INTRODUCTION:

An energy crisis is any great bottleneck (or price rise) in the supply of energy resources to an economy. In popular literature though, it often refers to one of the energy sources used at a certain time and place, particularly those that supply national electricity grids or serve as fuel for vehicles. There has been an enormous increase in the global demand for energy in recent years as a result of industrial development and population growth. Supply of energy is, therefore, far less than the actual demand.The nexus between economic prosperity and self sufficiency in energy has become essentially vital for Pakistan. Today the energy crisis looming before us is the culmination of a long list of governmental failures, malpractices along with inefficient ways of consumption and a perpetually fragile economy. The futility of apparent counter measures can be attributed to slow or non existent exploration and exploitation of new resources; outdated administrative and technical systems; lack of tactful diplomacy at international level, all requiring immediate attention.

Electricity crisis in Pakistan:

According to the chairman wapda, Tariq Hammed at a Press conference on June 2, 2006“Early this year warned about the possible energy crisis and stressed the need for ‘quantum jump’ in power generation. The experts say it could only be possible through a mega project of hydropower generation, otherwise the gap between firm supply and peak demand will remain on the rise.” They said the power generation’s projects, which are due to commission in coming years are of low capacity and will not be able to exceed the surging demand of the electricity.Load shedding continues despite shortfall of electricity has come down to 1,940MW. Owing to improvement in oil and gas supply, the power generation by the Independent Power Producers (IPPs) has crossed 7,000MW, bringing down the short fall to only 1,940MW. The total electricity generation capacity of the country is 13,703MW while demand is 15,713MW. The shortfall is now only 1,940MW.Pakistan is gifted with a hydel potential of approximately 59,773 MW, most of which lies in Khyber Pakhtunkhwa, Gilgit Baltistan, Azad Jammu and Kashmir and Punjab. According to the Private Power and Infrastructure Board (PPIB), the total installed capacity of the hydropower stations in the country is about 6,703 MW, out of which 3,849 MW is in Khyber Pakhtunkhwa, 1,699 MW in Punjab, 1,039 MW in Jammu and Kashmir and 117 MW in Gilgit Baltistan. Furnace oil plants are best suited for Karachi where port and refinery facilities are available. Gas and coal plants should be installed in Balochistan, Sind and Khyber Pakhtunkhwa, situated near existing gas fields. Khyber Pakhtunkhwa and Jammu and Kashmir should explore medium, small and micro size hydro-electricity projects. Sindh must use its coal reserves. Wind turbines should be installed in the coastal belt, and Punjab must explore bio-gas and city waste plants.

Dams of Pakistan

There are 14 dams built in Pakistan, some of them are used for electricity production. Mostly the main dams that fulfill our country needs are 3, tarbela, mangla, warsek dam. There names and places where they are built are given below: 1) rasul Dam (mandi baha ud din)2) chashmaDam (mianwali)3)Ghazi Barotha Dam (attock coty)4)Gomal Dam (khajuri hach)5)Gomal Zam Dam (khajuri hach)6)Hub Dam (karachi)7)warsek Dam(peshawar)8)Karoonjhar Dam (tharparkar)9)Khanpur Dam (Khanpur)10)Mangla Dam (mirpur)11)kurram garhi Dam (kurram garhi)12)Shadi waal Dam (nandi pur)13)nandi pur Dam (gujranwala)14)Tarbela Dam (haripur)

Now, 34 dams are under construction .some of them are nearly built.

Electricity produced in Pakistan is from three main sources.

1). Hydal

2). Thermal (Gas/Steam/Furnace Oil)

3). Nuclear

There are four major power producers in country which include Water & Power

Development Authority (WAPDA), Karachi Electric Supply Company (KESC),

Independent Power Producers (IPPs) and Pakistan Atomic Energy Commission (PAEC).

1). WAPDA

a). WAPDA Hydal

Terbela                                                                3478  MW

Mangla                                                                 1000  MW

Ghazi-Brotha                                                       1450  MW

Warsak                                                                   243  MW

Chashma                                                               184  MW

Dargai                                                                      20  MW

Rasul                                                                        22  MW

Shadi-Waal                                                             18  MW

NandiPur                                                                 14  MW

Kurram Garhi                                                            4  MW

Renala                                                                       1  MW

Chitral                                                                        1  MW

Jagran (AK)                                                            30  MW

         Total hydal                                               ==>   6461 MW

b). WAPDA Thermal

Gas Turbine Power Station, Shadra                  59  MW

Steam Power Station, Faisalabad                  132   MW

Gas Turbine Power Station, Faisalabad         244   MW

Gas Power Station, Multan                               195   MW

Thermal Power Station, Muzaffargarh           1350   MW

Thermal Power Station, Guddu                      1655   MW

Gas Turbine Power Station, Kotri                    174   MW

Thermal Power Station, Jamshoro                  850   MW

Thermal Power Station, Larkana                     150    MW

Thermal Power Station, Quetta                          35   MW

Gas Turbine Power Station, Panjgur                 39   MW

Thermal Power Station, Pasni                           17   MW

Total Thermal                                         ==>   4811   MW

WAPDA's Total Hydal + Thermal capacity is 11272 MW.

IMPACT OF ENERGY CRISIS ON INTERNATIONAL LEVEL

The macroeconomic implications of a supply shock-induced energy crisis are large, because energy is the resource used to exploit all other resources. When energy markets fail, an energy shortage develops. Electricity consumers may experience intentionally engineered rolling blackouts during periods of insufficient supply or unexpected power outages, regardless of the cause.

Industrialized nations are dependent on oil, and efforts to restrict the supply of oil would have an adverse effect on the economies of oil producers. For the consumer, the price of natural gas, gasoline (petrol) and diesel for cars and other vehicles rises. An early response from stakeholders is the call for reports, investigations and commissions into the price of fuels. There are also movements towards the development of more sustainable urban infrastructure.Market failure is possible when monopoly manipulation of markets occurs. A crisis can develop due to industrial actions like union organized strikes and government embargoes. The cause may be over-consumption, aging infrastructure, choke point disruption or bottlenecks at oil refineries and port facilities that restrict fuel supply. An emergency may emerge during unusually cold winters due to increased consumption of energy.

Historical crises

Pipeline failures and other accidents may cause minor interruptions to energy supplies. A crisis could possibly emerge after infrastructure damage from severe weather.

1970s energy crisis - caused by the peaking of oil production in major industrial nations (Germany, United States, Canada, etc.) and embargoes from other producers

1973 oil crisis - caused by an OPEC oil export embargo by many of the major Arab oil-producing states, in response to Western support of Israel during the Yom Kippur War

1979 oil crisis - caused by the Iranian Revolution

1990 oil price shock - caused by the Gulf War

The 2000–2001 California electricity crisis - Caused by market manipulation by Enron and failed deregulation; resulted in multiple large-scale power outages

Fuel protests in the United Kingdom in 2000 were caused by a rise in the price of crude oil combined with already relatively high taxation on road fuel in the UK.

North American natural gas crisis 2004 Argentine energy crisis North Korea has had energy shortages for many years. Zimbabwe has experienced a shortage of energy supplies for many years due to

financial mismanagement.

Political riots occurring during the 2007 Burmese anti-government protests were sparked by rising energy price

IMPACT OF ENERGY CRISIS ON NATIONAL LEVEL

The demand-supply gap in the energy sector has reached one of its highest in the country. This gap subsequently produced huge shortage of power that has adversely affected the economy. The crippling economy was further damaged when many industrial units had to be shut down, rendering thousands jobless. Consequently, this on going chain of crises is accelerating inflation. The government has intended to counter it with Rental Power Plants (RPPs) like the previous IPPs and to ease the burden on common man the authorities claim to be providing continuous subsidies in the power sector.However, the constant trust deficit on the part of masses is not only due to the transparency issue of RPPs, it is major due to a constant increase in power failures and shortage, revealing an increase in the crisis instead of signs of recovery. If we take a look at the factors contributing to this enormous problem, the first and foremost one comes out to be the absence of any long term planning along with constant application of such plans.Sadly, the failures of previous governments to increase the supply of energy by new measures against the escalating demand are glaringly obvious. Small scale projects like the Ghazi barotha only put a temporary halt to the arriving crisis instead of nipping it in the bud.Secondly, the under utilization of available resources- especially hydroelectric one which can produce double the energy it is producing now- is another major setback. The government again fails or neglects to consider the shortages in winter and up-gradation of the hydroelectric and the thermal plants regularly.Thirdly, the ‘circular debt’ is like an invisible impediment subtly fuelling up the crisis. It is an inheritance of former subsidies which the government failed to pay to the power companies, who in turn could not pay the oil and gas companies for supplies. Add to this the fluctuating international oil prices and the failing economy_ the war against terrorism and decreasing Foreign Direct investment-worsened the problem and induced further power and imported oil shortage. Subsequently, the political heads had to turn their eyes back to hydroelectric power generation. But the projects like Kalabagh Dam became victims of narrow mindedness and provincial prejudices which led to failure of consensus of opinion. Had the Kalabagh Dam been built on time, we would not be confronted with

this crisis today. Also the acute shortage of water; the curtailed supply in eastern rivers by India; major consumption and wastage of water in irrigation and the decreasing capacity of Mangela and Terbela Dams due to sedimentation render the hydroelectric power generation equally problematic as the thermal power generation. Of the chronic factors, the heavy line losses plus the old and poorly maintained transmission system is a grave administrative and technical failure of public sector power companies. These line losses are comparatively very low elsewhere in the world.

IMPACT OF ENERGY CRISIS IN D G KHAN ON SMALL BUSINESS.

The energy crisis has a bad impact on small business in d g khan. It is due to the electricity crisis that most of the floor mills are closed or shut down. Due to the increase in oil prices most of the value of necessities of life has increased. It is the energy crisis has a bad impact on the economy of Pakistan. As with there is an effect that cause crisis on the economy as well as on the small business there is a boom in the power generating industry the rates of generators and other resource of producing energy