02-Dec 2022

Pakistan’s Largest Thar Coal based Power Project Starts Supplying Power

In a historic development towards energizing the national grid with low cost electricity, the largest Thar coal based Shanghai Electric power plant has started supplying 1,320 MW to the national grid with successful synchronization of its second unit of 660 MW on 11th December 2022. Earlier the, first unit of 660 MW was synchronized with national grid on 2nd December 2022. This advancement has further paved the way for achieving Commercial Operation Date (COD) of this project, in the near future.

Shanghai Project is being materialized through Private Power and Infrastructure Board (PPIB) under the umbrella of China-Pakistan Economic Corridor (CPEC) while Thar Coal Block-1 Power Generation Co. (TCB-1), a subsidiary of Shanghai Electric is executing this project. It is important to highlight that besides direct advantage of generating cheap electricity, valuable foreign direct investment of US dollar 1,912 million has also been materialized through this mega project. Furthermore, Shanghai project will also be instrumental in creating ripples of prosperity on the local and regional level as well, transforming lives of the Thari people. The successfully synchronization of Shanghai plant with the national grid is yet another example of PPIB’s proficient facilitation; thereby optimizing its portfolio of commissioned power generation projects based on Thar coal to 2,970 MW. Earlier, three projects of 1,650 MW have already been commissioned through PPIB’s facilitation which include 660 MW Engro, 660 MW Lucky and 330 MW Hubco power project. With the goal to push boundaries, PPIB remains committed to promoting indigenous Thar coal and facilitating private investors in more such projects to empower Pakistan for a prosperous tomorrow.

Commissioning of 1320 MW Shanghai Electric power project shall pave way for huge savings in foreign reserves and reduce dependence on imported fuels. It is anticipated that basket price of electricity shall also be reduced considerably while it shall contribute towards national goal of self-sustainability and increase our exports by making them internationally competitive. Historically our base load power projects were RFO, Gas, RLNG, diesel and nuclear fuel based which are being substituted phase wise with indigenous Thar coal. Government of Pakistan also plans to covert 3960 MW imported coal-based power projects to Thar coal, while in future all base load thermal power projects shall only be developed on local indigenous Thar coal, which shall reduce the price of electricity and materialize our dream of sustainability.