Thar Coal Power Generation Potential
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Private Power and Infrastructure Board Ministry of Water & Power Government of Pakistan Foreword NETWORK: completed upto coalfield in Thar Nagarparkar Granite area and connecting all major towns of Thar including coal fields with Karachi (ii) Sindh province is blessed ELECTRICITY: available upto coalfield, (iii) with abundant coal reserves. COMMUNICATION: optical fiber line available upto Over 90% of Pakistan's coal coalfield, provision of optical fiber network between reserves are in Sindh. Mithi Islamkot-Thario Halepoto (Tharcoal Project site) Exploitation of these coal is available, (iv) WATER SUPPLY: available upto resources for power coalfield, line from Mithi to Islamkot and to coal mine generation to meet Pakistan's growing energy needs is a has been completed and water is available at Thario matter of national Halepota (Tharcoal Project site) (v) REVERSE importance. Shaheed Mohtarma Benazir Bhutto made OSMOSIS PLANTS: established near coalfield, (vi) exploitation Pakistan's Coal resources for meeting power AIRSTRIP: at design stage the location has been selected generation needs of the country a corner stone of PPP's in between Bhope-jo-Tar and Sive-jo-Tar, (vii) manifesto for the 2008 elections. The present Federal ENVIRONMENT: EIA of coal mining and coal fired and Provincial Governments of PPP are committed to power generation to be initiated, (viii) RAILWAY LINE: realizing this vision. to make Thar coalfield accessible for development and transportation, scheme for construction of railway line Mohtarma Benzir Bhutto Shaheed in her second stint as from Varvai-Islamkot Mithi Naukot Drigri-Mirpurkhas- Prime Minister of Pakistan invited the Independent Power Hyderabad has been approved. Producers (IPPs) to facilitate private sector investment in power generation in the country, as she understood In order to exploit Thar Coal resources on a fast track the growing needs of energy in the country. basis for power generation, in July 2008 the Federal Government of Pakistan and Provincial Government of The Thar lignite deposits were discovered in the early Sindh have decided to work together; for this purpose, 1990's. The resource with its estimated total reserve of a Thar Coal & Energy Board (TCEB) has been 175 billion tonnes is large by world standards, is established. Main purpose of TCEB is to function as reasonably close to the major population and load centres one-stop organization and decision taking body to of Hyderabad and Karachi, and can be connected to the facilitate investment and development of Caol based main Pakistan electricity and gas grids. Thar Coal reserves power projects. are spread over a single geographically contained area of 9000 sq. km. The development of the Thar resources would provide a certain degree of long-term energy security to Pakistan. Lignite coal similar to Thar Coal in quality and less The electricity generation potential of 100,000 MW calorific value and higher stripping ratios (i.e. overburden) based on estimated consumption of 536 million tones of has been exploited profitably in Germany, Poland, India, coal per year,, could be a significant fuel resource used and other countries. for provision of coal base load capacity in the system supplementing gas based capacity. Further, use of Thar The Government has facilitated infrastructure reserves for power generation would help in reducing development at Thar which includes: (i) ROAD excessive reliance on imported fuel thereby reducing the pressure balance of payments of the country. Thar Coal resources for meeting Pakistan's energy needs. The Thar lignite resource presents an opportunity for Prospective investors are encouraged by GOP and GOS development into a sustainable fossil fuel reserve that to come up with proposals focusing on maximum has the capability of meeting a significant portion of the utilization of indigenous Coal resources. Pakistan's energy demand. It also presents an excellent opportunity for profitable investment for prospective investors, and GOP and GOS are committed facilitate Syed Qaim Ali Shah prospective investors for expeditious development of Chief Minister Government of Sindh Coal Power Generation Chain Mine: Refuse disposal: Cleaning plant: Transportation: Boiler: Storage: Pulverizer: Baghouse: FGD System: Ash and sludge disposal: .................................................................................................................................................................................................................................................. TABLE OF CONTENTS Page INTRODUCTION Chapter-1 Power Generation Potential Of Indigenous Coal Resources..................................................................1 Chapter-2 Why Invest In The Coal Power Generation Sector ................................................................................3 Chapter-3 Coal Resources of Pakistan 5 3.1 Thar Coal 5 3.2 Thar Coal Field.........................................................................................................................6 3.3 Thar Coal Geology ...................................................................................................................7 3.4 Thar Coal Field Underground Water........................................................................................8 3.5 Thar Coal Field Road and Rail Network ..................................................................................9 3.6 Thar Lignite Similarity with other Countries ...........................................................................9 3.7 Thar Coal Cost-Effectiveness & Various Studies ..................................................................10 3.7.1 Extract from Shenhua Study ..................................................................................11 3.7.2 Extract from RWE Study .......................................................................................12 Chapter-4 Role of Stake Holders in the Coal Development & .............................................................................13 its Utilization In Coal Power Generation of Pakistan 4.1 Thar Coal & Energy Board.....................................................................................................13 4.1.1 Status of other Agencies .........................................................................................14 4.2 Private Power & Infrastructure Board (PIPIB).......................................................................14 4.3 WAPDA Private Power Organization ....................................................................14 4.4 National Electric Power Regulatory Authority (NEPRA)......................................................14 4.5 Ministry of Petroleum & Natural Resources ..........................................................................15 4.6 Pakistan Environmental Protection Agency (PEPA)..............................................................15 4.7 Provincial Agencies................................................................................................................15 4.8 Directorate of Industries and Mineral Development (DIMDs) ..............................................15 Chapter-5 Salient Features and Incentives For Prospective Sponsors of ..............................................................17 Coal Power Generation Projects under Power Policy 2002 5.1 Salient Features of Power Policy 2002.................................................................................................17 5.2 Incentives for Setting-up Indigenous Coal Based Power Plant............................................................17 5.3 Additional Concessions/Amendments in Power Policy 2002 ..............................................................18 5.4 New Amendments in Power Policy 2002.............................................................................................19 (i) Chapter-6 Processing of Integrated Coal Mining Cum Power Generation ..........................................................21 Project 6.1 Procedures for coal mining portion ......................................................................................................21 6.2 Processing at PPIB (under Policy for Power Generation Projects 2002 ..............................................22 6.3 Requests for Proposal (RFP) ................................................................................................................23 6.4 Feasibility Study...................................................................................................................................23 6.5 Evaluation of Bids ................................................................................................................................24 6.6 Submission of Proposals.......................................................................................................................24 6.7 Letter of Interest (LOI).........................................................................................................................24 6.8 Bid Bonds/Letter of Support/Performance Guarantee/Processing Fee ................................................25 6.9 Project Implementation ........................................................................................................................26 6.10 Power Tariff..........................................................................................................................................26 6.11 Environment .........................................................................................................................................26