KE pledges surplus power for port city by 2022.

KARACHI -- K-Electric remains committed in bringing Karachi to a power surplus position by 2022 through a series of planned investments across the power value chain. These investments, which would be subject to regulatory approvals, will allow KE to benefit consumers and the economy at large.

This was stated by Aamir Ghaziani, Chief Financial Officer (CFO) of K-Electric at the corporate briefing, held via webinar, which was attended by analysts from leading brokerage houses and other stake holders. The impact of COVID coupled with increased finance cost due to accumulated receivables from government and its entities led to KE reporting a loss in FY 2020. However, analysts were informed that first half of FY 2021 has shown improvement in key operational and financial indicators including 4.8% growth in sent-out, improvement in T and D losses by 0.6pp and reduction in interest rates. This has helped turn around KE back into profits in FY 21.

KE remains committed to its vision of taking Karachi to a power surplus position by 2022. The upcoming 900 MW RLNG-based BQPS-III is proceeding as per expected timelines and the first unit of 450 MW is scheduled to come online by May 2021. This power plant will also help improve KE's generation fleet efficiency from 38% in FY 2020 to 48% in FY 2023. Apart from this 350 MW of renewable energy projects are also in the pipeline.

Work on the 220 KV Dhabeji Grid and transmission lines has started and finalisation of contractual arrangements for the off-take of additional 1,400 MW from National Grid (including 450 MW from existing interconnections) is in advanced stages. KE is hopeful that the National Transmission and Despatch Company (NTDC) will complete necessary rehabilitation of the 220 KV Dhabeji Grid along with implementation of 'Cross Trip' scheme by...

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