In the first phase, three power generation units are being set up, on fast-track basis, at Dandot (District Jhelum), Khushab (District Sargodha) and Makerwal (District Mianwali), having capacity of 50-100 MW each.

Negotiations with companies in China, Hong Kong and Germany are in advanced stages to undertake construction of the proposed integrated coal-mining-cum-power generation plants. A total of ten power plants, of cumulative power generation capacity of 700 MW, are to be established. About 7,000 acres of land has been identified in the coalfield areas for installing power units on mine-mouths.

The government-owned Punjab Coal Gas Mining Co has been entrusted to establish a coal gasification pilot project of 50 MW capacity using coal from mines located in the Salt Range. The provincial government has sanctioned Rs980 million for the project to be operational within a year from its take-off. The project, said to be supervised by nuclear scientist Dr Samar Mubarakmand, will help in developing local technology and expertise, and also the manufacturing of machinery, for multiplying similar units in the area in the foreseeable future.

Pakistan, a major coal-rich country, has total coal reserves of over 185 billion tons. Its vast potential of use of coal for power generation has not yet been exploited. The country has an installed capacity of only 160 MW coal-based power generation, which is less than one per cent of total power mix. Launching the National Energy Security Plan (Vision 2030) in 2005, the government envisaged to add 19,910 MW to the existing installed capacity by 2030.

In the short- term, a target of 900 MW of coal-based power generation was to be attained by the year 2010. However, achieving the set target is far from reality, because of narrow vision and flawed planning. Currently, there is not a single on-going project of this nature in any province. The situation will obviously impact further the targets of developing coal-based power projects in the coming years.

Under the given conditions, initiative of the government of Punjab is a timely measure. Punjab's total proven coal reserves are around 236 million tons, classified as sub-bituminous; with a calorific value ranging from 9,472 to 15,801 Btu/lb. It has low ash and high sulphur, and is considered suitable for power generation. Major coal deposits occur in Makerwal coalfields and the Salt Range coalfields near Dandot and Choa Saidan Shah.

The Salt Range coalfields cover an area of 260 sq km and have reserves of 213 million tons of coal having heating value in the range of 9,472 to 15,801 Btu/lb. Construction of power plants of up to 80-MW capacity each, based on the Salt Range coal, are technically and economically feasible. The Makerwal coalfields cover an area of 75 sq km with about 22 million tons reserves of sub-bituminous coal, having heating value ranging from 10,688 to14,029 Btu/lb.

Pursuant to the National Power Policy 2002, power plants up to 50 MW capacities will be implemented at provincial level. Punjab government will allow coal concession, or grant mining lease, over a prospective coal bearing area to explore and develop coal for power generation in the private sector. With a view to attract foreign and local investors for promoting coal-based power plants, the Punjab government has approved the coal policy, offering concessions and incentives to investors.

There are numerous factors that could hamper Punjab government's programme for use of indigenous coal for power generation, particularly discouraging the private sector to invest. The most important and strategic factor is that of the project feasibility—in terms of technical as well as economic viability. It is planned to establish power plants on the basis of an identified coal potential of 236 million tons in Punjab. This basis is improper, since, out of this, so far only 55 million tons of coal resources are in the “measured” category. Considering a recovery factor of 60 per cent, these resources correspond to some 33 million tons of recoverable coal.

On the basis of the recoverable coal reserves, power generation potential has to be worked out in relation to availability of actual quantity of coal over the entire life of power plant. Normally, a coal-based power plant has a designed life of 25 to 30 years. It is estimated that a 50-MW power plant would annually consume 0.22 million tons of the Salt Range coal, or 6.6 million tons of coal for its designed life. Thus the recoverable coal of 30 million tons at the Salt Range coalfields can support power plants of cumulative capacity of 227 MW or a maximum of five units of 50 MW each.

Likewise, operation of a 50-MW plant based on coal from Makerwal coalfields would require 0.13 million tons per year of coal, which is of better quality compared to the coal from the Salt Range, or a quantity of 3.25 million tons over a period of 25 years. As the recoverable coal from Makerwal coalfields is three million tons, construction of only one power plant of maximum 50-MW capacity is feasible.

There are another 24 million tons of proven coal reserves in the province in the category of “indicated”, while the remaining 157 million tons are “inferred” resources that need to be investigated further. Confirmation of coal reserves for long-term supply of coal for combustion is a pre-requisite for commencing any project of this nature. Detailed studies for determination of coal mine-ability, coal quality analysis, hydrogeology, ground water conditions, geotechnical analysis of coal and coal-bearing strata, quality of coal, etc are required to be carried out, on priority.

The government may accelerate its activities related to exploitation, estimation, mining, processing and utilisation of its coal resources at a larger scale. It is of utmost importance to introduce advanced coal mining and modern power generation technologies, addressing environmental concerns adequately. Due attention is to be paid to the development of infrastructure, including communications, power and water supply, in the area. Laying the necessary transmission lines should be planned from initial stages for connecting the proposed power plants to the national grid.

The success of the Punjab government's power generation programme depends on adopting a pragmatic approach and undertaking sound planning for the proposed projects, and implementing the policy effectively. The coal-based power projects assume greater significance in the overall energy scenario. Optimal utilisation of indigenous coal reserves can be of help in improving socio-economic conditions of the area. On other hand, the planned projects in Punjab, as part of increasing local energy content, will reduce dependence on imported furnace oil, besides providing electricity to the consumers at an affordable price.

The writer is retired Chairman of State Engineering Corporation, Ministry of Industries and Production)