[ In detaIl energy

]

Twentyfour7.

[ powerIng pakIstan ]

Powering pAkISTAn
T e x T: S A j i d S h A i k h | p h o T o S : W ä R T S i L ä

to a nation’s economy as it is the engine that drives industrial growth. In pakistan, energy will play a central role in the nation’s progress and development into a important player in the world economy.
eneRGY IS cRUcIAL

W

ärtsilä, a crucial partner and key player in Pakistan’s power generation sector since 1994, is assisting the country on this journey. Wärtsilä has earned the reputation of being a strong and reliable brand. “Wärtsilä offers and delivers a one-stop service. We install, operate and manage power plants. We have been in Pakistan for 23 years and can claim unique expertise,” says Lars-Åke Kjell, Business Development Manager, Wärtsilä Power Plants. Ipps a success Pakistan’s total installed electricity-generation capacity totals some 19,478 MW, of which 30% is produced by Independent Power Producers (IPPs). When Pakistan achieved independence in 1947, power generation facilities were scattered around the country. In the 1950s, a national

utility company was formed with a monopoly in power generation, transmission and distribution. Demand outstripped supply and it became an economic imperative to involve the private sector in power generation. In 1994, the government introduced a private power policy. The result was that 14 projects - IPPs - with a total capacity of 3787 MW were initiated. Of these 14, five were implemented using reciprocating generating sets running on heavy fuel oil (HFO). Wärtsilä was chosen as the EPC (engineering, procurement and construction) contractor by Kohinoor Energy Ltd (126 MW), Gul Ahmed Energy Ltd. (135 MW) and Tapal Energy Ltd (120 MW). “Wärtsilä delivered equipment to three of the 14 IPPs. All three are success stories and have paid rich dividends to all the stakeholders. Wärtsilä has also delivered the equipment for

power plants employing combinedcycle technology optimize, reuse and recover energy and heat that would otherwise be simply thrown away. 

6 Twentyfour7. 3.07

A combined-cycle power plant can be designed using various technologies. reciprocating engines or boilers can be chosen as prime movers.” says Andersson. however. Wärtsilä has developed a combined-cycle concept that uses its diesel (Wärtsilä 46) and gas engines (Wärtsilä 50DF). has a combined-cycle installation supplied by Wärtsilä. Wärtsilä will have supplied Pakistan with power plants producing more than 1000 MW of electricity. Commercial operation is expected to begin in the third quarter of 2008.” says Andersson. The results achieved during their 10 years of operation are excellent and they are considering expanding their facility.6 MWe steam turbine plant and a 132 kV switchyard. “Combined cycle installations are fuel efficient and therefore the most preferred technology. and Wärtsilä could easily deliver some 2000 MW of generating capacity to Pakistan over that period. Wärtsilä proposed a solution. “The biggest growth over the next 5-7 years will be in the private power sector. Wärtsilä’s HFO-operated engines are the most competitive solution. reuses and recovers energy and heat that would otherwise be simply thrown away. Future growth In economic terms. Geological surveys revealed that the country’s natural gas reserves would be unable to guarantee a supply of fuel for 25 years. Managing Director of Wärtsilä Pakistan. 7 . one of the IPPs established under the 1994 policy. The need for a back up solution became acute.” says Rolf Andersson. “We are the preferred brand and will be able to achieve a high market share in both the IPP and captive power markets. Commenting on the order. the World Bank agreed to increase its annual lending to Pakistan to EUR 2. Pakistan is well positioned with industrial growth firing on all cylinders. paper and textile industries. “I see this as a real opportunity. “Our strong local presence and successful track record in Pakistan combined with efficiency and flexibility offered by our solution were among the reasons we were awarded this contract.” With this latest order.03. Gas turbines. according to Pakistan’s federal ministry of power and water. “we also wanted the highest possible power plant efficiency durIng a lIfecycle of 25 years. Its top-notch product concept – combined-cycle power plants – offered Pakistan savings totalling billions of dollars by reducing the country’s reliance on imported oil while at the same time being more environmentally friendly. “Kohinoor Energy Ltd. With its strong presence in Pakistan and wide experience of the sector. With the combined-cycle configuration at 100% load. hydropower and coal. a net electrical efficiency of 45% can be achieved. the Pakistan government announced a new private power policy to encourage the establishment of more IPPs and promote projects exploiting indigenous resources such as natural gas. This order includes nine Wärtsilä 18V46 generating sets with heat recovery boilers. But the surge in economic activity has also fuelled increased demand for energy.” With the current situation regarding availability of gas and liquid fuel. CEO of Attock Gen Ltd.” 3. As oil imports were draining foreign exchange reserves. We can deliver two to three 200 MW power plant projects per year for the IPP market. demand for electricity is expected to exceed supply by approximately 5500 MW. The plant will run on HFO and will be connected to the national grid. one 11.” says Kjell. Group Vice President. Wärtsilä can be expected to play an important role in this emerging and optimistic scenario. no new IPPs have been established. Wärtsilä Power Plants. There will also be growth of 70–100 MW per year in the captive power segment. But basically it has one or several prime movers combined with one or more steam-turbine generators. which we believe Wärtsilä’s combinedcycle concept will be able to provide. By 2010.” said Christoph Vitzthum. We also wanted the highest possible power plant efficiency during a lifecycle of 25 years. Based on the conditions prevailing in Pakistan.07 Twentyfour7. It will provide relief to the common man and boost the economy of energystarved Pakistan.2007. [ In detaIl energy ] private captive power plant projects in the cement. The most competitive solution Diesel combined-cycle plants have been successfully introduced and accepted by investors as an efficient solution for electricity production. the World Bank has agreed to provide EUR 287 million for power projects in Pakistan. Combined-cycle power plants Since 1997. Recent information obtained from government sources indicates that on top of its existing lending agreements. New combined-cycle plant ordered In June 2007. Adil Khattak. Combined-cycle technology optimizes. the government withdrew incentives for oil-based projects.” says Kjell. Earlier this year. said “This new power plant will enable smooth refinery operations as sales of HFO will be assured. Wärtsilä received an order to supply and install a 160 MW power plant at the Attock Refinery Ltd site near Rawalpindi. The success of the new privatization programme has raised funds totalling more than EUR 700 million.15 billion for the next three years. This is the key feature that makes the combined-concept more attractive to both power producers and the government. In 2002. raising fears of a shortfall.

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