ENERGY POLICY

ENERGY POLICY OF US. ENERGY POLICY OF CHINA. ENERGY POLICY OF

PAKISTAN

SUBMITTED BY:
OMER AFTAB JOIYA
ROLL NO: BPP-16-14
Table of Contents
Chapter1: Energy policy in the United States..............................................................................................1
Introduction:............................................................................................................................................1
Energy policy goals.................................................................................................................................1
State energy policy..................................................................................................................................1
Energy policy at the state level includes legislation, regulation of energy extraction, taxes,
incentives for energy production or use, energy efficiency standards, and more. Below are
descriptions of energy policies adopted by state governments:............................................................1
Chapter 2: Energy policy of China.............................................................................................................1
Promoting Structural Reforms on Energy................................................................................................1
Fossil Fuels: Curbs on Coal Use, and Expansion of Natural Gas.............................................................1
Renewable Energy: Correction of “Emphasis on Its Facility Construction, Disregard for Its Use”.........1
Chapter 3: Energy policy of Pakistan..........................................................................................................1
Introduction and working framework:.....................................................................................................1
Overview of Energy Policy: 2013–18......................................................................................................1
Conservation and consumption................................................................................................................1
Power sources and electrical energy....................................................................................................1
Consumption by computers.................................................................................................................1
Chapter 4: Recommendations:....................................................................................................................1
2. Moving past the myth of Thar coal..................................................................................................1
Conclusion...................................................................................................................................................1
References...................................................................................................................................................1
 Chapter1: Energy policy in the United States

Introduction:

Energy policy in the United States involves federal, state, and local governmental
actions related to the production, distribution, and consumption of different sources of
energy, including fossil fuels such as coal, oil, and natural gas, as well as renewable energy
sources such as solar, wind, nuclear, and hydroelectric power.

Energy policies are enacted and enforced at the local, state, and federal levels through
legislation and regulation. Given the multiple policymakers at all levels of government in the
United States, energy policy is complicated and interconnected. As a result, energy policy has
several stakeholders, including citizens, elected state and federal officials, government
agencies, national and state-level interest groups, corporations, and think tanks.

Several factors can affect the feasibility of energy policies, such as the availability of
energy resources, geography, the cost of extracting certain forms of energy, consumer
demand, potential impacts to the environment, and more.
Energy policy goals

According to the Congressional Research Service, the three main goals of energy
policy in the United States since the 1970s have been "to assure a secure supply of energy, to
keep energy costs low enough to meet the needs of a growing economy, and to protect the
environment while producing and consuming that energy." In a September 2016 report, the
Congressional Research Service outlined the following policy goals guiding U.S. energy
policies since the 1970s.

Conservation and energy efficiency: According to the Congressional Research Service,

energy conservation and efficiency have been a policy goal since the 1970s when Arab
members of the Organization of the Petroleum Exporting Countries (OPEC), an
intergovernmental organization, imposed a ban on petroleum exports to the United States and
cut oil production, leading to rising U.S. gasoline prices. In response to the embargo's
aftermath and higher domestic gas prices, Congress passed the 1975 Energy Policy and
Conservation Act, which directed the president to ban crude oil exports except for select
types of oil and set average fuel efficiency standards for passenger vehicles beginning in
model year 1978. As of May 2017, other energy efficiency measures implemented at the
federal level included standards for home appliances, such as refrigerators, air conditioners,
washing machines, and light bulbs.

Domestic supply of fossil fuels: Beginning in the 1970s with the OPEC embargo and rising
gasoline prices, policymakers debated the merits of greater domestic production of fossil
fuels, particularly oil and natural gas. Proponents of greater domestic production argue that
increased production would result in more employment and labor income and a larger supply
of energy, which would lower prices for consumers, and that oil and gas are more efficient
and reliable forms of energy than renewable sources. Opponents of greater domestic
production argue that oil and natural gas are finite resources and that their use produces more
air and water pollution and thus should be discouraged in favor of renewable energy sources,
such as wind and solar energy.

Oil and gasoline prices: Gasoline prices are affected by crude oil prices, which are in turn
affected by multiple factors, including supply and demand, financial markets, international
politics, environmental regulation, taxes, weather, and other factors. Oil production may
increase or decrease depending on advances in technology, changes in industry regulation,
policy changes, political forces, and more. Policymakers consider the role of these factors
that determine gasoline prices and in general debate how best to keep gasoline prices
affordable for consumers in light of other policy goals, such as conservation, environmental
protection, and promotion of vehicles that use other fuels, such as ethanol.

Electricity generation: Policymakers debate the role of different types of energy, including
coal, oil, natural gas, wind, solar, and nuclear power, in the U.S. electricity mix. In particular,
policymakers debate the role of coal, which accounted for around 16 percent of total U.S.
energy consumption in 2015—91 percent of which was used to generate electricity.
Proponents of coal use argue that the relative abundance of coal compared to natural gas or
oil produces more affordable electricity for consumers given high supplies of coal resources.
These proponents cite the U.S. Energy Information Administration, which concluded in 2016
that the United States has the largest recoverable coal reserves worldwide. Opponents argue
that the replacement of coal by natural gas, wind, and solar energy in electricity generation
produces benefits in the form of fewer air pollutants, less disruption to surface land needed to
mine coal, and fewer carbon dioxide emissions linked to potentially human-caused climate
change.

Use of renewable energy: Under the Renewable Fuel Standard passed by Congress in 2005,
transportation fuels must contain a minimum amount of biofuel, such as ethanol, which is
fermented from corn and other crops. As of May 2017, other federal policies to promote
renewable energy use included loan guarantees, tax credits, and federal grants to renewable
energy sources. At the state level, 29 states as of March 2017 had an enforceable Renewable
Portfolio Standard, a mandate to electric utilities to generate a minimum amount of electricity
from eligible renewable energy sources, such as wind, solar, hydroelectric power, geothermal
energy, and others. Proponents of policies encouraging greater renewable energy use argue
that fossil fuels are a finite resource and produce more air and water pollution than renewable
sources, which are naturally replenished by sunlight, wind, and other resources. Opponents of
policies encouraging greater renewable energy use argue that fossil fuels are more efficient at
producing energy, more affordable for consumers, and that renewable sources require state
and federal subsidies to be affordable, unlike coal, oil, or natural gas.
State energy policy

Energy policy at the state level includes legislation, regulation of energy extraction,
taxes, incentives for energy production or use, energy efficiency standards, and more. Below
are descriptions of energy policies adopted by state governments:

Oil and natural gas regulation: States with oil and/or natural gas production adopt
regulations to ensure environmental protection and worker safety. State-level regulations
cover the drilling of all wells used for oil or gas exploration, the spacing of wells, permitting
requirements for oil and gas operators, injection wells used to enhance oil and gas recovery or
to dispose of wastewater, protection of groundwater and underground sources of drinking
water, the cementing and plugging of wells, the underground storage of natural gas, the
prevention of well blowout and leaks, well restoration, reporting requirements, and more.
These regulations are generally issued and enforced by state-level energy departments or
commissions.

Renewable energy: As of May 2017, states implemented funding and financial incentive
programs to subsidize or otherwise increase investment in renewable energy resources such
as wind, solar, and hydroelectric power. These programs include renewable portfolio
standards, grants, rebate programs, tax incentives, loans, performance-based incentives, and
more. The aim of the policies generally involves reducing the cost of renewable energy
production for consumers, reducing regulatory compliance costs, reducing investment risks
involving renewable energy, and/or increasing the adoption of renewable energy sources by
individuals and businesses.

Energy efficiency: State-level energy efficiency standards can include voluntary or

mandatory energy efficiency standards for new residential and commercial buildings built on
or after a particular date. These standards generally include efficiency standards for heating,
ventilating, air conditioning, water heating, and lighting in residential and/or commercial
buildings.

Utilities: States and localities generally have a role in regulating utilities, which are firms that
own and/or operate facilities to generate, transmit, and/or distribute electricity, gas, and/or
water to the public. For example, state and local regulators can oversee electricity
transmission and distribution charges. Utilities are defined differently in each state and in
federal legislation. Two general types of utilities are private and public utilities. Private
utilities, commonly known as investor-owned utilities, provide stocks to investors and sell
bonds. These utilities are regulated by state regulatory agencies. State agencies are also
responsible for setting retail rates charged by investor-owned utilities, overseeing utility
infrastructure, and ensuring that investor-owned utilities respond to customer service
demands. Public utilities include government or municipally owned utilities regulated by
local or municipal governments.

Fuel taxes: Revenue collected by federal, state, and local governments from fuel taxes is
usually used to fund transportation infrastructure such as roads and bridges. Some states may
charge an excise tax based on how much gas or diesel is purchased. Some states may charge
retail tax based on the average price of gas over a certain period. Additionally, some states
may charge an environmental tax to be used for environmental projects.
 Chapter 2: Energy policy of China
On 17 January 2017, the National Development and Reform Commission (NDRC) of
China unveiled its 13th Five Year Plan on energy development, which represents the basic
outline of China’s energy policy from 2016 to 2020. Five Year Plans for each category such
as electricity in general, coal, natural gas, wind power, and solar power have also been
sequentially released (Figure 1). This report analyzes China’s energy policy and related
issues toward 2020.
Promoting Structural Reforms on Energy

Over the past few years, the domestic and international circumstances surrounding
China’s energy policy have changed drastically. In terms of the domestic aspect, the Chinese
economy has slowed and its economic structure has shifted from an industry-driven one to a
service-driven one. This shift led to a substantial slowdown in the increase of primary energy
consumption in China, with the year-on-year increase of such consumption remaining at 1.0
% in 2015, and 1.4% in 2016. Moreover, as air pollution caused by “PM 2.5”, or fine
particulate matter has become a social problem, curbs on coal use as well as expansion of
clean energy use are recognized as urgent tasks. In terms of the international aspect, crude oil
prices have declined in the context of the US shale revolution, which benefits China as its
dependency ratio of oil imports reaches about 60%. On the other hand, the “Paris
Agreement,” international framework of measures for global warming took effect in
November 2016. In this agreement, China set the goal of peaking its CO2 emissions around
2030 and, therefore, continued efforts are required to reduce CO2 emissions. The 13th Five
Year Plan on energy policy is responding to these changes in domestic and international
circumstances.

 The pillar of the energy policy in 13th Five Year Plan is the improvement of the energy
demand and supply structure, which China calls the “Dual Alternative.” Dual Alternative
represents: 1) Switch from coal to natural gas; 2) Switch from fossil fuel energy to non-fossil
fuel energy. The 13th Five Year Plan contains the guideline that the annual increase rate of
primary energy consumption during the 5 years of the plan is to be restricted to within 3%,
and that the coal rate of primary energy consumption in 2020 is to be restricted to within 58%
(64% in 2015). On the other hand, the non-fossil fuel energy rate is set to be raised up to 15%
(12% in 2015), and the natural gas rate up to 10% (5.9% in 2015). However, coal is still
important to China as its self-sufficiency rate has reached over 90% and its cheap price. The
13th Five Year Plan has content which strikes a balance between economic growth and
energy structural reform. This report introduces the points of policies regarding fossil fuels
and renewable energy separately as follows.
Fossil Fuels: Curbs on Coal Use, and Expansion of Natural Gas

Coal is the most important energy in China, and it is also the main cause of air
pollution. The problem of excess coal production capacity is also serious and curbs on coal
use and reduction of coal production capacity are recognized as urgent tasks to be
implemented. The 13th Five Year Plan is set to restrict the production volume of coal in 2020
to 3.9 billion tons (an annual average increase of 0.8% for 5 years) and the consumption
volume to 4.1 billion tons (an annual average increase of 0.7% for 5 years). As for coal
production capacity, there is to be a cut of 0.8 billion tons/year due to the abolishment of
outdated facilities by 2020. The capacity of coal fired power generation is set to be curbed to
within 1.1 billion kW in 2020. That is to say, an increase of 0.2 billion kW is expected from
0.9 billion kW in 2015. The generation percentage of coal fired power accounted for 49% of
the total amount of coal consumption in 2015, and it is set to be raised to 55% in 2020. In
China, the major contributing cause of air pollution is the coal that is consumed dispersively
and inefficiently at coal-fired factory boilers and other facilities. While curbing such coal use,
coal-fired power generation for the purpose of intensive and efficient usage is to be
expanded. 

Natural gas use is to be expanded as clean energy. The total volume of its domestic
production will be expanded to 207 billion m3 in 2020 (135 billion m3 in 2015), of which
shale gas will be expanded to 30 billion m3 (4.6 billion m3 in 2015), and the total extension
of natural gas pipelines will be to 104 thousand km (64 thousand km in 2015) by 2020.
Import capacity of natural gas from areas such as Central Asia is to be increased. In terms of
its usage, a policy promoting a shift from coal to natural gas as the fuel for factory boilers and
household heating is to be pursued. Also, natural gas power generation will be promoted
mainly by way of peak-load power generation and distributed generation. The capacity of
facilities for gas fired power generation is to be expanded from 0.066 billion kW in 2015 to
0.11 billion kW in 2020. As for oil, the plan shows that domestic production of crude oil is
0.2 billion tons or more in 2020, apparent　consumption is 0.59 billion tons (annual average
of increase is 1.5% for the 5-year period), and net imports are 0.39 billion tons (annual
average increase is 3.2% for the 5-year period). 

As for targets in China’s Five Year Plan, there are two types: a “binding target” which is the
mandatory target to be achieved, and an “anticipationary” which provides insight into the
likelihood of achievement, and the latter is not always achieved. For the 12th Five Year Plan,
targets for the natural gas ratio of primary energy consumption, production volume of shale
gas, and facility capacity of new clear power generation have not been achieved (Table 1). In
the 13th Five Year Plan on energy development, the production and consumption of natural
gas in the short term is slowing down, therefore, achieving the target of production and
consumption by 2020 is expected to be difficult1. Considering recent decline in oil production
and surge of net oil import, it is also likely that oil production will be below the target and net
oil imports will surpass the target.
Renewable Energy: Correction of “Emphasis on Its Facility Construction, Disregard
for Its Use”

China’s development of non-fossil energy (renewable energy and nuclear power) is

rapidly being promoted. The non-fossil energy ratio of total primary energy consumption has
risen from 9.4% in 2010 to 12% in 2015. The capacity of power generation facility in 2015 is
0.297 billion kW of water power, 0.129 billion kW of wind power, and 0.043 billion kW of
solar power (including solar heat). Any one of these numbers is the world’s largest for its
category. In the 13th Five Year Plan on energy development, non-fossil energy ratio is to be
raised to 15% in 2020. Annual average increase in facility capacity is 21.2% in solar power,
and 9.9% in wind power where high growth is expected, though it is only 2.8% in water
power 

While the introduction of facilities for renewable energy is being rapidly promoted, it is
common that power generation is curbed due to the restriction on transmission capacity and
other reasons.
The Chinese government also recognized that the existing renewable energy policy was
“placing an emphasis on facility construction, but disregarding usage,” and therefore the 13th
Five Year Plan is aiming to redress the problem. First, they will promote balanced
introduction of facilities among regions. 57% of the increased wind power generation volume
for 5 years (0.081 billion kW) will be allocated to the east and the south, and 43% to the west.
Solar power generation will also shift its focal point from large scale generation in the west to
distributed generation in the eastern and central China. In addition, the Chinese government
will expand the volume of pumped storage power generation from 0.023 billion kW in 2015
to 0.44 billion kW in 2020, as well as promote the introduction of natural gas-fueled
generation in order to strengthen peak-load ability. China has set the target to raise the rate of
non-fossil fuel of primary energy consumption up to 20% by 2030. The goal of the 13th Five
Year Plan (15% by 2020) will be an important milestone. To this end, raising the usage rate
of renewable energy is one of the important issues in the 13th Five Year Plan, as well as
continuing to expand the introduction of renewable energy. 

This report analyzes China’s energy policy and issues toward 2020 from the perspective of
structural reform on energy, which has mainly focuses on curbs on coal use as well as
expansion of natural gas and renewable energy. Items which are closely related are
deregulation and system reform such as energy price reform, electric power system reform,
and third parties’ access to oil pipelines and liquefied natural gas (LNG) terminals. The
reform of state-owned companies in the energy sector will be also required. Chinese
President Xi Jinping is likely to further enhance its power base at the Communist Party
Congress in autumn 2017. Many will be looking to see whether or not his administration can
carry out reform in a speedy manner.
 Chapter 3: Energy policy of Pakistan

Introduction and working framework:

The energy policy of Pakistan is formulated and determined by the federal, provincial,
and local institutional entities in Pakistan, which address the issues of energy production,
distribution, and consumption of energy, such as gas mileage and petroleum standards.
Energy policy requires the proper legislation, international treaties, subsidies and incentives
to investment, guidelines for energy conservation, taxation and other public policy
techniques.
Several mandates and proposals have been called over the years to overlook the
energy conservation, such as Neon signs were banned and the official weekend was extended
from one to two days in an attempt to conserve electricity (Gillani, 2010) and reducing the
electricity load used by industrial units by 25% during peak hours (Aziz, 2007), but no
comprehensive long-term energy strategies were implemented. Since 1999, many legislative
provisions were adopted for energy conservation including the seeking energy from various
renewable energy sources. There is also an intense criticism about the unequal distribution of
energy, the irresponsible usage of energy sources, and the country's new plan which is aimed
to raise country's dependence on imported oil for power generation to 50% by 2030. After
much public criticism, the long-term energy security policy was announced in 2013 through
the introduction of equal cutting edge energy transmission network, minimising financial
losses across the energy system and aligning the ministries involved in the energy sector as
well as improving the governance of energy sources.
Studies and policy implementation recommended by AEDB, Water ministry (as
policy enforcer), the NEPRA regulates the energy sources network as well as determining the
financial prices of the usage of energy. Government-specific energy-efficiency incentive
programs also play a significant role in the overall energy policy of Pakistan. As of 2013
Prime Minister Nawaz Sharif has announced a determined and aggressive energy policy to
meet the energy challenges and energy management.
Overview of Energy Policy: 2013–18
Musadik Masood Malik was appointed Federal Minister, Water and Power of the
Pakistan Government in May, 2013. Within two months, he was replaced by Abid Sher Ali
who served in the role until the ministry was abolished in September, 2017. In its place a
Ministry of Energy was created. Awais Leghari served as the first energy minister of the
country until the end of the government's tenure.
The 2010 amendment to Pakistan’s Constitution (para. 3), empowered each province
to formulate the policy framework for the development of public and private sector power
generation. This has led to the formation of dedicated provincial departments and empowered
public sector companies specialized in renewables to foster and execute power projects
through public, private and public–private partnership modes using indigenous power
resources.
 This tenure's energy policy was aimed at aggressively building power generation
capacity through early-harvest projects in CPEC. A total of 10,973 MW of power was added
by the government during its tenure, mostly via private sector investments. In terms of public
sector projects conducted by provincial governments in view of the 2010 amendment, KPK
government led with the addition of 1,670 MW to the national grid. It was followed by Sindh
and Punjab governments which contributed 935 MW and 580 MW respectively. Baluchistan
government didn't inaugurate any public sector power project during its tenure.
However, despite the massive addition of power to the national grid, glaring issues
existed in the power sector. There was no viable overhaul done to the electricity transport
infrastructure which lead to episodes of plant tripping and extended blackouts during the
summer months. Furthermore, there was still a wide demand and supply gap during high
temperature months which led to periodic, planned load-shedding. Finally, the issue of
circular debt was still attached to the power sector and reached a record high of Rs. 922
billion in March, 2018
Conservation and consumption
Due to rising demand and a failing power infrastructure severe electricity shortages
have occurred in Pakistan. This has led to widespread rolling blackouts that have paralysed
industry and led to protests and rioting. Power outages can last 6–8 hours a day in the cities
and many more in the rural areas. According to Mahnaz Parach of Network for Consumer
Protection "Children can't do their homework. Housework doesn't get done, as washing
machines and other appliances cannot work. When you go home from work, you have no
idea whether there will be electricity at home. Your whole life is disturbed."
Experts have warned of an impending energy crisis since 2006. Speaking at a Seminar
'Fueling the Future: Meeting Pakistan's Energy Needs in the 21st Century' held in
Washington, D.C. in June 2006 then energy adviser to the prime minister of Pakistan
Mukhtar Ahmed stated that the country was taking steps to address the energy shortage.
Pakistan Electric Power Company estimates that there is a shortage of 6 gigawatts or about
60% of its total generation. One of the main reasons of the shortage is thought to be the
failure of past governments to anticipate growth in need and the delay in implementation of
projects to increase power production. In addition there is widespread power theft and lack of
investment in the existing power grid.
The United States has made improving Pakistan's power infrastructure one of its top
priorities. US special envoy Richard Holbrooke, while describing the power situation in
Pakistan as "unacceptable," has stated that the US would go to its "absolute limits" to help
Pakistan overcome the crisis.

Power sources and electrical energy

Measures are aimed at cutting consumption by 500 megawatts. The official weekend
has been extended from one to two days. Neon signs and decorative lights have been banned.
Power has been cut to government offices by 50% and air conditioners will only be allowed
to be switched on after 11 am. Street markets have been asked to close early. Commercial
centres except drug stores will be closed at 8 pm and wedding celebrations will be limited to
three hours. The government will pay off its $1.38 billion debt to power producers allowing
them to pay fuel suppliers. Power supply to Pakistan's commercial capital Karachi will be
decreased by 300 megawatts to allow fairer distribution of power to the remaining parts of
the country. Tube wells will not be allowed to operate from 7 pm to 11 pm. The measures
will be reviewed on 30 July 2010.

Consumption by computers

Since the early 1990s, the country has observed the highest growth rate in usage of
computers that effect the supply of the electricity produced in the system. In a survey
published by the Express Tribune, around ~30 million citizens (out of 180 million), uses the
internet on daily basis; the internet penetration in the country has reached 16% as of 2013.
 Chapter 4: Recommendations:

There are a lost of issues in our policies most of them are related to stability and self
interest over national interest these issue must be resolved quickly, moreover some other
issues are needed to be resolved to make a better energy country. Some recommendations re
give:
1. Replacing thermal power fuel

Pakistan produces about 81 percent of its electricity through oil and gas which costs
us about 9.4 billion dollars. To put it in other terms, that is about 53 percent of our total
exports and is the biggest cost on our import bill. Now given that our reliance on thermal
power is so large, we simply cannot dismantle it and magically move to hydro power,
however we can change the fuel used to gain thermal power. Instead of using oil and gas,
both of which are getting more expensive and have volatile international prices, we can move
to using coal.
But not the Thar coal, I will explain why later, but imported coal. If we were to import clean
coal and use that as a fuel instead of oil and gas, it would cost us less as the price of coal is
more stable than that of oil and gas in the international market. This can bring some sort of
price stability in our electricity prices that keep changing due to changes in international
market prices

2. Moving past the myth of Thar coal

Yes, there is coal in Thar, but assuming that it can be used immediately or it will
solve all our energy problems is a myth propagated by a few people and political parties for
their personal gains. Experts agree that Thar coal is highly unstable – making it difficult to
transport it from one location to another – and even its gasification is not risk-free.
On location gasification also requires heavy investment, which has practical difficulties due
to the unstable nature of the coal deposits. So instead of wasting time and effort on this, we
should focus on importing coal to replace the ever increasing oil and gas bill.
3. Improved energy mix

Energy mix refers to the sources of energy we utilize in Pakistan to fulfil our overall
energy needs. I need to give credit to the PML-N on this one as they are the first ones to talk
of the holistic energy mix and not just the CNG or the electricity crisis.
The fact is that all our energy is interdependent.I have previously advocated that we
need to move off CNG as we simply do not have enough of it to supply to all the commercial,
industrial and home users. Its about time that any future energy strategy Pakistan is supposed
to have comes with a proper energy mix to solve our issues.
We need more hydel plants and renewable energy projects. In the next five years, the
aim should be at getting five percent of our total power supply from renewable sources and to
also use the nuclear power we are so proud of, to provide electricity. Right now, we are at
about three percent power generation from nuclear sources, which have to go up to at least
percent. Hence an overall improved energy mix is what can solve our issues in the long run.
4. Stand alone power projects

This is a suggestion that I gave at the conference and I am advocating it now again.
About 40 percent of Pakistan is off the national grid; that means they effectively get to no
electricity.
The way our grid operates, it is already suffering from heavy line losses and other
technical issues, which makes it extremely hard and costly to get 40 percent of the Pakistan
on to the national grid. However there are solutions to this.
We can finance independent stand alone power projects that can function in areas
where there is no national grid, this way the local communities and businessmen can set up
their own energy solutions without taking prior permission from the National Electric Power
Regulatory Authority (NEPRA) like they have to now. This will enable them to set up small
scale solar panels and plants in their communities and sell electricity locally. Small wind
farms can also be used in areas which are close to wind corridors.
The bottom line is, let the people who are living in areas that don’t come under the
national grid, do whatever they can to supply themselves with electricity without any
government involvement.
5. Dismantle the national grid

The national grid needs to be dismantled and provincialised, because under the 18th
amendment, the profits of power generation go to the province that is producing the power,
meaning if electricity is being produced at Tarbela, royalties of that are being paid to KP
Government by all other provinces. However, they sell it to the national grid and then the
national grid sells it down to the District Electrical Supply Companies who further sell the
power to the consumers. This way, if there is a shortfall, national grid chooses the electricity
supply patterns and hence decides which areas suffer outages the most.
If we dismantle the national grid and change the electricity supply to an open market, where
provincial grids can buy energy directly from the source, it would improve the power supply
and be more financially beneficial for the power producing province. This way, the provinces
with the most issues with electricity supply can simply outbid the others to get enough for
their local demand. This would not be privatization but ‘provincialization’, and will
encourage provincial governments to start doing more for their people instead of relying on
the federal government.

Conclusion:
 By seeing different policies of different countries we can that each country has its
own aspect and problems to deal with. And have a different number of resources in each case.
Every state has different climate and external strengths and weakness. But some rules are
same for every stat and if Pakistan follos this ideal path then it can surly make progress in
field of energy.

References:
https://ballotpedia.org/Energy_Policy

https://blogs.tribune.com.pk/story/10507/5-steps-to-solving-pakistans-energy-crisis/
https://en.wikipedia.org/wiki/Energy_policy_of_Pakistan
https://www.mitsui.com/mgssi/en/report/detail/1224088_10744.html