Spring 2014

Group - E
Use of Coal and thermal power
generation
Spring 2014
THERMAL POWER &USE OF COAL IN
THERMAL POWER GENERATION
Use of Coal and thermal power generation | 1



























Use of Coal and thermal power generation | 2

THERMAL POWER &USE OF COAL IN THERMAL POWER
GENERATION

PREPARED FOR
SIR.BASHARAT
COURSE: ORGANIZATIONAL COMMUNICATION
SCHOOL OF MANAGEMENT SCIENCES
QUAID-I-AZAM UNIVERSITY
ISLAMABAD


PREPARED BY
SAIRA MUMTAZ
SANA TARIQ
KAMRAN BUZDAR


MPA-1
SPRING 2014





Use of Coal and thermal power generation | 3


TABLE OF CONTENTS
[
EXECUTIVE SUMMARY ............................................................................................................................................4

THERMAL POWER; A REVIEW .......................................................................................................................................... 5
o COAL IS BEST MOST ECONOMIC & ENVIRONMENTAL FRIENDLY ................................................................................ 6

HISTORY OF COAL USAGE FOR ELECRICITY (FACTS & FIGURES) ..................................................................... 8
o THERMAL POWER STATIONS IN PAKISTAN.................................................................................................................. 9
o MINES OF COAL, SPECIALLY THAR COAL PROJECT .................................................................................................... 11

ANTECEDENTS OF LESS USE OF COAL IN POWER GENERATION (CAUSES) ................................................... 14
o REASONS FOR LOW CONSUMPTION ......................................................................................................................... 15

IMPACTS OF LESS USE OF ENERGY RESOURCES (VIZ. COAL, DIESEL, LITTER ETC) .................................. 17
o REDUCED PRODUCTION OF THERMAL POWER ............................................................................................ 18

NEED OF THE HOUR AND STRATEGY OF HIGH TIME (REMEDIES) .................................................................... 20
o RECOMMENDATIONS & SUGGESTIONS TO INCREASE ITS CONSUMPTION FOR ELECTRICITY ....... 21

CONCLUSIONS ...................................................................................................................................................................... 23

REFERENCES ........................................................................................................................................................................ 24






Use of Coal and thermal power generation | 4

EXECUTIVE SUMMARY
This report makes it evident that electricity plays a key role in the national growth and economical development of
any country. Presently, in Pakistan, only about half the population has access to electricity. However, coal is the
cheapest and the easiest way of power generation in Pakistan. Pakistan is a coal-rich country, but, unfortunately,
coal has not been developed for power generation for more than three decades due to lack of infrastructure,
insufficient financing and absence of modern coal mining technical expertise. The Government has now
determined to facilitate private investors to promote investment in coal development and coal power generation.

Coal is a cheap indigenous energy resource and, after the discovery of 175.5 billion tones of coal in
Thar area of Sindh, Pakistans coal power potential has increased manifold. It is anticipated that, if
properly exploited, Pakistans coal resources may generate more than 100,000 MW of electricity for the
next 30 years.

In view of the unsatisfactory performance of public sector utilities, unavailability of sufficient budget in
the public sector, the need to make electricity tariff free from subsidies and to keep it market oriented,
the GOP has decided to mobilize the private sector to improve efficiency, reduce the financial burden
and keep the power tariff within affordable limits.

The key points of the new policy is an emphasis on setting up power projects based on indigenous fuel
resources such as coal, hydel power and renewable energies. Through the announcement of the Power
Policy 2013, the GOP has opened up new avenues for private entrepreneurs to invest in Pakistans coal
sector. The objectives are of two-fold, i.e. development of indigenous coal and utilization for electricity
generation at the least cost. In order to develop indigenous coal resources for electricity generation, the
GOP has decided to exploit the vast coal deposits of Pakistan aggressively. According to the Power
Policy 2013, indigenous coal-based private power proposals will be for integrated coal mining and
power plant projects.

Neglecting of coal for using in the power generation in the past has made shortage of energy resources
at alarming stage. It is the cheapest way of producing electricity. But now water has gone above the
heads as if government starts now to set power plants through coal production, then in 2019 we will be
able to get 10,000 MW power. By that time, the energy requirements of the country will also be
increasing as energy requirement of our country is increasing day by day.

Contracts with investors on easy terms, skilled labor and experts by proper training, proper budget
allocation for coal sector, effective planning and use of modern technology is required to meet the
challenges that are occurring in the power generation process. Make the best use of the natural available
reservoirs is the best and productive way of power generation and Pakistan is blesses with the natural
resources like coal. US-AID report suggests that, Pakistan can produce up to 1,00,000 MW electricity
up to 2030 through the THAR COAL RESERVOIRS found near Sindh province. So Pakistan will be in
a very good position if the thar coal reservoirs are utilized efficiently, so we will be able to fulfill our
energy requirements and we will also be in a position to export electricity.



Use of Coal and thermal power generation | 5



THERMAL POWER;
A REVIEW


VISION

1










COAL IS BEST MOST ECONOMIC &ENVIRONMENTAL FRIENDLY

Use of Coal and thermal power generation | 6

THERMAL POWER: A REVIEW
A thermal power plant uses steam to spin turbines, which in turn feed electric generators.
Almost all coal, nuclear, geothermal, solar thermal electric, and waste incineration plants, as well as
many natural gas power plants are thermal. Natural gas, coal, litter, garbage, diesel, petrol &
Fossils are frequently combusted in gas turbines as well as boilers. The waste heat from a gas turbine
can be used to raise steam, in a combined cycle plant that improves overall efficiency.
Following are the inputs of Thermal Power Plants which are used for generating electricity;
Coal
Garbage & Litter
Diesel
Petrol
Natural Gas
Fossils
Fossil-fuel power plants;
Power plants burning
coal, fuel oil, or natural
gas are often
called fossil-fuel power
plants.
Conventional power
plants
Some biomass-fueled
thermal power plants
have appeared also. Non-
nuclear thermal power
plants, particularly
fossil-fueled plants, which do not use co-generation, are sometimes referred to as conventional power
plants.

o COAL IS BEST MOST ECONOMC & ENVIRONMENTAL FRIENDLY
Coal as an energy source has a more old-fashioned image than oil or natural gas. From the Scientific
perspective (of CO
2
emissions too,) coal-fired power is seen as being a major contributor to global
warming.
Coal is Best, most Economic & Environmental friendly for PAKISTAN. This statement can be
proved by following reasons collected by various scientific sources;
Use of Coal and thermal power generation | 7

1. Cheapest Source of Energy
Coal is by far cheaper than nuclear, natural gas, oil. Hydro usually will be slightly cheaper.
However, problems with hydro include: no new facilities because of public outcry when rivers running
dry in the dead of summer when peak air conditioning is needed and rivers are frozen in the dead of
winter when peak heating is needed.
2. Stable Source of Energy
Coal is a stable source of energy because it is available over the WORLD. Other power resources have
their own worth, but coal is most stable just due to its cheap availability.
3. Coal is Wood only; so has no Side Effects
Coal is nothing more than ancient wood which has been under pressure for millions of years. It is not
sinister as you may have been led to believe.
4. Numerous Uses of COAL
Coal provides many jobs. Unlike other forms of energy (nuclear, natural gas, oil, hydroelectric), coal
provides many jobs in removing coal from the earth, transporting it to the utility, burning it, and
properly disposing of coal ash.
5. Coal Is Our Indigenous Mineral
Coal is Pakistan made. We do not have to import this product into this country.
6. Environment Friendly
Coal can be mined and burned with little environmental impact. There have been tremendous strides
in environmental responsibility with mining coal and burning coal. Its environmental friendly.
7. Beneficial & Lucrative job for Investors
Coal mining reclamation can give the surface landowner many more options for developing his land.
In the mountainous terrain, a mining process call mountaintop removal can create very valuable and
useable level land for the surface owner.
So now considering above reasons we can state that;
Coal is Best, most Economic & Environmental friendly for PAKISTAN


Use of Coal and thermal power generation | 8

HISTORY OF COAL
USAGE FOR
ELECTRICITY
FACTS & FIGURES
2











THERMAL POWER STATIONS IN PAKISTAN

MINES OF COAL, SPECIALLY THAR COAL PROJECT

Use of Coal and thermal power generation | 9

HISTORY OF COAL USAGE FOR ELECTRICITY

Use of Coal in generation of electricity is not new. It is the most common and the cheapest way of
producing electricity throughout the world for almost whole of the last century. Many developed
countries like Japan after the first oil shock in 1973; they increased the use of coal in order to increase
production of electricity. At present, less than 13% of power generation in Japan uses oil, with
LNG(liquefied Natural Gas) making up 26% and coal 27%.Looking at other countries, coal makes up
49% of power generation in the USA, the largest consumer of energy, and 79% in China, where rapid
growth in energy consumption is
forecast. As coal accounts for 41% of
the world's power generation, it will
continue to play a major role for the
foreseeable future.
Pakistan with 185 Billion Tons of coal
reserves is the 4th largest in the world
and is definitely under-utilizing this
huge resource. While Pakistan
continues to rely on expensive imported
oil for electricity production,
indigenously available coal can provide
a much cheaper alternative. According
to a 2010 WAPDA report, Government
intends to produce cheap electricity via
coal and increase the percentage of coal based electricity to 18% by 2030.
In the following chart, we can see that how developed countries are using coal efficiently in power
generation.
According to World Bank, 40% of the total electricity produced worldwide is from coal. Compared to
this worldwide average, contribution from coal in Pakistans overall energy mix is only 7% and further
only 0.1% is used in power generation.
o THERMAL POWER STATIONS IN PAKISTAN
Pakistan had a total installed power generation capacity of almost 23 GW in 2013. However,
dependable or de-rated capacity is in the range of 16 to 18 GW during the year, due to variety of
factors, whereas demand for electricity is increasing at an average annual rate of eight per cent. And
according to World Energy Statistics 2011, published by IEA, Pakistans per capita electricity
consumption is one-sixth of the World Average. World average per capita electricity consumption is
2730 kWh compared to Pakistans per capita electricity consumption of 451 kWh.
Use of Coal and thermal power generation | 10

International Energy Agency has forecast that total electricity demand of the country will be 49,078
MW in 2025
1. Power Generation through Fossils
Pakistan has 16 power generation plants throughout the country which have generating capacity of
9974 MW electricity, but 2 power plants which are in Attock and Pindi Gheb that uses coal to generate
electricity are not in operation. If they are also operated, then these can double the electricity
generating capacity.
2. Power Generation through Hydroelectric
In hydroelectric power plants; there are 90 power generation plants in total and similarly through
nuclear power there are 7 power generation plants.
3. Renewable
According to a USAID report, Pakistan has the potential of producing 150,000 megawatts of wind
energy, of which only the Sindh corridor can produce 40,000 megawatts.

Existing power sector situation in Pakistan:
60% power generation based on gas & furnace oil
Gas becoming scarce
Exorbitant cost of imported oil/HSD
Double-edged sword of gas depletion and higher oil prices
resulted in huge circular debt running in billions.
The panacea lies in converting thermal power plants to cheaper
Fuels such as coal
So we can see that the power generation capacity in our country is far higher than it is actually
producing energy. Most of the plants are capable of producing high megawatts of electricity that can
fulfill the requirement of a country, and even we can export it to the neighboring countries who are
suffering with this crisis.





Use of Coal and thermal power generation | 11

o MINES OF COAL, ESPECIALLY THAR COAL PROJECT
Pakistan has so many
power stations that can
produce more power
generation if they are
converted on Coal. It
can add up 1500 MW
more to the power
generation system, if
the plants are converted
in to coal power
generation. Few of the
plants that can easily be
converted into coal are
given in the following
table:
Thar Coal which boasts of 175 billion tons coal reserve have a power generation potential of 100,000
MW consuming 536 million tons per year. These reserves are equal to 50 billion tons of oil which are
more than the combined oil reserves of Saudi Arabia and Iran. The reserves translate to 2000 TCF of
gas which is 42 times greater than total gas reserves discovered in Pakistan so far.
1. Coal; Need of Power Generation
The coal in Thar though is of low grade and watery. Such kind of coal has not been considered
economically viable to exploit in the past. The rising fuel prices in the international market and
decreasing availability of gas have however, necessitated the need for coal power. Also with new
technology watery coal can be dried out or be left underground and gasified directly. This has helped
initialize various projects around the globe.
2. Main Features of Thar Coal Project (IN 2011)
AT That time The Planning Commission was working on project in Thar. The projects aim was to
generate 100 MW power via underground coal gasification. According to Dr Samar Mubarak Mand
50,000 MW electricity has been produced around the world by same technique. The Government of
Sindh has assigned 6 Thar blocks to different companies for coal mining. Besides the 100 MW UCG
(under-ground coal gasification), a 200MW Dadabhoy coal mining and power project in Jherruk,
Sindh and 1,200MW Engro coal power project in THAR were also expected to complete in December
2011. The cost of that project was (90billion and 88million) but due to the shortage of funds, project
Use of Coal and thermal power generation | 12

was not completed. Dr Samar Mubarak said THAR COAL project is going to stop due to lack of
funds (JANG NEWS JULY-26, 2012)
3-Nawaz, Zardari launch Thar coal power project
Prime Minister Nawaz Sharif and former president Asif Ali Zardari jointly performed ground-
breaking of the US 1.6 billion dollar Thar coal power project to help the country meet its energy needs.
The project, scheduled to complete in 2017, will initially provide 660 MW of power for Pakistan's
energy starved industrial units.
The project will be carried out by Sindh Engro Coal Mining Company (SECMC) a joint venture
between Engro Powergen and Government of Sindh.
In its first phase, the project will develop a coal mining and power project with a capacity of 3.8
million tonnes per annum and 660 MW.
Subsequently, the mine will be expanded to a coal capacity of 6.5 million tonnes per annum to support
a 1300 MW power plant.
In the second phase, it is planned to expand mining project to 13.5 million tonnes and 19.5 million
tonnes, with a power generation capacity of 2400 MW and 3600 MW.
4-Lack of Budget & Financing for Power Generation through Coal
The government has, however, recently submitted a document to USAID citing lack of financing by
the donors for the project in view of carbon emissions and environmental degradation. The inter-
corporate circular debt is
also proving to be a hurdle
in the way of private sector
investment in coal based
power plants. Besides,
there is a debate on the use
of UCG (Underground
Coal Gasification)
technology as well since it
is still in the research
phase, with many experts
skeptical about its success
and viability. Also there is
a need for effective
transport mechanism of coal from these mines and transmission lines that can connect the generation
plants to the national grid.
Use of Coal and thermal power generation | 13

Recently Government of Pakistan has gone through adoption of Rental Power Project. That project
included the rental power plants which were imported from abroad. But these power plants were so
much expensive that their power generation increased per unit cost of electricity so much high. Also
there is a big corruption scandal that makes this project suspicious. However, this step was taken by
the government as the shortage of electricity was at emergency level. So, government thought it as a
quick and easy way overcoming the short fall of electricity in the country.
If the mentioned power generation plants are converted into coal, then it will benefit the government of
Pakistan in billions of U.S Dollars per year. Their production cost will also be lower than the prices of
rental power plants. Probable benefits from the conversion of suitable candidate project to coal power
generation are shown in the following diagram:






Use of Coal and thermal power generation | 14











ANTECEDENTS OF
LESS USE OF COAL
IN POWER
GENERATION
CAUSES
3




REASONS FOR LOW CONSUMPTION


Use of Coal and thermal power generation | 15

ANTECEDENTS OF LESS USE OF COAL IN POWER GENERATION
Pakistan is a coal-rich country, but, unfortunately, coal has not been developed for power generation
for more than three decades due to lack of infrastructure, insufficient Financing and absence of modern
coal mining technical expertise. The Government has now determined to facilitate private investors to
promote investment in coal development and coal power generation. In Pakistan, consumption of coal
for electricity purpose in Thermal power is very low. There are numerous reasons which caused this
situation. The following are the reasons which state that why consumption of coal in thermal power
has been so low:
o REASONS FOR LOW CONSUMPTION
1. Low Quality of Coal
Pakistani coal is not of superior quality. It is a middle quality of coal. Unavailability of reliable coal is
the main obstacle to significant progress in coal power generation.
2. Lack of Funds
Our Pakistani economy is not so strong. We have been an indebted country for many decades. So our
poor economy and empty pocket does not let us to invest in the coal. Although we have many mines
enriched with treasure of coal, yet we are unable to extract this coal from mine and then use it for
productive purpose. So Lack of funds and poor economy is the main major factor of our backwardness
in coal sector.
3. Poor Planning
Unfortunately, we are very good planners but very bad actor. Poor planning and strategies are affecting
our infrastructure badly, so same is the situation with coal sector. First of all, our economists feel
hesitation to make proper planning and policies for the coal power sector, but if they plan something,
then they forget to implement on those policies. Malaysia is the country which has developed by using
our policies for basic infrastructure, but we are still standing there.
4. High Investment is needed
Massive investments for development, of infrastructure, therefore, are needed for mine and power
plant development, especially in Thar, which is a semi-desert area. For exploration and drilling of
mines of coal, a huge sum of money is needed. Although we have mines enriched with millions of tons
coal, so same is the logic with investment. It takes trillions of Rupees to drill the mines then work on
that and getting coal for consumption in power sector.
5. Poor Infrastructure
Coalfields are generally located in remote and mountainous areas where the basic amenities of life
such as roads, railways, telephone lines and cooling water required for mining and setting up coal
power plants are either minimal or absent. Similarly, in Pakistan, the vast majority of coalfields are
located in undeveloped areas where no significant infrastructure is available. Poor infrastructure in
our country is a key factor which hinders the process of consumption of coal for Electricity. We dont
Use of Coal and thermal power generation | 16

have proper road, transport, communication and many others required facilities to promote our coal
mines. Our workers and miners are mostly reluctant to get employed in those areas which have no
proper living facilities.
6. Absence of Sufficient Machinery
The absence of sufficient manufacturing capabilities of mining and power plant equipment and
machinery is one of the main impediments to the rapid development of coal mining in Pakistan and
requires to be addressed through massive private investment.
7. Lack of Experts & Labor
In Pakistan, there is a shortage of skilled labor and experts for extracting coal from mines. So we are
compelled to hire experts from abroad who charge very high wages.
8. Primitive Methods of Production
In Pakistan, primitive methods are used for production which usually increases the cost of coal. No use
of modern methods hinders the efficiency in coal extracting.
9. No Use of Modern Technology
In Pakistan, modern technology is not used for mining. Workers are accustomed to work with
traditional tools for digging, drilling and other activities. Due to very high cost, there is very limited
use of technology in coal sector.
10. Biased Politicians
Unluckily, our politicians are not sincere to the country that is why; they dont want to promote the
coal sector for some personal interests. Biased politicians are termite over our country, who do not let
the country to flourish.
11. Corruption
Corruption is root cause of our bad economic situation. In coal sector, biased people and establishment
is addicted to corruption for many years. Corrupt people do not want to promote coal sector because it
may stop their corruption in other energy resources.


Use of Coal and thermal power generation | 17

IMPACTS OF LESS
USE OF ENERGY
RESOURCES

IMPACTS
4











VIZ. COAL, DIESEL & LITTER ETC

REDUCED PRODUCTION OF THERMAL POWER

Use of Coal and thermal power generation | 18

LESS USE OF ENERGY RESOURCES

o REDUCED PRODUCTION OF THERMAL POWER
By the grace of ALMIGHTY ALLAH, Pakistan has very large natural resources that can be very
useful for the power generation. But the governments havent taken positive steps to make the best
utilization of these natural resources for the power generation. They have gone for the expensive
alternatives for the power generation, one of which is rental power project. They have shown
dependence on fuel for power generation whose prices are touching the sky in the whole world. As
Pakistan has no big reservoirs of fuel & petroleum, so the large quantity of imported expensive fuel
has also raised cost of power generation in Pakistan and put a great impact on the power generation
capacity as expensive ways are wasting the finance reserves of the country and output is not up to that
mark according to the expenses bearded.
Past Governments have neglected the cheapest way of power generation, which have caused the
energy crisis in our country, that is:
Coal
Adoption of the expensive power generation ways has put the great impact on financing of the efficient
and cheap ways of power generation like coal. Because all of the financial resources are spent on those
expensive projects, which are not so efficient and cheap but only produces quick but less power
generation. As they havent utilized the coal for power generation, so its impact is that the country will
generate only almost 10,000 MW in next seven years but at that time the energy requirements of the
country will be far more exceeded. Following table shows the expected power generation through IPPs
year by year.











Use of Coal and thermal power generation | 19



The neglecting of coal for power generation in the past has put such severe impacts on the power
generation that if government wants to refocus on utilizing the coal for power generation, they face
serious issues now and are not able to convert the power stations to coal even when they are willing to
convert them.
The impact of neglecting the coal for power generation has created the following issues on conversion
of steam power plants to coal.

ISSUES ON CONVERSION OF STEAM
POWER PLANTS TO COAL









Pakistan is the coal rich country but we havent utilized those vast coal reservoirs for maximization of
power generation which has impacted on our power generation capacity and we are facing problems
now. Due to this, only 40% of the population of Pakistan has access to electricity, resulting in a large
and growing power market. Concessionary duties and tax regimes announced by the government of
Pakistan in alternative expensive power generation resources has made the investors not to focus on
the coal, as it will not be in their personal benefit. Its impact is that the investors have started focusing
on their own benefits and they have started neglecting the benefit and need of the country and society.
According to last estimates made in 2011, Thar coal field is estimated to have reserves of 185 billion
tons, 68 times higher than Pakistans total gas reserves, capable of generating 20,000MW for the next
40 years at a rate of Rs4 per unit but international influence is so much strong that the government has
reversed its decision on consuming domestic coal for power generation as the Council of Common
Interests has approved using a blend of imported and Thar coal in power plants.
Involvement of new capital costs.
Outage time to dismantle old boilers and
assemble/commission new ones
Additional auxiliary consumption thereby reducing
the net generation capacity
Higher O&M costs
Limitation of space for coal storage & ash handling
Probable reduction of efficiency
Non availability of coal and
Environment degradation

Use of Coal and thermal power generation | 20


NEED OF THE HOUR
& STRATEGY OF
HIGH TIME

REMEDIES
5








RECOMMENDATIONS & SUGGESTIONS TO INCREASE ITS CONSUMPTION
FOR ELECTRICITY

Use of Coal and thermal power generation | 21

NEED OF THE HOUR &AND STRATEGY OF HIGH TIME

There are always certain problems every where, but brave nations try to over come and tackle them
with courage, zeal and hard work. It is stated that
God helps those who help themselves.
Although our position is quite pathetic in consumption of coal sector in thermal power, yet we can get
rid of this and improve our coal sector by adopting following remedial measures:

o RECOMMENDATIONS & SUGGESTIONS TO INCREASE ITS CONSUMPTION FOR
ELECTRICITY
1. Contracts with Investors on Easy Terms
By offering foreign and local investors privately, our coal mines can be proved much lucrative for us.
It will definitely prove efficacious for the development of country. Development of coal sector, high
rate of employment, developed infrastructure and self-sufficiency in coal sector are some advantages
of signing contracts with private investors. So it is an immense need of the hour.

2. Skilled Labor & Experts by Proper Training
For the optimum use of resources, our country needs a large number of skilled labor and experts. We
need a labor which is efficient in mining activities like drilling, blasting, extracting and many other
mining skills. So people must be properly trained to be used in these activities.

3. Proper Budget Allocation for Coal Sector
Government and economists must maintain a proper and sufficient budget in annual budget to promote
this sector. If our Government pays its attention towards this sector, only then the subordinates will
work for that. Autonomous Bodies must be order to work on coal sector in efficient way.

4. Effective Planning
By doing an effective planning and making better policies, our coal sector can be improved and we can
also get a lot of input and benefits by our indigenous coal. Effective planning plays an important and
vital role for doing something or solving a problem. So, If we plan to get the advantages of coal for us,
not only for us but also for our many generations, then we can get optimum output of coal mines.

5. Modern Technology
By importing a modern and latest technology, we can promote our coal sector because it will cause to
reduce cost of coal. Government should import modern machinery, plants and equipments for drilling,
blasting and extracting of coal in order to get maximum output to use in electricity power plants.

6. New Power Plants
Government should install new plants for generating electricity. When plants will be available, then
only we can be available to produce electricity by using coal in thermal power. So for the optimum use
of coal in thermal power, new plants are badly needed to be installed.
Use of Coal and thermal power generation | 22

7. Improvement of Infrastructure in Mines areas
Government should provide basic necessities of life in those areas where mines exist. These areas
mostly less developed and backward, so by improving infrastructure of such areas, best potential of
workers can be achieved. When Government will provide sufficient facilities to the areas, then it will
result a beneficial development for the country.

8. Coal Handling & Transportation Facility
Rail track, locomotives, mine cars, conveyors, skips, chutes, haulages and other transport services
must be provide in mineral areas for easy and cheap access of coal to target places. Coal is an efficient
energy resource, so it must be transported efficiently.

9. Coal Storage Yard
Coal storage yards and many other store rooms should be made to store the coal with safety. Because it
is indispensable for the optimum usage of resources, to have coal, according to required quality. Proper
stores and warehouses must be made in Thermal power plants to keep coal in good condition.

10. Discount in Taxes
Government should try to give a rebate to all those investors who are interesting to invest in coal
projects. It is a way to get coal for Thermal power Plants because when private investors will extract
the coal then it will be easy for Government to use this coal in Power Plants.

11. No Corruption in Coal Sector
In our country, coal is deliberately neglected for racial interests. Rental Power Plants is best example
of it. Government should try its best to use local coal for electricity as a first priority but here,
politicians do not do this just for corruption. A proper accountability system must be prevailed in the
country for fair treatment of coal in Thermal Power Plants.

12. No Schism over usage of Coal
People living those areas where mines are exist, should not be addicted to schism. In Pakistan, people
do not want to let people of other areas to extract mines from their own area. They treat this as their
personal asset, instead nations asset. So Government should try to eliminate the bad elements
hindering in the way of consumption of coal in Thermal Power.




Use of Coal and thermal power generation | 23

CONCLUSION
We conclude the following from the discussions that came earlier:
Our findings show that Pakistan is a coal rich country but unfortunately it is suffering with the
shortage of power generation. Only 40% population of the country has access to the electricity and
remaining are not having the availability of electricity supply. The total coal reserves of Pakistan are
more than 185 billion tones. If we utilize them properly then we will be able to produce up to 1,00,000
MW electricity by 2030. Which will not only fulfill the need of our own country, we will also be
exporting the electricity to the other countries and will earn large foreign earnings.

The coal reserves of Pakistan are really suitable for power generation and will produce large amount of
electricity. Opportunities are available for utilization of coal in other industries such as cement, bricks
kilns, coal gasification and coal briquettes.

Pakistan has a population of about 140 million, and only 40% people have access to electricity.
Resulting in a large and growing domestic power market
Government guarantees the performance of the power purchaser

Government provides protection against political risks and change in law

Concessionary duties and taxes regime announced by the GOP for the power sector

Efficient and cost-effective technical manpower available in coal mining and in the power
Sector

Pakistan has successfully attracted four billion dollars from private sector in power generation

Now at the end, it is concluded that Coal is the best option for Pakistan to be consumed in Thermal
Power for generating electricity.






Use of Coal and thermal power generation | 24

REFERENCES

HITACHI GROUP JAPAN ( www.hitachi.com)
Coal fired Thermal Power Point
Comparison of Power Generation By Source
INTERNATIONAL COAL CONFERENCE (Report on conversion of existing Thermal Power
Plants to Coal (2013)
Candidate Plants for Local Conversion
Probable Benefits from Conversion of suitable Candidate Projects to Coal
Issues on Conversion of Steam Power Plants to Coal
PAKISTAN ECONOMIC SURVEY (2012-13)
Expected Capacity Addition to IPPs up to year 2019.