KARACHI, Sept 9: Pakistan’s biggest power utility is seeking the government approval for the construction of a grid station that would enable independent power producer Hub Power Company to directly supply power to Karachi Electric Supply Corporation by 2006, industry sources said on Tuesday.

The state-run Water and Power Development Authority has sent a proposal for the project to the government for approval, a Wapda source told Dow Jones Newswires.

KESC is facing a power shortfall of 800-1000 megawatts. KESC can get a maximum of 600 megawatts from Wapda’s transmission line, but if the new proposal is approved then the utility can directly obtain power from Hubco’s 1,200-megawatt plant, a KESC official said.

“This will give us an additional source of power supply,” he said. Hubco, in which the UK’s International Power (IPR) has a 20.7-per cent stake, is the country’s biggest independent power producer and sells power to Wapda under a tariff agreement.

The project is likely to boost Hubco’s capacity utilization that stood at just 26 per cent in the financial year ended June 30, because of lower demand from Wapda.

According to the proposal, Wapda plans to build a 500/220 kilovolt grid station on the 500 kv transmission lines between Hubco’s power plant near Karachi and Jamshoro at a cost of Rs3.09 billion.

The proposed grid station would be located seven kilometres away from KESC’s 220-kv grid station.

“After the commissioning of the grid station, KESC will have two sources of power exports from Wapda system, which will improve the quality and reliability of power exports to KESC,” a source said.

Less power transmission will be lost between KESC and Wapda after construction of the grid station, the proposal says. —Dow Jones Newswires