The need to increase access to electricity has led many governments of the emerging economies to implement a variety of strategies such as privatisation to increase investment in the electricity sector, enacting government policies to encourage investment from potential foreign participants, and introducing rural electrification schemes aimed at bringing electricity to rural communities, both to improve standards of living and to increase the productivity of rural societies.
Relatively low cost, balanced geographical and political distribution and substantial energy density has made coal as first choice fuel for electricity. In US coal prices are equal to $1.98 for each million British thermal units of energy, compared with $12.51 for fuel oil and $6.91 for natural gas. Almost 40 per cent of global electricity generation is currently based on coal and according to the US Department of Energy more than 1,000 coal-fed power plants will be built in the next five years, mostly in China and India.
Coal based electricity generation technologies are well-established and technical capacity and human expertise is widespread. Coal is regarded as a safe and reliable fuel in countries with little or no domestic coal production. Japan where 28 per cent of electricity is generated using coal is the world’s largest steam coal importer and has imported 97.1 Mt coal in 2004. In Denmark also around 46 per cent of the electricity is produced from coal, mostly imported.
Pakistan’s coal resources are estimated at 184.5 billion tonnes (82,700 MTOE), 95 per cent of which are in the Thar in Sindh. Thar coal however is not of good quality. It has high sulphur content and low thermal efficiency, which means huge amounts of coal, is needed to generate electricity. Currently, the share of coal in the over all energy mix is less than seven per cent. Only one 150MW Lakhra Power Plant is operating on coal.
In an attempt to increase share of coal in energy mix, the PPP government in August 1995 signed Keti Bunder project with Electric Power Asia Ltd (CEPA). The composite billion-dollar Keti Bunder project had four components: a) 5280 MW electric plant b) deep sea port at a distance of 148 km from Karachi c) an industrial zone between Thatta and Jamshoro and d) Thar coal field development.
The project was expected to be completed in 2001 and its electric power plant was composed of eight units. Each unit was designed to produce 660 MW, and the first two units was designed on imported coal for the production of 1320 MW electricity while for the remaining six units were designed on indigenous Thar coal. The power project could have paved the way for fast-track development of the Keti Bandar port complex.
However after dissolution of PPP government in 1996, the project was abandoned citing the reason that CEPA intended to import coal instead of utilising deposits in Thar. The government also shied away from the Chinese Shenhua group which had offered a tariff of 5.79 cents per unit some years ago.
Several other foreign and local companies also prepared feasibility reports in the past and confirmed availability of coal deposits, but they were reluctant to start power generation because of disagreement over pricing formula for coal-fired power generation. As a result, Thar coal field still remains undeveloped.
The key elements in the PPP election 2008 manifesto include maximum use of indigenous resources to meet energy requirements utilising local coal, solar, hydro and wind power. However, the development of solar, hydro and wind power should be part of the medium-term to long-term strategy. Pakistan needs another 8000 MW by 2010 and this target can only be achieved by focusing on local and imported coal based power projects.
The people of Sindh believe that pro-Kalabagh dam lobby was mainly responsible for termination of Keti Bunder project. The successful completion of Keti Bunder project is essential for Sindh as well as for the nation as a whole.
Lignite coal found in Thar has comparatively lower sulphur content, makes it more suitable for power generation through application of appropriate clean coal technologies. Based on normal practice elsewhere, the most likely technologies to be appropriate for Thar lignite are either pulverized coal combustion with flue gas recirculation, or circulating fluidised bed combustion, probably with limestone addition to the bed.
