Electric industry operations & market.

K-Electric (KE)
Introduction
K-Electric (KE) has powered Karachi for over one hundred years. Through a network spanning
across 6,500 square kilometres, KE supplies power to all residential, commercial, industrial and
agricultural areas that fall under the city's ambit and beyond, serving over 2.5 million customers
across Karachi, Dhabeji and Gharo in Sindh, and Uthal, Vinder and Bela in Balochistan.KE is the
only vertically-integrated power utility in Pakistan, which means the organisation manages all
three key areas – Generation, Transmission and Distribution – to produce and deliver energy to
consumers. Formerly known as Karachi Electric Supply Company Limited, the power utility is an
integral part of one of the world's most populous cities. In 2009, KES Power Limited, the majority
shareholder of KE, put a turnaround strategy that has seen investments of over USD 2.1 billion.
These have resulted in 1,057 MW being added to the Company's Generation capacity and
Transmission & Distribution capacity has been increased by approximately 29% and 60%
respectively, followed by a 15.5% point reduction in Transmission & Distribution losses. K-
Electric's transformation is a globally recognised success story of business excellence.KE is proud
to be one of the most dynamic institutions in the country. The organisation aspires to
continuously serve Karachi with even greater vigour and purpose with all its stakeholders'
collective support.

Company mission
KE supplies power to Pakistan's largest city and economic hub, Karachi, home to an estimated 22
million people (2018). The Company has a customer account base of over 2.5 million, and around
10,000 employees. KE engages in the generation, transmission, and distribution of electric energy
to industrial, commercial, agricultural and residential areas that fall under its network. In January
2018, the utility also initiated the process of distributed generation under a net metering
program. KE's network has improved multiple folds over many years: projects like Aerial Bundled
Cabling (ABC) to improve secondary distribution system and reduce power thefts, TP-1000
transmission upgrade of the system by building numerous grid stations and expanding 1000 MVA
in transmission and distribution infrastructure, collaborations with World Bank and IFC on
network system improvement, generation fleet efficiency improvement by ISO 50001 energy
management system certifications of KE Bin Qasim-II, Korangi Combined Cycle Power Plant,[ and
energy efficiency and renewable programs for KE consumers, including energy audits, power
factor improvement surveys, solar consultancy and outreach and awareness programs.
History

In 1913, the Karachi Electric Supply Company (KESC) was formed to meet the power needs of a
small port town called Karachi, incorporated under the current Companies Act, 2017. In 1952,
The Government of Pakistan nationalised KESC to facilitate the much-needed investment in its
infrastructure. In 2005, KESC was privatised, with the government retaining a stake of
approximately 26%, while 71% was transferred to a foreign consortium. In 2009, the new
management, led by Abraaj Capital, took charge, beginning a turnaround story which has thus
far seen investments of over US$2.1 billion. In 2014, a low-cost power plant began operations,
saving Pakistan hundreds of millions of dollars and cutting Pakistan's energy deficit. This power
plant was funded by International Finance Corporation, a World Bank Group corporation. Since
1994, IFC has been one of the largest private power projects known as 'Independent Power
Producers (IPPs)' locally in Pakistan. This power plant increased power generation and improved
energy supply for approximately 12 million people. In 2014, KESC Changed Name to K-Electric
changed its logo to three feathers of a partridge in orange, blue and green representing energy,
community, and environment. As of 2017, The Abraaj Group and Aljomaih/NIG have a 66.4%
stake in KE; the Government of Pakistan's shareholding stands at 24.36%.

Sustainability
Over the past few years, K-Electric's efforts have received a formal commendation in the form of
several awards and accolades. These reinforce the organisation's determination to continue its
progress towards meeting the power needs of Karachi sustainably.KE believes in contributing to the
health of the communities in which it operates, and maintains a wide range of CSR activities to help
build a better society for all. KE facilitates communities in energy conservation, environmental
protection, health, education, skill development, poverty reduction, and other socio-economic
development activities. The Company also conducts studies on the potential ecological and societal
impact of its new projects, ensuring that KE initiatives act as a catalyst for positive change.

Achievements


K-Electric was a participant for the International Energy Efficiency Day, celebrated on 5
October, both in 2017 and 2018.KE won the best project award in the category of' Corporate
Solar Sustainability Program of the year' at the Middle East Solar Industry Association's
(MESIA) Solar Awards 2018 as part of World Future Energy Summit held in Abu Dhabi.


Under K-Electric's Plant for Pakistan initiative, renowned horticulturalists, Tofiq Pasha and KE
employees enthusiastically plant trees across the city to green and clean Karachi. To date,
more than 100,000 trees have been produced by KE.
Future Plans

K-Electric continues to expand its generation portfolio through its generation, projects being
developed by external developers as pure IPPs, and projects where KE shall acquire equity stake
within an IPP.

900 MW BQPS III Power Project

KE has initiated a 900 MW project for an RLNG-based power plant at Bin Qasim site and
associated grid expansion projects. This will supplement Karachi's power needs and add value
to the economy through better and sustainable power to business and industry. The project,
known as BQPS III, also includes an upgrade to associated transmission infrastructure. The first
phase of 900 MW is expected to be commissioned as a combined cycle in the 4th quarter of FY
2021. The process of procurement of RLNG for the project is also underway.

(350 x 2) MW DPKPGL Coal Power Project

To diversify its fuel mix in power generation, the Company is planning a 700 MW coal-fired
power plant at Port Qasim, Karachi, under an IPP structure, for which an upfront tariff was
issued in 2016. Further, NEPRA awarded the generation license to the project in May 2017, and
an MoU with the state-owned China Machinery Engineering Corporation (CMEC) has been
signed for the development of the 700 MW coal power plant. Moreover, the land has also been
acquired for the project, and Commercial Operations Date (COD) is expected in the 4th quarter
of FY 2022.

450 MW RLNG Project

KE will be the power off-taker in a 450 MW RLNG-fired power plant which is expected to be
available from FY 2023. KE currently has an equity option in this project for up to 24%.

Renewable Power
KE is engaged in seeking potential partners and sponsors to promote technological
development, construction, operation and maintenance of solar and wind power plants within
its franchise area. In this regard, the Company's first-ever Energy Purchase Agreement (EPA)
was initialled in FY 2017, and the power supply from Our sun Solar started towards the end of
2018. In addition to Our sun Solar, Gharo Solar a 50 MW solar IPP, is under construction and is
expected to be commissioned by the end of 2nd quarter of FY 2020.
KE is also conducting a system study to determine its renewable energy mix and expand its
renewable portfolio, mainly wind and solar.

Board of directors
 Name Designation

Shan A. Ashery
Chairman

Syed Moonis Alvi

Chief Executive Officer

Khalid Rafi
Independent Director

Adeeb Ahmad
Non-Executive Director

Ch. Khaqan Saadullah Khan

Non-Executive Director

Jamil Akbar
Non-Executive Director

Mubasher H. Sheikh
Non-Executive Director
 Dr. Ahmed Mujtaba Memon
Non-Executive Director (GOP
Nominee)

Ruhail Muhammad
Non-Executive Director

Syed Asad Ali Shah

Non-Executive Director

Waseem Mukhtar
Non-Executive Director (GOP
Nominee)

Mustafa N. Farooki
Non-Executive Director

Reference
 https://en.wikipedia.org/wiki/K-Electric
 https://www.ke.com.pk/investor-
relation/board-of-directors/
 https://www.ke.com.pk/investor-
relation/financial-data/