Karachi/Islamabad March 14: Sino Sindh Resources Pvt Ltd (SSRL)’s CEO Li Jigen highlighted that the cost of generating power from Block-1 in the Thar region is Rs5.52 per unit.
This would make it much more affordable even than energy generated from hydroelectric sources.
He made this statement during a public hearing organized by the Thar Coal and Energy Board (TCEB) to discuss SSRL’s request for the determination of the commercial operations date (COD) stage tariff for its 7.8 million tons per year lignite mine in Block-1 of the Thar Coalfield.
Li explained that the project is situated in the southeastern region of Sindh and consists of two 660MW super-critical coal-fired power generation units.
It is supported by an annual lignite output of 7.8 million tons from an open-pit mine, with the area holding an estimated coal reserve of 2.6 billion tons over 150km².
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Li also noted that the project holds a favorable position on the National Transmission and Dispatch Company (NTDC) merit order list, demonstrating its competitive pricing.
Unit Cost Cheaper than Hydropower
With a cost of Rs5.52 per unit (or 0.02 cents per kWh), it proves to be a highly cost-efficient source of electricity.
The Thar Block-1 Integrated Energy Project is an essential part of the Belt and Road Initiative (BRI) and the China-Pakistan Economic Corridor (CPEC).
The project is being developed by Shanghai Electric, a publicly listed state-owned enterprise based in Shanghai, China.
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Li’s remarks underlined the significance of this initiative as a key energy collaboration between China and Pakistan, which is poised to have a substantial impact on the region’s energy sector.
Thar Coal China Investment
China has made significant investments in Pakistan’s Thar coal power project, located in Sindh province.
This collaboration aims to exploit Thar’s vast coal reserves, one of the world’s largest untapped reserves, to address Pakistan’s energy crisis.
Notable projects include the 660 MW Thar Block II coal power plant, which contributes to reducing energy shortages.
This investment not only boosts Pakistan’s electricity generation but also creates jobs, fosters local economic growth, and supports energy security through domestic resources.
