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TERM REPORT
Business Communication
POWER SECTOR
&
ELECTRICITY CRISES IN PAKISTAN
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College of Business Management
POWER SECTOR
&
ELECTRICITY CRISES IN PAKISTAN
SUBMITTED TO: COURSE INSTRUCTOR
MR.ISHTIAQ AHMED KOLACHI
SUBMITTED BY: MBA(EXECUTIVE) SPRING 2012
M.NOMAN KHAN - 13836
M.BILAL KHAWAJA - 13893
S.M.ZEESHAN - 13910
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Page | i
Table of Contents
1.0 EXECUTIVE SUMMARY ...................................................................................... 1 2.0 INTRODUCTION .................................................................................................. 23.0 HISTORY.............................................................................................................. 24.0 ELECTRICITY SECTOR IN PAKISTAN ............................................................... 3
4.1 WATER AND POWER DEVELOPMENT AUTHORITY (WAPDA) ..................... 34.2 PAKISTAN ELECTRIC POWER COMPANY ..................................................... 5
5.0 CURRENT ENERGY RESOURCES OF PAKISTAN ............................................ 65.1 FOSSIL .............................................................................................................. 65.2 HYDROELECTRIC ............................................................................................ 85.3 RENEWABLES .................................................................................................. 9 5.4 NUCLEAR ........................................................................................................ 10
6.0
PAKISTAN DEPENDENCY ON ENERGY.......................................................... 11
6.1 RELIANCE ....................................................................................................... 126.2 EXTEND NETWORK ....................................................................................... 126.3 ENERGY EFFICIENCY .................................................................................... 12 6.4 COMPETITION ................................................................................................ 126.5 ENERGY FRAMEWORK ................................................................................. 136.6
RENEWABLE ENERGY RESOURCES ........................................................... 14
7.0 CAUSES OF ENERGY CRISES ........................................................................ 16
7.1 POOR DISTRIBUTION SYSTEM ..................................................................... 167.2 LACK OF ENERGY CONSERVATION PROGRAM ......................................... 167.3 COST OF FUEL ............................................................................................... 16
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7.4 UNTAPPED ALTERNATE ENERGY RESOURCES ........................................ 167.5 POWER POLITICS .......................................................................................... 17
8.0 GOVERNMENT INVOLVEMENT ....................................................................... 189.0 CHALLENGES ................................................................................................... 19
9.1 WEAKNESSES OF PRIVATE SECTOR .......................................................... 2010.0 ANALYTICAL SURVEY ...................................................................................... 2111.0 RECOMMENDATIONS ...................................................................................... 24
11.1 ENERGY PLANNING CELL ......................................................................... 2411.2 PECIALIZED STAFF ..................................................................................... 2411.3 PROVINCIAL INVOLVEMENT...................................................................... 2411.4 PRIVATE POWER INFRASTRUCTURE BOARD ......................................... 2511.5 PROGRESS MONITORING ......................................................................... 2511.6 TECHNICAL HEAD OF DEPARTMENT ....................................................... 27
12.0 CONCLUSIONS ................................................................................................. 2813.0 BIBLIOGRAPHY ................................................................................................. 29
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DATE:AUGUST 11,2012
Letter of Authorization
August11, 2012
Dear Readers:
As student of Masters in Business Administration, Mr. Ishtiaq Kolachi, our respected
instructor of the course Business Communication, during the Spring Semester 2012 of
College of Business Management, has authorized us to prepare a report on Electricity
Problems in Pakistan.
Sincerely,
M.Noman Khan [13836]
M.Bilal Khawaja [13893]
S.M.Zeeshan [13910]
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Letter of Transmittal
August11, 2012
Mr. Ishtiaq Ahmed Kolachi
Business Communication
Institute of Business Management
Karachi
Dear Mr. Ishtiaq Ahmed kolachi:
Attached is the term report you required in the Course Business Communication.
This report studies the electricity problems in Pakistan. It is based secondary research
mentioned in the bibliography. We have tried to meet your requirements.
We hope the report is acceptable to you. We found the research quite interesting and
most of all rewarding in terms of understanding the business communication.
Sincerely,
M.Noman Khan [13836]
Bilal Khowaja [13893]
S.M.Zeeshan [13910]
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Letter of Acknowledgement
August 11, 2012
Dear Readers:
We feel privileged to extend our deepest, genuine and heartfelt gratitude to our
indulgent, sincere, and learned course instructor, Mr. Ishtiaq Ahmed Kolachi, who at all
stages of this semester, provided us with his valued teaching approach enough
motivation and will to complete this report in time.
Sincerely,
M.Noman Khan [13836]Bilal Khowaja[13893]
S.M.Zeeshan [13910]
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1.0 EXECUTIVE SUMMARY
This paper analyses is addressing different power generation resources of Pakistan.
Pakistan is mainly dependent on the different power sectors including hydel, fossils,
renewable and nuclear energy. Analysis shows that Pakistan is more dependent on the
hydroelectric and least on the renewable energy resources including wind, solar,
biomass and thermal energy resources.
Being a blessed country Pakistan is still facing lot of energy crises causing turmoil in the
nation. Every government accused the previous government for the dearth of power
crises in Pakistan. The root causes of the shortfall in supply are mentioned. A forecast
for next 10-12 years has been made using empirical data and preliminary calculations.
A brief review is given about the potential of Pakistan to produce electricity and energy
sources it has. Importance of utilizing coal resources of Pakistan also discussed in it.
Also potential of water resource for construction of hydro-electric power station is
described with mentioning the importance of run of river power station. Short and long
term solutions to overcome this crisis are discussed. Importance of renewable energy
sources such as solar and wind power is discussed in this article. This article provides a
brief review of energy crisis in Pakistan and the main area to be focused to minimize
shortfall of electricity in Pakistan.
Analytical data shows the huge panic suffered by the people of Pakistan for the power
crises. Our industry and economy is affected more by the energy crises. Proper
planning and implementation of laws and orders can mitigate the suffering of people
and can reform the economy of Pakistan. All we need the proper planning and sincere
efforts in this context.
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2.0 INTRODUCTION
Pakistan has been facing an unexampled energy crisis since the last few years. The
problem becomes more severe during summers those without alternate energy
resource are facing enormous problems. The prices of both are continued to increasedue to a sharp increase in their demand.
Almost two years ago the then WAPDA chairman admitted that WAPDA cannot meet
the current demand for electricity. Its surprising that such a senior and veteran took so
long to find this out. On top of that the government which talked about Pakistans
supposedly prosperous economy failed to understand the gravity of the situation.
General Musharraf (R) after becoming Chief Executive promised to build dams
especially Kalabagh Dam. But he couldn t put his words into action.
The policy makers of Pakistan have so far failed to understand the issue. None of the
person seems to be serious to resolve this issue. Alternate energy resources are not
been considered by the government so far which are inexpensive and quick methods for
producing electricity. Pakistan is a resources blessed country having solar in most cities
and wind energy readily available in the coastal areas. These energy sources if tapped
can provide help to mitigate demand supply gap.
3.0 HISTORY
One of the major problems facing the Pakistan is the energy crisis, which are intense,
costly and multi-dimensional. The unprecedented electricity and gas disruptions are
pushing the cost of living thus making the life difficult for people. Ever soaring crude oil
prices have been registering Energy Crisis in Pakistan all-time-highs, shooting 50% in
the past year. The country has nearly gone energy bankrupt while a total disaster
appears to be round the corner. It cannot be denied that something has been wrong
down the line that caused this crisis.
The golden age for energy in Pakistan has been 1960s and most of the 1970s, that is
when Tarbela and Mangla dams were put into operation and other dams, including
Kalabagh, were actively pursued. In subsequent years, action in the field of energy has
been utterly recklessness. The prevalent crisis is a consequence of imprudent energy
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policies over the last three decades. However, the crisis is still addressable as long as
there is due vision and devotion.
4.0 ELECTRICITY SECTOR IN PAKISTANElectricity in Pakistan is generated, transmitted, distributed and retail supplied vertically
integrated public sector utilities
4.1 WATER AND POWER DEVELOPMENT AUTHORITY (WAPDA)
Distribute to all of Pakistan except Karachi. WAPDA, the Pakistan Water and Power
Development Authority, was created in 1958 as a Semi-Autonomous Body for the
purpose of coordinating and giving a unified direction to the development of schemes inWater and Power Sectors, which were previously being dealt with, by the respective
Electricity and Irrigation Department of the Provinces.
Since October 2007, WAPDA has been bifurcated into two distinct entities i.e. WAPDA
and Pakistan Electric Power Company (PEPCO). WAPDA is responsible for water and
hydropower development whereasPEPCO is vested with the responsibility of thermal power generation, transmission,
distribution and billing. There is an independent Chairman and MD (PEPCO) replacing
http://en.wikipedia.org/wiki/Water_and_Power_Development_Authorityhttp://en.wikipedia.org/wiki/Water_and_Power_Development_Authority -
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Chairman WAPDA and Member (Power) who was previously holding the additional
charges of these posts.
WAPDA is now fully responsible for the development of Hydel Power and Water Sector
Projects. The Charter of Duties of WAPDA is to investigate, plan and execute schemes
for the following fields:
Generation, Transmission and Distribution of Power.
Irrigation, Water Supply and Drainage.
Prevention of Water logging and Reclamation of Waterlogged and Saline Lands.
Flood Management.
Inland Navigation.
The Authority comprises of a Chairman and three (3) Members working through a
Secretary.
WAPDA is one of the largest employers of human resources in Pakistan. Over
the years WAPDA has built-up a reservoir of Technical know-how and expertise
which has made it a modern and progressive organization
PEPCO has been fully empowered and is responsible for the management of all
the affairs of corporatized nine Distribution Companies (DISCOs), four
Generation Companies (GENCOs) and a National Transmission Dispatch
Company (NTDC). These companies are working under independent Board of
Directors (Chairman and some Directors are from Private Sectors).
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4.2 PAKISTAN ELECTRIC POWER COMPANY
PEPCO has been fully empowered and is responsible for the management of all the
affairs of corporatized nine Distribution Companies (DISCOs), four GenerationCompanies (GENCOs) and a National Transmission Dispatch Company (NTDC). These
companies are working under independent Board of Directors (Chairman and some
Directors are from Private Sectors).
The Pakistan Electric Power Company (Private) Limited (PEPCO) has been entrusted
the task of managing the transition of WAPDA from a bureaucratic structure to a
corporate, commercially viable and productive entity. It is a mammoth task and progress
in the initial months was rather slow, but one should keep in mind that responsibility is
enormous and transition is a long drawn process.
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5.0 CURRENT ENERGY RESOURCES OF PAKISTAN
5.1 FOSSIL
Station Location Capcity StatusKot addu power
company Kapco
Kot Addu
Muzaffargarh1600
Operational; Oil- and Natural Gas-fired
thermal stations
Hub Power
Company1292 Operational; Oil-fired thermal station
Bin Qasim
Power PlantKarachi 1196
Operational; Oil- and Natural Gas-fired
thermal stations
Jamshoro Power Jamshoro 1054 Operational; Oil- and Natural Gas-fired
http://en.wikipedia.org/wiki/Hub_Power_Companyhttp://en.wikipedia.org/wiki/Hub_Power_Companyhttp://en.wikipedia.org/w/index.php?title=Bin_Qasim_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bin_Qasim_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Jamshoro_Power_Company&action=edit&redlink=1http://en.wikipedia.org/wiki/File:Feedwater-heating.pnghttp://en.wikipedia.org/w/index.php?title=Jamshoro_Power_Company&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bin_Qasim_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bin_Qasim_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/wiki/Hub_Power_Companyhttp://en.wikipedia.org/wiki/Hub_Power_Company -
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Company thermal stations
Guddu Thermal
StationGuddu 1049
Operational; Natural Gas-fired thermal
stations
Lalpir & Pakgen
Thermal Station MuzaffarGarh 727 Operational; Oil-fired thermal stations
Uch Power PlantDera Murad
Jamali596
Operational; Natural Gas-fired thermal
station
Rousch Power
Plant
Abdul
Hakeem450
Operational; Natural Gas-fired thermal
station
TNB Liberty
Power PlantDharki 250
Operational; Natural Gas-fired thermal
station
Foundation
Power Company
(FPCDL)
Daharki,
Ghotki177
Operational; Combined Cycle Power
Plant
Fauji Kabirwala
FKPCLKabirwala 157
Operational; Combined Cycle Power
Plant
Gul Ahmed
Korangi
Town,
Karachi
136 Operational; Furnace Oil
Altern EnergyFateh Jang,
Attock29 Operational; Gas-fired Diesel Engine
http://en.wikipedia.org/w/index.php?title=Guddu_Thermal_Station&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Guddu_Thermal_Station&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Lalpir_%26_Pakgen_Thermal_Station&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Lalpir_%26_Pakgen_Thermal_Station&action=edit&redlink=1http://en.wikipedia.org/wiki/Uch_Power_Planthttp://en.wikipedia.org/w/index.php?title=Rousch_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Rousch_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/wiki/Abdul_Hakeem,_Pakistanhttp://en.wikipedia.org/wiki/Abdul_Hakeem,_Pakistanhttp://en.wikipedia.org/w/index.php?title=TNB_Liberty_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=TNB_Liberty_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Foundation_Power_Company_%28FPCDL%29&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Foundation_Power_Company_%28FPCDL%29&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Foundation_Power_Company_%28FPCDL%29&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Fauji_Kabirwala_FKPCL&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Fauji_Kabirwala_FKPCL&action=edit&redlink=1http://en.wikipedia.org/wiki/Gul_Ahmedhttp://en.wikipedia.org/w/index.php?title=Altern_Energy&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Altern_Energy&action=edit&redlink=1http://en.wikipedia.org/wiki/Gul_Ahmedhttp://en.wikipedia.org/w/index.php?title=Fauji_Kabirwala_FKPCL&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Fauji_Kabirwala_FKPCL&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Foundation_Power_Company_%28FPCDL%29&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Foundation_Power_Company_%28FPCDL%29&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Foundation_Power_Company_%28FPCDL%29&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=TNB_Liberty_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=TNB_Liberty_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/wiki/Abdul_Hakeem,_Pakistanhttp://en.wikipedia.org/wiki/Abdul_Hakeem,_Pakistanhttp://en.wikipedia.org/w/index.php?title=Rousch_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Rousch_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/wiki/Uch_Power_Planthttp://en.wikipedia.org/w/index.php?title=Lalpir_%26_Pakgen_Thermal_Station&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Lalpir_%26_Pakgen_Thermal_Station&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Guddu_Thermal_Station&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Guddu_Thermal_Station&action=edit&redlink=1 -
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5.2 HYDROELECTRIC
Station Location Capacity StatusTarbela Dam Terbela 3478 Operational
Ghazi-Barotha
Hydropower ProjectGhazi town 1450 Operational
Mangla Dam Mirpur District 1000 Operational
Warsak Dam 243 Operational
Chashma Barrage Chashma 184 Operational
Khan Khwar
hydropower projectBesham District 72 Operational
Jagran-I Dam Neelum Valley 30 Operational
Rasul Barrage Mandi Bahauddin 22 Operational
Malakand Dam 22 Operational
http://en.wikipedia.org/wiki/Tarbela_Damhttp://en.wikipedia.org/wiki/Ghazi-Barotha_Hydropower_Projecthttp://en.wikipedia.org/wiki/Ghazi-Barotha_Hydropower_Projecthttp://en.wikipedia.org/wiki/Mangla_Damhttp://en.wikipedia.org/wiki/Warsak_Damhttp://en.wikipedia.org/wiki/Chashma_Barrage_%28Ramsar_Site%29http://en.wikipedia.org/w/index.php?title=Khan_Khwar_hydropower_project&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Khan_Khwar_hydropower_project&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Jagran-I_Dam&action=edit&redlink=1http://en.wikipedia.org/wiki/Rasul_Barragehttp://en.wikipedia.org/w/index.php?title=Malakand_Dam&action=edit&redlink=1http://upload.wikimedia.org/wikipedia/commons/5/57/Hydroelectric_dam.svghttp://en.wikipedia.org/w/index.php?title=Malakand_Dam&action=edit&redlink=1http://en.wikipedia.org/wiki/Rasul_Barragehttp://en.wikipedia.org/w/index.php?title=Jagran-I_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Jagran-I_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Khan_Khwar_hydropower_project&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Khan_Khwar_hydropower_project&action=edit&redlink=1http://en.wikipedia.org/wiki/Chashma_Barrage_%28Ramsar_Site%29http://en.wikipedia.org/wiki/Warsak_Damhttp://en.wikipedia.org/wiki/Mangla_Damhttp://en.wikipedia.org/wiki/Ghazi-Barotha_Hydropower_Projecthttp://en.wikipedia.org/wiki/Ghazi-Barotha_Hydropower_Projecthttp://en.wikipedia.org/wiki/Tarbela_Dam -
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Dargai Dam waziristan 20 Operational
Nadipur Dam 13 Operational
Shadiwal Dam 14 Operational
Chihoki Dam 14 Operational
Renala Dam 1 Operational
Chitral Dam 1 Operational
Kuram Garhi Dam 4 Operational
5.3 RENEWABLES
Station Location Capacity StatusWah Industries Limited Solar Taxila, Punjab 1 -
Thatta Power Plant Sindh 150 -
Tech Access Solar Punjab 10 -
Solar Energy Pakistan Ltd Thatta 35 -
Roshan Power Solar Kasur 10 -
Jhimpir Wind Power Plant 6 OperationalFirst Solar Punjab 2 -
DACC LLC Solar Sindh 50 -
CWE Solar Cholistan 50 -
Bakhsh Energy Solar Lodhran 20 -
AM Pak Energy Punjab 50 -
http://en.wikipedia.org/w/index.php?title=Dargai_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Nadipur_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Shadiwal_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Chihoki_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Renala_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Chitral_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Kuram_Garhi_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Wah_Industries_Limited_Solar&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Thatta_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tech_Access_Solar&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Solar_Energy_Pakistan_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Roshan_Power_Solar&action=edit&redlink=1http://en.wikipedia.org/wiki/Jhimpir_Wind_Power_Planthttp://en.wikipedia.org/wiki/First_Solarhttp://en.wikipedia.org/w/index.php?title=Bakhsh_Energy_Solar&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=AM_Pak_Energy&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=AM_Pak_Energy&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bakhsh_Energy_Solar&action=edit&redlink=1http://en.wikipedia.org/wiki/First_Solarhttp://en.wikipedia.org/wiki/Jhimpir_Wind_Power_Planthttp://en.wikipedia.org/w/index.php?title=Roshan_Power_Solar&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Solar_Energy_Pakistan_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tech_Access_Solar&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Thatta_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Wah_Industries_Limited_Solar&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Kuram_Garhi_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Chitral_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Renala_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Chihoki_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Shadiwal_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Nadipur_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Dargai_Dam&action=edit&redlink=1 -
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5.4 NUCLEAR
Station Location Capacity Status
Chashma Nuclear PowerComplex 1 (CHASNUPP-1)
ChashmaDist. Mianwali
300 Operational
Chashma Nuclear Power
Complex 2 (CHASNUPP-2)
Chashma
Dist. Mianwali300 Operational
Chashma Nuclear Power
Complex 3 (CHASNUPP-3)
Chashma
Dist. Mianwali300
Under
Construction
Chashma Nuclear Power
Complex 4 (CHASNUPP-4)
Chashma
Dist. Mianwali 300
Under
Construction
Karachi Nuclear Power
PlantKarachi 125
Partially
Operational
http://en.wikipedia.org/wiki/CHASNUPP-1http://en.wikipedia.org/wiki/CHASNUPP-2http://en.wikipedia.org/w/index.php?title=CHASNUPP-3&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=CHASNUPP-4&action=edit&redlink=1http://en.wikipedia.org/wiki/Karachi_Nuclear_Power_Planthttp://en.wikipedia.org/wiki/Karachi_Nuclear_Power_Planthttp://en.wikipedia.org/wiki/Karachi_Nuclear_Power_Planthttp://en.wikipedia.org/wiki/Karachi_Nuclear_Power_Planthttp://en.wikipedia.org/w/index.php?title=CHASNUPP-4&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=CHASNUPP-3&action=edit&redlink=1http://en.wikipedia.org/wiki/CHASNUPP-2http://en.wikipedia.org/wiki/CHASNUPP-1 -
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6.0 PAKISTAN DEPENDENCY ON ENERGY
Energy sources
Total installed electricity capacity
Thermal: 66%
Hydro-electric: 30%
Nuclear: 3%
Others: ~1%
Total primary energy supply
Biomass: 34.8%Natural gas: 31.9%
Oil and products: 24.1%
Coal: 5.8%
Hydro-electric: 2.9%
Nuclear: 0.5%
The annual growth of primary energy supply increased from 3.17% to 4.3%. Energysupply in Pakistan is highly dependent on oil and gas, which together contribute more
than 77% of the total primary energy supplied. The average share of gas and oil were
respectively 44.36% and 32.58%. The remaining sources of energy supply consist of
hydro-electricity and coal, with shares in total energy supply around 12% and 6%
respectively.
Electricity is used for domestic, commercial, agriculture and industrial purposes. Despite
its high per unit price, household demand for electricity is growing. This sector is the
largest consumer of electricity in the Pakistan with a share of 42%, whereas the
industrial and agriculture sectors shares are 25.2% and 13.3% respectively.
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6.1 RELIANCE
At present Pakistan meets 75% of its energy needs through domestic resources,
including gas, oil and hydroelectricity production. Only 25% of the country's energy
needs were managed through imports, in which oil has taken a major share. Further,
Pakistan has planned to import 1,100 MW of electricity from Iran for supply to Gwadar
and other coastal areas of Balochistan.
6.2 EXTEND NETWORK
Population Access to Electricity (2008): 57.6 %--------- (2012): 60%
Rural: 46%
Urban: 78%
70 million people do not have access to electricity. Two separate grids form the
electricity transmission network in the country, the national grid operated by the National
Transmission and Dispatch Company, and a dedicated grid for Karachi. These networks
are interconnected via a 220 kV line.
6.3 ENERGY EFFICIENCY
Pakistans energy demands will increase in the coming 20 years. The Pakistani energy
sector has discovered that it has huge untapped energy efficiency potential. Past
attempts to mainstream energy efficiency projects could not get expected results
because of lack of management capacity and financing. The government of Pakistan
wants to implement a systemic energy efficiency program and has been seeking a
flexible public sector financing mechanism and to establish private sector financing to (i)
scale up the deployment of proven energy efficiency technologies, and (ii) set up an
energy efficiency market.
6.4 COMPETITIONThe Pakistani power sector has historically been dominated by the public sector
utilities, WAPDA and KESC. Over the years, these institutions became large,
vertically-integrated utilities with problems with maintenance of Infrastructure,
financial and technical inefficiencies, and dependence on public sector development
resources.
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In order to mobilize private sector investment for the power sector, an IPP policy was
launched in 1994, and subsequently reviewed in 1998 and 2002. A Private Power
and Infrastructure Board (PPIB) was set up to provide support to the private sector.
The government also set up the National Electric Power Regulatory Authority
(NEPRA) in 1997. In 1998, it embarked upon a programmed of unbundling the
WAPDA through corporatization and commercialization. The WAPDA has now been
reorganized into nine distribution companies, one National Transmission and
Dispatch Company (NTDC) and four thermal generation companies, called
GENCOs. The hydroelectric power development and operation functions remain with
the WAPDA. To carry out this restructuring a facilitation company called Pakistan
Electric Power Company (PEPCO) was also incorporated in 1998. Several IPPs are
operating in Pakistan, while a number of projects are under construction. The gross
power generation capacity of the IPPs is 5,822 MW. The Kot Addu Power Company
(KAPCO) and the Hub Power Company (HUBCO) are the two largest IPPs, with
1,466 MW and 1,292 MW respectively.
6.5 ENERGY FRAMEWORK
During the mid-80s, Pakistan made its first move towards exploring renewableenergy options. The government invested 14 million rupees towards feasibility
studies for solar energy and biogas production between 1983 and 1988. However,
no significant project developments resulted from this investment.
New energy policies were also instituted in 1994, 1998 and 2002. The 2002 Power
Policy, currently still in place, encouraged the use of local resources, including
renewable energy. This policy aimed to develop approximately 500 MW of
renewable (non-hydro) power generation by 2015, and roughly 1,000 MW by 2020.Although various energy policies implemented between 1985 and 2002 stressed the
need for employing renewable energy resources, none provided a framework for the
implementation of such projects. RE development was virtually non-existent, as
these policies failed to attract private sector confidence and investment.
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6.6 RENEWABLE ENERGY RESOURCES
The nation is currently facing UPTO 8 GW power supply shortage, the most severe
energy crisis to have ever hit the country; yet abundant indigenous resources such as
wind, solar and biomass remain virtually untapped.
Solar
Pakistan lies in a region of high solar irradiance as such, it is ideally suited for solar
energy projects. Pakistan receives about 15.5x1014 kWh of solar irradiance each year,
with most regions receiving approximately 8 to 10 sunlight hours per day. The potential
installed capacity of solar photovoltaic power is estimated to be 1,600 GW per year,
providing approximately 3.5 PWh of electricity (approximately 41 times of current power
generation in the country). Current utilization is still at a developmental stage, withseveral pilot projects being implemented.
Wind
Wind energy also has strong technical potential in Pakistan, particularly in the southern
regions of Sindh and Balochistan. Pakistan has approximately 1,000 km of coastline
with steady average wind speeds ranging between 5 and 7 m/s. The projected installed
capacity for wind energy is estimated at 122.6 GW per year, providing approximately
212 TWh of electricity (approximately 2.5 times the current power generation level).
Biomass
Biomass availability in Pakistan is also widespread. Approximately 50,000 TON of solid
waste, 225,000 Ton of crop residue and over 1 million Ton of animal manure are
produced daily. It is estimated that potential production of biogas from livestock residues
is 8.8 to 17.2 billion meters3 of gas per year (equivalent to 55 to 106 TWh of energy).
Annual electricity production from bagasse is estimated at 5,700 GWh about 6% of
Pakistans current power generation level.
Hydropower
Hydro is the only sustainable energy resource which Pakistan has used for large-scale
power generation. Currently, Pakistan has installed hydropower capacity of
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approximately 6.6 GW. This is 16% of total hydropower potential, which is estimated to
be roughly 41.5 GW.
Biogas
Total biogas generation potential of is 14.25 million m3/day. The Pakistan Council ofRenewable Energy Technologies is designing, developing and disseminating biogas
plants. During the last 3 years, more than 1600 plants, mostly of 5 m3/day capacity,
have been installed by the PCRET. NGOs and private sector companies have
performed similar numbers of installations. This means that a total of 0.016 million
m3/day of biogas capacity was utilized during the last 3 years, with an annual
exploitation factor of 0.374 to 10.3. The working status of biogas plants installed before
the last 3 years is uncertain, as there are no repair and maintenance services.
Geothermal
Pakistan has considerable potential for geothermal energy (80,000 MW) as there are
numerous fumaroles and hot springs. However, the extent of the commercial potential is
not known, and further studies are needed.
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7.0 CAUSES OF ENERGY CRISES
7.1 POOR DISTRIBUTION SYSTEM
Let us chalk out the reasons for shortage of energy. Lopsided priorities, poor
management and lack of accountability can be denoted as the reasons for dearth of
energy in Pakistan. The number of consumers of electricity is now increased owing to
the rapid urbanization process. The facility of electricity is now provided to the remote
villages. We waste a lot of energy, about 15 to 20 percent through poor distribution
system. Industrial, transport and domestic sectors are the three important consumers of
energy.
7.2 LACK OF ENERGY CONSERVATION PROGRAM
Wastage of energy is a serious problem and if this is kept in check, then this problem
can be controlled to quite an extent. Currently, the elite class is consuming maximum
energy even with prior knowledge and understanding. High rate of illiteracy and the
masses, not paying heed to its proper and careful usage. However, what we see is that
the elite class is using it for its luxury. The need of the hour is energy conservation
programs.
7.3 COST OF FUEL
The high cost of fuel i.e. the price of crude has increased from $40 to $140 a barrel.
This obscene rise in cost means that the thermal source of production is resulting in
exorbitant prices. As WAPDA and KESC procure energy on high cost, hence, they will
sell it at a higher price too. The viable solution is to increase the energy cost. The
government will need to monitor the theft of electricity and make sure it doesnt prevail.
7.4 UNTAPPED ALTERNATE ENERGY RESOURCES
Pakistan is blessed country having abundance of alternative energy resources. But
improper planning leads us to the uselessness of the alternate energy resources. Wind
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in the coastal areas of Sindh, coal in Thar and solar energy can be used in many of the
warm areas of country.
7.5 POWER POLITICS
Several private power producers had to halt or slash production because the state-run
power purchasing company hadn't paid them. They had not been able, because the
biggest consumers (especially provincial and federal governments) had not paid their
own electricity bills. The bills that were paid are not enough to cover the cost of
generation.
This so-called circular debt, currently about $880m, is an ongoing problem. The
government usually bites the bullet, as it did this time, by paying off a portion when
power producers are about to sue for default, enabling them to start generating again
for the moment. What remain unaddressed are the structural issues that cause the debt
to pile up again: poor recovery of dues (receivables stand at $4 billion), electricity theft,
transmission losses, reliance on imported oil and politically sensitive subsidies for
certain groups. Perpetuating all of this is a lack of efficiency and co-ordination across a
maze of state-owned agencies including a power purchaser, distribution and generation
companies, a regulator and various ministries.
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8.0 GOVERNMENT INVOLVEMENT
Key activities being undertaken by the government to increase electricity supplies using
both public and private investment includes:
Encouraging the construction of conventional hydroelectric, oil-fired, nuclear, and
coal-fired facilities to generate additional electricity
Encouraging the development of the countrys small hydro, wind, solar, and
biomass
Resources through a recently-adopted Renewable Energy Development Policy,which hopes to build upon the US-prepared wind and solar maps that will be
released
Encouraging the exploration and development of domestic oil & gas resources
through anew draft Petroleum Development Policy, and through an updated
scientific assessment of the discovered and undiscovered resource potential of
the country
Exploring the potential for developing the countrys coal resources and exploiting
them for power generation and petrochemical use
Diversifying imported gas supplies through possible pipelines to bring gas from
Turkmenistan, Qatar, or Iran to Pakistan as well as encouraging imports of
Liquefied Natural Gas (LNG) through its newly-adopted LNG Import Policy
Expanding imports of electricity from Iran.
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9.0 CHALLENGES
Lack of technical and managerial capacity to carry out policies and programs in the
most effective manner is the big challenge for Pakistan. There should be some
capabilities in which government is facing dearth as described under
The ability to perform system-wide planning in the electricity and energy sector as
a whole, both in terms of technical analysis and ability to develop and implement
plans of action.
The ability to analyze project proposals to determine if the tariffs, costs, and
contracts being proposed are reasonable, particularly for hydroelectric, coal, and
wind projects where the country has less experience.
The ability to manage the electric generation, transmission, and distribution
companies created by the unbundling of WAPDA as commercial enterprises, with
a focus on improving customer service and reducing losses.
The ability to expand access to un-served and under-served population groups in
the most financially-sound and consumer-driven manner. For example, illegal
connections in Pakistan need to be rationalized to improve service and safety,
and to reduce technical and nontechnical losses, but the community outreach and
negotiation ability appears to be lacking within the utility. Similarly, electrifyingvillages with renewable energy presents unique opportunities and challenges for
community organizations to maintain and own the systems while fostering private
sector development opportunities.
The ability to compile and financially analyze the various economic incentive
programs and to develop a more targeted approach that will satisfy both the social
and economic goals of the government.
The ability to assess the existing resource base of the oil & gas resources of the
country to internationally accepted standards.
The ability to assess the coal resources to determine if their development is
economically and technically justified and feasible.
The ability to identify the most pragmatic energy conservation and load
management options, and to encourage their widespread adoption, as well as to
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develop policies and incentives to encourage improved energy efficiency over the
mid- to long-term.
9.1 WEAKNESSES OF PRIVATE SECTOR
The private sector lacks knowledge on how to improve its energy efficiency and
reduce energy costs. While the furniture industry has been exploring solar kilns as
a way to save energy and cut costs, they are probably an exception rather than
the rule.
The private sector lacks the skills analyze what is the most efficient captive power
system to purchase and operate, as well as lacking the knowledge to explore
options under existing government policies to sell captive power back to the utility
(i.e., net metering) or to invest in power generation facilities such as small hydro
or wind facilities that could produce power that the local utility would transmit to
the industrial user (i.e., power wheeling plus generator to consumer contracting).
Local governments lack the capacity to monitor the energy use of community
facilities, and to identify opportunities to conserve energy.
Communities and NGOs lack knowledge about renewable energy systems and
suppliers, and how they might partner with governments, donors, and the privatesector to bring energy services to remote populations in a cost-effective and
sustainable fashion (e.g., using livestock wastes to produce biogas, using crop
seeds or wastes to produce bio fuels).
Consumers of energy products and services, along with journalists and
community leaders, do not understand that the costs of these services must be
covered by either the consumer or the customerthere is no free lunch.
Consumers and the general public are also not fully aware of the opportunities to
make known their points of view on government policies and on energy company
performance to regulators and government representatives.
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10.0 ANALYTICAL SURVEY
42% employed professional face 4-8 hours of load-shedding at workplace every day
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42% employed professional face 4-8 hours of load-shedding at workplace every day.
64% employed respondents profess significant productivity loss in their work routinedue to excessive load-shedding at home, whereas only 8% feel their work productivityisnt affected by load-shedding
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Of the employed sector, 37% working professionals do not have any back-up powersupply at home, whereas 43% make do with a UPS when load-shedding occurs
51% working professionals report to have continuous power at office throughgenerators, 24% use both generator and UPS whereas 9% have no back-up power
supply to carry out their tasks
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11.0 RECOMMENDATIONS
The following recommendations may serve as first step in indicate planning for handling
energy crisis at various levels:
11.1 ENERGY PLANNING CELL
A dedicated & loyal cell should be formed at government level under the planning
commission/prime minister secretariat which should be responsible for detailed planning
of energy requirements, keeping in view the realistic annual growth. This cell should
serve as a think tank and should comprise specialist engineers and administrative staff.
The boss of this cell should ensure preparation of short term, medium term and long
term plans. The cell should have three sub cells, responsible for monitoring of studies,detailed planning and designing, award of contracts and finally implementation of
construction within each sub cell.
11.2 PECIALIZED STAFF
The staff should have specialization in both thermal and hydel projects. It should
operate through monthly meetings to be attended by representatives of ministry of water
and power, PPIB WAPDA and PEPCO. The head of this cell should be a technicallyqualified officer and has to be a hard task master to ensure that every target is met by
the scheduled date.
11.3 PROVINCIAL INVOLVEMENT
As per the National Power Policy, all the provinces are authorised to set up their own
power plants up to 50 MW.
To achieve meaningful results, all provinces (interested in set the feasibilitystudy should include following field work.
1. Detailed Mapping of the area.
2. Topographic study of the area.
3. Seismic refraction study.
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4. River flow data.
5. Weather data contain Temperature, Pressures and Rain humidity.
6. Water sampling and testing.
7. Environmental study.
8. Social impact.
9. Identification of stake holders of the area
There should be dedicated energy planning cell. The head of this cell again has to be a
specialist. All cases received from WAPDA, PEPCO in the shape of PCII and PC1
should be processed immediately. All queries be resolved through meetings rather
through letters which takes months to get up to date reply. The detailed organization
can be worked out at the Ministry.
11.4 PRIVATE POWER INFRASTRUCTURE BOARD
The Private Power Infrastructure Board, which is almost non-functional with relation to
physical result, is required to be made dynamic. No political interference should be
allowed. The PPIB, through pro-active approach, should only work on the projects
earmarked by the main core cell at Government level.
All Letters of Intent issued and agreements signed by PPIB should have cut off dates for
completion of feasibility studies, detailed designing and commencement of work. No
extension of time in any activity be granted. The present practice is that dummy
investors, having political influence, are coming forward with the sole aim of subletting
the project to some other investor and aiming at making money.
11.5 PROGRESS MONITORING
Progress of all agreements is monitored by the central cell and parties making no
progress be given immediate exit. Though WAPDA has already devised a verycomprehensive plan titled as Vision 2025, yet its implementation is lagging drastically
behind schedule. There could be many reasons for this failure, but the most important
being the bidding system.
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As per the prevailing practices, only the lowest bid is accepted. Land acquisition
process is time consuming and lacks flexibility. In most of the cases WAPDA fails
to acquire the land required for the projects due to litigation process. Some
projects have been delayed due to non-availability of material from identified
sources as the influential cartels get sources on lease and later on dictate their
terms with the contractor.
The Government of Pakistan/WAPDA should fix the cut off percentage lower
than the engineer estimate beyond which the contractor should be declared as
non responsive. Land acquisition process is started much before the award of
contract so that the land is available by the time the contract has been awarded.
It has also been seen that some contractors abandoning their work on one
project, instead of being put on blacklist and not to be considered for awarding of
further projects, still have been awarded contracts due to outside pressure. This
practice by WAPDA, instead of deterring, has encouraged other contractors to
also adopt the same approach and thus abandon projects once they feel that
they will be undergoing losses.
This vague policy of WAPDA has also contributed in the delay of a couple of
mega projects. It is recommended that any contractor who abandons his projects
site without any valid justification be blacklisted and should not be considered foraward of future contracts. WAPDA should expedite the commencement and
completion of all projects conceived in Vision 2025.
No time should be wasted on penny-wise, pound-foolish approach, which
presently is the main source of delay in the timely award of contracts. WAPDA
should also carry out analysis of additional cost due to delayed award and
subsequent delayed completion of projects, while undertaking projects bid
evaluations and making decisions for re-bidding.
The people responsible for causing delay in the schedule of completion should
be taken to task. There should also be some incentive, both for contractors and
project authorities for the timely completion of projects.
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11.6 TECHNICAL HEAD OF DEPARTMENT
It has remained the policy of the Government to reward some retired bureaucrats and
Government officials and make them the heads of technical departments, like WAPDA,
PEPCO; irrespective of their qualifications.
It is funny to assume that a good administrator would also be equally efficient in a
technical department. A non-technical boss will always look towards his immediate
subordinates, being totally unaware of the technical implications.
It is high time that people sitting at the helm of affairs should realize the ground realities
and post technically qualified, capable and competent officers as heads of technical
departments. If it is inevitable to reward non-technical, retired officers there are
hundreds of non-technical slots both at the provincial and federal levels.
It is time that our leaders realize this very important aspect and stop posting non-
technical officers as heads of technical departments. To conclude, it has gone beyond
doubt that Government of Pakistan has miserably failed to cater for energy needs of the
country. The concerned people have to make serious efforts to bridge the gap between
demand and availability.
This is only possible if all players responsible for initiation and completion of power
projects work in harmony and sincerely at each end and if our leaders stop posting non-
technical men in technical departments as bosses.
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12.0 CONCLUSIONS
After the analysis of the data we draw the conclusions that Pakistan is still going to
involve in the crisis in the coming years until specific attention is not been paid toward
the issues. There is need of some kind of technical and some of the managerialproblems to be resolved. The crises will lead to perish of economy and enhance the
turmoil in the nation. There is no betterment in the system has been adopted for many
time as far as role of government is considered. There is need to adopt the following
recommendations to overcome issues pertaining to power sector
Govt. must pay circular debt.
Govt. must invest to cover up line losses.
Industries that consume 32% of our electricity, must apply Energy Conservation
Systems and Management measures.
They can start producing their own energy with their own investment without
depending upon the grid.
Industrialists and new investors must consider the Energy Sector as good an
investment as any other. Needs image building.
Govt. must convert from inefficient gas plants to efficient ones in order to
conserve electric energy.
Govt. must consider investing in Solar Energy plants to produce Electricity as
they provide free energy, and are less mechanical than Wind Energy Plants.
Sincere efforts and proper planning can lead to evade us from this gigantic problem.
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13.0 BIBLIOGRAPHY
1. www.wapda.gov.pk
2. www.pepco.gov.pk
3. http://en.wikipedia.org
4. www.pakistaniat.com
5. http://tribune.com.pk/
6. http://pakistantimes.net/
7. http://dailytimes.com.pk
8. http://www.industryabout.com
9. www.thecurrentaffairs.com
http://www.wapda.gov.pk/http://www.pepco.gov.pk/http://en.wikipedia.org/http://www.pakistaniat.com/http://tribune.com.pk/http://pakistantimes.net/http://dailytimes.com.pk/http://www.industryabout.com/http://www.thecurrentaffairs.com/http://www.thecurrentaffairs.com/http://www.industryabout.com/http://dailytimes.com.pk/http://pakistantimes.net/http://tribune.com.pk/http://www.pakistaniat.com/http://en.wikipedia.org/http://www.pepco.gov.pk/http://www.wapda.gov.pk/