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MOU for 1.32 GW coal power plant – Thar Block VI
MOU for 1.32 GW coal power plant – Thar Block VI.
About this update from Oracle Power Plc
[{"type":"text","content":"\n\nTuesday 16 May 2023\nOracle Power PLC\n(\"Oracle Power\" or the \"Company\")\n \nThar Block VI - MOU to develop 1.32 GW coal power plant\n \nOracle Power PLC (AIM: ORCP), a developer of energy projects, has signed a Memorandum of Understanding (\"MOU\") for the off-take and development of its 1.32 GW Thar coal fired power plant in the Sindh Province, Pakistan, with the following consortium parties (together, the \"Parties\"): \n· Energy Department, Government of Sindh (\"Sindh Government\" or \"SEM\") \n· Thar Electricity (Private) Limited (\"TEPL\"), a 100% owned subsidiary of Oracle Power \n· K-Electric Limited (\"KE\"), the largest privately owned vertically integrated power utility in Pakistan \n· PowerChina International Group Limited (\"PowerChina International\"), a leading hydropower, electricity, and infrastructure construction company \nOracle Power has been engaged with the development of its 1.32 GW coal-fired project at Block VI at Thar (\"Thar Project\") through TEPL, the Company's wholly owned special purpose vehicle for the Thar Project. The Thar Project has achieved significant milestones since its inception. It was included in the China Pakistan Economic Corridor (\"CPEC\") in 2014 and elevated to priority project status in the CPEC in 2017. The Thar Project continues to be in the list of CPEC projects and its progress was discussed in its last Joint Cooperation Committee (JCC) meeting held in 2020.\nThrough this MOU, TEPL will assess the viability of developing: (i) the power project at Thar Coal Block VI as originally planned (\"Project Option 1\") or (ii) relocating the power project to KE's owned land located at Port Qasim, Karachi (\"Project Option 2\"), if found technically and commercially suitable and subject to obtaining all required approvals and consents.\nKE, as per its long-term generation plan, has a strategy to build a base load capacity of over 2,000 GW by 2033 dependent on the demand/supply position in KE's territory (\"KE's Power Demand\"). To fulfil this requirement and if Project Option 1 is followed, KE could potentially become the [sole] off taker for Oracle Power's 1.32 GW power plant, via a direct power purchase agreement (\"PPA\"), ...