KE Environmental performance report 2014

Environmental Performance

Report

ABOUT US Message from the Chief Executive Officer 01 Our Vision, Mission & Values 02

BUSINESS Corporate Profile 03 KE Network 04 Organisational Structure 05 Corporate HSEQ Department 06

ENVIRONMENT HSEQ Policy 07 Climate Change Policy 08 Environmental Compliance 09 Environmental Studies 11 Environmental Management – Construction 14 EMS Implementation 16 PCB Monitoring 17 SF6 Monitoring 19 Replacement of CFC Compounds 20 EMF Monitoring 21 Environmental Procedures 22 Environmental Trainings 23 Environmental Monitoring – Operations 25 Pollution Control 28 Energy Efficiency 30 Renewable Energy 31 Conservation of Nature 32

ACHIEVEMENTS Awards & Achievements 33

OUR GOALS 35

Contents

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.

We intend to speed up our efforts to create value through sustainable business practices with an emphasis on mutual growth, compliance, environmental management, customers and social responsibility. We strive to achieve a more sustainable future as a globally respected corporation by achieving harmony among diverse stakeholders.

Our sustainability initiative is about the long term impact of our company to the environment and to the society as a whole. It creates a culture whereby we are not only focussing on ourselves and other shareholders, but our responsibility lies also towards every stakeholder group that is impacted by our business activities. The sustainable initiatives at K-Electric during the past few years have not only been the efforts of the top management, but also of the numerous staff members and workers at all levels.

We sincerely hope that we have been able to provide you with some insight into our corporate vision and how well we are able to meet the new challenges. We would be delighted if you would like to give us your feedback on this report.

Tayyab TareenCEO

Message fromthe CEO

01ENVIRONMENTAL PERFORMANCE REPORT 2014

To restore and maintain pride in KE, Karachi and Pakistan.

Our MissionBrightening lives by building the capacity to deliver uninterrupted, safe and affordable power to Karachiites.

OUR VALUESWe 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-Electric’s environmental impact in ways that strike the right balance between society’s economic and environmental needs.

WE BELIEVEWe speak as a professional, committed to helping the customer. As an organisation, we have a long way to go to provide the service we all deserve, so we cannot boast. We can do what we say we will do. Be accountable and continue to do better.

WE ARE TRUSTWORTHYWe speak simply, but never patronise. Long and complicated explanations are confusing and can appear as if we have something to hide.

WE ARE OPENWe speak clearly and concisely. If the customer needs our assistance or if we need to give them information, we don’t waste their time. We tell the truth and are completely open and transparent. By explaining the ‘good’ and the ‘bad’, we can gain the customer’s trust and respect. We always ask for their involvement, never demand it.

WE ARE DEPENDABLEWe 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 THINK ABOUT YOUWe 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.

Our Vision


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 firm based in Dubai, bought the power utility for a significant equity stake in the company.

The management of KE is run by a management team headed by Mr. Tabish Gauhar, who took over as the Chairman Board of Directors effective February 2013 and Mr. Tayyab Tareen as the Chief Executive Officer, who has been associated with the company since 2009 having served as the Chief Financial Officer and Chief Strategy Officer.

Over the last few years, the company demonstrated a strong ability to bring about a sustainable change. It has pursued a path of visible growth and transformation which has placed it amongst the most dynamic institutions not only in Pakistan but also in the region. K-Electric has its own generation capacity of 1,652 MW, inclusive of 450 MW that has been added owing to the initiatives of the new management and the company inaugurated an additional 560 MW project in 2012. In addition to their own generation, K-Electric has power purchase agreements with IPPs of 220 MW, with WAPDA / NTDC of 650 MW and with Kanupp of 60 MW respectively.

BusinessCORPORATE PROFILE

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 certified under the Occupational Health & Safety Standard OHSAS - 1800:2007, Environmental Management System Standard – ISO 14001:2004 and Quality Management System Standard – ISO 9001:2008.

TRANSMISSIONKE’s 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.

DISTRIBUTIONKE’s 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 efficiency and energy loss reduction.

KE’s NETWORK OF REACHResidential 1.8 million

Public sector 13,000

Total over 2.5 million

Area covered 6,500 square kilometres

Industrial 60,000Commercial 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 first tier of a much more elaborate structure. Now, all functions necessary for KE’s sustainability are accounted for, and responsibilities are clearly delineated.

ORGANOGRAM OF KE’s TOP MANAGEMENT


Functional Reporting Administrative Reporting

Chief ExecutiveOfficer Company

Secretary

Chief ofStaff-CEO

Chief G&TOfficer

Chief SupplyChain Officer

Chief FinancialOfficer

Chief BusinessDevelopment

Officer

ChiefDistribution

Officer

Chief HumanResource

Officer

Chief ofHSEQ

Chief ofSecurity

Board Audit Committee

Chief InternalAuditor

Board FinanceCommittee

Board HR&R Committee

Board of Directors

CORPORATE HSEQ DEPARTMENT

Corporate HSEQ Department was established in July 2009 with a view to raise awareness amongst employees regarding safety, avoiding injuries and saving lives. HSEQ policy was formulated and company HSEQ manual was developed as a primary guideline with subsequent procedures issued from time to time. Emergency Response Plans (ERP) were developed for all assets and regular evacuation drills were conducted to cultivate awareness amongst employees on emergency actions required in case of eventualities. An executive committee meeting was formed to address key issues of HSEQ at the corporate

level. The main thrust of the HSEQ programme was centred at inculcating awareness amongst all workers regarding issues of safety and the environment. To this effect, various training programmes were developed and both formal and informal training was given. Since July 2009, around 50,000 staff – from all cadres – have gone through sustained safety and environment awareness sessions.K-Electric’s vision of becoming a “Green Company” is on track, as the company has surpassed conditions put forth by the IFC and ADB regarding social and environmental responsibilities.


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.

Environment


CLIMATE CHANGE POLICY

KE is the first organisation in Pakistan to publically announce its own Climate Change Policy, reflecting its commitment to environmental, social and governance value creation ultimately leading to sustainable development.

ENVIRONMENTAL COMPLIANCE

At a minimum, KE is complying with all the applicable national and international environmental regulations as listed below:

IFI’s Bindings • IFC Action Plan – Revised October, 2009 • IFC Performance Standards Un Specific • United Nations Framework Convention on Climate Change (UNFCCC) June, 1992 • Stockholm Convention on Persistent Organic Pollutants (POPs) – 2001 / 2004

National Rules & Regulations • Pakistan Environmental Protection Act - 1997 • Sindh Environmental Protection Act - 2014 • PEPA Review of IEE and EIA Regulations - 2000 • National Environmental Quality Standards for Air Emissions & Effluents - 2009 • National Environmental Quality Standards for Ambient Air - 2010 • Project Implementation and Resettlement of Affected Persons Ordinance - 2002 • Environmental Samples Rules - 2001 • Hazardous Substances Rules - 2003 • Drinking Water Quality Standards - 2008 • Self-Monitoring & Reporting by Industries Rules - 2001 • Sindh Cultural Heritage Act - 1994 • Environmental Tribunal Rules - 1999 • National Climate Change Policy - 2012 • Pakistan National Conservation Strategy - 1992 • National Environmental Policy - 2005 • National Energy Conservation Policy - 2006

Continuous Legal Compliance The Process involves: • Preparation of Terms of Reference (TOR) • Generation of PR • Evaluation of technical proposals • Coordination with consultant & relevant departments of KE • Finalisation of draft EIA reports after thorough review • Submission of final EIA report • Arrangement for public hearing • Participation in expert committee meetings • Acquisition of No Objection Certificate (NOC) • Submission of an undertaking before commencing of construction • Submission of monthly Environmental Management Plan (EMP) – construction phase • Submission of construction completion report for grant of permission to operate • Regular submission of environmental monitoring report – operation phase • Regular liaison with regulators - Environmental Protection Agency (EPA)


CLIMATE CHANGE POLICY

KE is the first organisation in Pakistan to publically announce its own Climate Change Policy, reflecting its commitment to environmental, social and governance value creation ultimately leading to sustainable development.

ENVIRONMENTAL COMPLIANCE

At a minimum, KE is complying with all the applicable national and international environmental regulations as listed below:

IFI’s Bindings • IFC Action Plan – Revised October, 2009 • IFC Performance Standards Un Specific • United Nations Framework Convention on Climate Change (UNFCCC) June, 1992 • Stockholm Convention on Persistent Organic Pollutants (POPs) – 2001 / 2004

National Rules & Regulations • Pakistan Environmental Protection Act - 1997 • Sindh Environmental Protection Act - 2014 • PEPA Review of IEE and EIA Regulations - 2000 • National Environmental Quality Standards for Air Emissions & Effluents - 2009 • National Environmental Quality Standards for Ambient Air - 2010 • Project Implementation and Resettlement of Affected Persons Ordinance - 2002 • Environmental Samples Rules - 2001 • Hazardous Substances Rules - 2003 • Drinking Water Quality Standards - 2008 • Self-Monitoring & Reporting by Industries Rules - 2001 • Sindh Cultural Heritage Act - 1994 • Environmental Tribunal Rules - 1999 • National Climate Change Policy - 2012 • Pakistan National Conservation Strategy - 1992 • National Environmental Policy - 2005 • National Energy Conservation Policy - 2006

Continuous Legal Compliance The Process involves: • Preparation of Terms of Reference (TOR) • Generation of PR • Evaluation of technical proposals • Coordination with consultant & relevant departments of KE • Finalisation of draft EIA reports after thorough review • Submission of final EIA report • Arrangement for public hearing • Participation in expert committee meetings • Acquisition of No Objection Certificate (NOC) • Submission of an undertaking before commencing of construction • Submission of monthly Environmental Management Plan (EMP) – construction phase • Submission of construction completion report for grant of permission to operate • Regular submission of environmental monitoring report – operation phase • Regular liaison with regulators - Environmental Protection Agency (EPA)


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 Certificates (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 identification 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.



PUBLIC HEARING

The EIA reports were uploaded on KE’s main website for public disclosure. Public notices were published in three major newspapers with web links to download and review soft files; subsequently a public hearing was arranged, attended by 120 participants. Numerous questions were raised by the public representatives, experts and SEPA officials.

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.

EXPERT COMMITTEE MEETING

The case was then referred to an expert committee meeting, held at the SEPA office building, where it was thoroughly reviewed by a panel of environmental experts and SEPA’s high officials. The experts left no stone unturned in pinpointing the aspects and impacts related to the proposed projects. From construction to operations, every major and minor impact was discussed.

KE’s team thoroughly answered every single query to the best satisfaction of the experts. As a result, the decision on EIAs was set in favour of KE by the Sindh Environmental Protection Agency (SEPA) and an approval was granted subject to strict compliance of mitigation measures recommended in the EIA for all proposed transmission projects.


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 confirm rigorous implementation of the standards. The results are measurable and include improved skills and regulatory compliance performance, lower air emission rates and no significant 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 benefits include: • Compliance with the Stockholm Convention (SC) on Persistent Organic Pollutants (POPs), which Pakistan has ratified on April 17, 2008.• An opportunity to receive direct technical and financial assistance related to the compliance with their duties under the current and future regulation on PCBs, which is expected to be strictly enforced within the project lifecycle (i.e. 05 years) by the GOP.

KE has carried out PCB monitoring for its grid stations to evaluate possible environmental impacts, thus preventing risks to the environment, health and safety of its employees. Tentatively around 11 grid stations were selected; all of the samples of oil and soil collected from the grid stations were found within the allowable limits except one. A comprehensive report on PCBs analysis in transformer oil, ground water and soil in these selected locations was prepared to verify any residual impact and recommendations were also provided.

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:• Environmental management & monitoring procedures• Legal requirements for EMP implementation• Advantages of EMP implementation• EMP components• Organisational roles & responsibilities• Barriers in effective implementations• General mitigation plan – construction phase• Need of documentation & record keeping

This comprehensive exercise of carrying out training sessions has further enhanced the EMP implementation mechanism, improved status report quality, ensured timely delivery of these reports for onward submission to the regulatory authorities and has also helped in improving the understanding of contractors for upcoming construction projects related to the transmission package.

EMS IMPLEMENTATION

KE had to reinvent its Environmental Management System (EMS) by devising different operating procedures that govern the organisation’s 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 verified standards. Over the last few years, KE’s environmental performance has improved through firmly 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 KE’s five generation plants (i.e. BQPS-I, BQPS-II, KCCPP-II, KGTPS and SGTPS) are ISO 14001:2004 certified. Certification process is underway for the transmission network as well.The certification is an important strategic tool to manage environmental risks and commitments more systematically. All measures are aimed at developing a system, whereby employees are

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 KE’s upcoming grid & transmission projects, EMP implementation will be made part of KE’s 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.




PCB MONITORING






EMS IMPLEMENTATION











PCB MONITORING






EMS IMPLEMENTATION










SF6 MONITORING

Sulphur Hexafluoride (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-filled 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 significantly 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 KE’s 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 efficient use of the gas and control releases to the atmosphere. Replacement of old SF6 gas insulating breakers in KE’s network is also planned. A comprehensive procedure for SF6 gas monitoring and management has been released for implementation across KE.


REPLACEMENT OF CFC COMPOUNDS

Chlorofluorocarbons (CFCs) are anthropogenic compounds that have been released into the atmosphere since 1930s in various applications, such as: Air-conditioning, refrigeration, blowing agents in foams, insulations and packing materials, propellants in aerosol cans and as solvents.

The organic compound contains only carbon, chlorine and fluorine, produced as a volatile derivative of methane, ethane and propane. They are also commonly known by the DuPont brand name Freon. The most common representative is dichlorodifluoromethane (R-12 or Freon-12). Because CFCs contribute to ozone depletion in the upper atmosphere, the manufacturers of such compounds have phased out under the Montreal Protocol, and these compounds are being replaced with other products such as HFCs (e.g., R-410A), hydrocarbons, and CO2.

KE is continuously working on replacing all of its internal equipments containing CFC compounds. In compliance with the Montreal Protocol and KE’s climate change policy, the supply chain department has developed a green purchasing policy and taken an initiative by issuing a centralised notification for the purchase of all internal equipments containing CFC compounds with other environmentally less harmful substances.

The purpose is to encourage and increase the use of environmentally preferable products and services in KE’s jurisdiction. By including environmental considerations in purchasing decisions, KE intends to promote practices that improve its employees’ health & safety and conserve natural resources, while remaining fiscally responsible.


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 confident 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 Occupational Exposure

Electric Field (V/m)

Magnetic Field (mG)

Electric Field (V/m) Magnetic Field (mG)

50 Hz 5000 1000 10000 5000

Average Measured Values for Magnetic Field Next to KE Transformers

(All Values are in mG)

Types of Transformers

Beside Transformer Switchgears at Grids Control Room

220/132 20 10 1

132/11 124 25 10

Average Measured Magnetic Field Next to KE Power Lines

(All Values are in mG)

Overhead

Line <220 kV

Overhead

Line< 132 kV

Overhead

Line<11 kV

Under

PMT

Right Over Exposed

UG Lines

Right Over UG

Lines Buried 1.4m

20 12 15 30 52 5


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 procedure4. EMF monitoring procedure


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:

All of KE’s 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 officers, all employees are required to operate as managers and lead teams, ultimately adding value to the overall organisational progress.

S. N Topic Target

Audience Month

No. of Sessions

No. of Participants

1 Implementation of Environmental Management Plan

PID February 1 40

2 Environmental Incidents & Impacts

Generation March -

April 5 124

3 Environmental Awareness & Waste Management

Generation May 1 23

4 Monsoon Safety & Summer Preparedness Generation June 3 56

5 Environmental Management Plan

PID & Contractors August 1 40

6 Asbestos Management Generation September 1 26

7 Climate Change Across KE October-

November 10 303

22 612


ENVIRONMENTAL MONITORING - OPERATION

KE has ensured complete compliance with the National Environmental Quality Standards (NEQS) of Pakistan particularly with respect to its operations at the generation plants. KE’s activities impacting the environment have been carefully measured and monitored for ambient noise, ambient air, stack emissions, effluent discharge and soil contamination at all five power plants. This has been done through a system of internal audits at the departmental level, regular oversight at the corporate level and reviews performed by independent external verifiers. This has ensured that KE meets the environmental standards, following which it has now registered itself in the Self Monitoring And Reporting Tool (SMART) with the Sindh Environmental Protection Agency (SEPA).

Third party monitoring has been carried out consistently and comprehensive monitoring reports are generated containing monitoring data and its impacts on the environment; recommendations for improvements are also provided. These reports are also sent to the Sindh Environmental Protection Agency (SEPA) for regulatory compliance.


Environmental Performance Report 23ENVIRONMENTAL PERFORMANCE REPORT 2014

NEQS: National Environmental Quality Standard 1: NEQS for Municipal & Industrial effluent into Inland water 2: NEQS for Municipal & Industrial effluent into Sewage Treatment 3: NEQS for Municipal & Industrial effluent into Sea BDL: Below Detectable Limit


POLLUTION CONTROL

KE being a progressive electrical utility strives to manage the continual improvement of its air emissions, effluent discharges, solid waste management and noise abatement by developing cost-effective, low pollution technologies and measures.

a) Air Emission ControlOut of the five generation plants, four are operating on natural gas only; no other fuel is being used. This has resulted in significant reduction of KE’s 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. KE’s emissions are in compliance with NEQS. The use of LEANOX (Lean NOx) technology has further ensured low NOx values and high plant efficiency by restricting the working temperatures in boilers and gas turbines.

b) Water ConservationClosed 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 effluent 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 effluent in compliance with NEQS before discharging to the sea in order to protect the marine habitat and maintain the natural ecosystem.

c) Waste ManagementContinuous 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 certified 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.


Environmental Performance Report

ENERGY EFFICIENCY

KE seeks to promote cost-effective resource efficiency 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 efficiency 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 fleet efficiency; following projects reflect KE’s measures to reduce the carbon footprint of its existing infrastructure system:

a) KGTPS & SGTPS - Open-to-Combined Cycle ProjectKE 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 flue 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 classified as a combined cycle power plant.

b) KCCPP-II - Open-to-Combined Cycle ProjectThe 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 plant’s existing capacity of 220 MW. This increased power will be supplied to commercial areas.

The above projects will increase the overall heat rate efficiency by 5% and will add 48.5 MW of output using the same quantity of natural gas within a year.


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) BiomassKE 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 PowerIn 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. Burj Power: For 10 MW in Gharo, Sindh and 20 MW in Gujju, Sindh 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 Projectsi. KE has initiated discussions with reputable solar companies / joint groups for setting up a

10-15 MW Solar IPP in KE’s licensed area. Hub and Vinder areas are identified as potential areas for installation of grid connected solar projects.

ii. A pilot project to install solar PV rooftop system at K-Electric’s corporate head office is already underway and has 3 years payback period.

iii. The transformation of KE’s 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.


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 KE’s 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’ effluent is carried out including the monitoring of temperature and pH values to ensure that marine life is not disturbed.


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 city’s 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.

KE’s 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) affiliated with the United Nations Environ-mental 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.

Awards &Achievements


Environmental Performance Report

• To conduct environmental trainings on basic and advanced topics• To carry out environmental studies of new / expansion projects• To carry out environmental monitoring of KE’s generation plants in accordance with the national

laws• To conduct internal environmental audits of KE’s transmission network• To carry out internal IEEs of KE’s distribution network• To maintain a comprehensive database of the SF6 consumption • To maintain the greenhouse gas emission inventory of generation plants

Our Goals
