Lakhra power station

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Lakhra power station is a power station in Lakhra, Sindh, Pakistan with multiple units of varying statuses none of which are currently operating. It is also known as GENCO-IV.

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
Lakhra power station Lakhra, Sindh, Pakistan 25.705733, 68.286467 (exact)

The map below shows the exact location of the power station.

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Unit-level coordinates (WGS 84):

  • Unit 1, Unit 2, Unit 3, Unit Expansion: 25.705733, 68.286467

Project Details

Table 2: Unit-level details

Unit name Status Fuel(s) Capacity (MW) Technology Start year Retired year
Unit 1 mothballed coal - lignite 50 subcritical 1995
Unit 2 mothballed coal - lignite 50 subcritical 1995
Unit 3 mothballed coal - lignite 50 subcritical 1996
Unit Expansion cancelled coal - lignite 1320 supercritical

Table 3: Unit-level ownership and operator details

Unit name Owner
Unit 1 Lakhra Power Generation Co Ltd [100.0%]
Unit 2 Lakhra Power Generation Co Ltd [100.0%]
Unit 3 Lakhra Power Generation Co Ltd [100.0%]
Unit Expansion Genco Power [100.0%]

Project-level coal details

  • Coal source(s): Lakhra coal mines

Background

The Lakhra power station is a 3 x 50 MW subcritical coal-fired power station in Lakhra, put into operation in 1995-96. It is fuelled by the Lakhra coal mines, 25 kilometers away. In 2015, the power station was reportedly running at 20 MW capacity.[1]

Since a fire in July 2017 it has been shut down completely.[2] On July 20, 2017, the plant caught fire and its only functional unit out of the three 50 MW units, which was producing 35 MW at its reduced capacity, stopped functioning. The Lakhra Power General Company Limited (LPGCL) restored that unit by December 2017. However, the National Electric Power Regulatory Authority (NEPRA) which had stopped buying electricity from Lakhra since the fire incident, continued with its undeclared moratorium.[3]

In August 2018, the LPGCL’s board of directors wrote a letter to the secretary of the ministry of energy, narrating their financial woes and submitting two business plans. One included US$33.51 million funds for holistic overhaul of the three existing units. The second suggested construction of a new 330 MW coal fired plant in Lakhra’s premises which would get supply of indigenous coal from the Lakhra coal mine.[3]

It was reported that attempts were being made to close off the plant so it could be sold to a private entity. An anonymous official asserted “There is a lobby [in the Water and Power Development Authority authorities] which has been continuously working to make the plant a white elephant so that it can be sold along with its coalmine to a private company." He cited the 2006 lease of the plant by former president Pervez Musharraf’s regime to the Associated Power Generation Company to corroborate his contention.[3]

In October 2018, a provincial government official announced a plan for the plant to be privatized and rehabilitated by its new owner. The politician said that several foreign companies had expressed interest in buying the plant.[4]

A 2019 audit found that malfunctioning and mismanagement of the plant contributed to constant losses and made the project unviable.[5]

In 2019, the Lakhra Power Generation Company was not in the active privatisation program list, and the company was mulling a voluntary separation scheme (VSS) for its surplus employees.[6]

In March 2021, the government's finance division classified Lakhra Power Generation Company Limited (GENCO-IV) and Lakhra Coal Development Company Limited as "State-Owned Enterprises to be Privatized in Next Phase."[7]

An October 2021 State of Industry Report states: "During FY 2020-21, GENCO-IV recorded nil generation for third consecutive year... this plant is a burden on national exchequer as it is unable to recover its fixed costs." Later in the report, there was confirmation that the plant has been 'in shutdown mode' since 2017. It also mentioned a possible feasibility study for a major rehabilitation project.[8]

It appears that the plant could potentially be operated but is not as of June 2022,[9] so the power station can be categorized as mothballed.

Proposed additions

Several additions have been proposed at or near the site of the existing power station, using coal from the Lakhra coal mines. However none have progressed. Proposals include:[1]

  • Wapda/Gencos had proposed setting up three additional power generating units of 50 MW each at the power station, later revised to two mine-mouth units of 300 MW each. The entire project was later shelved to encourage private investment.
  • The Private Power and Infrastructure Board also solicited Fateh Textile Group in Hyderabad for development of a 200 MW integrated mining and power project at Lakhra, but the sponsors opted to mining and selling the coal instead on the open market.
  • Habibullah Energy, which has held the lease on Lakhra coalfields for many years, also planned to develop a 150 MW mine-mouth power project at Lakhra, but it too was later cancelled.
  • In 2013 the government, through Gencos, proposed two 660 MW power projects using Lakhra coal. The detailed feasibility study for the first unit was prepared by the Japan International Cooperation Agency (JICA). Environmental Impact Assessment was also prepared.[10] However, the project was shelved in February 2014 in favour of the Gadani Power Park. The Japanese pushed the project again in 2016, and again Pakistan demurred, focusing instead on CEPC projects.[11]

Articles and Resources

References

  1. 1.0 1.1 "Lakhra coal for power generation," Dawn, March 30, 2015
  2. "150MW Lakhra power plant shuts after major fire," Dawn, July 21, 2017
  3. 3.0 3.1 3.2 "How the Lakhra power plant lost its spark," Express Tribune, October 6, 2018
  4. "Defunct Lakhra power plant to be rehabilitated with private investment," Express Tribune, October 27, 2018
  5. "Lakhra Coal Power project caused loss of around Rs100 billion: AGP," The Nation, December 14, 2019
  6. "Lakhra coal power plant to offer voluntary exit scheme to employees," The Nation, September 21, 2019
  7. "State-Owned Enterprises Triage: Reforms & Way Forward," Finance Division, Government of Pakistan, March 3, 2021
  8. "State of Industry Report 2021," National Electric Power Regulatory Authority, October 2021
  9. "State of Industry Report 2022," National Electric Power Regulatory Authority, September 2022
  10. "Lahkra Power Generation Company - Future Projects". https://lpgcl.gov.pk/. 2015. {{cite web}}: External link in |website= (help)CS1 maint: url-status (link)
  11. "Pakistan likely to turn down Japan’s offer to finance new Lakhra power plant," Express Tribune, July 30, 2016

Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.