To address rising energy costs, the government has established a special committee to oversee the transition of three major Independent Power Producers (IPPs) from imported coal to Thar coal.
The targeted IPPs—Sahiwal, Port Qasim, and Hub—boast a combined capacity of 3,960 MW and are part of the China-Pakistan Economic Corridor (CPEC). These plants are set to benefit from Thar’s extensive coal reserves.
The conversion of Huaneng Shandong Ruyi, Sahiwal, Port Qasim Project, Karachi, and China Power Hub Generation, Hub, to Thar coal aims to ease financial pressures, support broader reforms to lower electricity prices, and enhance energy efficiency. Each of these IPPs has a capacity of 1,320 megawatts.
The federal energy minister has appointed a committee led by the Additional Secretary-I of the Power Division. The committee also includes Ali Nawaz, Director General (Thermal) at the Private Power and Infrastructure Board (PPIB), and private sector experts Shamsuddin Sheikh and Shahab Qadir, Chief Strategy Officer of K-Electric.
The committee’s main task is to coordinate with the IPPs and stakeholders to develop comprehensive technical and financial feasibility studies for converting these plants to Thar coal.
A major challenge is the logistics of transporting coal from the Thar mines to the power plants, which will require innovative solutions to ensure cost-effectiveness and efficiency.
In addition to feasibility studies, the committee will review and finalize these studies and provide the government with recommendations and an implementation plan if the conversion is deemed viable. The findings will be reported to the Secretary of the Power Division, who may involve additional relevant organizations as needed.
