Thar coal-fired energy ‘cheaper than hydropower’
KARACHI: Sino Sindh Resources Pvt Ltd (SSRL) Chief Executive Officer Li Jigen has stated that the power generation cost from Block-1 of the Thar region is Rs5.52 per unit, significantly cheaper than the energy produced from hydro sources.
This he said while speaking at a public hearing called by the Thar Coal and Energy Board (TCEB) on Thursday regarding the SSRL’s petition for the determination of the commercial operations date (COD) stage tariff for its 7.8 million tonnes per annum lignite mine located at Block-1 of Thar Coalfield.
Various stakeholders, experts, and members of the public attended the hearing.
TCEB Managing Director Tariq Ali Shah and Presiding Officer Ammar Habib Khan, Member Finance/Power, and Dr Fahad Irfan Siddiqui, Member Mining Thar Coal Tariff Determination Committee, conducted the hearing.
During the presentation, Mr Li briefed that the project is located in the Thar region of the south-eastern part of Sindh, and the project includes 2X660MW high parameter super-critical coal-fired power generation units, supported by an annual output of 7.8 million tonnes of lignite open-pit coal mine.
Thar Coalfield Block-1 open-pit coal mine project covers a 150km² area with approximately a coal reserve of 2.6 billion tonnes within the block, said Mr Li.
He said the project has been placed at a favourable position in the National Transmission and Dispatch Company (NTDC) merit order list, demonstrating ’its competitive pricing and cost-effectiveness in comparison to other energy sources by producing electricity unit in Rs5.52 or 0.02 cents per kWh.
The Thar Block-1 Integrated Energy Project is a significant initiative within the energy sector of the Belt and Road Initiative (BRI), and it serves as a core energy cooperation project under the China-Pakistan Economic Corridor (CPEC) framework. This project is developed and funded by Shanghai Electric, a state-owned and publicly listed company based in Shanghai, China.
Published in Dawn, March 14th, 2025