ADB funds Pakistan coal energy plant

The Asian Development Bank (ADB) has approved a US$ 900 million loan for a new supercritical coal power generation unit in Pakistan.

Pakistan currently has only one coal-fired power plant in operation generating 0.7% of the generation mix. The new unit will generate an additional 600 MW of electricity for the national energy grid.

The coal-fired generation unit will be built at an existing power plant in the town of Jamshoro in Sindh province, about 150 km east of the Karachi.

It will use the latest emission control equipment to ensure cleaner emissions than the existing heavy fuel oil-fired generators and subcritical boiler technology that is more commonly used.

The new plant will also generate electricity at a lower cost, saving US$ 535 million per year on Pakistan’s fuel import bill compared with oil-fired generation.

The development is part of broader government efforts to decrease electricity tariffs. Coal-fired power plants, using cleaner technology, provide an environmentally sound and cost-effective medium-term energy solution at a time when the country’s natural gas reserves are dwindling.

The country is also looking at other energy alternatives, including large hydropower plants, renewable energy, increasing domestic gas production, and importing electricity and natural gas.