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Energy Crisis in Pakistan
Energy Crisis in Pakistan
The dimensions and consequences of the ongoing energy crisis in Pakistan are
much in numbers and awful. Citizens are facing up to 20 hours of load
shedding, a situation they could have never imagined. Official reports
acknowledge that over 450,000 industrial workers have lost their jobs and the
industrial sector of country is facing an annual monetary loss of over Rs. 240
billions and this is just a brief view of the destructive socio-economic impact of
the issue. Even more alarming is the fact that the phenomenon of load
shedding appears to be beyond arrest even in a couple of years.
Violent demonstrations because of load shedding have been taking place
across the country since 2006. The current surge in the problem is a clear
indication of the dismal scenarios that can go from bad to worst in near future
if meaningful measures are not adopted to bring about a reasonable level of
change.
It is time for the policymakers of country to come to terms with reality, they
have to realize that their traditional tactic of beating about the bush by
emphasizing non-issues while ignoring the real problems is no longer
an option. If they continue to do this, matters may rapidly spiral out of control,
resulting in deep confusion and causing irreparable damage on many fronts.
The first and by far the most important step towards addressing the existing
energy crisis is the identification of its root causes. The correct solution cannot
be formulated unless the factors that created the problem are identified. The
record of supply and demand for past few years is elaborated in graph.
Any sincere attempt to examine the anatomy of the energy crisis would reveal
that it has not emerged overnight. In fact, it was fostered by bankrupt policies
followed by various regimes over the last three decades — although the
greatest responsibility rests on the shoulders of the Musharraf dispensation.
The energy crisis is a self-inflicted problem that has been allowed to reach
worst downfall even though the country lacked neither energy resources nor
the opportunities to exploit them meaningfully.
Amongst the greatest tragedies the sector has suffered were the lack of vision
and the unwillingness to shoulder responsibility of governments and political
leaderships. An examination of the country’s energy history shows that other
than the regimes of the ’60s and ’70s, none of the rulers of country did justice
to this important sector. During the second government of Madam Benazir
Bhutto some independent power plants were set up. Had they not been setup
then we would have had a much bigger crisis with life almost coming to a
standstill. The track record of governments over the past two decades has by
and large been disappointing since they tended to rely on makeshift
arrangements instead of working on long-term, goal-oriented projects.
Even in the few cases where farsighted policies were formulated, the resolve
to ensure their implementation was simply not in evidence. Other major
factors contributing to the downfall of the energy sector include the pursuance
of personal and political interests, political interference in energy departments,
financial and administrative irregularities, corruption and nepotism. All the
dimensions of the existing energy crisis, such as severe levels of load shedding,
unaffordable electricity and gas prices and dependence on foreign energy
supplies, are the direct consequences of this worst sort of malpractice.
Although the country experienced over 100 per cent growth in terms of
installed capacity over the last two decades, it has not been smooth sailing.
Hardly any value-engineered projects were developed over this period. Other
than the 1450MW Ghazi Barotha project and a couple of nuclear power plants,
there is not much to be satisfied about.
Meanwhile, the list of blunders in terms of the dumping of essential projects
and the orchestration of unviable and counterproductive projects is very long.
The independent power producers’ (IPPs) Programme of the 1990s, for
example, could have been quite beneficial but ultimately turned out to
be counterproductive due to issues such as the lack of transparency, excess-
generation capacity, high-tariff structures and unviable power-generation
technologies. Interestingly the World Bank, one of the key players in the IPPs
Total: 19,505 MW
There are four major power producers in country. WAPDA (Water & Power
Development Authority), KESC(Karachi Electric Supply Company), IPPs
(Independent Power Producers) and PAEC(Pakistan Atomic Energy
Commission).
Break up of generation of power amongst these producers is as follows.
WAPDA – 11,272 MW
KESC -- 1756 MW
IPPs -- 7070 MW
PAEC -- 812 MW
These all facts are about the total capacity of generation not what the country
is generating at this instant. Due to the variability in total generation by
different factors those facts cannot be given correctly.
Pakistan is facing power shortage, natural crisis and oil crisis. In a report it is
claimed that Pakistan has faced 4000 to 5000 MW shortage of power. And it
will likely face 7000MW next year. Pakistan is facing 120 million tons of oil
shortage according to its need. On the other hand, international oil prices have
not only broken all records but are touching new highs, with every news
directly or indirectly affecting the black gold industry. And is lacking behind the
needs of natural gas at about 27 million ton of energy in current year and this
ratio will raise in upcoming years.
KANUPP was established with the help of the Canadian Government in the
1960’s and nearing end of its lifecycle. The “Chashrna Nuclear Power Plant”
has been designed and built in collaboration with People’s Republic of China,
and is being operated and maintained by Pakistani scientists and engineers,
delivering full power of 300 mw to the national grid. With the Karachi Nuclear
Power Plant also operational since 1971, Pakistan is the only country in the
Muslim World operating nuclear power plants joint recently by fastest growing
Muslim country Islamic Republic of Iran. Nuclear power is safe, economical and
environment-friendly.
Pakistan still has huge untapped gas reserves. If we allocate more resources to
their exploration there is a possibility that in the near future part of the energy
resource gap may be met from new reserves. The current gas prices and the
limits they place on increasing the profitability of this sector would not attract
any reasonable amount of investment, whether local or foreign, since the cost
of exploration has gone up substantially and current well head prices do not
justify further investment at the current rate of return. The other factor
discouraging exploration of new gas reserves, which would continue to haunt
us, is the law and order situation in most of the areas where gas finds can be a
possibility.
The Iran-Pakistan gas pipeline project is also a long story (global political
situation is not being discussed for obvious reasons) but the current plan to lay
the 54 inch pipeline through the coastal area has a major flaw.
5. Coal:
Pakistan has enormous coal reserves (probably the third largest in
the world) that remain untapped and even the industries that have converted
from gas to coal as their energy source have to import coal mostly from
6. Wind energy:
The government is following a policy to encourage
investment in wind energy. Two corridors have been identified in Sindh, and
land has been allocated to various wind energy projects. Although there are
certain problems in this method of power generation but still it’s a cheaper and
reliable source of power generation especially in the areas where the wind
usually gets twisted and blows throughout the air.
Why in the era of energy reservation Pakistan is not utilizing its energy
resources? Pakistan is just relaying on the electricity production by Dams. But
Pakistan has not enough dams or water to generate electricity. Although
WAPADA is enjoying the monopoly but government has to pay 2 rupee/unit as
incentive. Our neighbouring country India has built a number of Dams to
overcome the energy crisis but Pakistan government has paid no heed on this
issue. Many projects are delayed due to provincialism the glaring example is of
Kala Bagh Dam. The costly machinery amounted US $9 million is now
functionless due to (rust) delay in the construction of Kala Bagh Dam, Some
scientists predicted that in next 10year world has to face the water shortage
also.
If the government fails to construct dams for the generation of electricity due
to Provincialism government should have to adopt alternative options to
accomplish the energy needs of the country. As Iran has large treasure of
natural energy resources like natural gas and fuel, despite this Iran is engaged
in the attainment of nuclear power generation plant. Pakistan, despite being
an atomic power does not think about the nuclear electric generation plant.
International community is imposing sanctions on Iran due to uranium
enrichment but Iran pays no heed to them. Then why is the Pakistani
government reluctant to use its nuclear plants to tackle energy crisis?
Secondly, Pakistan’s western area especially Thar is enriched by natural coal,
which is the fifth largest treasure of the world. The world’s best sight to locate
a wind energy utilizing plant is also in this piece of heaven at Jhampir. Further
more following few steps should be taken for making the country self-
sufficient is energy 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.
Ironically, even in the midst of a devastating energy crisis, the same mistakes
are being repeated: evidence of this is the rental power Programme that is
now actively being pursued. This, once again, is an attempt to divert attention
from the real issues and to pursue other agendas.
The country’s policymakers must learn from their mistakes before it is too
late. As the starting point of any meaningful measure leading to a resolution of
Pakistan’s energy problems, they have to put an end to malpractices in
the system. Weaknesses and inefficiencies have to be checked instead of
wasting time and resources in buying unviable solutions. It is time national
interests were put before petty personal and political interests, for the change
needs to go beyond mere writing or address.