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Report on Energy Sector Issues and Crisis in Pakistan

May 06, 2011

Submitted to: Rizwan Amin Sheikh Assistant Professor, LUMS

Submitted by: Bilal Shahid BS 2013, LUMS

Research Report on Energy Sector

Table of Contents

1 Executive Summary ...................................................................................... 3 2 Background of the Energy Sector Issue ..................................................... 4 2.1 Objectives .............................................................................................. 4 2.2 How is Energy Crisis Affecting Pakistan? .............................................. 4 3 Methodology.................................................................................................. 6 4 Findings and Analysis .................................................................................. 7 4.1 Qualitative Analysis................................................................................ 7 4.1.1 Energy Sources ..................................................................................... 7 4.1.2 Development of the Power Sector ......................................................... 7 4.1.3 International Trend in the Energy Sector ............................................... 8 4.2 Quantitative Analysis ............................................................................. 9 4.3 Key Challenges in solving Energy Crisis.10

5 Evaluation and Conclusion ........................................................................ 11 5.1 Link between Energy Crisis and Economy........................................... 11 5.2 Implications of the Energy and Power Crisis ........................................ 11 6 Recommendations ...................................................................................... 13 7 References .................................................................................................. 16 Appendix A: Glossary of Acronyms ............................................................... 16 Appendix B: Lists of Exhibits ......................................................................... 18 Appendix C: List of Regulatory Authorities and Power Sectors .................. 22

Research Report on Energy Sector

Executive Summary

Sustaining and exploiting the energy sources within Pakistan is crucial to its economic growth. During the course of this research several critical needs have been identified, namely, providing more energy supplies and increasing access to modern energy services to un-served regions and population groups in rural areas. Pakistan faces a major challenge in terms of energy deficits and the adverse economic conditions that have so resulted. There have been measures taken by the government to provide economic incentives through policies, regulations, subsidies, tariffs, prices, and taxes to improve energy supplies and attract investment. This attempts to encourage energy conservation and efficiency improvements. However, there is still a huge gap left in creating sufficient capacity to empower the private and the public sector and meet their demands. A key element to solve the energy crisis may be through alternative sources of energy that have been tapped by the western counties. When comparing the methods of power generation and development in Pakistan, the energy sector has developed various projects implemented as internationally best practices yet the crisis is serious and worsening. Installation of solar power, rise in prices and load shedding are a few steps taken, but more could be done to minimize the gap between increasing demand and the rather static supply. Presently, there is a shortfall of about 3000-4000MW electricity per day. This shortage is badly affecting industry, commerce and daily life of people. Therefore, various regulatory authorities and sectors are working together to develop a solution to this crisis and get Pakistan out of this turmoil. A policy framework to meet the requirements of the expanding economy could include: adequate energy supplies; security of energy supplies; long-term viability of energy sector.

Research Report on Energy Sector

2 2.1

Background of the Energy Sector Issue Objectives:

The aim of this report is to: Highlight the energy sector issues and the ongoing crisis Outline the strategies and the approach implemented by the energy sector Compare and analyze the issues with international best practices Offer appropriate recommendations in the light of the research findings Suggest a valid conclusion based on the analysis and the facts considering the current scenario

To achieve these objectives there is a need to realize that the energy sector is facing a serious issue of shortage of electricity and power. As a consequence of this crisis, economic growth has thwarted and has damaged commerce and industry. 2.2 How is Energy Crisis Affecting Pakistan?

Despite strong economic growth during the past few years and subsequent rising demand for energy, no significant steps have been taken to install new capacity for generation of electrical power. By 2010, it was projected that Pakistan needs about 15000MW electricity per day. Presently, it can generate approximately 11, 500 MW per day and hence there is net deficit of about 3000-4000MW per day (Haq 2008). Through frequent hours of load-shedding and planned power shutdown, many industries have closed and it is pointless to say that if the country wishes to continue its economic development and improve the quality of life of its people, it has to make serious efforts towards framing a coherent energy policy. There is a need to solve this crisis since the basic necessities and infrastructure is not available to the populous. With no electricity supply to some rural areas, there is consequently rise in both poverty and unemployment. The industries that are shutting down as a result of power shortages pose a serious threat to Pakistans economy. This is because it gives rise to lesser exports and hence more imports, causing an even more negative balance of payments. Not only that, it eventually results in a high inflation rate. With oil prices rising in the international market, electricity prices also show an increasing trend. This puts an even more load on the regulatory authorities to provide cheap sources of energy, and therefore hampers the development and expansion of the services to meet the increasing demand. Under such circumstances it is feared that the energy crisis may go from bad to worse. Hence, serious energy shortage, massive load-shedding and lowest ever strategic oil reserves are emerging as major risk to the economy. According to Williams and Alhajji, an energy crisis is a situation in which we have disruption in oil supplies that increases energy prices rapidly and threatens our economic and national security (Williams p.8).

Research Report on Energy Sector

According to the governments own figures, by 2015, eight short years from now, energy demand in Pakistan will be nearly 22 percent greater than projected supply. By 2030, this energy shortfall will be 64 percent (Gill 2008). Table 1.2 shows how Pakistans use of energy compares to other countries around the world and the region and highlights the fact that it is a major energy consumer and needs sufficient supply of energy electricity. According to Private Power and Infrastructure Boards memorandum, the total installed electricity generation capacity in the country is about 19478 MW (PIM p.4). In the total installed capacity, the share of public sector is around 70%, and the private sector is 30% as seen in Figure 1. The rising share of private sector in electricity generation and presence of some of the leading foreign and local companies in this business, are evidence that there could be huge investment in the energy sector and it is hoped that the crisis could be overcome.

Research Report on Energy Sector

Methodology

The research was conducted using multiple sources: books; articles; online journals; magazines; and other electronic documents. The primary sources of information used for the research mainly include books and internet sources by various authors having profound knowledge on energy crisis worldwide and its effect on economic growth and development. After thoroughly reading through all the documents and reviewing facts and figures, the data has been analyzed carefully to fit the current situation of the energy sector. In addition to that, it has been attempted to retrieve authentic and relevant information through official websites of regulatory authorities. The hard information was gathered and then added to the relevant sections of the report. The information was collected from multiple resources to match the trend supported by latest statistics and report. A rough first draft was written and was evaluated in terms of its style and content and then a final draft was written with complete recommendations and conclusions. The way all the documents were scrutinized is also shown in the flow chart below.

Finding journal articles/ Library Resources books Finding newspaper materials

Finding relevent data to qualify the research


Statistical figures

Authenticating facts and figures from multiple sources

Evaluating relevent information Validating and linking Research to Tools appropriate section of report

Research Report on Energy Sector

Findings and Analysis

4.1

Qualitative Analysis

4.1.1 Energy Sources Pakistan has a fairly developed energy infrastructure. A network of various power plants and resources are used to provide energy. Figure 2.1(a) shows the primary energy supply for the country. Hydroelectric power, coal, oil, gas and nuclear fuel contribute to the energy sector. It has been estimated that the total energy supplies were 58 million tons oil equivalent (MTOE) in fiscal year (FY) 2006 (Hathaway 2009 p.5). Natural gas accounts for the major supply of 51% of energy. However, Pakistan meets less than 15% of its oil demand. Overall, the power sector accounts for 43% of energy supply as seen in Figure 2.1(b). There are also a lot of other potential renewable energy sources that have not been tapped yet, for example, geothermal energy, tidal and wind energy. There has been a slight move towards solar energy. However, that still remains insignificant and considering the high initial cost of a solar panel, its large-scale use seems to be limited. Considering the energy resource potentials in the country, only about 16% of the hydel power has been realized and there is still huge capacity for at least, small dams to be built. There are major unexploited reserves of coal in the Thar Desert in the Sindh province that could provide an inexpensive source of fuel (Hathaway 2009 p.9). However, the development of the coal reserves presents challenges like improved mining and quality of coal. Pakistan has given a high priority to tapping the local resources in the region and several projects for import of petroleum and natural gas from the Middle East have received great significance. There is, for example, a gas pipeline project with Iran that has been implemented to cut down the energy deficits. The development of such options has been constrained by sensitive security issues and large cross-border energy transactions (Hathaway 2009, p.10) 4.1.2 Development of the Power Sector There is a need to realize that despite the development of the power sector, there has still been a gap in demand and supply of energy. The Water and Power Development Authority (WAPDA) is responsible for hydroelectricity plants that generate electricity. However, there have been no pilot projects and no construction of large dams in the recent years. This may worsen the energy crisis as capacity of earlier dams has been reduced. Apart from that, foreign investment has played a key role in the development of power sector. Oil exploration companies like British Petroleum have been given incentives to

Research Report on Energy Sector

attract foreign capital. Similarly, Pakistan has signed contracts with Independent Power Producers (IPPs) and other international organizations to increase its power supply. However, only 53% of Pakistans population has access to electricity. To expand access to energy services, the Government of Pakistan has launched a number of programs. One such program is of rural electrification of villages close to the grid. This pilot project is being carried out by WAPDA and its successor distribution companies (Weynand 2007, p.30). But it will still be years before every patch in Pakistan has access to modern energy services given the rugged terrain, the shortages of electricity, and limited government financial resources. 4.1.3 International Trend in the Energy Sector The overall international trend in solving energy sector issues has been to install lowcost renewable sources of energy. These include a wide variety of energy sources that have been used as a suitable method to meet the energy demands. The well-adopted sources include: Power from Biomass- Biomass is used extensively throughout the world today. The use of fuelwood and compost is widespread in developing countries. The use of biomass is not contained in the Third World only-For instance, US obtains equivalent energy from biomass as it does from nuclear fuel, while Sweden derives 14% of its primary energy from biomass (Hill 1995, p.156). However, Hill also mentions that it is profitable on its operating costs and the returns depend on the financial circumstances and economic climate (p. 158). However, according to the 2006 energy report from the Institute of Science in Society (ISIS), Nepal has overtaken China and India in the number of biogas plants per capita (Ho p.8). Considering this change by a developing nation, Pakistan can also tap bio-fuels for energy production in the future. Considering that Pakistan has an agro-based economy, biomass could be a potential alternative renewable resource. Solar Energy-Another option adopted by the western world to solve energy crisis is solar technology. It has been estimated that the continuous supply of solar energy to the earth is about 1011 MW (Hill p.170). There is no doubt that, in theory, solar energy could provide all future energy requirements but a number of technical problems limit its use as a sustainable source of energy. Yet, solar panels, kits and solar pumps are being installed rapidly. It is also noted that solar energy potential is rising in arid countries of West Asia (Energy Research p.125). According to the ISIS report, worldwide photovoltaic installations jumped by 61.5 percent to 927 MW in 2004 (Ho p.7) Pakistan also experiences a hot summer and solar panels could provide a sufficient source of energy and if batteries could be charged for use when there is no sunlight.

Research Report on Energy Sector

Global renewable energy markets have grown tremendously in the last few years. Annual investment in renewable energy has expanded almost four-fold from US$ 6 billion in 1995 to $30 billion in 2004 (Hathaway p. 149). The success of the lead countries in increasing the percentage of renewable power is already replicated in some developing countries that have power purchasing agreements and availability of bank financing, such as by Asian Development Bank (ADB). Other measures have also been taken by successive governments to increase their energy supplies. These include: commercialization of household energy technologies; financing; clean development mechanism; and quality control and subsidy support by NGOs and the private sector (Hathaway p.151). Economic policies also play a pivotal role in maintaining a balance between demand and supply. In New Zealand, Australia and Canada, deregulation of the electricity industry has been introduced as a way of increasing efficiency and reducing prices (Rothwell 2003 p.1). Comparing this trend with the local practices, it is noted that National Electric Power Regulatory Authority (NEPRA), WAPDA and other regulatory authorities have failed to incorporate any of the other renewable sources of energy except Hydel power. The approach to solving energy crisis has been central at increasing output power from previously installed plants and a couple of minor projects including installation of dams. It is disappointing to note that with all these measures, a large number of the population in the rural areas is deprived of the basic necessity of electricity and power. The local practices and the strategies do not follow the international trend, both in the developed world as well as in the developing countries. The result is that Pakistan is compelled to undergo severe and acute shortages of fuel, gas and electricity. 4.2 Quantitative Analysis

Despite its efforts, Pakistans energy deficits are increasing with its energy demands. The projected energy demand, assuming a GDP rate of 6.5% is summarized in Table 1.1, which shows that overall the demand for energy is going to increase by factor of 3.5 (Hathaway 2009, p.6). These projections lay emphasis on the development of power resources. However, in view of the rising prices of oil in the international market, the trend in the consumption as seen in Figure 3 also highlights an impending economic crisis as the industrial sector dominates the market by sharing 43% of the demand. This entails the government to switch to low cost fuels, including renewable and nuclear sources. Unfortunately, this has not been put into practice. To quantify the difference between demand and supply, sensitivity of demand for energy to the economic growth rate is illustrated in Figure 4. Along with that, the demand at other alternative scenarios has also been projected to compare the impact of GDP growth rate on the demand for energy. This highlights that over the next twentyyear period, the demand for energy under all circumstances is going to vary by more than 25%.

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Where availability of coal, gas, hydel and nuclear energy is projected to improve significantly, in view of the current power projects and plans, it will not be enough to meet the growing demand of the economy. The energy deficit of 16 MTOE or 28% of the energy demand is expected to rise to 62% of the demand by 2025 (Hathaway p.8). Under these circumstances, there is a clear indication for the Government of Pakistan to supplement the current supplies with affordable energy from reliable external sources or explore untapped local resources.

4.3

Summary of Key Challenges in Solving Energy Crisis

The following provide an overview and summary of the challenges discussed in the analysis: limited government financial resources sensitive security issues shortages of electricity lack of energy resource to supplement the current supplies weak and unplanned local policies rise in oil prices in the international market lack of pilot projects in power development energy losses

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Evaluation and Conclusion

5.1

Link between Energy Crisis and Economy

According to the article Energy Crisis in Pakistan, The Senate Standing Committee on Water and Power expressed disappointment on how the government has handled the power crisis. According to the committee, the crisis has affected various sectors of the economy namely the agriculture, textile and manufacturing industries (Mobrez 2009). Energy crisis are, therefore, directly related to economic growth and development. For instance, if our exports increase, so does the number of manufactured goods and hence it puts a greater burden of energy or electricity by the industrial sector. Therefore, energy sector issues need to be dealt with a planned policy framework. Hence, there is a need for renewable energy resources and foreign investment to increase energy supply to meet the increasing demand. 5.2 Implications of the Energy and Power Crisis

If the energy sector issues are not resolved, serious implications of this energy crisis may aggravate the present situation. With rise in unemployment due to shutting down of industries, economic development comes to a halt. Not only are there adverse effects on education, transportation, commerce and industry, local households are also affected. Deprivation of Rural Areas

Apart from that, deprivation of our rural areas poses a major challenge to GOP. Electrification, therefore, increases migration and disrupts the economic sector in the major cities. According to Barnes, rural electrification studies show that there is a strong positive relationship between rural electrification, income, and education (Barnes 1988, p.119). These studies imply that electrification is one of the causes of higher income and educational levels. Unrest and Political Instability

Not only has that, but unrest and political instability also resulted from unavailability of electricity. According to a news report in The Nation, inhabitants of various localities acted violently against the KESC officials and showed anger in many areas. In Lyari, Karachi, for example, people protested against KESC and burnt tyres on the roads. The Lyariites often suffered with 12 to 15 hours long power outage due to some technical cable faults in the area (Haq 2008, p.73). Such events put pressure on the Pakistani Government to come up with sustainable and viable solutions in order to achieve growth and development in the future. Negative Balance of Payments and Increase in Burden of Foreign Debt

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On the utilization side of energy, the government has controlled prices and provided appropriate subsidies to keep energy inexpensive to the population and to encourage the use of cleaner domestic fuels (e.g., using compressed natural gas for vehicles). While the social aims of the government are good, the resulting hodgepodge of price and tariff controls, tax burdens, and untargeted subsidies have resulted in a lack of transparency in the energy sector. This has created an increased financial burden on the government, and the encouragement of behavior that wastes instead of conserves energy. These problems are aggravated by the cycle of debt between state ventures, where debts are switched back and forth instead of actual funds to cover energy sales (Weynand 2007, p.30). The reason that Pakistans population uses extensive quantities of non-commercial forms of energy, for example firewood, is that a significant portion of the population lacks access to modern forms of energy such as electricity. This shortfall is such that in 2006, the Asian Development Bank estimated that 45% of Pakistans population lacked access to electricity (ADB 2006a). Hence, severe and acute shortages of electrical energy may result in future.

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Recommendations Efficient Household Appliances

The government has entrusted Engineering Development Board (EDB) the task of adopting strategies in collaboration with relevant private sector industries to enhance the efficiencies of different energy consuming household products being produced in the country. The enhancement of efficiency of motors used in domestic industrial and agricultural sectors can save 3 to 5 per cent of the total electricity consumption (Ahmed 2008). The government should control the quality of electrical appliances according to global standards to prevent energy losses and reduce costs. The use of energy savers and LED light bulbs is one such example of how effectively electricity or energy could be saved. IPPs Meeting

While transmission and distribution of electricity falls solely to the two entities, WAPDA and KESC, the third and increasingly relevant source of power is the Independent Power Producer (IPP). As the sole purchaser of power from the IPPs, WAPDAs stability has been the main factor deciding the cash flows of IPPs (WEYNAND 2007, p.18). The power generation capacity of the IPPs is declining, the major reason of power shortfall (Haq 2008, p.48). Hence, meetings should be held to ask the IPPs to generate power as per agreement with the government and also to extent their operations to overcome the power shortages. Effective Energy Conservation Plan to Combat Shortage

One area where the government is taking action is on obtaining loans to rehabilitate the transmission and distribution networks to reduce technical losses and improve the efficiency of operations, all of which will save energy. WAPDAs total system losses were 25% in 2005; while KESCs total losses in 2005 were 34% (NEPRA 2006b). Wellmaintained and operated systems generally have overall losses of 8-9%. Hence, a careful crash energy conservation plan should be rolled-out by the government to bridge demand-supply gap. Renewable Resources a MUST to Counter Energy Crisis

Realizing the significant potential for renewable energy sources to provide cleaner power and fuels for economic growth, the Government of Pakistan created the Alternative Energy Development Board (AEDB) in 2003 to act as the central national body on the subject of renewable energy. It attempts to facilitate, promote, and encourage development of renewable energy in Pakistan. The AEDB has also been charged with providing electricity services to the around 8,000 villages in the Sindh and Balochistan provinces that lie too far from the national electricity grid to be economically served (Nepra 2006b). Such projects should be encouraged to meet the increasing demand of electricity. For example, a project underway is the Renewable Energy Development Sector Investment Program, which will loan up to $510 million to support the development of renewable energy resources in Pakistan (ADB 2006b).

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The development of solar power and bio-fuels will provide a solution to the energy crisis and help reduce the demand of electrical energy. Load Shedding-A Short-term Solution

Pakistan experiences serious power-shortage resulting in serious power deficit that hampers not only the development process but also poses serious threat to national growth. Heavy load shedding of power across Pakistan creates major problems especially for all categories of users. The present energy crisis in the country is because we have failed to build large dams. So through these steps we can reduce the consumption of electricity. But this could be on short term basis in order to solve this issue of load shedding we need a permanent solution though constructing more power plants. Heavy Investment Necessary

Pakistans three largest national oil companies include the Oil and Gas Development Corporation Limited (OGDCL), Pakistan Petroleum Limited (PPL) and Pakistan State Oil (PSO). All three operate under joint ventures and partnerships with various international oil companies and other domestic firms. The Oil & Gas Regulatory Authority (OGRA) regulates petroleum product distribution, including compressed natural gas for vehicles, setting safety standards and equalizing prices across the country (Weynand 2007, p.18). The Pakistani government has enacted numerous policies to encourage private sector leadership of natural gas development, including privatization of state-run businesses, regulation that encourages competition and tax incentives geared towards increasing exploration and production. Cross-border investments in energy and promotion of regional energy trade are essential for achieving economic growth. For example, the gas pipeline project with Iran could provide foreign capital and serve an important step towards implementation of other prospective pilot projects (Haq 2008). New Generation of Power Plants

The Private Power and Infrastructure Board (PPIB), a state-owned consulting institution improves investment incentives in the Pakistani power sector. The PPIB also provides guarantees to private investors for the performance of government entities (such as WAPDA), monitors litigation and international arbitration for and on behalf of the government and assists the regulatory authority in determining and approving tariffs for new private power projects. Creating Awareness to Save Power and Energy

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. Local governments lack the capacity to monitor the energy use of community facilities, and

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to identify opportunities to conserve energy. 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. Proper Allocation of Power and Implementation of Projects

The World Bank (WB) has been involved in all segments of Pakistans power sector, financing specific investment projects as well as supporting the reform program. In 2005, the WB began a loan for an Electricity Distribution and Transmission Improvement Project. Its aim was to strengthen the electricity transmission network to reduce bottlenecks and improve system reliability and quality to reduce losses and improve supply. More of such projects need to be implemented to allocate power to appropriate sectors efficiently. Other possible recommendations include: authority set up for Thar coal mining; subsidies on use of up to 200 power units; and control of electricity thefts. These recommendations are made considering the feasibility with respect to the circumstances in Pakistan and its current economic situation. Keeping in view the energy crisis, it is hoped that these recommendations may help solve the energy sector issues identified in the research.

Bilal Shahid 06/05/11

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References Ahmed, Amin. (2008). Energy Crisis in Pakistan. Efficient Household Appliances to Mitigate Energy Crisis. Asian Development Bank (2006a). Pakistan: Power Transmission Enhancement Investment Program. Asian Development Bank (2006b). Pakistan: Renewable Energy Development Sector Investment Program. Barnes, Douglas. (1988). Electric Power for Rural Growth. Desai et al. (1986). Energy Research. Directions and issues for developing countries. Haq, N., Hussain, K. (2008). Energy Crisis in Pakistan. Energy Crisis in Pakistan are Growing Rapidly. 39-41. Hathaway, R., Kugelman, M. (2009). Powering Pakistan. Meeting Pakistans Energy needs in the 21st Century. Hill, R. et al. (1995). The Future of Energy Use. Ho et al. (2006). Which Energy? 2006 Institute of Science in Society Energy Report. National Electric Power Regulatory Authority (2006b). State of Industry Report 2006. Rothwell, G., Gomez, T. (2003). Electricity Economics. Regulation and Deregulation. Weynand, Gordon. (2007). Energy Sector Assessment for USAID/Pakistan. Williams, J., Alhajji, A. (2003). The Coming Energy Crisis?

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Appendix A: Glossary of Acronyms

AEDB FESCO FY GEPCO GSA GOP IESCO IPP KESC Km kV MEPCO MW NARUC NEPRA OGDCL OGRA PPA PESCO PPIB PSO QESCO SAFIR SNGPL SSGC TOE WAPDA

Alternative Energy Development Board Faisalabad Electric Supply Company Fiscal Year Gujranwala Electric Power Company Gas Supply Agreement Government of Pakistan Islamabad Electric Supply Company Independent Power Producer Karachi Electric Supply Corporation Kilometer Kilo Volt Multan Electric Power Company Megawatt National Association of Regulatory Utility Commissioners National Electric Power Regulatory Authority Oil and Gas Development Corporation limited Oil Gas Regulatory Authority Power Purchase agreement Peshawar Electric Supply Company Private Power and Infrastructure Board Pakistan State Oil Quetta Electric Supply Company South Asia Forum for Infrastructure Regulation Sui Northern Gas Pipeline Limited Sui Southern Gas Company Limited Tons Oil Equivalent Water and Power Development Authority

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Appendix B: Lists of Exhibits

Figure 1 Distribution of Power Sector


Private Sector Public Sector

30%

70%

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Figure 2.1(a)

HYDRO 13% GAS 51% NUCLEAR 1%

OIL 28%

COAL 7%

HYDRO

NUCLEAR

OIL

COAL

GAS

Figure 2.1(b)

GAS 52%

HYDRO 29%

NUCLEAR 3% OIL 16%

HYDRO

NUCLEAR

OIL

GAS

Source, Figure 2.1(a), 2.1(b): Powering Pakistan, Hathaway and Kugleman (2009)

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Figure 3

TRANSPORT AGRICULTURAL OTHER GOVT

28% 21% 2% 2% 28%

DOMESTIC

43%
TRANSPORT

4%

INDUSTRIAL COMMERCIAL

Figure 4 Energy Demand at Various Economic Growth Rates


300 250 200 150 100 50 0 1996 2000 2005 2010 2015 2020 2025

PROJECTED ENERGY DEMAND AT 6.5% GDP PROJECTED ENERGY DEMAND AT 5.5 % GDP

PROJECTED ENERGY DEMAND AT 7.4% GDP

Source, Figure 3 and Figure 4: Powering Pakistan, Hathaway and Kugleman (2009)

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Table 1.1: Projected Energy Demand FY06 FY15 FY25 FY06 FY15 % SHARE 47 93 17 29 5 7 198 28 51 7 13 0 1 100 27 50 8 12 1 2 100 24 47 8 15 2 4 100 FY25

MILLION TOE OIL GAS COAL HYDEL RENEWABLE NUCLEAR TOTAL 16 29 4 7 1 57 29 56 9 13 1 2 110

Source: Powering Pakistan, Hathaway and Kugleman (2009)

Table 2.2: PAKISTAN ENERGY USE IN COMPARISON TO OTHER COUNTRIES [GOP 2005] World and Regional Energy Comparison (Year 2004, 1995 USD)

Source: ENERGY SECTOR ASSESSMENT FOR USAID/PAKISTAN

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Appendix C: List of Regulatory Authorities and Power Sectors

Regulatory Bodies of Pakistan OGRA PPRA PTA PEMRA

Electric & Power Sector of Pakistan FESCO IESCO PPIB GEPCO HESCO AEDB PESCO MEPCO KESC LESCO QESCO

International Authorities World Bank Asian Development Bank NARUC SAFIR

Source: www.nepra.org.pk

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