In coal-fired power generation, the global trend is towards improving the efficiency of thermal power plants by generating more electricity while using the minimum quantity of fuel (Natural Gas, Coal and Residual Fuel Oil) as well as lowering emissions. In fact, High Efficiency and Low Emissions is the collective mantra of the 21st century with coal-fired power plants in operation having reached a thermal efficiency of 45%. Higher efficiency translates into less consumption of coal to generate a single unit of electricity while reducing carbon dioxide emissions, mercury and local air pollutants, releasing less local air pollutants, consuming less water, and leaving a smaller environmental footprint. Above all, it means lower tariffs for consumers.
In pursuit of energy security and reliable as well as economical energy supply, the Government of Pakistan (GoP) is exploring coal as a power source. However, the National Electric Power Regulatory Authority (NEPRA) has failed to address high efficiency for low-cost power generation on coal. This paper is therefore an analysis of the current status of coal-fired power generation in Pakistan and provides policy recommendations on the way forward.
The authors use examples from China, Germany, Canada, Japan, Korea, Bangladesh and India to show that ultra-super critical coal power generation is widely accepted as an efficient method of generating power.
In Pakistan, the challenge is to meet the energy demand and to keep tariffs low, while ensuring low risk to environment-vulnerability.
In light of the findings and analysis, some of the policy recommendations are:
Regulation of coal-fired power generation to operate under the principles of High Efficiency, Low Emissions (HELE)
Revision of the stated efficiencies of thermal units according to the international standards of ultra-super critical power plants
Establishment of a transparent investment process on coal-fired power plants
Reformation of energy regulations.
Exploration of low-cost power generation
Re-establishment of the link between energy security and sustainable development.