Staff Report
ISLAMABAD: The National Transmission and Despatch Company (NTDC) has recommended Kot Addu Power Company (KAPCO) as a replacement for AES PakGen to ensure grid stability in light of anticipated structural reforms.
The proposal, shared with the Ministry of Energy’s Power Division, highlights KAPCO as a technically viable and cost-effective substitute should the contract with AES PakGen end.
The recommendation follows a directive from the National Task Force for Implementation of Structural Reforms in the Power Sector. A letter, signed by NTDC’s General Manager (System Operation), Engineer Nasir Ahmad, presents a comprehensive analysis of the operational importance of AES PakGen and alternative options. According to NTDC’s assessment, AES PakGen, with a derated capacity of 350 MW and a 220 kV grid connection, plays a critical role in stabilizing the power grid, particularly in summer when peak demand risks overloading the system. The plant also provides vital reactive power support to substations in Muzaffargarh and Multan.
NTDC evaluated several power plants as potential replacements for AES PakGen, including the Rousch and Fauji Kabriwala plants. However, both alternatives were deemed unsuitable. The Rousch plant, although equipped with a 395 MW capacity and a 500 kV connection, is geographically distant and cannot mitigate the specific overload issues faced by Muzaffargarh and Multan substations. Similarly, the 151 MW Fauji Kabriwala plant, connected at 132 kV, primarily serves MEPCO’s network needs in Multan and lacks the capability to meet AES PakGen’s voltage control and stability functions.
KAPCO, on the other hand, was highlighted as the most suitable replacement due to its operational efficiency, grid compatibility, and proximity to the AES PakGen location. With a derated capacity of 1,345 MW, KAPCO has nine units connected at 220 kV and six at 132 kV, offering enhanced support for the 500/220 kV transformers in Muzaffargarh and Multan during peak periods. Additionally, KAPCO’s fuel flexibility and higher position on the Economic Merit Order underscore its cost-effectiveness and operational suitability.
However, NTDC noted a significant obstacle: KAPCO’s power purchase agreement (PPA) has expired, leaving no contractual basis for acquiring its capacity. NTDC has requested that the Central Power Purchasing Agency-Guarantee (CPPA-G) secure approximately 500 MW from KAPCO, pending NEPRA’s approval.
The recommendation includes using specific KAPCO units to ease transformer loads, stabilize voltage, and boost grid reliability. NTDC advised that AES PakGen’s retirement should only proceed if NEPRA approves KAPCO’s capacity allocation; otherwise, AES PakGen should remain operational. The recommendation has been forwarded to key stakeholders, including the National Task Force and NTDC’s senior management, as discussions on reform efforts continue in Pakistan’s power sector.
