K-Electric announced that it’s aiming to invest $1.5 billion into its power generation and distribution infrastructure over the subsequent three years, in line with an announcement released by the corporate on Thursday after its 110th Annual General Meeting.
The company said the investments would be displayed over the whole power value chain. Projects like the completion of the new Bin Qasim power plant (BQPS-III), similarly as installing new grid stations for up to 1,400MW of capacity by 2023 are included within the investment plan. In the meeting, shareholders were briefed about the challenges facing the corporate because of the COVID-19 lockdown.
According to the statement, “Before the COVID-19 lockdown, KE showed strong operational performance and up to March 20, 2020, recorded 3.1% growth in units sent-out, with around 2% points improvement in T&D losses, compared to the identical period last year. However, significant drops in consumption by industrial and commercial consumer segments, a load-shed exemption to high-loss areas, and inability to carry-out theft detection activities, adversely impacted the sales mix resulting in an overall increase in T&D losses.”
“These factors together with a major increase in finance cost, resulted in PKR 2.96 billion net loss, compared to PKR 17.3 billion net income within the preceding year,” the statement continued. The company has already invested PKR 55 billion into its distribution network within 2020 year. K-Electric has converted 9.000 Pole Mounted Transformers (PMT) to Aerial Bundled Cable (ABC), significantly reducing transmission and distribution losses.
Other efficiency measures like Automated Meter Readers and a Meter Data Management System are being implemented also. K-Electric has also incorporated a completely owned subsidiary, KE Venture Company (Pvt) Ltd as a part of a diversification strategy. KE Venture Company will act as a company for K-Electric’s initiatives within the energy sector like investments into renewable energy. K-Solar has been incorporated under KE Venture Company to specialize in solar power generation and distributions with 150 MW of solar IPPs installed at Vinder, Uthal, and Bela.