ENERGY CRISIS OF PAKISTAN: CAUSES & REMEDY

2012

Institute of Business Administration

Contents

• • • • • • •

Introduction Objectives Energy Resources of Pakistan Ten Years of Energy Consumption Causes of Energy Crisis Recommendations Conclusion

Introduction

• Energy has become an important requirement for the economic development of a country. • It plays a pivotal role in the socio-economic development of any country. Uses: • industrial and agricultural purposes • domestic use of the citizens

Objectives

• Why Pakistan is facing such a huge energy crisis of its history? • What are the reasons behind this crisis? • Why Pakistan cannot able to utilize its natural resources? • If Pakistan has abundance of coal then why Pakistan importing coal? • Why half of the Pakistani population has no access to electricity?

Energy Resources of Pakistan


Energy Type Crude Oil

Pakistan’s Conventional Energy Resources
Potential 339 million barrels recoverable reserves. Source Pak Eco Survey

Natural Gas
Coal Hydro Energy Nuclear power

31,266 trillion cubic feet recoverable reserves.
185 billion tones recoverable reserves. 46,000 MW identified potential Nuclear power of capacity 800 MWe approx

Pak Eco Survey
Pak Eco Survey Govt. of Pakistan 2005 World Nuclear Association 2011


1. 2. 3. 4.

Pakistan’s Renewable Energy Resources

Wind Energy Solar Energy Bio-mass & Bio-fuels Geo-Thermal Energy

Ten Years of Energy Consumption

Energy Consumption by Source (2011-12)

Energy Consumption by Source (2001-02)

Oil 29%

Gas 41%
Oil 49%

Gas 29%

LPG 2%

Coal 12%

Electricity 15%

Electricity 16%
LPG 1%

Coal 6%

Source: Pakistan Economic survey

Ten Years of Energy Consumption

• In 2007 Pakistan consumed up to 60.388 MTOE of energy in which 19.835 MTOE was imported in form of Oil and Coal. • Relying heavily over imported oil and coal and shortage of natural gas in future will certainly chock the economic growth for many years.

Causes of Energy Crisis
1. Economic and Political instability. circular det, Effects our GDP & Energy growth… 2. Fluctuation of oil prices in international market.
WAPDA & KESC purchase expensive oil and transfer cost to customers…

3. Faulty Distribution System.
We waste 15 to 20 percent energy through poor distribution system, line loses…

4. Aging of equipment.
Unable to generate required electricity…

5. Silting Process.
It is a naturally caused process which reduces the storage capacity of reservoirs...

Recommendations

To overcome present energy crisis, Pakistan needs to take the following steps in form of:
1. Short Term Plan 2. Medium Term Plan 3. Long Term Plan.

Recommendations

1. Short-term Plan:
1. 2. 3. 4. 5. Increase the number of IPPs (Independent Power Producers). Reactivate the closed power generating units. Overhaul the existing poor distribution system. Import electricity to fulfill the current need for industries on ad hoc basis. Government should have strict check on energy indicators on regular basis to counter such crisis in future.

Recommendations

2. Medium-term Plan:
1. Transformation of existing system to renewable energy resources. 2. Developing and installing biogas, solar, wind and micro hydro based projects in villages.

3. Long-term Plan:
1. Developing and installing coal based powerhouses. 2. Initiate agreements for mega projects with the energy extensive countries for sustainable energy resources. 3. Explorations of more oil, gas and coal reserves. 4. Provide incentives for up-gradation and training to the engineer for new technology

Conclusion
• This study recommends Government of Pakistan to take strong steps to overhaul its existing infrastructure and transformed it to utilize renewable energy for future needs.
• Government should also take steps to utilize the coal reserves though it will give us energy for next 25 years.

Sign up to vote on this title
UsefulNot useful