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Performance
Report
Contents
ABOUT US
01
02
BUSINESS
Corporate Prole
03
KE Network
04
Organisational Structure
05
06
ENVIRONMENT
HSEQ Policy
07
08
Environmental Compliance
09
Environmental Studies
11
14
EMS Implementation
16
PCB Monitoring
17
SF6 Monitoring
19
20
EMF Monitoring
21
Environmental Procedures
22
Environmental Trainings
23
25
Pollution Control
28
Energy Efciency
30
Renewable Energy
31
Conservation of Nature
32
ACHIEVEMENTS
OUR GOALS
33
35
Message from
the CEO
We are pleased to share the fruits of our efforts to promote
environmental protection, awareness and compliance through
our Environmental Performance Report. In preparing this report,
we took the opportunity to look back on our activities over the
past year and their implications.
01
Our Vision
To restore and maintain pride in KE, Karachi and Pakistan.
Our Mission
Brightening lives by building the capacity to deliver uninterrupted,
safe and affordable power to Karachiites.
OUR VALUES
We always seek relevance to our values which include integrity, accountability and the need for
continuous improvement. The pursuit of these values creates opportunities for success and the
potential to provide our customers with more satisfactory services. These values also lead us to
manage K-Electrics environmental impact in ways that strike the right balance between societys
economic and environmental needs.
WE BELIEVE
WE ARE TRUSTWORTHY
We speak simply, but never patronise. Long and complicated explanations are confusing and can
appear as if we have something to hide.
WE ARE OPEN
We speak clearly and concisely. If the customer needs our assistance or if we need to give them
information, we dont waste their time. We tell the truth and are completely open and transparent.
By explaining the good and the bad, we can gain the customers trust and respect. We always
ask for their involvement, never demand it.
WE ARE DEPENDABLE
We can be relied upon to do the right thing by everyone we come across and act in a responsible
manner towards people, places and the environment.
We take time to listen to you and to understand your needs. You are at the heart of what we do. We
speak with a welcoming human smile in our voice. A conversation that begins this way shows that
we are approachable and are here to help the customer.
02
Business
CORPORATE PROFILE
K-Electric, formerly known as Karachi Electric
Supply Company Limited and commonly referred
to as KE is a Pakistani vertically integrated
electric company involved in generating,
transmitting and distributing power to over 2.5
million customers in Karachi and in the nearby
towns of Dhabeji and Gharo in Sindh and Hub,
Uthal, Vinder and Bela in Balochistan. It employs
over 10,242 people and covers 6,500 square
kilometres with industrial, commercial, agricultural
and residential areas falling under its network.
K-Electric was incorporated on September 13,
1913, under the now repealed Indian Companies
Act, 1882 (currently Companies Ordinance,
1984). In 1952, the Government of Pakistan took
control of the Company by acquiring majority
shareholding of KESC. In 2005, the Government
privatised KESC. In 2009, The Abraaj Capital, a
leading private equity rm based in Dubai,
bought the power utility for a signicant equity
stake in the company.
GENERATION
The main generation units consist of:
1)
90 MW Korangi GE Jenbacher Gas Engine Power Station (KGTPS)
2)
90 MW SITE GE Jenbacher Gas Engine Power Station (SGTPS)
3)
220 MW Korangi Combined Cycle Power Plant (KCCPP)
4)
210x6 MW Bin Qasim Thermal Power Station (BQPS-I)
5)
560 MW Bin Qasim Combined Cycle Power Plant (BQCCPP-II)
The plants are certied under the Occupational Health & Safety Standard OHSAS - 1800:2007,
Environmental Management System Standard ISO 14001:2004 and Quality Management System
Standard ISO 9001:2008.
TRANSMISSION
KEs transmission system comprises a total of 1,248 kilometres of 220 kV, 132 kV and 66 kV
transmission lines with 61 grid stations. Moreover, the grid is inter-connected with the NTDC grid
system through two double circuit 220 kV transmission lines.
DISTRIBUTION
KEs distribution department boasts of being one of the largest electricity distribution networks in
the world. This network includes power lines, substations and pole-mounted transformers. KE has
been able to improve losses and recoveries in low and medium loss areas through process driven
initiatives. Apart from focussing on continuous process improvements, several pilot projects
involving capital expenditure are currently being explored to achieve greater efciency and energy
loss reduction.
Commercial 600,000
ORGANISATIONAL STRUCTURE
KE has been undergoing intensive re-organisation since its privatisation. The new management
created new positions to account for missing functions and relocated old ones where they
belonged best. As it stands, the organisation has an elaborate structure that has been
communicated to all employees. The chart below presents the rst tier of a much more elaborate
structure. Now, all functions necessary for KEs sustainability are accounted for, and
responsibilities are clearly delineated.
Board Audit
Committee
Board Finance
Committee
Chief Executive
Ofcer
Chief Internal
Auditor
Chief of
Staff-CEO
Chief G&T
Ofcer
Board HR&R
Committee
Chief Financial
Ofcer
Chief Supply
Chain Ofcer
Chief Business
Development
Ofcer
Chief
Distribution
Ofcer
Company
Secretary
Chief Human
Resource
Ofcer
Functional Reporting
Chief of
HSEQ
Chief of
Security
Administrative Reporting
05
06
Environment
HSEQ POLICY
At KE, we recognise the impact that our activities may have on the environment and that is why we
are committed to high standards of environmental care and are continually improving our
environmental performance.
07
08
ENVIRONMENTAL COMPLIANCE
At a minimum, KE is complying with all the applicable national and international environmental
regulations as listed below:
IFIs Bindings
Un Specic
09
ENVIRONMENTAL STUDIES
Under the Pakistan Environmental Protection Act 1997, an Environmental Impact Assessment (EIA)
/ Initial Environmental Examination (IEE) is mandatory for all development projects both in public
and private sectors at the planning stage. Being an environmentally conscious and law abiding
business entity, K-Electric carries out the environmental studies of all new / expansion projects.
During the past year, KE was able to get No Objection Certicates (NOCs) simultaneously for EIAs
of six (06) new projects related to transmission network in record time. Smooth monitoring and
strict supervision of the EIA process was ensured through regular liaison with the relevant
department, the consultants and the regulators. The reports were submitted to the Sindh
Environmental Protection Agency (SEPA) after due quality assurance by the corporate compliance
CHSEQ department.
The EIA process started with the identication of potential environmental and social impacts
resulting from proposed activities. Project activities during construction and operation phases that
were likely to result in high impacts were investigated further to validate the anticipated impact and
an alternate project activity was determined that has a medium or low level impact. For project
activities with moderate and minor level impacts, suitable mitigation measures are proposed in the
EIA to reduce the impacts to as low as reasonably possible. The suggested mitigation measures
include technological change, environmental management and cleaner practices.
10
11
PUBLIC HEARING
The EIA reports were uploaded on KEs main website for public disclosure. Public notices were
published in three major newspapers with web links to download and review soft les;
subsequently a public hearing was arranged, attended by 120 participants. Numerous questions
were raised by the public representatives, experts and SEPA ofcials.
KE remained successful in addressing all the queries and handling all the questions with patience
and provided detailed answers to pacify the audience. KE was able to highlight its successes
based on its existing practice of environmental compliance.
12
ENVIRONMENTAL MANAGEMENT
CONSTRUCTION
The Environmental Management Plan (EMP)
presented at the end of an EIA aims at ensuring
that the contractor maintains adequate control over
the project to minimise the extent of impact during
construction, ensure appropriate restoration of
areas affected by construction and prevent long
term environmental degradation. For effective
implementation of EMP, the contractor is made
aware of his environmental obligations.
After the approval from EPA Sindh, separate
undertakings are given for each project prior to
construction activities and in line with the NOC and
PEPA review of IEE & EIA regulations, 2000. KE
ensures the implementation of EMP for its existing
projects religiously through regularly conducted
internal inspections by corporate compliance
section of CHSEQ.
Monthly EMP status reports are submitted to the
EPA (Sindh). In addition, quarterly tests are
conducted for air and noise quality for all
construction sites. For KEs upcoming grid &
transmission projects, EMP implementation will be
made part of KEs contract document and
contractors with international repute will be hired
as KE focuses on quality and not on the cost.
In order to assist the contractors and respective
HSEQ department in implementing EMP
(construction) and to have a better understanding
of the project activities, corporate compliance &
environment (KE) team visits the construction sites
regularly. The team holds meetings with all the
relevant personnel from both sides to have a better
understanding. The environmental performance
along with pictorial evidence is outlined in the
quarterly reports.
13
As a parallel activity, special training sessions are carried out focussing on the effective
implementation of EMP during the construction phase. The main topics covered so far are as follows:
EMP components
EMS IMPLEMENTATION
KE had to reinvent its Environmental Management
System (EMS) by devising different operating
procedures that govern the organisations
environmental performance, and introduce the
required technical changes on its generation,
transmission and distribution processes to ensure
reliable and cost-effective energy supply with
minimal environmental impact.
KE therefore seeks to bring its Environmental
Management System in line with the internationally
recognised and veried standards. Over the last
few years, KEs environmental performance has
improved through rmly embedding the Go Green vision in its HSEQ policy, which is the driving
force of the Environmental Management System. The EMS not only meets legal requirements, but
is also fully compliant with ISO 14001, the international standard for environmental management.
All of KEs ve generation plants (i.e. BQPS-I, BQPS-II, KCCPP-II, KGTPS and SGTPS) are ISO
14001:2004 certied. Certication process is underway for the transmission network as well.
The certication is an important strategic tool to manage environmental risks and commitments
more systematically. All measures are aimed at developing a system, whereby employees are
14
made responsible for the health & safety of themselves, their peers, assets and of their
environment. Integrated audits are being conducted regularly and the names of non-conformers
are being forwarded to respective departments for corrective actions. The HSEQ promotion
activities are encouraged through cash awards and citations.
Third party audits are carried out to conrm rigorous implementation of the standards. The results
are measurable and include improved skills and regulatory compliance performance, lower air
emission rates and no signicant environmental events (such as charges, investigations and
orders from regulators).
PCB MONITORING
KE has become an implementing partner in the domain of inventory preparation, chemical analysis,
decontamination and disposal of PCBs, conducting workshops for chemical analysis and training
programme for capacity building to eliminate PCBs. This project is being funded by the Global
Environment Facility (GEF), implemented by the United Nations Development Programme (UNDP)
and executed by the Climate Change Division (CCD) and the Government of Pakistan (GOP).
The programme benets include:
Compliance with the Stockholm Convention (SC) on Persistent Organic Pollutants (POPs),
which Pakistan has ratied on April 17, 2008.
15
16
SF6 MONITORING
Sulphur Hexauoride (SF6) is a relatively nontoxic gas used in a number of applications for its inert
qualities. The dielectric and other physical and chemical properties related to a lack of reactivity
have led to its extensive use as an insulating medium in switching equipments. While SF6 is inert
during normal use, when electrical discharges occur within SF6-lled equipment, toxic by-products
can be produced that pose a threat to health of workers who come into contact with them.
SF6 gas is a Fully Fluorinated Compound (FFC) which is recognised as being a particularly potent
greenhouse gas. It is known that SF6 has up to 23,900 times the global warming potential in
comparison to Carbon Dioxide (CO2). SF6 has an atmospheric lifetime of up to 3,200 years,
thereby signicantly and permanently contributing to global warming.
KE uses SF6 at high voltage interface between the generation and transmission systems for
insulation, arc quenching, and current interruption in Gas-Insulated Switchgears (GIS) and circuit
breakers.
As per KEs commitment to its climate change policy and as an initiative to greenhouse gas
emission reduction, effective management of SF6 gas is being ensured. KE accounts for all SF6
gas in its system and also the amount of gas that has been lost in the atmosphere. Status of the
monthly consumption and availability of the gas is maintained. Regular feedback is taken from the
grid management to promote efcient use of the gas and control releases to the atmosphere.
Replacement of old SF6 gas insulating breakers in KEs network is also planned. A comprehensive
procedure for SF6 gas monitoring and management has been released for implementation across
KE.
17
18
EMF MONITORING
Regular EMF monitoring programme is carried out at T&D assets. Based on the leading
predominant research on EMF, and considering the ICNIRP guidelines for EMF public &
occupational exposure, KE is condent that the EMF generated from its facilities and T&D
infrastructure does not cause public health impacts.
ICNIRP Guidelines for EMF Public and Occupational Exposure
Frequency
Public Exposure
50 Hz
Occupational Exposure
Electric Field
(V/m)
Magnetic Field
(mG)
Magnetic
Field (mG)
5000
1000
10000
5000
Beside Transformer
Switchgears at Grids
Control Room
220/132
20
10
132/11
124
25
10
Overhead
Overhead
Under
Line <220
kV
Line< 132
kV
Line<11
kV
PMT
15
30
20
12
Right Over
Exposed
Right Over UG
UG Lines
Lines Buried
1.4m
52
19
ENVIRONMENTAL PROCEDURES
There are four basic reasons that demonstrate the need to develop procedures to document
important processes:
Compliance
Consistency
Managing risks
Continuous improvement
Following procedures have been developed by the Corporate Compliance & Environment (CC&E)
section during 2014:
1.
Asbestos management procedure
2.
SF6 gas monitoring & management procedure
3.
PCB management procedure
4.
EMF monitoring procedure
20
ENVIRONMENTAL TRAININGS
KE strives to raise awareness and instil skills among its employees and other stakeholders on
environmental issues through education and trainings. Following table summarises the trainings
carried out by CC&E during 2014:
S. N
Topic
Target
Audience
Month
No. of
Sessions
No. of
Participants
PID
February
40
Implementation of
Environmental
Management Plan
Generation
March April
124
Environmental Awareness
& Waste Management
Generation
May
23
Generation
June
56
Environmental
Management Plan
PID &
Contractors
August
40
Asbestos Management
Generation
September
26
Climate Change
Across KE
OctoberNovember
10
303
22
612
All of KEs employees and third party contractors are encouraged not only to attend regular
training programmes but they are also taught on the job by their dedicated supervisors and
through job rotation. With state-of-the-art plants and projects developed in the last half decade, KE
has seen a massive induction of talented individuals for smooth running of operations. From
engineers to ofcers, all employees are required to operate as managers and lead teams,
ultimately adding value to the overall organisational progress.
21
22
ENVIRONMENTAL
PERFORMANCE
REPORT 2014
Environmental
Performance
Report
23
24
POLLUTION CONTROL
KE being a progressive electrical utility strives to manage the continual improvement of its air
emissions, efuent discharges, solid waste management and noise abatement by developing
cost-effective, low pollution technologies and measures.
a) Air Emission Control
Out of the ve generation plants, four are operating on natural gas only; no other fuel is being
used. This has resulted in signicant reduction of KEs overall emissions of Sulphur Oxides (SOx)
and Nitrogen Oxides (NOx). Today, natural gas accounts for about 80% of the fuel that KE burns in
its thermal power generating stations. KEs emissions are in compliance with NEQS. The use of
LEANOX (Lean NOx) technology has further ensured low NOx values and high plant efciency by
restricting the working temperatures in boilers and gas turbines.
b) Water Conservation
Closed loop technology ensures no discharge of process water at KGTPS. Jacket water trays are
being used for collecting water drippings within the process area. SGTPS is also taking the same
measures.
State-of-the-art efuent treatment plants are installed at BQPS-II and CCPP Korangi. Measures
focussing on the reuse of treated water for plantation are being taken. Neutralisation treatment is
carried out to process the efuent in compliance with NEQS before discharging to the sea in order
to protect the marine habitat and maintain the natural ecosystem.
c) Waste Management
Continuous steps are being taken for waste management improvement with special emphasis on
waste reduction. All business units are managing their respective facility waste through
segregation at source, reuse and recycling. The remaining is sent to inventory management
department for ultimate disposal. The EPA certied contractors list for handling, transportation and
disposal of hazardous waste was obtained from EPA Sindh and distributed among all relevant
sections for compliance with the Hazardous Substance Rules, 2003.
25
ENERGY EFFICIENCY
KE seeks to promote cost-effective resource efciency and conservation within its own operations,
among its customers, and in the broader economy. This implies reducing the energy and material
waste to a minimum, and recycling, reusing or disposing safely the remaining waste.
KE believes in the core philosophy that A MW saved is a MW generated and is increasing the
energy efciency of its existing critical infrastructure, from buildings and grids to generation plants.
Through various enhancements and additions, a total of 1010 MW of generation capacity has been
enhanced, coupled with a 23% gain in eet efciency; following projects reect KEs measures to
reduce the carbon footprint of its existing infrastructure system:
a) KGTPS & SGTPS - Open-to-Combined Cycle Project
KE is in the process of converting its gas turbine power stations at Korangi and SITE from open
cycle to combined cycle power plants. This is being done to increase the plants capacity as well
as to make power generation more environmentally friendly. Power plant upgradation component
involves the installation of 32 heat recovery steam generators on all 32 gas powered generator sets
and installation of one steam turbine generator with associated components at each plant.
On completion, these projects shall be able to add 10 MW each to the national grid by utilising the
waste heat of ue gases, in addition to the existing 88 MW capacity of each plant. After the
completion of the power plant components, the power station shall be classied as a combined
cycle power plant.
b) KCCPP-II - Open-to-Combined Cycle Project
The existing combined cycle power plant at Korangi consists of four gas turbines from which heat
is being recovered from two turbines. A great amount of potential heat is still lost from the
remaining two turbines. As part of the extension project, this lost heat will also be recovered and
utilised for electricity generation, adding 28 MW to the plants existing capacity of 220 MW. This
increased power will be supplied to commercial areas.
The above projects will increase the overall heat rate efciency by 5% and will add 48.5 MW of
output using the same quantity of natural gas within a year.
ENVIRONMENTAL
PERFORMANCE
REPORT 2014
Environmental
Performance
Report
26
RENEWABLE ENERGY
To ensure reliable and cost-effective energy supply with minimal environmental impact, KE seeks
to exploit opportunities to develop renewable energy projects. Following are worth mentioning:
a) Biomass
KE has been pursuing an opportunity to develop a biomass power plant within Karachi by utilising
municipal solid waste. A waste to energy project utilising biodegradable matter across the city to
generate up to 22 MW electricity and 100,000 tonnes per annum of organic fertiliser, to
substantially reduce the carbon footprint of such untreated waste which has historically been
dumped into the Arabian Sea.
b) Wind Power
In an effort to add nearly 50-100 MW of wind power into its system, KE is currently engaged with
the following wind project developers:
i.
ii. K-Solar 10 MW Solar IPP: KE is actively working upon an on-grid solar power project of
approximately 10 MW Photovoltaic (PV) technology. KE is pursuing local and foreign
investors to form a special purpose vehicle under the name K-Solar in which KE will play
the role of a power off-taker by entering into an Energy Purchase Agreement (EPA) with
K-Solar.
c) Solar Power Projects
i.
KE has initiated discussions with reputable solar companies / joint groups for setting up a
10-15 MW Solar IPP in KEs licensed area. Hub and Vinder areas are identied as potential
areas for installation of grid connected solar projects.
ii. A pilot project to install solar PV rooftop system at K-Electrics corporate head ofce is
already underway and has 3 years payback period.
iii. The transformation of KEs energy conservation department to solar & LED lights is also
under progress.
d) Initiatives to Procure Hydropower
KE is working on adding up to 250 MW hydroelectric power to its overall generation mix via long
term off-take agreements with private infrastructure developers.
27
CONSERVATION OF NATURE
KE tends to initiate and support existing conservation and biodiversity efforts related to the
impacts on natural habitats from its utility operations. There are no ecologically protected areas
within the jurisdiction of all KEs business operations except two power plants that are located
within ten kilometres of the protected mangrove forests.
KE stands committed to guard the marine life and all ecologically protected areas. Continuous
monitoring of the power plants efuent is carried out including the monitoring of temperature and
pH values to ensure that marine life is not disturbed.
28
Awards &
Achievements
Over the past few years, the efforts of K-Electric have been greatly commended and it has
received a number of awards and accolades. However, the company is more concerned with the
impact it is making in terms of meeting the citys power needs. It will not rest on its laurels and will
continue to strive to achieve more in the hope that its efforts will serve as a catalyst for change.
KEs vision of sustainable development was recognised at the national level for the sixth running
year through - the 11th Annual Environment Excellence Award, 2014. The event was organised by
the National Forum for Environment and Health (NFEH) afliated with the United Nations Environmental Programme (UNEP). Participating companies were evaluated on different criteria including:
Resource conservation, reduction of environmental impacts, innovation, cost effectiveness,
employee involvement, social / community responsibility, continual improvement and overall
programme of excellence.
The award ceremony was held on September 27, 2014 in Lahore with the participation of 182
companies from across the country.
29
Our Goals
To carry out environmental monitoring of KEs generation plants in accordance with the national
laws
ENVIRONMENTAL
PERFORMANCE
REPORT 2014
Environmental
Performance
Report
30