Introduction to the Organization
The Kot Addu Power Company (KAPCO) runs a 1600 MW combined cycle Power plant at Kot Addu, a small town, in the middle of Pakistan. The company came into existence in the June of 1996 when the Water and Power Development Authority (WAPDA) the state run power generation utility of Pakistan, privatized the plant by offering 36 % stake to strategic investor “National Power” of U.K. along with management control. Kot Addu site is situated in District Muzaffargah, 100 KM north east of Multan on the left bank of river INDUS at a distance of 16 Km from TAUNSA BARRAGE. The area is surrounded by agricultural land stretched on the north and west side of Kot Addu. There are some adjacent areas covered with wind blown sand dunes which were formed with the passage of time. These sand dunes too are being gradually converted into agricultural land. Apart from above, there were very little educational facilities available in the area prior to setting up of this Power Station which has now almost been doubled and some of the School have been upgraded. The essential amenities are also now made available to the residents. Introduction to the Power House Complex
The complex comprises three blocks, 1, 2, and 3. Each block is independent in it and can be considered a separate power station. There are 2 combined cycle modules in each block no. 1 and 2 whereas block 3 has only one module. This is the physical distribution. For the commercial purpose the complex is divided into three blocks called Energy block 1, 2, and 3. The power purchase agreement provides different energy charges for the electricity generated and dispatched from each block. The energy block 1 (plant block 3) is the latest and was in commissioning stage when NP took over management in June 1996 whereas other blocks were completed and commissioned between 1986-1995. The plant block 3, being latest, is the most efficient plant and provides the cheapest electricity to customer. Its total capacity is 397 MW. In order of priority, whenever there is generation demand from the customer, this block is run first. When the demand exceeds then only other plants are run. The complex history over past 4 years shows that plant block 3 runs round the clock throughout the year at maximum capacity. In case this plant can not run at full capacity due to any fault or break down of machines, the customer need is made up from other available plants that are relatively expensive but the customer pays lowest energy charges (of block 3) for the deficit generation. This results in significant loss. Therefore this block is the most valuable asset of the company. Heat Recovery Steam Generating System
The gas turbines, despite of their low installation cost, easy and speedy erection and high loading rate could not win the deserving popularity over the steam turbines due to the poor efficiency of the former. In the conventional gas turbine unit, substantial amount of heat energy was lost through the turbine exhaust gases which leave the turbine at about 580 Deg. Centigrade. To make use of this wasteful energy, an innovative concept of combined cycle plant, now has been introduced by the gas turbine manufacturers. Under this design, the exhaust of the gas turbine is made to pass through a conduction type boiler (commonly called as HEAT RECOVERY STEAM GENERATOR). High-pressure steam so generated is then used to run the steam turbine, which thus produces power without any fuel. This raises the plant efficiency to nearly 49 % against the 28 % of the conventional gas turbine. Agreements between WAPDA & KAPCO
WAPDA entered into an agreement with KAPCO for the purchase of the power for next 25 years from this plant. The tariff covered two kinds of payments viz. capacity and energy payment. The capacity payment is made on the available capacity of the plant and is mainly used by the company to meet the fixed expenses and 756 million dollar debt liability that it...