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Energy
The year 2014 can be marked as a turbulent year
for the energy sector because of geopolitical
crises, stagnating global economic growth, and
slow progress in lowering greenhouse gas
emissions to avoid global warming. Uncertainty
existed in some producing regions, as tensions
between the Russian Federation and Ukraine
simmer, and the Islamic State of Iraq and Syria
(ISIS) unleashed the turmoil in the Middle East.
There is continuous rise in global energy
Demand
Growth in
China
$80
Civil War
in Libya
Turmoil in
Middle East
Economic
Recovery
$60
$40
$20
Financial Crisis
Feb-2015
Apr-2015
Oct-2014
Dec-2014
Aug-2014
Jun-2014
Feb-2014
Apr-2014
2013
2011
2009
2007
2005
2003
2001
1999
1997
1995
1993
1991
1989
1987
1985
1983
1981
1979
1977
1975
1973
$0
Source: http://www.eia.gov
236
Energy
The government is encouraging domestic and
international private investors in energy sectors
giving them favorable opportunities and
incentives especially in alternative sources of
energy. As an example the present government
has approved the use of grid-connected solar
energy, rooftop solar installations and mortgage
financing for home solar panels to boost clean
energy in the country. Thus the government has
reversed course and eliminated a 32.5 per cent
tax imposed on imported solar equipment in the
countrys 2014-15 budget which was aimed to
bring down the cost of installing solar panels.
Investors from Germany, Qatar, Russia, etc.,
have shown there interest in investing in energy
sector.
237
Oil
Gas
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-2000
1998-99
1997-98
1996-97
1995-96
1994-95
1993-94
1992-93
1991-92
1990-91
55%
50%
45%
40%
35%
30%
25%
20%
Energy Supplies
238
340
290
Domestic Energy
Consumption
240
190
2013-14
2012-13
2011-12
2010-11
2009-10
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
1996-97
1995-96
1994-95
1993-94
1990-91
90
2008-09
Industrial Energy
Consumption
140
50%
Transport
Gas
45%
40%
35%
30%
Power
25%
Oil
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
20%
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14(p)
69%
64%
59%
54%
49%
44%
39%
34%
29%
24%
19%
239
Energy
The longer term trend suggests that composition
of energy consumption, the composition is
changing by substituting the gas as cheaper
source compared to oil being expensive (Fig- 5).
However due to gas load management, share of
oil has again started rising. But still oil remained
68 Rs/Litre
in 2009
20
67.79 Rs/Litre
in Feb 2015
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
May-2013
Jun-2013
Jul-2013
Aug-2013
Sep-2013
Oct-2013
Nov-2013
Dec-2013
Jan-2014
Feb-2014
Mar-2014
Apr-2014
May-2014
Jun-2014
Jul-2014
Aug-2014
Sep-2014
Oct-2014
Nov-2014
Dec-2014
Jan-2015
Feb-2015
Mar-2015
Apr-2015
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
1996-97
1995-96
1994-95
1993-94
1992-93
-500
1991-92
2014-15
500
240
Fig-8: Last five years average consumption and production of Gas (Province-wise)
46%
69%
Gas Production
42%
Gas Consumption
19%
7%
8%
BALOCHISTAN
5%
5%
KPK
PUNJAB
BALOCHISTAN
SINDH
KPK
PUNJAB
SINDH
From the Table-1, it can be concluded that the gas load management is mostly restricted to Punjab
Province:
Tab le 1: Pro vince-wis e Gas C o ns ump t io n (M M FC D)
J uly-M arch FY 14
Punjab
Prio rit y-wis e Sect o r
Demes t ic
4 74
Khyb er
Pakht unkhwa
81
J uly-M arch FY 15
Sind h
B alo chis t an
2 13
29
468
To t al
Punjab
Khyb er
Pakht unkhwa
Sind h
B alo chis t an
79 7
448
96
207
27
778
225
844
12 3
4 77
302
902
10 4
60
26
95
21
21
83
21
207
3 11
19
Po wer
151
C o mmercial
69
26
24
24
83
18
207
308
179
20
To t al
General Ind us t ry
Pak St eel
C ap t ive Po wer
Ot her Ind us t ry includ ing Text ile
3 75
10 2
230
225
4 56
223
233
63
83
14 6
58
90
Trans p o rt (C NG)
87
233
37
67
C ement
Sub To t al
175
76
1
1,3 3 6
19 3
1,4 9 9
1
260
3 ,2 8 8
So urce: Direct o rat e General o f Gas , M inis t ry o f Pet ro leum and Nat ural R es o urces
74
1
1,13 4
2 18
170
78
292
4 56
14 8
19 3
336
3 ,19 9
2
1,511
Energy
SNGPL is meeting the requirement of more than
4.8 million consumers of domestic, commercial,
CNG and industrial categories through its
distribution network. All categories of
consumers are fed through a common
distribution network. There is a continuous
extension in SNGPLs network. On an average,
there has been an increase in gas demand by 4050 MMCFD (based on average consumption
during summer months) and 80-100 MMCFD
(based on average consumption during winter
months) each year. On the other hand there is no
considerable increase in inputs. Small fields
241
242
243
Energy
GDP growth rate. In NEPRA State of Industry
Report 2013, NEPRA estimated, the power
sector is responsible for 2 to 3 percent reduction
in the annual GDP of the country. However,
exact cost including direct and indirect cost of
power shortage and its directional relationship
with growth is still unfold for developing
economies especially for Pakistan. In this era of
modernization, there is continuous increase in
consumption of electricity within household as
innovation has introduced more electrical-usage
appliances to household. With respect to
Share of Oil
68%
58%
48%
38%
28%
Share of Gas
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-2000
1998-99
1997-98
1996-97
1995-96
1994-95
1993-94
1992-93
1991-92
1990-91
18%
244
Energy
ECC approved Guidelines for Setting up of
Private Power Projects under Short Term
Capacity Addition Initiative - August 2010
(the Guidelines).
KANUPP
100
18 October 1971
C-1
325
13 June 2000
C-2
330
14 March 2011
Source: Pakistan Atomic Energy Commission (PAEC)
245
Alternative
Energy
(ARE)
Wind
246
ii. Solar
On May 5, 2015, the Prime Minister inaugurated
100MW solar energy project which will
generate 100 MW electricity. In Solar Energy,
33 LOIs for cumulative capacity of
approximately 888.1 MW On-Grid Solar PV
power plants have been issued. Four (4)
companies have submitted the feasibility studies
of their projects and one feasibility study is
approved by AEDB. Other sponsors are at the
stage of preparation of feasibility studies. Also
NEPRA announced upfront tariff for solar
power projects for a total of 50 MW capacity on
21st January 2014. The upfront tariff is as
follows:
North Region:
17.006 cents/kWh
South Region:
16.306 cents/kWh