Assignment

BBA-410

BSCS (1st semester)

Sec (B)

Roll # 248

Topic: - Energy Crisis in Pakistan

Submitted To: -

Sir Abdul Mueed

Submitted By: -

Minahel Noor Fatima

Energy Crisis in Pakistan

Pakistan has been facing an unprecedented energy crisis since the last
few years. The problem becomes more severe during summers. Initially,
during the peak crisis there was a power outage of 3-4 hours daily but
it keep on increasing as the demand of electricity rises. According to
the reports of WAPDA, the electricity need of Pakistan increases
more rapidly than it can be generated which cause a major increase in
the duration of load shading.

The number of electricity consumers has increased from the 7.9 million
in 1992 to 19.9 million in 2008. Despite such a sharp rise in consumer’s
number, still only 60% of the total population is connected to the
national grid. WAPDA’s daily report on 3 January, 2008 recorded a
supply of 7,237 MW against the demand of 11,509MW, recording a
shortfall of about 37%. Similarly, WAPDA sources suggest that on 22
March, 2010 as weather was in transition from winter to summer, the
country faced a deficit of about 5,300MW. It is forecasted that the
electricity demand will increase to about 8 times more i-e from 19,540
MW in 2005 to 163,000 MW by 2030.

Causes of Energy Crisis in Pakistan

The Present crises are also a self-inflicted problem resulting for years
of poor policies and reckless attitude on the part of concerned
authorities. The scale of the Problems has now almost grown beyond
any instant solution.

Analysis brings for the various factors that have combined together to
land Pakistan into this mess.
Monopolization: In Pakistan, the government has monopolized the
generation, transmission and distribution of electricity. This
monopolization has destroyed the spirit of entrepreneurship. For
example KESC.

Institutional decay: There is chronic and persistent lack of planning in

Pakistan. Or alternatively there is poor planning. Pakistan has a huge
capacity for hydropower and large deposits of coal, but Pakistan been
slow to exploit those resources. For example in 1990s, construction on
Kalabagh was delayed.

Corruption: According to the former chairman WAPDA, engineer

Shams ul Mulk, there is no electricity shortage present in the country
and the present electricity crisis is the result of non-payment (of
circular debt) to the IPPs. According to the Minister for Power, the
total circular debt was to be paid to these IPPs by June 2009, but the
government has no fiscal capacity to finance the debt at this time.

Government has all this money to spend on its non-developmental

expenditure and fund the hordes of ministers, parliamentarians and
their armies of assistants and advisers. But the government does not
have any money to pay its internal debts.

Neglected Efficiency: Neglected improvements in efficiency remain

as the single largest untapped source of energy. The lack of investment
into the existing structures and into the development and installation
of more efficient infrastructure is another major reason for the state
we are in.

Political wrangling and vested interests: Pakistan is a mess. It is

controlled by a cadre of active and retired military and civil personnel
in collusion with landlord Politicians. This elite class controls the
country’s biggest and most important businesses, and holds most of the
political power as well. All decisions are based on what serves their
interest. For example, in January 2006, the construction of Kalabagh
Dam.

The Shortage Conundrum: A close study into the long term pattern of
electricity absence reveal several patterns of shortage ranging from
full access to no access. There are on top of planned load shedding,
lengthy and frequent electricity breakdowns.

Moreover to these some of the causes are as follows,

 Economic and political instability (Effects our GDP & Energy

growth)

 Fluctuation of oil prices in international market (WAPDA & KESC

purchase expensive oil)

 Faulty distribution system (Wastage of 15 to 20 % energy through

poor distribution system)

 Ageing of equipment (Unable to generate required electricity)

 Unproductive efforts (Only seminars & conferences but no

implementation)

 Silting process (It is a naturally caused process which reduces the

storage capacity of reservoirs)

 Mismanagement of resources (Lack of technical knowledge and

equipment to utilize existing resources)
Planning to overcome Energy Crisis

A good planning is needed to overcome this increasing crisis:

 Short Term Plan

a) Increase IPPs (Independent power producers)

b) Reactivate closed power stations

c) Renew power distribution system

d) Import electricity till crisis

 Mid-Term Plan

a) Utilization renewable energy resources

b) Installation of solar, wind, biogas and wind projects in eligible

areas

 Long Term Plan

a) Developing and installing coal based power houses

b) Initiate energy agreements with friendly countries

c) Exploration of more oil, gas and coal fields

d) Up gradation in training courses for engineers

Electricity Generation Potential in Pakistan

Pakistan can solve its energy crisis and join modern world provided
our leaders are willing to adopt effective laws, transparent policies,
get rid of corrupt practices, and adopt renewable energy.

Hydropower Projects
Pakistan’s total identified potential for hydropower is about 42 G.W
(giga watts) out of which only 15% amounting to nearly 6.4 GW has
been exploited so far. In order to meet the energy challenges
faced by the country and to ensure a sustainable energy future,
multifold exploitation of hydropower is imperative.

At present, there are at least seven potential hydro projects with

capacity in multigigawatts. These include Bhasha (4500MW), Bunji
(7100MW), Dasu (4320MW), Kalabagh (3600MW), Kohala
(1,100MW), Patan (2800MW) and Thakot (2800MW). Apart from
these, there are a number of other projects with the capacity in
hundreds of megawatts. These include Neelam Jehlum (950MW),
Munda(750MW) Akori (600MW), Dubar Khwar (130MW), Alai
Khwar (121MW) Golan Gol (106MW) and Khan Khwar with capacity
of 72 MW. More over their generation capacity can further be
enhanced provided arrangement was made for maximum utilization
of water.

Wind Energy:

Pakistan can have wind energy on lines of China to generate 20,000

MW. Pakistan has been gifted with an immense wind resource. The
Ghoro - Keti Bandar Wind Corridor spreading 60 km along the
coastline of Sindh province and more than 170 km deep towards the
land alone has a potential to generate more than 60,000 MW of
electricity.

Solar Energy:

Solar sector is the fastest-growing clean-energy industry in the

world. Prices of solar panels have declined by more than 60 per cent
in the last 30 months. In 2010 alone, 17 GW of solar-generation
capacity was added in the world which could power more than 12.5
million homes. China produced 48 per cent which is about 13GW, of
the world’s solar panels.

Solar Energy is available at a rate of 1000 watts per square meter

in Pakistan (about 19 Mega Joules per square metre of solar energy)
according to the Alternative Energy Development Board (AEDB)
sources. This can be converted to DC electricity with the help of
Solar Photovoltaic cells, which may be used to pump water, operate
fans, TV and telecommunications directly during daytime. The
electrical energy generated during the day time (5-8 hours of
sunshine), can also be stored in deep cycle lead acid batteries which
can be used at night to provide power for lighting, radio, Television
and fans. In addition, Solar Photovoltaic Panels can generate enough
electricity to pump water from depth of 350 ft, 700 ft and up to
1000 ft.

Solar energy is the best and suitable form for Pakistan as the
country has a potential of generating 100,000 MW electricity or
over 2.324 million MW electricity per annum through solar system.

Coal:

Few years back Pakistan used to get half of its electricity from
hydal power and remaining from thermal generation. The largest
coal reserves of Pakistan exist in Thar which are about 175 Billion
Tons or 850 Trillion Cubic feet. There this source can be cashed. A
pilot project has been completed for the generation of 100MW
electricity.
Global Power Generation from coal

Australia 80%

China 78%

India 69%

USA 50%

Germany 47%

Pakistan 0.1%

Kala Bagh Dam:

Kala Bagh Dam is the most important project that must be

completed to overcome the energy as well as water crises of
Pakistan. It was to be completely functional in 1986 at a cost of 6
Billion but was never constructed and now if it is to be constructed
it cost a price of 600 Billion. The project has its too much
importance for the future of Pakistan but is under high political
monopoly.

Conclusion:

Pakistan’s energy sector has become a major drain on

the economy and is impeding growth, both because of power
shortages (which have affected small manufacturing enterprises
and services in particular) and because of the budgetary impacts of
energy subsidies, which divert much-needed resources from more
productive sectors. The energy sector has become a focus of public
policy in recent years and has garnered the attention of
international financial institutions, including the IMF. Pressure for
reform of the sector as a whole, and the power generation,
transmission and distribution regime in particular, has grown
substantially. The government is obliged to carry out tariff
adjustments, remove subsidies and ensure a level playing field for
all private sector entities active in power generation, in addition to
other policy and governance reforms. The process has got off to a
rocky start, with the judiciary calling into question the power
sector regulator’s authority and competence. How the government
handles this delicate situation in the face of scepticism from state
organs and hostility from consumers remains to be seen.