The partnership underscores KE’s commitment to addressing the energy trilemma by integrating power generation from indigenous sources.
In a strategic move aimed at enhancing access to affordable and reliable energy, Moonis Abdullah Alvi, the CEO of K-Electric (KE), and Kamran Kamal, CEO of Hub Power Company Limited (HUBCO), recently signed a Memorandum of Understanding (MoU).
The agreement focuses on exploring opportunities for electricity off-take following the conversion of HUBCO’s Hub Plant to locally sourced Thar coal, aligning with KE’s long-term strategy to diversify its energy mix.
The partnership underscores KE’s commitment to addressing the energy trilemma by integrating power generation from indigenous sources. With a keen interest in the viability of Thar coal-based projects, KE is actively pursuing sustainable solutions for its growing customer base, aiming to reduce dependence on imported fossil fuels.
HUBCO’s Hub Power station, a 1292 MW (4 X 323 MW) residual fuel oil-based plant operational since 1997, is set to undergo a transformation. The proposed conversion to Thar coal is a pivotal step towards decreasing reliance on imported fuels, offering a sustainable energy solution for Karachi residents. The project also supports the continued utilization of the country’s existing power generation assets, aligning with the goal of achieving energy security.
Speaking on the occasion, CEO of KE, Moonis Abdullah Alvi, emphasized the significance of the collaboration, stating, “Today’s signing is another reflection of our intent to tackle the energy trilemma head-on, enabling access to affordable and reliable power to our growing customer base.” Alvi expressed pride in KE’s track record as a preferred off-taker for independent power producers in Pakistan, attributing it to the company’s superior creditworthiness and a history of fulfilling commitments.
He further outlined KE’s vision for the future, highlighting the aim to substitute reliance on imported fossil fuels with indigenous sources. This vision aligns with the Power Acquisition Program submitted to the regulator, which seeks to balance baseload requirements with an increased focus on renewable energy, creating a more resilient power value chain.
Kamran Kamal, CEO of HUBCO, echoed the sentiment, emphasizing the crucial role the proposed conversion of the Hub power plant to Thar coal will play in decreasing reliance on imported fuels. Kamal stated, “This initiative is in line with our commitment to securing indigenous, reliable, and affordable energy supply and contributing towards achieving energy security for the country.”
He added that the envisaged project would be executed after conducting necessary feasibility studies and obtaining corporate and regulatory approvals.
The event saw the presence of key executives from both companies, including KE’s Chief Financial Officer Aamir Ghaziani, Chief Strategy Officer Shahab Qader, and Head of Business Development Mudassir Zuberi. HUBCO was represented by Chief Financial Officer Muhammad Saqib and Vice President Operations Amjad Raja, among other senior members from both organizations.
The alliance between KE and HUBCO signifies a collaborative effort to navigate the changing energy landscape, embracing sustainable and locally sourced solutions. As the feasibility studies progress and regulatory approvals are secured, the proposed conversion of the Hub Power station to Thar coal marks a significant stride towards a more resilient and self-reliant energy future for Pakistan.