017, Fauji Fertilizer Company (FFC), a subsidiary of the Fauji Foundation, took a 30% share in the project, and China Machinery Engineering Corporation (CMEC), the project's engineering, procurement, and constructor (EPC) contractor, took another 10%. The construction schedule was 40 months, with completion thus planned for 2020. Initial groundwork on the project had already begun.[7][8]
In March 2018, Hub Power Company Limited (Hubco), FFC, and CMEC signed the shareholders agreement.[9][10]
A June 5, 2018 updated list of "Upcoming IPPs" by the Ministry of Water & Power stated Thar Energy (unit 3 of Thar Block II) would be commissioned in March 2021, with financial close "in progress".[11] Then, December 2018 and April 2019 updated lists stated the unit was under construction.[12][13]
In November 2018, General Electric signed a 12-year equipment & maintenance services contract for the plant.[14]
In December 2018, Hubco signed a financing agreement with China Development Bank and Habib Bank for the plant's construction.[15]
On June 26, 2019, Thar Energy signed a land lease agreement with Sindh Engro Coal Mining Company for purchase of 244 acres of land for the coal plant project.[16]
A December 4, 2020 updated list of "Upcoming IPPs" by the Ministry of Water & Power stated Thar Energy (Thar Block-II, Sindh) would be commissioned in December 2021 and confirmed that financial close was achieved.[17]
Pakistan’s Indicative Generation Capacity Expansion Plan 2021-30 approved by the National Electric Power Regulatory Authority in September 2021 listed the project for commissioning in March 2022.[18]
As of January 2022, work was reportedly 73% complete.[19]
In May 2022, the company shared that the plant should be in commercial operation by July 2022. At this point, the project was 93% complete.[20]
In July 2022, operation would reportedly start in August.[21]
In October 2022, the project was inaugurated. According to the Prime Minister, a road network, bridges, and an airport would be required for the power station to beginning running on Thar coal.[22]
The Company has signed Power Purchase Agreement (PPA) with Central Power Purchasing Agency (CPPA-G) and in case of no demand for power, will still receive the capacity payments at applicable tariff rates. The Government of Pakistan has given payment guarantee against dues from CPPA-G.[23]
As of May 2024, Thar Energy Limited power station was reportedly not operating at full capacity due to system constraints.[24]
Financing
In December 2019, a financing agreement was closed for the 330-MW project. US$390 million in loans were set to be provided by China Development Bank and Habib Bank. The financial advisor for foreign financing was China Development Bank; while the financial advisor for local financing was Habib Bank. US$130 million in equity was to be provided by Fauji Foundation, Hub Power, and China Machinery Engineering Corporation (CMEC).[25]
The estimated cost of the project is USD 520mln. Debt financing constitutes 75% of the project cost, debt is US$ 390mln (75%) and equity US$ 130mln (25%). Total project debt has been funded by a mix of foreign (66.67%) and local debt (33.33%). The foreign debt has been sponsored by Chinese lenders with the consortium led by China Development Bank and China Minsheng Banking Corporation Limited. The local debt has been sponsored by Pakistani Banks with the consortium led by Bank Alfalah Limited including HBL, BAHL, NBP, FBL, SBL and Soneri Bank Limited. The principal repayment shall be made in 20 semi-annual payments.[23]
Coal source
In May 2019, the provincial Chief Minister directed Sindh Engro Coal Mining Company, the company operating the Thar Mine (Block II), to expand production in order to produce enough coal to feed the Thar Energy Limited and ThalNova power stations.[26]
The coal supply agreement with Sindh Engro Coal Mining Company (SECMC) is for 30 years, signed on May 13, 2017.[23]
Opposition
The Thar region's coal projects have been met with opposition, as described in detail for the Thar Block II power station. There have been street protests and visible mobilizations in reaction to plants, including lawsuits, public campaigns, street protests/marches, and sit-ins.
In May 2020, the Centre for Research on Energy and Clean Air (CREA) published a study titled, “Air Pollution, Health and Toxic Impacts of the Proposed Coal Mining and Power Cluster in Thar, Pakistan.” The report stated the proposed plants, including the 330 MW Thar Energy Limited power station, would constitute one of the largest air pollutant, mercury, and CO2 emissions hotspots in South Asia. The Alliance for Climate Justice and Clean Energy, a local Thar platform comprised of Pakistan’s leading environmentalists, helped launch the report.[27][28]
Articles and Resources
References
- ↑ https://web.archive.org/web/20240125153650/https://hubpower.com/thar-energy-limited/. Archived from the original on 25 January 2024.
{{cite web}}: Missing or empty|title=(help) - ↑ "Nepra admits CPEC power generation plants application," Daily Times, October 6, 2016
- ↑ "SEPA holds hearing on TNPTL 330 megawatts coal-based power plan," Business Recorder, October 7, 2016
- ↑ "Thar coal project achieves $2 billion financial close after govt guarantee," Dawn, April 12, 2016
- ↑ "Two local coal-based power projects of 660 MW approved," Pakistan Today, May 3, 2016
- ↑ "PPIB supports coal-based power plant under CPEC," Daily Times, December 14, 2016.
- ↑ "Hubco to divest 40pc shares in Thar Energy," Dawn, March 16, 2017.
- ↑ "Fauji Fertilizer and Hubco Join Hands for a 330MW Coal Power Plant in Thar," Pro Pakistani, March 15, 2017.
- ↑ "FFC, HUBCO sign agreement to set up 330 MW coal power plant," IEA, March 19, 2018
- ↑ "Analyst Briefing," Hub Power Company Limited, April 2, 2019
- ↑ "Upcoming IPPs," Private Power & Infrastructure Board, Ministry of Power, updated June 5, 2018
- ↑ "Upcoming IPPs," Private Power & Infrastructure Board, Ministry of Power, updated December 17, 2018
- ↑ "Upcoming IPPs," Private Power & Infrastructure Board, Ministry of Power, updated April 17, 2019
- ↑ "GE signs agreements to supply equipment and 12-year maintenance services for the 330 MW Thar Energy Limited Power Plant in Pakistan," GE press release, November 7, 2018
- ↑ "Hubco signs financial deal for Thar Energy Limited in Beijing," Daily Times, December 22, 2018
- ↑ "Growth Aspirations," Hubco, accessed December 2019
- ↑ "Upcoming IPPs," Private Power & Infrastructure Board, Ministry of Power, updated December 4, 2020
- ↑ “Indicative Generation Capacity Expansion Plan 2021-30,” National Transmission and Despatch Company, September 2021
- ↑ "330MW HUBCO Thar Coal Power Project (Thar Energy)," CPEC, accessed January 2022
- ↑ "Pakistan to get another indigenous 330MW coal based power plant in two months," AUGAF, May 5, 2022
- ↑ "Federal Cabinet Approves 23,964MW Power Generation Plan," Pro Pakistani, July 5, 2022
- ↑ "PM inaugurates 330 MW Power Plant of Thar Energy Limited," Dunya News, October 10, 2022
- ↑ 23.0 23.1 23.2 "Thar Energy Limited - Rating Report" (PDF). pacra.com. September 2021.
{{cite web}}: CS1 maint: url-status (link) - ↑ "PPIB asks SECMC to supply Thar coal to LEPCL," Business Recorder, May 15, 2024
- ↑ "Preview of Thar Block-II Thar Energy Coal-Fired Plant (330MW) IPP," IJGlobal, accessed September 21, 2020
- ↑ "Hubco to set up two power projects in Thar," Express Tribune, May 7, 2019
- ↑ “China-backed coal projects in Thar herald dark environmental future,” Pakistan Forward, June 5, 2020
- ↑ “Air Pollution, Health and Toxic Impacts of the Proposed Coal Mining and Power Cluster in Thar, Pakistan,” Centre for Research on Energy and Clean Air, May 2020
Additional data
To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.
