• Planning Commission prepares for Rs61bn energy projects

      August 04, 2011
      Print : Business

      KARACHI: The Energy Wing of Planning Commission of Pakistan has recently prepared working papers of the projects worth Rs61 billion for the consideration of Central Development Working Party (CDWP) and ECNEC.

      According to details, these projects include rehabilitation and modification of existing power projects, development of hydro power projects, transmission interconnection systems and development of national integrated energy modelling system of Pakistan.

      Besides, the energy wing also made advancements on the revised PC-I of power sector projects including construction of 7.64 megawatt (MW) Marala Hydropower Project, construction of 4.04 MW Deg Out-Fall, construction of 2.82MW Pakpattan, 4.16 MW Okara and 5.38 MW Chianwali hydropower projects and prepared feasibility studies of hydropower stations in Punjab.

      The country’s power shortfall hovers at 5,500 MW, forcing the power utilities to observe hours-long load shedding in urban and rural areas across the country.

      Ministry of Water and Power and its subordinate power generation companies have not been able to meet the actual electricity demand of 18,847 MW because of less generation that stands at around 13,000 MW.

      Developing power generation capacity is capital-intensive as capital requirements for the current deficit of 5000-7000 MW estimated for summer of 2011 are wobbling sums of $6 billion to $9 billion.

      According to estimates, the hydel generation stands at 5,224 MW, WAPDA thermal 1,793 MW, Independent Power Producers (IPPs) 5,636 MW and Rental Power Plants (RPPs) 199 MW.

      Total installed capacity of hydropower projects in the country so far is 6720 MW, out of which 3849 MW is in Khyber Pakhtunkhwa, 1699 MW in Punjab, 1039 MW in AJ&K and 133 MW is in the Gilgit-Baltistan.

      At present there are 27 private power projects with installed capacity of about 6870 MW, which are in operation, while in addition Kot Addu Power Company 1650MW and Karachi Electric Supply Company (KESC) power plants 1946 MW are also operating in the private sector.

      Power shortage has been one of the chronic problems hampering the country’s socio-economic growth since late 1980s.

      The problem has assumed such acute dimensions that power supply fell short of demand by almost 2000 MW during peak load hours and this resulted in forced interruptions in the supply of electricity to consumers during peak hours resulting in load shedding.

      The key to improved performance in the energy sector is development and implementation of a national integrated energy policy, followed by an integrated energy plan.

      The government has mandated Planning Commission to develop the energy policy.

      According to reports, there are potentially dramatic gains in supply to be realised from energy efficiency. Savings from energy efficiency could reach 18 percent of total energy consumed in the country.

      According to the National Energy Conservation Centre (ENERCON), annual energy savings of up to 25 percent are possible in all sectors equalling $3 billion in savings annually and a 51 percent reduction in oil imports.

      The government will expedite the promulgation of an energy efficiency framework law covering provisions for codes, standards, energy reporting, labeling, testing, mandatory audits, fines and incentives, monitoring, and compliance mechanism in 2011.