Cement industry incapable of adding power to national grid

KARACHI: The National Electric Power Regulatory Authority (NEPRA) has ruled out the possibility of adding the waste heat recovery generation in the national grid as surplus energy.Keeping in view the acute shortage and demand supply gap of electric power in the country, the authority had initiated Suo Moto proceedings with respect to development of upfront tariff for waste heat recovery power projects.However, the NEPRA has decided not to proceed further with the development of up-front tariff for waste heat recovery projects citing that that there is almost negligible potential in the waste heat recovery projects as cement plants have their own high consumption and heat produced during the processing is only able to minimize the demand of the particular cement plant.Earlier, it was being expected that the cement industry of Pakistan which is turning towards power generation would not only cater to their needs but would also supply electricity to the national grid.Waste heat recovery power generation can add a valuable source of power to a cement plant. However, this requires the selection of the most suitable thermodynamic system for the plant’s process conditions. Since the 1970s and early 1980s, medium- and low-temperature pure waste heat recovery power generation technology has been used in the cement industry by western developed countries and Japan. The technology entered China in the 1990s and a short while later; key equipment was designed and manufactured in China. Following China, the technology is now used frequently in both existing and new clinker production lines in the domestic cement industry of Pakistan.The NEPRA had developed a draft proposal in the matter and also directedNEPRA professionals to visit the cement plants and explore the possibility of the waste heat recovery generation in the national grid as surplus energy.In response, NEPRA received intervention requests and comments from Anwar Kamal Law Associates, Whistleblower Pakistan, Lucky Cement Ltd, Hyderabad Electric Supply Company (HESCO), Directorate of Alternative Energy and Government of Sindh.The Authority considered the report of the NEPRA professionals as well as submissions of the interveners and commentators, which were of generic nature and no evidence/record in support of the claims raised therein was produced.”Having considered the report of the NEPRA professionals and comments of the stakeholders, the NEPRA considers that there is almost negligible potential in the waste heat recovery projects as cement plants have their own high consumption and heat produced during the processing is only able to minimize the demand of the particular cement plant”. The NEPRA said that the matter of development of upfront tariff for waste heat recovery power projects stands closed.