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[ I n 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 rts i l ä

Energy is crucial 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.

W
ärtsilä, a crucial partner and key player in Pakistan’s utility company was formed with a monopoly in power Power plants
power generation sector since 1994, is assisting generation, transmission and distribution. Demand employing combined-
the country on this journey. Wärtsilä has earned outstripped supply and it became an economic imperative cycle technology
optimize, reuse and
the reputation of being a strong and reliable brand. to involve the private sector in power generation. In 1994,
recover energy and
“Wärtsilä offers and delivers a one-stop service. We install, the government introduced a private power policy. heat that would
operate and manage power plants. We have been in Pakistan for The result was that 14 projects - IPPs - with a total otherwise be simply
23 years and can claim unique expertise,” says Lars-Åke Kjell, capacity of 3787 MW were initiated. Of these 14, five were thrown away.
Business Development Manager, Wärtsilä Power Plants. implemented using reciprocating generating sets running
on heavy fuel oil (HFO). Wärtsilä was chosen as the EPC
IPPs a success (engineering, procurement and construction) contractor by
Pakistan’s total installed electricity-generation capacity Kohinoor Energy Ltd (126 MW), Gul Ahmed Energy Ltd.
totals some 19,478 MW, of which 30% is produced by (135 MW) and Tapal Energy Ltd (120 MW).
Independent Power Producers (IPPs). When Pakistan “Wärtsilä delivered equipment to three of the 14 IPPs. All
achieved independence in 1947, power generation facilities three are success stories and have paid rich dividends to all the
were scattered around the country. In the 1950s, a national stakeholders. Wärtsilä has also delivered the equipment for

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03.2007. [ I n detail Energy ]

private captive power plant projects in the cement, developed a combined-cycle concept that uses plant and a 132 kV switchyard. The plant will run
paper and textile industries,” says Rolf Andersson, its diesel (Wärtsilä 46) and gas engines (Wärtsilä on HFO and will be connected to the national
Managing Director of Wärtsilä Pakistan. 50DF). grid. With the combined-cycle configuration at
100% load, a net electrical efficiency of 45% can
Combined-cycle power plants The most competitive solution be achieved. Commercial operation is expected
Since 1997, however, no new IPPs have been Diesel combined-cycle plants have been successfully to begin in the third quarter of 2008.
established. In 2002, the Pakistan government introduced and accepted by investors as an efficient Commenting on the order, Adil Khattak, CEO
announced a new private power policy to solution for electricity production. “Kohinoor of Attock Gen Ltd, said “This new power plant
encourage the establishment of more IPPs and Energy Ltd, one of the IPPs established under will enable smooth refinery operations as sales of
promote projects exploiting indigenous resources the 1994 policy, has a combined-cycle installation HFO will be assured. It will provide relief to the
such as natural gas, hydropower and coal. As oil supplied by Wärtsilä. The results achieved during common man and boost the economy of energy-
imports were draining foreign exchange reserves, their 10 years of operation are excellent and they starved Pakistan. We also wanted the highest
the government withdrew incentives for oil-based are considering expanding their facility,” says possible power plant efficiency during a lifecycle
projects. Geological surveys revealed that the Andersson. of 25 years, which we believe Wärtsilä’s combined-
country’s natural gas reserves would be unable to cycle concept will be able to provide.”
guarantee a supply of fuel for 25 years. The need “WE ALSO WANTED With this latest order, Wärtsilä will have supplied
for a back up solution became acute. Pakistan with power plants producing more
Wärtsilä proposed a solution. Its top-notch THE HIGHEST than 1000 MW of electricity. “Our strong local
product concept – combined-cycle power plants – POSSIBLE POWER presence and successful track record in Pakistan
offered Pakistan savings totalling billions of dollars combined with efficiency and flexibility offered
by reducing the country’s reliance on imported oil PLANT EFFICIENCY by our solution were among the reasons we were
while at the same time being more environmentally DURING A awarded this contract,” said Christoph Vitzthum,
friendly. Combined-cycle technology optimizes, Group Vice President, Wärtsilä Power Plants.
reuses and recovers energy and heat that would LIFECYCLE
Future growth
otherwise be simply thrown away. This is the
key feature that makes the combined-concept
OF 25 YEARS.” In economic terms, Pakistan is well positioned
more attractive to both power producers and the With the current situation regarding availability with industrial growth firing on all cylinders.
government. of gas and liquid fuel, Wärtsilä’s HFO-operated The success of the new privatization programme
“Combined cycle installations are fuel efficient engines are the most competitive solution. “We has raised funds totalling more than EUR 700
and therefore the most preferred technology. A are the preferred brand and will be able to achieve million. But the surge in economic activity has
combined-cycle power plant can be designed using a high market share in both the IPP and captive also fuelled increased demand for energy, raising
various technologies. But basically it has one or power markets. We can deliver two to three 200 fears of a shortfall. By 2010, according to Pakistan’s
several prime movers combined with one or more MW power plant projects per year for the IPP federal ministry of power and water, demand
steam-turbine generators,” says Kjell. market.” says Kjell. for electricity is expected to exceed supply by
Gas turbines, reciprocating engines or boilers approximately 5500 MW.
can be chosen as prime movers. Based on the New combined-cycle plant ordered Earlier this year, the World Bank agreed to
conditions prevailing in Pakistan, Wärtsilä has In June 2007, Wärtsilä received an order to supply increase its annual lending to Pakistan to EUR 2.15
and install a 160 MW power plant at the Attock billion for the next three years. Recent information
Refinery Ltd site near Rawalpindi. This order obtained from government sources indicates
includes nine Wärtsilä 18V46 generating sets with that on top of its existing lending agreements,
heat recovery boilers, one 11.6 MWe steam turbine the World Bank has agreed to provide EUR 287
million for power projects in Pakistan.
With its strong presence in Pakistan and wide
experience of the sector, Wärtsilä can be expected
to play an important role in this emerging and
optimistic scenario. “The biggest growth over the
next 5-7 years will be in the private power sector,”
says Andersson. “I see this as a real opportunity,
and Wärtsilä could easily deliver some 2000 MW
of generating capacity to Pakistan over that period.
There will also be growth of 70–100 MW per year
in the captive power segment.”

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