The document provides an overview of K-Electric's environmental performance and initiatives. It includes sections on: 1) K-Electric's HSEQ policy and climate change policy which outline its commitment to environmental care and improving environmental performance. 2) Environmental compliance procedures and studies conducted to monitor areas like PCBs, SF6, EMFs and replace harmful compounds. 3) Environmental management practices for its construction and operations, including pollution control, energy efficiency, renewable energy and conservation efforts. 4) Training programs for staff on safety and environmental issues and monitoring of its operations' environmental impact. 5) Achievements in awards for its sustainability initiatives with goals to further its efforts in

1. Environmental
Performance
Report

2. 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

3. 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 Tareen
CEO
Message from
the CEO
01ENVIRONMENTAL PERFORMANCE REPORT 2014

4. 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-Electric’s environmental impact in ways that strike the right balance between society’s
economic and environmental needs.
WE BELIEVE
We 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 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 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 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 THINK ABOUT YOU
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.
Our Vision
02ENVIRONMENTAL PERFORMANCE REPORT 2014

5. 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.
Business
CORPORATE PROFILE

6. 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.
TRANSMISSION
KE’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.
DISTRIBUTION
KE’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 REACH
Residential 1.8 million
Public sector 13,000
Total over 2.5 million
Area covered 6,500 square kilometres
Industrial 60,000
Commercial 600,000

7. 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
05ENVIRONMENTAL PERFORMANCE REPORT 2014
Functional Reporting Administrative Reporting
Chief Executive
Officer
Company
Secretary
Chief of
Staff-CEO
Chief G&T
Officer
Chief Supply
Chain Officer
Chief Financial
Officer
Chief Business
Development
Officer
Chief
Distribution
Officer
Chief Human
Resource
Officer
Chief of
HSEQ
Chief of
Security
Board Audit
Committee
Chief Internal
Auditor
Board Finance
Committee
Board HR&R
Committee
Board of Directors

8. 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.
06ENVIRONMENTAL PERFORMANCE REPORT 2014

9. 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
07ENVIRONMENTAL PERFORMANCE REPORT 2014

10. 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.
08ENVIRONMENTAL PERFORMANCE REPORT 2014

11. 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)
09ENVIRONMENTAL PERFORMANCE REPORT 2014

12. 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.
10ENVIRONMENTAL PERFORMANCE REPORT 2014

13. 11ENVIRONMENTAL PERFORMANCE REPORT 2014

14. 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.
12ENVIRONMENTAL PERFORMANCE REPORT 2014

15. 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.
13ENVIRONMENTAL PERFORMANCE REPORT 2014

16. 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
14ENVIRONMENTAL PERFORMANCE REPORT 2014

17. 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.
15ENVIRONMENTAL PERFORMANCE REPORT 2014

18. 16ENVIRONMENTAL PERFORMANCE REPORT 2014

19. 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.
17ENVIRONMENTAL PERFORMANCE REPORT 2014

20. 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.
18ENVIRONMENTAL PERFORMANCE REPORT 2014

21. 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
19ENVIRONMENTAL PERFORMANCE REPORT 2014

22. 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
20ENVIRONMENTAL PERFORMANCE REPORT 2014

23. 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
21ENVIRONMENTAL PERFORMANCE REPORT 2014

24. 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.
22ENVIRONMENTAL PERFORMANCE REPORT 2014

25. Environmental Performance Report 23ENVIRONMENTAL PERFORMANCE REPORT 2014

26. 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
24ENVIRONMENTAL PERFORMANCE REPORT 2014

27. 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 Control
Out 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 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 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 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 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.
25ENVIRONMENTAL PERFORMANCE REPORT 2014

28. 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 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 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 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 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.
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29. 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. 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 Projects
i. 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.
27ENVIRONMENTAL PERFORMANCE REPORT 2014

30. 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.
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31. 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
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32. 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
30ENVIRONMENTAL PERFORMANCE REPORT 2014