Pakistan’s first HVDC transmission line on financial close

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Pakistan has announced the financial close of its first-ever High Voltage Direct Current (HVDC) 878 km Matiari-Lahore transmission line project. The project, which falls under the portfolio of the China-Pakistan Economic Corridor (CPEC), is worth US$1.65 billion, and the major sponsor is the China Electric Power Equipment and Technology, which is a subsidiary of State Grid Corporation of China (SGCC). The project operates under Build-Operate-Transfer and will be transferred to NTDC after 25 years, with commercial operations starting in March 2021.

The transmission line extends from Matiari to Lahore. The HVDC transmission line is a private sector project being developed under China Pakistan Economic Corridor (CPEC) with the facilitation of Private Power and Infrastructure Board (PPIB), Power Division, National Transmission, and Despatch Company and other stakeholders. This transmission facility will primarily be utilized to transmit power generated from indigenous Thar coal-based projects.

Its main sponsor is China Electric Power Equipment & Technology, a subsidiary of State Grid of Corporation of China (SGCC). The company is responsible for the execution of the project through the formation of a special purpose company, Pak Matiari-Lahore Transmission Company Ltd (PMLTC).

The project is designed to have bi-pole HVDC technology, having two converter stations, one each at Matiari and Lahore, three repeater stations and two grounding electrode stations.

PPIB had issued a letter of support to PMLTC in August 2017 and the National Electric Power Regulatory Authority granted Special Purpose Transmission License to PMLTC for the project in February 2018.

Currently, 60 percent of electricity is being generated through oil and gas. The overall generation capacity in 2030 is expected to be 55,000MW of which 18,000MW to be generated through renewable resources. The project will create 6,000 jobs. Apart from the HVDC project, PPIB is currently facilitating the implementation of power projects having a cumulative capacity of 10,934 MW under CPEC, which include various hydel and coal-based projects.

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