DATA BY SAL

8/6/2019 DATA BY SAL

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PROJECT

On

ENERGY CRISES AND SOLUTION IN PAKISTAN

PRESENTED TO:

MR. SYED AFRAZ GILLANI

PRESENTED BY:

GROUP LEADER:

M.Javed Iqbal 7470

GROUP MEMBER:

Majid Murad 7486

Sajida Hanif 7492

MPA 2nd (

EVENING)

DEPARTMENT OF PUBLIC ADMINISTRATION

GC UNIVERSITY FAISALABAD


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Group Leader

M.Javed Iqbal

Activity

Research

Financial support

Compiling and composing the data

Contact Info

y Cell no.03076502266

y [email protected]

Members

Majid Murad

Activity

Research work Financial support

Contact info

y Cell no .03016015757

y [email protected]

Sajida Hanif

Activity

Financial support

Research work

Contact info

y [email protected]


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DEDICATION:

This site is dedicated to my loving parents.

Without their knowledge, wisdom, and guidance, I

would not have the goals I have to strive and be

the best to reach my dreams!

Dad you are truly missed!


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ACKNOWLEDGEMENT:

I am highly Grateful to Almighty Allah who gave me Power to complete

this project and I am also highly thankful to my honorable teacher Mr.

SYED AFRAZ GILLANI for his support and guidance.


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Executive Summary

Pakistan Electric Power Crisis and its Possible Solutions EXECUTIVE

SUMMARY The recent electric power shortage crisis in Pakistan is

affecting economy and various people and the situation is getting worse dayby day. Although only 46 percent of the population of the country has the

facility of electricity but still the government is unable to manage a steady

power to them. Poor planning, recent climatic changes, oil prices and

politics are the primarily responsible for todays severe crisis. The economy

and subsequently people are badly effected by this crisis with loss of huge

capital and degrading health. The solution to the current crisis lies in energy

conservation al all levels in the country. However the use of alternate energy

such as wind turbine and solar power can be utilized to immediately reducethe shortage, while electricity generation projects from coal and large dams

can provide a long term solution to electricity shortage.


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Energy Crices;

An energy crisis is any great bottleneck (or price rise) in the supply

of energy resources to an economy. In popular literature though, it often

refers to one of the energy sources used at a certain time and place,

particularly those that supply national electricity grids or serve as fuel for

vehicles. There has been an enormous increase in the global demand for

energy in recent years as a result of industrial development and population

growth. Supply of energy is, therefore, far less than the actual demand

Energy is the basic necessity for life. But for energy no form of life would

have ever emerged. We all know energy for providing us light and comfort.

It can help us to cool down during summers and feel warm during winters.It also helps us to go from one place to another. All automobiles need

energy to run; but even otherwise all other means of transport need

energy. But even though we use it every moment of our life and learn

about it at school it often remains a riddle for many all through the life.


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Theoretical Framework

N Geo Thermal

h Biogas

b

h Wind Energy

u

h

Tidal

h

h

m Nuclear

j

h

h

Solar

g D.Vg

b Oilg

n

b

g Population Increase

g

u

h Electricity Theft

tb

Limited Resources


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Research Design

Energy Crises

Unit of Analysis Purpose of Research

Groups Description

Sampling Design Types of Investigation

Probability Causal Relationship

Time Horizon Extent of researcher interference

Cross Minimal

Data Collection Method Study Setting

Secondary Data Field

Measurement & Measures

Operational

Data Analysis


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Energy crises in Pakistan

Energy is the lifeline of a nation. The economic engine and the wheels of industry,

agriculture and business need energy to move forward. On the social aspect, energy

consumption per capita is a key indicator of the quality of life of the citizens andcommunity. Unfortunately in Pakistan real solution to meet the energy requirement of

the nation have never been formulated or achieved. As a consequence, Pakistans

economic, industrial, and social growth has been greatly offered. Pakistans energy

resources constitute mainly of oil, natural gas and hydel electricity and coal. Gas is

dominant fuel accounting for 50.8% of energy demand, followed by oil at 29%

hydroelectric energy at 9.5% and coal with a 10% share. Now a days Pakistan is facing

severe energy crisis particularly electricity. Significant increase in demand of electricity

has adversely created shortage because of Limited generation capacity. Pakistan is

endowed with a hydel potential of approximately 41722 MW, most of which lies in theNWFP, northern areas, Azad Jammu & Kashmir and Punjab. Currently the total installed

capacity of the Hydro power stations in the country is about 6595 MW. Thermal power

units are generating about 12580MW electricity in the country using Natural gas &

furnace oil. Currently a short fall of 4000 to6000 MW is observed during the current

year. Pakistan has the largest coal reserves in the world with an estimate of 185.5billion

tones but is facing such devastating short falls of electricity of energy crisis.

Reasons for energy crisis

In Pakistan following are the problems for prolonged energy crisis:-

1. The planners have not correctly estimated the increasing future demand of

electricity and faros potential options are present but no serious efforts have yet

been made.

2. The energy sector has been neglected in the past so the sufficient supply could

not be increased. During last decade no major energy generation project is

started.

3. The major hydel power projects such as kalabagh dam and bhasa dam have beenexcessively politicized. Every new government the previous government for ill-

doings, poor planning and as the mother of all crises.

4. Atomic energy is the cheapest solution to resolve the crisis but due to

international politics problem access is not easy. However potential of electricity

generated from thermal sources are expensive than the hydel electricity

projects.


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5. The increase in oil and gas prices has made thermal electricity expensive one.

This is the reason electricity generated from thermal sources are expensive than

the hydel electricity projects.

6. The circular debt is alone stood at nearly 400 billion, forcing most IPPs to scale

down their production to the minimum increased a lot.7. Stealth electricity has become a part of our culture. A major part of electricity

production goes waste to this illegal process.

8. In the country the system of electricity supply is poor and very defective. Major

part of electricity goes wasted in the shape of line losses

SOLUTIONS FOR ENERGY CRISIS:

1. DRILL DOMESTICALLY WHEREVER WE CAN TO PRODUCE MORE OIL

Firstly, corral the environmentalists, and drill for oil on land we own, and

control, where we KNOW there is oil. (Florida's west coast).

As to our energy future, while innovation from new technology will take care of

the long-term problem, the short term must be dealt with by ignoring

environmentalists and moving ahead with drilling in Alaska as well as the various

U.S. coasts where it is prohibited

There are vast amounts of oil (actually, bitumen, a precursor of oil) in oil shale in

the United States, and new technology (exists) for extracting it with minimal

environmental effects.2. HYDROGEN: THE FUEL OF THE FUTURE Build a national network of hydrogen refueling stations (hydrogen gas stations).

This should be easy. After all, Eisenhower was able to build the interstate

highway system in the 1950s and 60s, which seems like a much more complex

task.

The plan to see being the best is hydrogen with water being the exhaust from

the vehicles. With the use of solar panels, we can generate the hydrogen free

well, almost free but without the need of oil.

Some of BMW's new 2008 luxury cars will have the ability to run on hydrogen.

Keep in mind that these are not fuel cells. Rather, these are conventionalinternal combustion engines that have been modified to burn hydrogen or (and

this is key) gasoline. Since the hydrogen infrastructure is very spotty, these

vehicles can use gasoline at the flick of a switch when hydrogen is not

available.3. ETHANOL -- IF THE BRAZILIANS CAN DO IT, WHY CAN'T WE?

Brazil runs over 50% of its vehicles on ethanol. Ethanol can come from many

sources. The production plants are being built now. (One in my home state of

Georgia is purported to be producing ethanol from trees)


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Get sugar cane fields growing. Sugar cane requires less fertilizer than corn and is

easier to make ethanol out of.

Turn lawn grass, America's largest crop, into ethanol.

There is no reason that ethanol cannot be our primary fuel. A gradual increase of

ethanol/gasoline mixtures at the pump until the standard fuel is 80%-90%alcohol can be a real possibility within the next 8 to 10years if someone would

actually get it rolling now.4. BIODIESEL -- PROVEN POWER FROM GARBAGE

Why not use every bit of waste, i.e., paper sludge; slash piles, veggieby-products

(carrot tops, potato skins, beet peelings, etc.) to makemore fuel?

Biodiesel can provide a major new energy source. If it is made withnon-food

crops, the yield is far higher than with soybeans.

All we really need is car companies to increase the number of carswith diesel

engines. The second part of this has to be biodieselstations. Biodiesel fuel can

easily be made at home, and it can be madefrom used vegetable oil. Currently

someone who makes their ownbiodiesel 40-50 gallons at a time at a cost of

$0.69 a gallon.

Biodiesel -- There is no reason, other than distribution, why everyship, train,

semi-truck, tractor, or piece of construction equipment witha diesel engine

should be burning straight (petroleum-based) diesel.5. SOLAR ENERGY COULD

DO THE JOB JUST BY ITSELF

The United States has thousands of miles of desert and plains thatreceive

enormous amounts of sunlight every day, often even in winter.It has been said

that approximately 100 square miles of solar panels ora modest multiple thereof

(5-10X) could generate enough electricity toaccommodate virtually all of the

electric energy needs to the country.

In Las Vegas the amount of solar energy there is amazing. We couldmake it

mandatory that all new houses have solar roof tiles instead of regular tiles and

give tax credits if people replace their tiles with solartiles on their existing

homes.

Solar panels in the southern states, especially Florida and the like,could easily

be used to run all the electricity a house needs.Furthermore, having lived in

Florida, it's so sunny that the excess electricity could either be sold back to the

electric companies or the solar package could come with a power supply to use

in charging an electric-powered vehicle.

6. LETTING IN THE RIGHT AMOUNT OF SUN In a cold climate we welcome the sun's heat

and light most of the time. And once we capture the heat, we don't want to give it up. In

a warm climate, we don't want the heat, but we do want the light. Advances in window

technology let us have it both ways.Less than half of the sun's energy is visible. Longer


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wavelengths--beyond the red part of the visible spectrum--are infrared, which is feltas

heat. Shorter wavelengths, beyond purple, are ultraviolet (UV). Whenthe sun's energy

strikes a window, visible light, heat and UV are either reflected, absorbed or transmitted

into the building.

7. DEVELOP WIND, SOLAR ENERGY TO MEET POWER CRISIS Alternative sources like wind

and solar energy need to be developed to tide over the power crisis in rural India. To

meet the power crisis of rural India, there is a desperate need to develop wind and solar

energy for power generation. Commenting on the sick Public Sector Units, Centre had

planned to make 25 sick units "economically viable" by bailing them out of crisis this

fiscal. We have seen improvements after these units to increase their profitability or

they would be shut down just the way we had closed two sick units in the recent past.8.

AS A WHOLE, ENERGY CRISIS Conservation is not the total Answer, but it would certainly

improve our situation. This would have to be a conservation program that would

encompass all of our consumers. The initial step would be less driving and more use of

mass transportation system. In some parts of the country it would mean adding more

buses and trains, in other parts, it would be modernizing the existing systems. Also it

would include an educational program for the energy consumers to make them aware

of how they can save energy daily. This has already begun and hopefully it will continue.

In addition, the new car manufacturers will have to increase the fuel efficiency of all

cars. Another solution will concern the industrial sector of our economy, to continue

their cutbacks and their fuel efficiency programs without seriously affecting their

production.

Pakistans Energy SectorPakistans energy infrastructure is not well developed, rather it is considered to be

underdeveloped and poorly managed. Currently the country is facing severe energy crisis.

Despite of strong economic growth and rising energy demand during past decade, no

serious efforts have been made to install new capacity of generation. Moreover, rapid

demand growth, transmission losses due to outdated infrastructure, power theft, and

seasonal reductions in the availability of hydropower have worsened the situation.

Consequently, the demand exceeds supply and hence load-shedding is a common

phenomenon through power shutdown.

Energy supply:During 2009-10, Energy supply and per capita availability of energy witnessed a decline

of 0.64 % and 3.09 % respectively in comparison to previous year.

Pakistan needs around 15,000 to 20000 MW electricity per day, however, currently it is

able to produce about 11,500 MW per day hence there is a shortfall of about 4000 to


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9000 MW per day. This shortage is badly hampering the economic growth of the country.

Energy Consumption :Pakistans energy consumption is met by mix of gas, oil, electricity, coal and LPG

sources with different level of shares. Share of gas consumption stood at 43.7 %,

followed by oil 29.0 percent, electricity 15.3 percent, coal 10.4 percent and LPG 1.5

percent.

Electricity production:

Electricity - production: 88.42 TWh (2005)

Electricity - production by source (2003)

fossil fuel: 63.7% of totahydro: 33.9% of totalo nuclear: 2.4%

o of total

Growing demand:

Supply and Demand of Electricity in Pakistan

Supply and Demand Position: 2008-2020 (MW)

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

201

9

202

0

Existing

Generation

15,

903

15,

903

15,

903

15,

903

15,

903

15,

903

15,

903

15,

903

15,

903

15,

903

15,

903

15,

903

15,

903

Proposal /

Committed

Generation

5304,2

35

7,2

26

10,

115

10,

556

13,

307

13,

520

14,

607

16,

134

18,

448

18,

448

18,

448

18,

448

Total

Existing/C16, 20, 23, 26, 26, 29, 29, 30, 32, 34, 34, 34, 34,


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ommitted

Generation

484 138 129 018 459 210 423 510 037 351 351 351 351

Expected

Available

Generation

13,

146

16,

110

18,

503

20,

814

21,

167

23,

368

23,

538

24,

408

25,

630

27,

481

27,

481

27,

481

27,

481

Demand

(Summer

Peak)

16,

484

17,

868

19,

352

20,

874

22,

460

24,

126

25,

919

28,

029

30,

223

35,

504

34,

918

37,

907

41,

132

Surplus/De

ficit

Generation

-

3,3

38

-

1,7

58

-

849-60

-

1,2

93

-

758

-

2,3

81

-

3,6

21

-

4,5

93

-

8,0

23

-

7,4

37

-

10,

426

-

13,

651

Source: Private Power and Infrastructure Board - Govt. of Pakistan[13]

Energy production profile;

Introduction


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Pakistan's economy has recovered from years of sluggishness, caused primarilytodroughts, with growth experienced in the agriculture, industry and service sectors.Infiscal year (FY) 2004/2005 (ending in June), Pakistan achieved gross domestic product(GDP) growth of 8.4 percent and in 2005/2006 the country had GDP growth of 6.6percent. High inflation (9.1 percent) in 2004/2005 was attributed to escalatingoil prices,

higher housing rents and food item shortages. In an effort to decrease inflation, thecentral bank of Pakistan announced that it would raise interest rates. The strategy worked,with inflation decreasing to 7.6 percent by the end of FY 2005/2006. The InternationalMonetary Fund (IMF), and the World Bank, both major donor organizations to Pakistan,have acknowledged the favorable performance and progress in Pakistans structuralreforms, but have stressed even greater reform in the public institutions and thepublic energy sector where progress has been slow. In 2004, the IMF approved a freshloan of nearly $250 million as part of its overall $1.5 billion aid package to Pakistan. In2005, the United States began the first installments of a $3 billion aid package, whichwill continue through 2010. In 2006, the World Bank approved loans of $185 million forvarious reform and infrastructure projects, in addition to the nearly $850 million loaned

to the country in 2005.The devastating earthquake that stuck Pakistan in October 2005 destroyed lives andcaused considerable damage to the countrys infrastructure. However, the majority of thedamage occurred in rural areas of the country and had minimal impact on the economy.Furthermore, international aid inflows in the aftermath of the earthquake have served tobolster Pakistans economy. The United States pledged $510 million for rebuildingPakistani infrastructure, but relief coordinators estimate that Pakistan will need billions ofdollars and up to ten years to fully rebuild.Pakistan and India decided to extend aid to oneanother after the earthquake. They also agreed to continue confidence building measures,which include the notification of missile testing, creating new bank branches andincreasing the number of airline destinations in both countries.

Energy Overview

In recent years, the combination of rising oil consumption and flat oil production inPakistan has led to rising oil imports from Middle East exporters. In addition, the lackof refining capacity leaves Pakistan heavily dependent on petroleum product imports.Natural gas accounts for the largest share of Pakistans energy use, amounting to about50 percent of total energy consumption. Pakistan currently consumes all of itsdomestic natural gas production, but without higher production Pakistan will need tobecome a natural gas importer. As a result, Pakistan is exploring several pipelineand liquefied natural gas (LNG) import options to meet the expected growth in natural

gas demand. Pakistans electricity demand is rising rapidly. According to Pakistani

government estimates, generating capacity needs to grow by 50 percent by 2010 in orderto meet expected demand.

Oil


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Pakistan Oil Production and Consumption, 1986-2006 (2006 is forecast).(Source: EIA InternationalEnergy Annual 2004)

According to Oil and Gas Journal(OGJ), Pakistan had proven oil reserves of 300 millionbarrels as of January 2006. The majority of produced oil comes from proven reserveslocated in the southern half of the country, with the three largest oil-producing fields

located in the Southern Indus Basin. Additional producing fields are located in theMiddle and Upper Indus Basins. Since the late 1980s, Pakistan has not experienced manynew oil fields coming online. As a result, oil production has remained fairly flat, ataround 60,000 barrels per day (bbl/d). During the first eleven months of 2006, Pakistanproduced an average of 58,000 bbl/d of crude oil. However, Pakistan has ambitious plansto increase its current output to 100,000 bbl/d by 2010. Due to Pakistans modest oilproduction, the country is dependent on oil imports to satisfy domestic oil demand. As ofNovember 2006, Pakistan had consumed approximately 350 thousand barrels of oil andvarious petroleum products, of which more than 80 percent was imported. The majorityof oil imports come from the Middle East, with Saudi Arabia as the lead importer.

Sector OrganizationPakistans Ministry of Petroleum and Natural Resources regulates the countrys oilsector. The Ministry grants oil concessions by open tender and by private negotiation. Toencourage oil sector investment, the Ministry has offered various tax and royalty paymentincentives to oil companies. Pakistans three largest national oil companies (NOCs),include the Oil and Gas Development Corporation Limited (OGDCL), PakistanPetroleum Limited (PPL) and Pakistan State Oil (PSO). All three operate under jointventures and partnerships with various international oil companies (IOCs) and otherdomestic firms. Major IOCs operating in Pakistan include BP (UK), Eni (Italy), OMV(Austria), Orient Petroleum Inc. (OPI, Canada), Petronas (Malaysia) and Tullow(Ireland).

PrivatizationIn response to conditions laid down by lenders, such as the International Monetary Fund(IMF) and the World Bank, Pakistan continues to strive for privatization of its state-owned companies. For instance, the government has on offer a 51 percent stake in PPL,as well as a 54 percent stake in PSO. PPL owns the Sui fields in Balochistan, as well asexploration interests in 22 blocks, while PSO holds a majority share in thedomestic diesel fuel market with more than 3,800 retail outlets. In November 2006,Pakistan plans to have a share issue from OGDCL for the equivalent of 15 percent of theNOCs capitalization. Five percent of the company was previously divested in November


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2003 in an initial public offering (IPO). Pakistan hopes to reap significant revenues fromthese privatizations over the next several years.

Exploration and ProductionBP is the largest oil producer in Pakistan, with production averaging approximately

30,000 bbl/d. The oil major operates 43 fields and more than 100 wells throughout thecountry. OGCDL is Pakistans second-largest oil producer, with average production at25,000 bbl/d. While there is no prospect for Pakistan to reach self-sufficiency in oil, thegovernment has encouraged private (including foreign) firms to develop domesticproduction capacity. In 2005, NOCs and IOCs drilled a total of 29 onshore developmentwells in Pakistan. BP led the development by drilling ten wells in its Lower Indus Basinacreage, while ODCGL drilled nine wells, with the majority being on its acreage in theMiddle Indus Basin. PPL expanded its interests in 2005, by drilling offshore at the PasniX2 shallow water field. It was the first time a Pakistani oil company had exploredoffshore.

Licensing RoundsHistorically, Pakistan has held few large licensing rounds, and instead, has conductedprivate negotiations for acreage between individual companies and the Ministry ofPetroleum and Natural Resources. In February 2006, Pakistan opened a rare licensinground offering nine onshore and offshore blocks. From the blocks offered, the Pakistanigovernment awarded OGDCL three exploration licenses in the southern Sindh andBalochistan provinces. The licenses cover the Tegani, Thal and Than Beg Blocks andOGDCL has committed to conducting geological surveys and to drilling four explorationwells on the blocks. In June 2006, the government awarded POL an exploration license

for the Kirthar Block in southern Pakistan. In July 2006, Pakistan awarded BP threeblocks (U, V, and W) in the offshore Indus Delta region.

DownstreamPakistan's net oil imports are projected to rise substantially in coming years as demandgrowth outpaces increases in production. Demand for refined petroleum products alsoexceeds domestic oil refining capacity, so nearly half of Pakistani oil imports are refinedproducts. Pakistans largest port is located at Karachi, which serves as the principle pointof entry for oil imports. PSO leads Pakistan's fuel distribution market, with its mainstorage facilities located at Port Mohammed Bin Qasim.

RefiningPakistan has five refineries, with total refining capacity of just under 270,000 bbl/d. Thelargest of the refineries is the Pak-Arab Refinery Complex (PARCO), which becameoperational in late 2000, with 95,000 bbl/d of refining capacity. In July 2004, BosicorPakistan Limited (BPL) began commercial operations at its Mouza Kund plant, nearKarachi. The 30,000-bbl/d refinery is supplied with shipments of crude oil from Qatar.The plant allowed Pakistan to become a supplier of naphtha, which constitutes 20 percentof the output. The plant produces about 10,000 bbl/d of fuel oil, 6,000 bbl/d of diesel, and5,500 bbl/d of naphtha, among other products. PSO has a supply contract to purchase theentire output of BPL's products for the next 10 years. In June 2006, Kuwaitagreed to fund


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a $1.2 billion oil refinery, which would have a planned capacity of 100,000 bbl/d. Therefinery would be located at Port Qasim in

Natural Gas:

Pakistan Energy Supply Mix, 2005. (Source:Pakistan Energy Yearbook, 2005)

According to OGJ, Pakistan had 28 trillion cubic feet (Tcf) of proven natural gas reservesin 2006. The bulk of these reserves are located in the southern half of Pakistan. In 2004,Pakistan produced and consumed 968 billion cubic feet (Bcf). In light of the currentonshore exploration activities and resource outlook, the Pakistani government expectsminor increases in natural gas production in the short-term. However, natural gasproduction is expected to decline over the next 15-25 year period, while naturalgas demand is expected to increase. The Pakistani government is currently developingplans to import additional natural gas (see "Proposed Pipelines" below) in order to satisfyincreasing demand. According to thePakistan Energy Yearbook, natural gas is currentlythe countrys largest energy source, making up 50 percent of Pakistans energy mix in FY2004/2005.

Sector OrganizationPakistans state-owned PPL and OGDCL produce around 30 percent and 25 percent,respectively, of the countrys natural gas. The two companies are the countrys largestnatural gas producers. OMV is the largest foreign natural gas producer (17 percent oftotal countrys production) in Pakistan. Additional foreign operators include BP, Eni, andBHP Billiton. The Pakistani government has enacted numerous policies to encourageprivate sector leadership of natural gas development, including privatization of state-runbusinesses, regulation that encoura production.


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Exploration and ProductionPakistans largest natural gas production occurs at the Sui field, which is located in theSouthern Indus Basin. PPL operates Sui field, with production averaging 655 Mmcf/d.Additional producing fields include Mari (446 Mmcf/d), Sawan (366 Mmcf/d), and Bhit(316 Mmcf/d). In 2005, BHP Billiton signed a Gas Sales and Purchase Agreement

(GSPA), in which the company will supply an additional 150 million cubic feet per day(Mmcf/d) of natural gas from its Zamzama field. BHP Billiton will complete phase IIdevelopment of Zamzama in the third quarter of 2007. Petronas brought its Rehmat fieldonline in March 2005. The field produces an estimated 30 Mmcf/d, which is sold toconsumers in Pakistans southern Sindh province. In the past few years, the countrydiscovered seven new natural gas fields. The Pakistani government expects thedevelopment of these new fields to add an additional 1 Bcf/d to Pakistan's natural gasproduction.

Proposed Pipelines

Pakistan Oil Production and Consumption, 1986-2006 (2006 is forecast).(Source: Ministry of Petroleum and Natural Resources-Pakistan)

Pakistans government is working on plans to build a pipeline that spans fromIransmassive natural gas reserves to Indian markets across Pakistani territory. In August 2006,Iran and Pakistan extended a previously signed (April 2005) memorandum ofunderstanding (MoU) until 2007. One of the main concerns for both Pakistan and India ishow much Iran will charge for the natural gas. To help mediate the pricing issue, thethree countries appointed an international consultant this past summer. Iran has offered to

cover 60 percent of the construction costs of the pipeline and Pakistani officials havestressed their ability to safeguard the pipeline. Pakistan could earn about $70 millionannually in transit fees from the pipeline. If India decides to forego its part in the pipelineproject, Pakistan and Iran have agreed to work on a bilateral Iran-Pakistan pipelineproject.A second natural gas import possibility that has been considered is an eventual link to theDolphin Project in Qatar. This plan would supply natural gas from Qatar's North Domefield to Pakistan via a sub sea pipeline fromOman. Even though Pakistan has signed apreliminary agreement to eventually purchase natural gas from Qatar, it remains to beseen if further action on the project will be taken.


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A third natural gas pipeline option that has been discussed is a line from Turkmenistan toPakistan via Afghanistan. Pakistan faces various hurdles with this option, which includethe security situation in Afghanistan and the price Turkmenistan would charge for thenatural gas. In addition, completed feasibility studies on the project, funded by the AsianDevelopment Bank (ADB), indicate that the Turkmenistan field of Daulatabad will only

be able to supply a portion of the natural gas needed by Pakistan.Liquefied Natural Gas (LNG)In addition to natural gas import pipelines, Pakistan is pursuing liquefied natural gas(LNG) import options to meet energy needs. In October 2006, United Arab Emirates-based Dana Gas and its partners, Single Buoy Moorings and the Granada Group signed aMoU to build an LNG import facility, with 3.5 million tons per year capacity. The facilitywould be completed in 2010 and would be located at Port Qasim, near Karachi.

Coal

Pakistan Coal Production and Consumption, 1984-2004. (Source: EIAInternationalE

nergy Annual 2004)Coal currently plays a minor role in Pakistans energy mix, although the country containsan estimated 3,362 million short tons (Mmst) of proven recoverable reserves. Pakistanproduces small amounts of coal, 3.5 Mmst in 2004, and imports additional coal, 1.7Mmst in 2004, to satisfy demand. Recently, the discovery of low-ash, low-sulfur lignitecoal reserves in the Tharparkar (Thar) Desert in Sindh province, estimated at 1,929Mmst, has increased both domestic and foreign development interest. China, which begandeveloping various electric power plants in tandem with the coal mines in 1994 inPakistan, has shown the most interest in the Thar region. However, several factors havehindered development of the.

Electricity


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Top Asian Electricity Generation and Consumption, 2004. (Source: EIAInternationalEnergy Annual 2004)

Pakistan had 20.4 gigawatts (GW) of installed electric generating capacity in 2004.Conventional thermal plants using oil, natural gas, and coalaccount for about 66 percentof Pakistans capacity, with hydroelectricity making up 32 percent and nuclear 2 percent.

The Pakistani government estimates that by 2010, Pakistan will have to increase itsgenerating capacity by more than 50 percent to meet increasing demand. In 2004,Pakistan generated 80.2 billion kilowatt-hours (Bkwh) of electricity while consuming74.6 Bkwh. Pakistan's total power generating capacity has increased rapidly in recentyears, due largely to foreign investment, leading to a partial alleviation of the powershortages Pakistan often faces in peak seasons. However, much of Pakistans rural areasdo not have access toelectric power and about half the population is not connected to thenationalgrid. Rotating blackouts ("load shedding") are also necessary in some areas. Inaddition, transmission losses are about 30 percent, due to poor quality infrastructure and asignificant amount of power theft.

Sector OrganizationThe electric power sector in Pakistan is operated by the Water and Power DevelopmentAuthority (WAPDA), and the Karachi Electricity Supply Corporation (KESC), withadditional generation contribution from Independent (private) Power Producers (IPPs).WAPDA is responsible for supplying power to all of Pakistan, with the exception ofKarachi, which is supplied by KESC. Currently, 15 IPPs operate in Pakistan under aBuild-Own-Operate (BOO) basis. The National Electric Power Regulatory Authority(NEPRA) regulates the power sector in Pakistan, which includes powergeneration, transmission and distribution. NEPRA is also responsible for determiningelectricity rates in Pakistan.

Disputes over rate adjustments are common within the industry. For example, in July2004, NEPRA announced that electricity rates would be lowered for domestic, industrialand agricultural customers in the three distribution areas of Hyderabad, Peshawar, andQuetta. The affected distribution companies complained that, due to lower rates, theywould be unable to cover their operating costs. NEPRA advised the federal governmentto subsidize the providers at a cost of around $24 million. WAPDA is at the center of apublic sector "circular debt" problem, in which state firms and government ministrieshave failed to pay power bills, while WAPDA has failed to meet obligations to them andto private sector creditors, especially state-owned PSO.


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Privatization

Pakistan's Electricity Generation, by Source, 1984-2004. (Source: EIAInternationalEnergy Annual 2004)

The Pakistani government continues to seek reform in the state-held electric companies.

In November 2005, the Privatization Commission in Pakistan sold KESC to HassanAssociates, a group of local and Saudi investors. KESC controls a power transmissionnetwork in the southern part of Karachi. Because KESC has struggled to make a profit,the Pakistani government has supported the company with a $200 million annual subsidy.But, Hassan Associates has indicated that they are confident in their ability to make aprofit from KESC in the future. The Pakistani government will maintain a 26 percentshare of the company. Plans have also been made to transform WAPDA into threegeneration companies, eight distribution companies and a transmission entity with thehope of seeing it privatized.

HydroelectricityHydroelectric power represents a third of Pakistans power source, however, periodicdroughts affect the availability of hydropower production. WAPDA controls thecountrys major hydroelectric plants, with the largest being the Tabela plant at3,046 megawatts (MW) installed capacity. The Tabela plant was the largest hydroelectricplant in Asia until China began building the Three Gorges project, which will have18,000 MW of installed capacity. Additional hydroelectric plants in operation includeMangla (1,000 MW), Warsak (240 MW), and Chashma (184 MW).Although Pakistan has plans to develop additional hydroelectric generating capacity,infrastructure constraints, such as access roads in mountainous regions and resettlementcosts of affected populations have stalled progress. Nevertheless, Eden Enterprises isgoing ahead with its Suki Kinari (655 MW) hydropower project. Eden Enterprises, along

with Pakistani partners own 95 percent of S.K. Hydro, which was given a 35-50 yearconcession period for the power plant. Construction is expected to begin in 2009, with theplant coming online in 2011. The Private Power and Infrastructure Board (PPIB) iscurrently reviewing six additional hydropower projects for the Swat River. If approved,the projects would provide several hundred MW of additional hydroelectric powercapacity to the country.

Conventional ThermalWAPDA operates the majority of thermal power plants in Pakistan, with over5,000 MW of installed capacity in its control. The Guddu plant is the largest plant


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operated by WAPDA, with a capacity of 1,650 MW. In recent years, growth inPakistans thermal power generation has come primarily from new independent powerproducers (IPPs), some of which have been funded by foreign investors. The two largestIPPs in Pakistan are Kot Addu (1,600 MW) and Hubb River (1,300 MW), both of whichsupply power to WAPDA. The Kot Addu plant was privatized in 1996 (from WAPDA).

International Power holds a 36 percent equity stake in the Kot Addu plant. The Pakistanigovernment has recognized that the majority of thermal plants in the country are runon fuel oil and produce considerable amounts of pollution. In an effort to reducepollution, the government would like to see fuel oil-power plants converted to natural gasin the future.

Other RenewablesPakistan is working to expand the use of renewable energy to help bridge the gap ofenergy deficiency in the country. In 2003, the Pakistani government created theAlternative Energy Development Board (AEDB). AEDBs primary objective is to helpPakistan achieve a 10 percent renewable energy share in the countrys energy mix.AEDB is working to create an environment in Pakistan that is conducive to investment

from the private sector in renewable energy. In July 2006, Turkish-based Zorlu EnergjiGrubu signed a letter of intent to install a 50-MW wind farm. Zorlu would operate thewind farm for 20 years once the project is completed in 2008. Zorlu has indicated that itwould like to install an additional 2,000 MW of renewable energy capacity in Pakistan by2015.

NuclearPakistan has one nuclear power plant, Chashma-1, with 300 MW of installed capacity.The Pakistan Atomic Energy Commission operates the nuclear plant. Pakistan iscurrently working on second nuclear power plant (Chashma-2), with the help of ChinaNational Nuclear Corporation. The plant will have 325 MW of installed capacity and

could be completed by 2009.

Nuclear Power in Pakistan(updated 17 May 2011)

Pakistan has a small nuclear power program, with 725 MWe capacity, but plansto increase this substantially.

Pakistan's nuclear weapons capabilities of has arisen independently of the civilnuclear fuel cycle, using indigenous uranium.

Because Pakistan is outside the Nuclear Non-Proliferation Treaty, due to itsweapons program, it is largely excluded from trade in nuclear plant or materials,which hinders its development of civil nuclear energy.

In Pakistan, nuclear power makes a small contribution to total energy production andrequirements, supplying only 2.34% of the country's electricity. Total generatingcapacity is 20 GWe and in 2006, 98 billion kWh gross was produced, 37% of it from gas,29% from oil.


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The Pakistan Atomic Energy Commission (PAEC) is responsible for all nuclear energyand research applications in the country.

Its first nuclear power reactor is a small 137 MWe (125 MWe net) Canadian pressurizedheavy water reactor (PHWR) which started up in 1971 and which is under international

safeguards - KANUPP near Karachi, which is operated at reduced power.

The second unit is Chashma-1 in Punjab, a 325 MWe (300 MWe net) 2-loop pressurisedwater reactor (PWR) supplied by China's CNNC under safeguards. The main part of theplant was designed by Shanghai Nuclear Engineering Research and Design Institute(SNERDI), based on Qinshan-1. It started up in May 2000 and is also known asCHASNUPP-1. Designed life span is 40 years.

Construction of its twin, Chashma-2, started in December 2005. It is reported to costPKR 51.46 billion (US$ 860 million, with $350 million of this financed by China). Asafeguards agreement with IAEA was signed in 2006 and grid connection was in March

2011.

Pakistan Nuclear Power Reactors

Reactor Type MWe netConstruction

start

Commercial

operation

Planned

close

Karachi PHWR 125 1966 12/72

Chashma

1

PWR 300 1993 6/00 2040

Chashma

2

PWR 300 2005 May 2011 2051

Total (3) 725

operatingKarachi is also known as KANUPP, Chashma as CHASNUPP.

Enriched fuel for the PWRs is imported from China.

In 2005 an Energy Security Plan was adopted by the government, calling for a hugeincrease in generating capacity to more than 160,000 MWe by 2030. It included intentionof lifting nuclear capacity to 8800 MWe, 900 MWe of this by 2015 and a further 1500MWe by 2020.


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Plans included four further Chinese reactors of 300 MWe each and seven of 1000 MWe,all PWR. There were tentative plans for China to build two 1000 MWe PWR units atKarachi as KANUPP 2 & 3, but China then in 2007 deferred development of its CNP-1000 type which would have been the only one of that size able to be exported. Pakistanis now planning to build smaller units with higher local content.

In June 2008 the government announced plans to build units 3 and 4 at Chashma, each320 MWe gross and largely financed by China. A further agreement for China's helpwith the project was signed in October 2008, and given prominence as a counter to theUS-India agreement shortly preceding it.

In March 2009 SNERDI announced that it was proceeding with design of Chasma 3 & 4,with China Zhongyuan Engineering as the general contractor and China Nuclear IndustryNo.5 Construction Company as installer. In April 2009, a design contract with SNERDIwas signed, and the government said that it had approved the project at a cost of $2.37billion, with $1.75 billion of this involving "a foreign exchange component". In March

2010 Pakistan announced that it had agreed the terms for Chasma 3 & 4, whereby Chinawould provide 82% of the total US$ 1.912 billion financing as three 20-year low-interestloans. The main construction contract was signed in June 2010, and the two 340 MWeunits are to be completed in eight years. They will have a design life of 40 years and beunder IAEA safeguards.

However, the Nuclear Suppliers Group (NSG) raised some questions about China'ssupply of Chasma-3 & 4. Contracts for units 1 & 2 were signed in 1990 and 2000respectively, before 2004 when China joined the NSG, which maintains an embargo onsales of nuclear equipment to Pakistan. China argued that units 3 & 4 are similarly"grandfathered", and arrangements are consistent with those for units 1 & 2.

In November 2010 PAEC is reported to have signed a construction agreement with ChinaNational Nuclear Corporation (CNNC) for a fifth unit at Chashma, which may revive theprospect of a 1000 MWe class unit if China has an exportable model by 2013 as planned.

Nuclear Power Reactors Under

Construction,Planned and Proposed

Reactor TypeMWe

gross

Construction

start

Commercial

operation

Chashma

3

PWR 340 April 2011? 2016

Chashma PWR 340 2012 2017


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Used fuel is currently stored at each reactor in pools. Longer-term dry storage at each siteis proposed. The question of future reprocessing remains open.

A National Repository for low- and intermediate-level wastes is due to be commissioned

by 2015.

Regulation

The Pakistan Nuclear Regulatory Authority is responsible for licensing and supervision,and in respect to the Chashma reactors it works closely with China's NNSA. It wasformed in 2001, superseding the Pakistan Nuclear Regulatory Board (set up by PAEC)and the Directorate of Nuclear Safety and Radiation Protection.

R&D and other activities

The Pakistan Institute of Nuclear Science & Technology (PINSTECH) near Islamabad ismanaged by the PAEC and is one of the largest science and technology researchestablishments in the country. It has conducted research into reprocessing used nuclearfuel, though today it claims to be focused on research in medicine, biology, materials andphysics, including production of medical radioisotopes.

Pakistan has a 10 MW pool-type research reactor, PARR-1, of 1965 vintage, supplied by

the USA under the Atoms for Peace program. It was converted to use low-enricheduranium fuel in 1991, and upgraded from 5 to 10 MW. PARR-2 is an indigenous 30kW miniature neutron source reactor (MNSR) based on Chinese design and using high-enriched fuel operating since 1974. Both are located at the PINSTECH Laboratory,

Nilore, near Islamabad. They are under IAEA safeguards.

New Labs is reported to be a reprocessing plant for weapons-grade plutonium production,and not under safeguards. It is run by PAEC and operational since 1981. This wasapparently the culmination of a plutonium weapons program predating the Kahuta HEUweapons program.

A larger "multipurpose" reactor, a 50 MWt PHWR near Khushab, started operating in1998 and is evidently for producing weapons-grade plutonium. A larger heavy water

reactor has been under construction at Khushab since about 2002, and appeared to beoperational at the end of 2009. In 2006 building of a third reactor, similar to the second,started at the site, with construction proceeding rapidly. Early in 2011 a similar, fourthreactor had evidently started construction there. These apparently add up to a substantialplutonium production capacity. Khushab is reported to be making demands upon thecountry's limited uranium resources. A small heavy water plant is nearby. Reprocessingof military material is reported to take place at Chashma, 80 km west, and a secondreprocessing plant is apparently under construction there.


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The Khan Research Laboratories (KRL) at Kahuta in Punjab is described as a weaponsengineering R&D institute and research laboratory, focused on producing high-enricheduranium using centrifuge technology originally stolen from Urenco by Dr Abdul Q Khan.Set up about 1976 as the Engineering Research Laboratories it was a key part ofPakistan's weapons program, supported by the Army Corps of Engineers in competition

with the plutonium program being pursued by PAEC. It was renamed in honour of DrKhan 1981.

Non-proliferation

Pakistan is not party to the Nuclear Non-Proliferation Treaty but does have its civil powerreactors and two research reactors (PARR 1 & 2) under item-specific IAEAsafeguards. It has refused calls for international inspections of its enrichment activities.

Pakistan's Kahuta project (incorporating Project-706) to produce a uranium bomb waslaunched in 1972, following a disastrous war with India. It was partly financed by Libya

to 1979. In May 1974 India exploded a nuclear test close to the Pakistan border,galvanising Pakistani efforts. The project was disbanded in 1983 after a successful coldtest of weapon components.

In May 1998 Pakistan exploded five atomic devices in Baluchistan. At least one wasevidently made from enriched uranium, but the Chagai II test in Kharan desert usedplutonium produced by New Labs.

Through the activities of Abdul Q.Khan, a centrifuge plant and nuclear weapons designswere supplied clandestinely to Libya from the late 1990s to 2003 to furbish a weaponsprogram there. He also transferred centrifuge technology to North Korea in the 1990s,

and to Iran.

Nuclear Arms Control in the Region

The public stance of Pakistanand India onnon-

proliferationdiffers markedly.

Pakistan has initiated a series of regional security proposals. It has repeatedly proposed anuclear-free zone in South Asia and has proclaimed its willingness to engage in nucleardisarmament and to sign the NPT if India would do so. This would involve disarming andjoining as non-weapon states. It has endorsed a US proposal for a regional five powerconference to consider non-proliferation in South Asia


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India has taken the view that solutions to regional security issues should be found at theinternational rather than the regional level, since its chief concern is with China. Ittherefore rejects Pakistan's proposals.

Instead, India's 'Gandhi Plan', put forward in 1988, proposed the revision of the NPT,

which it regards as inherently discriminatory in favour of the five Nuclear-WeaponsStates, and a timetable for complete nuclear weapons disarmament. It endorsed earlyproposals for a Comprehensive Test Ban Treaty (CTBT) and for an internationalconvention to ban the production of highly enriched uranium and plutonium for weaponspurposes, known as the 'cut-off' convention.

The USA has, for some years pursued a variety of initiatives to persuade India andPakistan to abandon their nuclear weapons programs and to accept comprehensiveinternational safeguards on all their nuclear activities. To this end the Clintonadministration proposed a conference of nine states, comprising the five establishednuclear-weapon states, along with Japan, Germany, India and Pakistan.

This and previous similar proposals have been rejected by India, which countered withdemands that other potential weapons states, such as Iran and North Korea, should beinvited, and that regional limitations would only be acceptable if they were acceptedequally by China. The USA would not accept the participation of Iran and North Koreaand such initiatives lapsed.

Another, more recent approach, centres on the concept of containment, designed to 'cap'the production of fissile material for weapons purposes, which would hopefully befollowed by 'roll back'. To this end India and the USA jointly sponsored a UN GeneralAssembly resolution in 1993 calling for negotiations for a 'cut-off' convention. Should

India and Pakistan join such a convention, they would have to agree to halt theproduction of fissile materials for weapons and to accept international verification ontheir relevant nuclear facilities (enrichment and reprocessing). In short, their weaponsprograms would be thus 'capped'. It appeared that India was prepared to join negotiationsregarding such a Cut-off Treaty under the UN Conference on Disarmament (UNCD).

However, despite the widespread international support for a FMCT, formal negotiationson cut-off have yet to begin. The UNCD can only approve decisions by consensus andsince the summer of 1995, the insistence of a few states to link FMCT negotiations toother nuclear disarmament issues has brought progress on the cut-off treaty there to astandstill. In connection with its 2006 agreement with the USA, India has reiterated itssupport for a FMCT.

Bilateral confidence-building measures between India and Pakistan to reduce theprospects of confrontation have been limited. In 1990 each side ratified a treaty not toattack the other's nuclear installations, and at the end of 1991 they provided one anotherwith a list showing the location of all their nuclear plants, even though the respective listswere regarded as not being wholly accurate. Early in 1994 India proposed a bilateralagreement for a 'no first use' of nuclear weapons and an extension of the 'no attack' treatyto cover civilian and industrial targets as well as nuclear installations.


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Having promoted the CTBT since 1954, India dropped its support in 1995 and in 1996attempted to block the Treaty. Following the 1998 tests the question has been reopenedand both Pakistan and India have indicated their intention to sign the CTBT. Indianratification may be conditional upon the five weapons states agreeing to specific

reductions in nuclear arsenals.

Energy crisis, causes & remedies;

Pakistan has been suffering from an energy crisis for about half a decade now. The powercrisis is proving to be unbearable. The sad state of affairs is that despite having enormousrenewable resources of energy, Pakistan has to import a huge amount of hydrocarbonsfrom abroad to meet its energy needs. As recently as 2001, the country had 4,000megawatts of excess power capacity. Today unfortunately the situation has gainedthreatening prospects. According to a research most of the high enthalpy geothermalresources of the world lie within the seismic belts passing through Pakistan. Pakistan hasa history of geotectonic events. Tectonic plates are segments of earths lithosphere, hardrocky outer shell. Hence this geothermal energy can be exploited in a better sense of theterm. The major resources of energy are oil, gas, petroleum products, coal, nuclear, solar,biomass and wind energy.

Let us chalk out the reasons for shortage of energy. Lopsided priorities, poormanagement and lack of accountability can be denoted as the reasons for dearth of energyin Pakistan. The number of consumers of electricity are now increased owing to the rapidurbanization process. The facility of electricity is now provided to the remote villages.We waste a lot of energy, about 15 to 20 percent through poor distribution system.Industrial, transport and domestic sectors are the three important consumers of energy. Itis assumed that a misplaced use of energy is rampant in industries which need to becurtailed.

Few years back Pakistan used to get half of its electricity from hydel power andremaining from thermal generation. However there is a limit to the extent of exploitationof hydel resources and thermal power plants due to environmental and other concerns.Modalities for overcoming the energy crisis are multifold. To meet the challenge there isa dire need to go to the alternate sources of energy. Some people suggest that process of

converting coal into product gas underground can be a good alternate source of energy.Technically this process is called as underground coal classification. Through this theunderground deposit of coal is treated with controlled fire. Gradually the coal turns intogas. The largest coal reserves of Pakistan exist in Thar. There this source can beencashed.

Besides coal, the renewable energy as biomass has solutions to our problems. Biomass,material derived from plants or animals, includes wastes, agricultural residues andgarbage. It is suggested that subsidies and tax concessions must be provided forimporting machinery for establishing biogas power plants in Pakistan. It can prove to be a


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great source of energy for us as Pakistan is an agricultural country. Come to solar energypanels, though initial cost of installing solar panels is comparatively high but throughthem the highest levels of efficiency can be reached. I visited Balochistan recently andwas really surprised to see the great solar potential there. It is not only the valley ofminerals but it has a lot of wind and solar energy, having a scattered habitat and ample

sunshine. But to my utter dismay the number of solar panels installed there were veryfew. Some important advantages which favour the use of solar energy use in Pakistaninclude low operational and maintenance cost, environment friendly dimension etc.

Similarly the wind energy is also in excess and we can harness this energy in a muchmore effective way. Wind can be utilized to produce electricity at the coastal areas. Ifpower plants are set up driven by the wind energy along the coastline and this venture ishanded over to foreign investors, the results can be quite satisfactory. Manufacture ofwind generators can be made indigenously. Still other sources apart from hydel andthermal which can meet the growing demand nuclear energy can also overcome theenergy needs. Pakistan Atomic Energy Commission has developed a large infrastructure

to manufacture equipment for power but even then we are not able to make considerableprogress in the nuclear field.

More and more nuclear reactors for power generation must be built. Similarly, hotclimatic conditions of some areas of upper Sindh and Southern Punjab may prove to be asource of solar energy. We have to devise bold and concrete ways on a war footing toovercome the electricity deficit coupled with an instant change in attitude at the earliest.The Quaid-i-Azam said: Let us mobilize all our resources in a systematic and organizedway and tackle the grave issues that confront us with grim determination and disciplineworthy of a great nation. Therefore the consolidation of the domestic resourcemobilization is a call of the time. A collective national effort is needed to face thechallenge .Prompt measures need to be taken by the government. The belated responsewill only add up to more problems.

One other suggestion is that the existing thermal power plants running on expensiveimported furnace oil can be converted into natural gas and afterwards to coal. Thegovernment can go for establishing a government body for fixing targets for developmentof power sectors. Ways must also be devised to stop power theft besides transmission anddistribution losses. The long transmission lines connecting grid with hydel stations arefaced with transmission losses. These hydel stations are located mostly in the north of thecountry while thermal units are mainly installed in the centre and southern areas ofPakistan.

Pakistan and Government Policies

Loadshading and Government Policies:Pakistan is facing very serious energy crisis of electricity. Loadshedding has become a

nightmare for all Pakistanis. Government has not taken sufficient steps to solve this

problem. Government is practising on the policy of Wait and See. Price of Electricity

in Pakistan is almost Rs. 11 per unit. And it is doubled when all taxes included in the

monthly bill. Moreover it is also said that electricty charges will increase after every two

months due to accepting IMF, American and World Bank Policies. Some people are


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ready to buy electricity at any cost but ironically it is not available to those also.

Electricity is available to only those in Pakistan who are enjoying this Luxury of

Electricity free of cost on government expenses and who dont pay for it.

Loadshedding and Iran Offer

Iran has offered to Government of Pakistan to supply the electricity urgently on very

cheap rates of about one third of Regulated Price Plan (RPP). Iran has its offer of

providing 1100MW since 2008 and now Iranian Embassador Masha Allah Shakeri said

that Iran is ready to double its offer to 2200MW to Pakistan. Iran has built infrastructure

to the borders of Pakistan, now Pakistan have to only built infrastructure on its side to use

the electricity. Paksitan may ask to Islamic Development Bank for the financial

assistance and Iran too can help in this regard to Pakistan. Iran is already exporting

electricity to Turkey, Afghanistan and Armenia. Although Iran is itself in problems now a

days but its offer to Paksitan is very great.

Loadshedding and China Offer

China has offered to supply the electricity at the cost of Rs. 300/month for unlimited

usage. China is our neighboring country which helps Pakistan in every need of hour. We

must take its offer seriously.

American Behaviour in Energy Crisis

Pakistan is in severe energy crisis but america is not doing any sort of help to solve this

problem. However it is enforcing to the government of Pakistan to impose new taxes onelectricity and fuel prices and ultimately increase the rates of electricity and oil.

Government of Pakistan should act in accordance with the interest of people of Pakistan

to reduce their sufferings by providing uninterrupted electricity at reasonable rates.

Government of Pakistan should stop taking the dictation from USA and IMF and

immediately accepts the offer of cheap electricity of Iran and China.

nott

China offers to help out energy crisis

By Iqbal Mustafa

ISLAMABAD China today offered financial and technical assistance to massivelydevelop hydro and wind power, up-grade the existing transmission system and provide anintegrated solution to the perennial problems of power shortages and disruptions inPakistan.


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The offer was made by Chairman, China Three Gorges Project Corporation (CTGPC CaoGuangjing, Chinese pioneer in hydro power project development in a briefing at theAiwan-e-Sadr today.

The Briefing was attended by Cao Guangjing, Chairman China Three Gorges Project

Corporation (CTGPC), Huang Xilian, Charged

Affairs, Lin Chuxue, Vic President(CTGPC), Chen Wenbin, Chief Economist, Cai Chaokuan, advisor, Zhang Jianguo,Director of the Presidents office, Zhang Dinming, Director of strategic developmentdepartment, Wang Shaofeng, Vice President, Ms Jin Zheping Dy General Manger CWEand other senior Chinese officials were present during the meeting.

Pakistani side included Dr. Zaheeruddin Babar Awan, , Federal Minister for Law, Justiceand Parliamentary Affairs, Syed Naveed Qamar, Federal Minister for Privatization andWater and Power, M. Salman Faruqui, Secretary General , Khalil Ahmad, ambassador atlarge, Malik Asif Hayat, secretary to the President, Javed Iqbal, secretary Water &Power, Shakeel Duraani, Chairman WAPDA, Spokesperson to the President Farhatullah

Babar, Rasool Khan Mehsud, MD PEPCO and N.A. Zuberi. MD PPIB.

China Three Gorges Project Corporation also offered to develop multipurpose hydroelectric projects through direct financing model based on Public Private Partnership andBOOT (build, own, operate and transfer) basis.

Briefing the media, Spokesperson to the President Farhatullah Babar said that ThreeGorges Project Corporation is already involved in a number of multipurpose hydro andwind power projects in the country.

He said that the ongoing hydro electric projects in which China Three Gorges Project

Corporation is involved include Karot, Taunsa, Kohala and Bunji hydro electric projects.He said that the feasibility of the 720 MW Karot hydro electric project has been approvedand Letter of Interest (LoI) issued. Similarly the MOU for the 120 MW Taunsa hydroproject has been signed and the joint development agreement of the project is ready to besigned this month.

Farhatullah Babar said that the up-dated feasibility study of the 1100 MW Kohala hydropower project has been approved, the letter of interest (LoI) issued and is ready for tariffnegotiations. The 7100 MW Bunji hydro electric project for which MoU was signed inAugust 2009 is ready for site survey, he said.

He said that the ongoing wind projects included Karachi First Wind Farm, KarachiSecond Wind Farm while Punjab Wind & Solar Projects are also in advanced stages.

The spokesperson said that the President advised the federal government to considertasking the China Three Gorges Project Corporation to also build a run of the river hydroproject at Sukkur Barrage and asked the Water and Power Minister Syed Naveed Qamarto liaise with the stake holders to finalize project proposal within 60 days.

The President gave this advice when the briefing was informed that Joint DevelopmentAgreement was due to be signed this month for the 120 Megawatt Taunsa hydro powerproject and the Chairman WAPDA Shakeel Durrani informed that the discharge at


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Taunsa was 10,000 cusecs as against over 12,000 cusecs at Sukkur where the modelcould easily be replicated.

The President said that Pakistan already had a Free Trade Agreement with China ingoods, investment and services which ensured full security to Chinese investment in

Pakistan. He said that with low cost and hard working labor together with liberalincentives offered by the Government and access to huge markets of countries in theregion, Pakistan offers unique opportunity to Chinese investors. The President said thatthe true potential of business partnership between the entrepreneurs of two countries hadyet to be fully realized.

The President appreciated the Three Gorges Project Corporation for undertaking theenergy projects and offering to provide integrated energy solutions and assured that thegovernment will support and facilitate the Three Gorges Dam Project Company in theongoing power projects in Pakistan.

Earlier the President conferred Hilal-i-Quaid-e-Azam on Cao Guangjing. The ChairmanChina Three Gorges Project Corporation (CTGPC) thanked the President for conferringthe prestigious award of Hilal-i- Quaid-i-Azam upon him and assured full cooperation of

the Chinese government in meeting energy requirements ofPakistan.

Alternate Ways to Overcome Energy Crisis in

Pakistan

Energy in all forms is closely linked to economic prosperity of the county. Energy

demand is increasing day by day because of urbanization, climate change and global

warming.

Pakistan is energy deficient country because of its inadequate energy power supply mix,

rising energy gap between supply & demand, lack of energy efficiency legislation and its

implementation.

Conventional ways of generation of electricity energy through non-renewable resources

is a long term process and this process usually takes five to ten years. In parallel to this,

we should adopt all alternate ways to save and generate electricity through renewable

resources to overcome the energy crisis in Pakistan. We discuss below that what the

alternate ways to save and generate energy are.


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ENERGY CONSERVATION AND ENERGY EFFICEINCY

IMPROVEMENT

The first and foremost task is to save and conserve

energy in domestic, commercial, industrial and

institutional facilities. Every facility is trying to

conserve energy but process is too slow because

of the lack of the energy conservation legislation

and its implementation.

The most dominant energy saving activity is the

replacement of incandescent lights with compact florescent lighting (CFL). No doubt this

activity will save lot of energy but this is not sufficient. The energy saving activities to be

adopted in domestic, industrial, commercial and institutional facilities are as follows,

Insulation of buildings roofs, walls, pipes and ducts.

Use of glazed glass at building facades

Use of energy efficient materials in buildings

Use of high efficiency motors, pumps and controllers

Use of Variable Frequency Drives (VFDs)

Replacement of conventional heating & cooling by solar water heating & cooling

Replacement of electro-magnetic ballast by electronic ballasts

Replacement of conventional lighting by LED and Solar Lighting

Installation of automatic shut off of lighting

Installation of occupancy sensors

Installation of exterior lighting controls

Pakistan Engineering Council and ENERCON have made joint efforts to conclude the

Building Energy Code 2010 through a task force consisting of experts from various

sectors and Izhar Group also contributed in this endeavor but without legislation and its

implementation, we can not achieve energy saving targets. There is a need for quick

enforcement of the Building Energy code 2010 so that national energy saving targets can

be achieved.

ALTERNATE AND RENEWABLE ENERGY APPLICATIONS

SOLAR THERMAL


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Solar Thermal is the process of generating heating and cooling through solar radiations.

Solar Water Heaters are very economical and feasible option for use in domestic,

commercial, industrial and institutional facilities. The barrier to the growth of application

of solar water heating is the lack of knowledge, skills for installation, operation and use

of solar water heaters. The users behavior and wrong perceptions is also one of the main

barriers in its growth. The growth of the solar water heaters can be increased by creating

more incentives by the government and making it mandatory through Building Energy

Code to install solar water heaters in all kinds of facilities. The payback of solar water

solution varies from one to two years.

SOLAR PHOTOVOLTAICS

Solar Photovoltaic is the process of generation of electricity through solar radiations. It is

commonly called as PV. PV components include Solar Panels, Inverters and Charge

Controllers, Deep Cycle Batteries, Mountings, cables and accessories. Solar PV solution

is not affordable and feasible as the current price of PV solution is $8 per watt. This high

cost is because of 40% duties on PV Components. The recent news in media about zero

duty shows that Government has reduced duties to zero but one time zero duty needs

more clarification by the Government. If the news of zero duty for all times is correct,

this will spur growth in PV sector and this can help in saving energy. Grid Tied is process

by which the electricity can be sold back by user to the grid at fixed feed-in-tariff and

when electricity is sold back, the energy meter moves in reverse direction. Grid-Tied

policy implementation is the real solution to overcome energy crisis in Pakistan.

Alternate and Renewable Energy Policy 2010 is almost ready and in last Women to

Energy Conference at PEC, it was told by AEDB that this policy will be enforced in

January 2011 but so far this policy is also prey to vested interests. This policy can bring

revolution in Pakistan if truly implemented.

SOLAR & LED LIGHTING

Solar and LED lighting is really a best energy saving option. The barrier in its growth is

the high percentage of duties on import of Solar and LED lights. If the duties are made

zero, this sector can grow at faster pace. It is just an estimate that 400 watts of

conventional search light can be replaced by 80 Watt LED search Lights. You can see

tremendous search lights in Government and Pakistan buildings and about one fifth

energy can be saved by just replacement of conventional lights with LED lights. LED

lighting has tremendous advantages in comparison with conventional lighting.

WIND POWER


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Wind Power is relatively a cheaper alternate energy

solution and Pakistan has great potential in wind power.

The barrier in its growth is the lengthy process of

acquisition of land and coordination issues of wind

power developers with the Government Institutions.

Implementation of AE and RE policy 2010 can be

instrumental in its fast growth of wind power.

ENERGY ADMINSTRATION AUTHORITY

One of the barriers in growth of Alternate and

Renewable applications is the lack of presence of one

sole Energy Administration Authority for regulation of

energy sector. We strongly recommend that that one

Energy Administration Authority should be evolved to streamline decision making.

Energy Efficiency Improvement and use of alternate and renewable energy applications

can bring the country out of energy crises and it will help in reduction of GHS emissions

enhancing energy security of the country.

Government should provide facilitation through legislation, Private sector should follow

the policies and laws and all chambers of commerce and industries should bridge this gap

by providing platform where the Private and Government sector should work as team for

growth of Alternate ad Renewable Energy Sector in Pakistan.

The writer is a graduate Engineer and MBA with 30 years experience of business

development and marketing of technology products and solutions. He is also a visiting

teacher in Universities. He is a member of REAP and ISES (International SolarEnergy

Society) Germany and member ASHAREUSA. He is currently serving as General

Manager Business Development in IzharEnergy Services Izhar Group of companies.

R


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Reference http://www.slideshare.net/asharahmed/electricity-crisis-in-pakistan

http://energy4kids.blogspot.com/

http://www.altenergymag.com

http://www.cssforum.com.pk/css-compulsory-subjects/current-affairs/current-

affairs-notes/4082-energy-crisis-pakistan.html

http://www.eoearth.org

http://www.world-nuclear.org

http://bioenergy.checkbiotech.org

http://www.enerdata.net

pakobserver.ne

e http://www.epakcafe.com/

rhttp://dailymailnews.comnment

http://www.altenergymag.com

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