50 megawatts of two waste-to-energy power plants each will start production on a commercial basis by the end of 2023.
Talking to the media men in an interview, Sindh Energy Minister Imtiaz Ahmed Shaikh stated that the power plants, the first of their kind in Pakistan, will have a total cost of $500 million.
“The provincial government has set aside about 60 acres for both plants, which will be built by American and Dutch companies at Jam Chakro,” the minister said while mentioning to the out-of-city dumping site for the waste from Karachi.
The Sindh government, in this regard, signed memoranda of understanding and letters of intent with US entity Green Waste Energy Ltd and Dutch firm Khan Renewable Energy Ltd earlier this year. The Sindh Solid Waste Management Board have provided space and waste supply assurance to the independent power producers (IPPs). Both firms will complete their feasibility reports by the end of 2022.
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“The two IPPs will then approach the National Electric Power Regulatory Authority (Nepra),” he said. These IPPs are expected to receive the upfront tariff, which is the standard rate of electricity units set by the regulator based on its independent calculations.
Initially, four companies showed interest in developing the country’s maiden waste-to-energy projects. Out of these, two companies backed out however, the others have stayed put up to now and are pressing ahead at full speed, the minister added.
Even though the stated capacity of the two power plants is 50MW, the actual production level is expected to hover around 35MW each. “The companies have asked us to increase the supply of waste so that they can maximise their production,” Mr Shaikh said.
Moreover, Karachi produces 10,000-12,000 tonnes of garbage daily. Accounting for many variables, a waste-to-energy plant needs almost 3,000 tonnes of garbage to generate 35-50MW of electricity, the minister added.
The Sindh government does not have a shareholding in the IPPs even though it will provide them with garbage at no cost.
