INP-WealthPk
Utilizing local coal is the way forward for Pakistan
August 04, 2022
By Muhammad Mudassar
ISLAMABAD, Aug 4 (INP-WealthPK): Pakistan, being a coal-rich country, has much to gain from switching from imported coal to local coal.
The Thar region of Pakistan has around 175 billion tons of coal reserves. That is equivalent to 50 billion tons of oil equivalent and 2,000 trillion cubic feet of natural gas equivalent.
The coal reserves have the potential to be utilized not only for gas production, but also for fertilizer production. The availability of fertilizer to farmers is one of the most effective ways to ensure food security.
The good news is that the federal and provincial governments are going to connect Thar through a railway line. It will help to boost the transport of coal to the plants.
The electricity generated from coal totaled 2,916.7 GWh at a cost of Rs14.1/unit. Its cost is significantly higher due to price increases in the international market.
According to Shamsuddin Shaikh, Farmer CEO Sindh Engro Coal Mining Company, the major problem with local coal is that Pakistan’s coal-based power plants are designed according to imported coal. As a result, Pakistan is unable to switch to local coal for the entire plant. In order to alter the design, a large investment is required. The second reason is that coal is being phased out of the world's energy mix because of its adverse environmental effects, so Pakistan faces financing challenges as well.
The amount of electricity generated from coal during the winter season increases as compared to the summer season due to reduction in the amount of electricity generated from hydroelectric projects. That’s why the coal share in power generation was around 20% in FY 2020-21. In January 2022, coal power generation accounted for 32% of total power generation.
|
Electricity Generation Sources |
Share (%) |
||||
|
2021 |
2020 |
2019 |
2018 |
2017 |
|
|
Hydel |
27.6 |
32.4 |
28.9 |
23.5 |
26.5 |
|
Coal |
20 |
20.7 |
17 |
12.8 |
4.2 |
|
RLNG |
19 |
20 |
22.7 |
22.4 |
9.7 |
|
Nuclear |
11.4 |
7.6 |
7.3 |
7.3 |
6.8 |
|
Gas |
10.7 |
11.4 |
15.2 |
17.19 |
20.4 |
|
Furnace oil |
6.8 |
3.7 |
4.8 |
11.5 |
26.7 |
|
Wind |
2.5 |
2.2 |
2.5 |
2.3 |
1.5 |
|
Solar |
0.5 |
0.6 |
0.6 |
0.6 |
0.6 |
|
Bagasse |
0.5 |
0.5 |
0.5 |
0.8 |
1 |
|
High-speed diesel (HSD) |
0.5 |
0.2 |
0 |
0 |
1.7 |
|
Other |
0.5 |
0.6 |
0.6 |
0.9 |
0.9 |
Approximately 3 billion tons of coal has been discovered at coalfield Block-1 in Thar region, which is equivalent to 5 billion barrels of crude oil. It can change Pakistan’s fortune because after hydel, coal is the largest contributor to Pakistan’s electricity generation.
According to the National Transmission and Dispatch Company (NTDC), under the Indicative Generation Capacity Expansion Plan 2021-2030 (IGCEP), reliance on imported coal, re-gasified liquified natural gas (RLNG), and residual furnace oil (RFO) is to be reduced by increasing the share of hydropower and local coal. Through the installation of local coal-fired plants in Thar, the power generated from the coal will increase by 15% in the next five years.
The government must convert the imported coal plants to local coal plants to the extent of 25 to 30%. As a result, the import bill will be minimized, and fuel will be available at a minimum cost.
Thar coal can be converted into gas and can be used in various sectors of the economy. Consequently, the pressure on natural gas resources is reduced
Credits: Independent News Pakistan—Wealthpk
