Losses due to Closure of Neelum Jhelum Hydropower Plant, reduced generation from Guddu Power Plant and System

Engineering Post Report

The closure of 969 MW Neelum Jhelum hydropower plant for another time, reduced power generation from Guddu Power Plant plus the persisting system constraints and inefficiencies in the system have caused a pretty high accumulated loss of Rs 43 billion during the first three months of current financial year 2024-25.

Avoiding details regarding Guddu 747 MW power plant and overall system constraints, it may be mentioned here that the federal government has approved a Rs 23 billion repair plan for the damaged portion of the Headrace Tunnel of the Neelum -Jhelum Hydropower Project with work expected to keep the 939 MW plant without power generation for another eight months.

The hydropower project, it is worth mentioning here, was substantially underground and less of it was on the surface. Full reconstruction of the 48 km long tunnel would cost more than Rs 222 billion and could take years, according to the experts.

The identified faults lie between kilometers 13 and 60 within the tunnel and as such are reachable through horizontal access points . The repair plan involved reinforcing the damaged section with concrete lining which was a cost effective and technically viable solution, as per the experts opinion.

The hydropower plant had gone offline another time in early 2024 and likely to cause annual revenue loss of Rs 55 billion with additional indirect losses potentially reaching up to Rs 150 billion due to reliance on costly replacement fuel, experts further opined.