TERM REPORT

Business Communication

POWER SECTOR & ELECTRICITY CRISES IN PAKISTAN

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

Table of Contents
1.0 2.0 3.0 4.0 4.1 4.2 5.0 5.1 5.2 5.3 5.4 6.0 6.1 6.2 6.3 6.4 6.5 6.6 7.0 7.1 7.2 7.3 EXECUTIVE SUMMARY ...................................................................................... 1 INTRODUCTION .................................................................................................. 2 HISTORY.............................................................................................................. 2 ELECTRICITY SECTOR IN PAKISTAN ............................................................... 3 WATER AND POWER DEVELOPMENT AUTHORITY (WAPDA) ..................... 3 PAKISTAN ELECTRIC POWER COMPANY ..................................................... 5 CURRENT ENERGY RESOURCES OF PAKISTAN ............................................ 6 FOSSIL .............................................................................................................. 6 HYDROELECTRIC ............................................................................................ 8 RENEWABLES .................................................................................................. 9 NUCLEAR ........................................................................................................ 10 PAKISTAN DEPENDENCY ON ENERGY.......................................................... 11 RELIANCE ....................................................................................................... 12 EXTEND NETWORK ....................................................................................... 12 ENERGY EFFICIENCY .................................................................................... 12 COMPETITION ................................................................................................ 12 ENERGY FRAMEWORK ................................................................................. 13 RENEWABLE ENERGY RESOURCES ........................................................... 14 CAUSES OF ENERGY CRISES ........................................................................ 16 POOR DISTRIBUTION SYSTEM ..................................................................... 16 LACK OF ENERGY CONSERVATION PROGRAM ......................................... 16 COST OF FUEL ............................................................................................... 16 Page | i

7.4 7.5 8.0 9.0 9.1 10.0 11.0 11.1 11.2 11.3 11.4 11.5 11.6 12.0 13.0

UNTAPPED ALTERNATE ENERGY RESOURCES ........................................ 16 POWER POLITICS .......................................................................................... 17 GOVERNMENT INVOLVEMENT ....................................................................... 18 CHALLENGES ................................................................................................... 19 WEAKNESSES OF PRIVATE SECTOR .......................................................... 20 ANALYTICAL SURVEY ...................................................................................... 21 RECOMMENDATIONS ...................................................................................... 24 ENERGY PLANNING CELL ......................................................................... 24 PECIALIZED STAFF ..................................................................................... 24 PROVINCIAL INVOLVEMENT...................................................................... 24 PRIVATE POWER INFRASTRUCTURE BOARD......................................... 25 PROGRESS MONITORING ......................................................................... 25 TECHNICAL HEAD OF DEPARTMENT ....................................................... 27 CONCLUSIONS ................................................................................................. 28 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. Page | 1

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 increase due 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 couldnt 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 Page | 2

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 PAKISTAN

Electricity 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 in Water 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 whereas

PEPCO is vested with the responsibility of thermal power generation, transmission, distribution and billing. There is an independent Chairman and MD (PEPCO) replacing

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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 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).

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
5.1

CURRENT ENERGY RESOURCES OF PAKISTAN

FOSSIL

Station
Kot addu power company Kapco Hub Power Company Bin Qasim Power Plant Jamshoro Power

Location Capcity Status

Kot Addu Muzaffargarh 1600 Operational; Oil- and Natural Gas-fired thermal stations Operational; Oil-fired thermal station Operational; Oil- and Natural Gas-fired thermal stations Operational; Oil- and Natural Gas-fired Page | 6

1292

Karachi Jamshoro

1196 1054

Company Guddu Thermal Station Lalpir & Pakgen Thermal Station Uch Power Plant Rousch Power Plant TNB Liberty Power Plant Foundation Power Company (FPCDL) Fauji Kabirwala FKPCL Guddu 1049

thermal stations Operational; Natural Gas-fired thermal stations Operational; Oil-fired thermal stations Operational; Natural Gas-fired thermal station Operational; Natural Gas-fired thermal station Operational; Natural Gas-fired thermal station Operational; Combined Cycle Power Plant Operational; Combined Cycle Power Plant

MuzaffarGarh Dera Murad Jamali Abdul Hakeem Dharki

727

596

450

250

Daharki, Ghotki

177

Kabirwala Korangi

157

Gul Ahmed

Town, Karachi

136

Operational; Furnace Oil

Altern Energy

Fateh Jang, Attock

29

Operational; Gas-fired Diesel Engine

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5.2

HYDROELECTRIC

Station
Tarbela Dam Ghazi-Barotha Hydropower Project Mangla Dam Warsak Dam Chashma Barrage Khan Khwar hydropower project Jagran-I Dam Rasul Barrage Malakand Dam

Location
Terbela Ghazi town Mirpur District

Capacity
3478 1450 1000 243

Status
Operational Operational Operational Operational Operational Operational Operational Operational Operational Page | 8

Chashma Besham District Neelum Valley Mandi Bahauddin

184 72 30 22 22

Dargai Dam Nadipur Dam Shadiwal Dam Chihoki Dam Renala Dam Chitral Dam Kuram Garhi Dam

waziristan

20 13 14 14 1 1 4

Operational Operational Operational Operational Operational Operational Operational

5.3

RENEWABLES

Station
Wah Industries Limited Solar Thatta Power Plant Tech Access Solar Solar Energy Pakistan Ltd Roshan Power Solar Jhimpir Wind Power Plant First Solar DACC LLC Solar CWE Solar Bakhsh Energy Solar AM Pak Energy

Location
Taxila, Punjab Sindh Punjab Thatta Kasur

Capacity
1 150 10 35 10 6

Status
Operational -

Punjab Sindh Cholistan Lodhran Punjab

2 50 50 20 50

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5.4

NUCLEAR

Station
Chashma Nuclear Power Complex 1 (CHASNUPP-1) Chashma Nuclear Power Complex 2 (CHASNUPP-2) Chashma Nuclear Power Complex 3 (CHASNUPP-3) Chashma Nuclear Power Complex 4 (CHASNUPP-4) Karachi Nuclear Power Plant

Location
Chashma Dist. Mianwali Chashma Dist. Mianwali Chashma Dist. Mianwali Chashma Dist. Mianwali Karachi

Capacity Status
300 Operational

300

Operational Under Construction Under

300

300 125

Construction Partially Operational

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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%. Energy supply 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

COMPETITION

The 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. Page | 12

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 renewable energy 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, with several 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 of Renewable 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
7.1

CAUSES OF ENERGY CRISES

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 Page | 16

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, electrifying villages 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 Page | 19

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 private sector 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 customer there 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 routine due to excessive load-shedding at home, whereas only 8% feel their work productivity isnt affected by load-shedding

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Of the employed sector, 37% working professionals do not have any back-up power supply at home, whereas 43% make do with a UPS when load-shedding occurs

51% working professionals report to have continuous power at office through generators, 24% use both generator and UPS whereas 9% have no back-up power supply to carry out their tasks Page | 23

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 technically qualified 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 feasibility study should include following field work.
1. Detailed Mapping of the area. 2. Topographic study of the area. 3. Seismic refraction study. Page | 24

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 very comprehensive 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 for award 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 nontechnical 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 nontechnical 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 managerial problems 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

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