2 weeks Ago By Fawad Yousafzai
Operational inefficiency of Guddu 747 plant resulted in estimated loss of Rs108b to date. ISLAMABAD - The transmission constraints in the supply of electricity, caused by the operational ineffectiveness of National Transmission and Despatch Company, has caused an additional burden of Rs60.4 billion in fiscal year 2023-24.
Similarly, the operational inefficiency of the Guddu 747 plant, which has been running on open cycle mode, has resulted in an estimated loss of Rs108 billion to date, said Rafiq Shaikh, member technical National Electric Power Regulatory Authority(NEPRA) in his note additional note in the regulator decision on monthly FCA of XWDiscos. “I am compelled to address the serious inefficiencies currently afflicting the power sector, which have imposed substantial financial burdens on electricity consumers. The data indicates that in August 2024 alone, the financial impact due to systemic constraints amounted to approximately Rs5.
1 billion. The alarming trend in financial impacts, which has escalated from Rs3.7 billion in FY2021-22 to an astonishing Rs60.
4 billion in FY2023-24, raises significant red flags regarding NTDC’s operational effectiveness, Sindh Assembly passes resolution in favour of 26th Amendment This issue stems from multiple factors, including the South-North transmission constraint, contractual obligations of RLNG power plants, and ongoing overloading of grid/transmission lines etc. which have led to the underutilization of more economical generation plants in the South and the activation of costlier generation in the North. The core issue appears to be the persistent South-North transmission constraint, signaling a troubling pattern of planning and execution failures within NTDC.
Independent reviews, including those conducted by the Joint Venture (IV) and PSJA-USAID, have underscored these shortcomings, revealing that despite substantial investments over the past five years, critical bottlenecks in the transmission network remain unresolved, he added. This has necessitated the operation of RLNG and RFO power plants, often at a higher cost. For instance, while power plants in the South have an average generation cost of Rs.
14.50 per unit, they are frequently curtailed in against marginal plants costing between Rs. 43 and Rs.
47 per unit, exacerbating financial strain. The inefficiencies are further illustrated by the High Voltage Direct Current (HVDC) system, where capacity payments are being made for 4,000MW, despite an average utilization of merely 39% and a peak utilization of just 62% since its inception. This discrepancy highlights severe deficiencies in system planning and transmission infrastructure development.
Youth killed after armed motorcyclists open fire on car Additionally, the operational inefficiency of the Guddu 747 plant, which has been running on open cycle mode, has resulted in an estimated loss of Rs. 108 billion to date. This impact is due to the combined impact of open-cycle operations and the increased reliance on costly alternate plants.
This loss is expected to persist until the damaged steam turbine is replaced, compounding the financial challenges faced by the sector. Furthermore, Neelum-Jhelum Hydropower plant has consistently underperformed and has faced significant challenges, including two major shutdowns i.e.
one from July 2022 to August 2023 and another beginning in May 2024. This has stressed the power sector, forcing reliance on more expensive power plants, resulting in increased costs for the consumers, member technical said. Such inefficiencies are eroding the financial sustainability of the power sector, already hindered by governance challenges resulting in higher tariffs for consumers, Rafique Shaikh remarked.
‘NHA Sindh’s revenue target should be set at Rs25b for current financial year’ Tags: transmission constraints power supply.
