Zeeshan Mumtaz
ISLAMABAD: Pakistan’s Energy Regulator, the National Electric Power Regulatory Authority (NEPRA), on Monday listened to the concerns of stakeholders regarding the newly approved guidelines for the purchase of coal from Afghanistan and other foreign countries.
The NEPRA noted the concerns and suggestions of the stakeholders and committed to revisiting the guidelines at the earliest so that the coal could be purchased for use in coal-fired power plants to generate cheaper electricity in the country.
NEPRA headquarters
The public hearing held at the NEPRA headquarters in the capital Islamabad sought comments from the participants including Independent Power Producers (IPPs), coal suppliers, coal contractors and other stakeholders to optimize the existing spot purchase guidelines and bring in more competition in the power sector.
Afghanistan Coal in Power Generation
Afghanistan’s coal, which is significantly less expensive than the coal of other nations, is now attracting renewed interest as the need for coal in Pakistan’s thermal power plants is expanding.
Each day, Pakistan imports from Afghanistan about 3,000 tons of coal and this number is likely to rise.
Pakistan Afghanistan Coal Agreement
An agreement between Pakistan and Afghanistan was recently reached in Kabul to facilitate bilateral trade, particularly the import of coal from Afghanistan for use in Pakistani coal-fired power plants.
Pakistan currently imports roughly 20 million tons of coal per year from various countries, mostly for use in power plants. In response to the recent spike in global coal prices due to Russia-Ukraine war and the COVID-19 pandemic, the government recently decided to divert a portion of its current source of import from South Africa to Afghanistan.
The public hearing was presided over by NEPRA Chairman Tauseef Farooqi and other members of the NEPRA. A large number of representatives of various stakeholders including the Ministry of Energy, the Central Power Purchasing Agency (CPPA-G), Private Power Infrastructure Board (PPIB), Thar Coal Energy Board, IPPs, coal experts, the public, coal importers and suppliers also attended the hearing.
