Jamshoro Power Plant Shift to Thar Lignite Expected to Cut Import Costs
Pakistan is set to save an estimated USD 3.239 billion over the next 26 years by converting the Jamshoro Unit-01 power plant from imported coal to indigenous Thar lignite. According to a Bankable Feasibility Study (BFS) prepared by Dornier Group and EY Parthenon, the project is technically feasible, economically viable, and environmentally manageable. The conversion is expected to save USD 2.113 billion in foreign exchange by reducing dependence on imported coal.
The feasibility study was completed with the support of K-Electric, Jamshoro Power Company Limited (JPCL), and the Private Power and Infrastructure Board (PPIB). A high-level steering committee established by Federal Minister for Power Sardar Awais Ahmed Khan Leghari held 38 meetings, including 15 chaired by the minister himself, to oversee and accelerate the study’s completion.
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The project offers strong economic benefits, including USD 1.720 billion in savings for the power sector through lower generation costs and expansion of Thar coal mining operations. The required investment for the conversion is estimated at USD 86.2 million, making it a highly attractive project with significant returns while preserving the existing infrastructure of Pakistan’s ultra-supercritical Jamshoro power plant.
In addition to financial savings, the conversion is expected to boost economic activity in Tharparkar by creating jobs, supporting mine expansion, and improving infrastructure. The government will now move toward the implementation phase, including policy approvals, regulatory clearances, technical studies, and procurement planning, as part of its broader strategy to enhance energy security and promote the use of indigenous resources.
