Jang Group seminar ‘Pak Power, Progress and Way Forward’: Electricity to be supplied in summer as per demand: Leghari

ISLAMABAD: Pakistan’s power sector would not be sustainable, unless the power distribution system is improved by controlling electricity theft, inefficacies and improvising recoveries.

These inefficiencies on the distribution side are adding up billions of rupees to the ballooning circular debt which has long been a feature of Pakistan’s energy sector.

“Distribution system has to be improved, otherwise power sector is unsustainable. Revolutionary measures are needed, there is lack of technology and we need distribution side investment.” Federal Minister for Power Division Awais Ahmad Khan Leghari said this at the opening session of the Jang Media Group’s seminar titled ‘Pak Power, Progress and Way Forward’ here on Monday.

Besides dignitaries from other countries, the ambassadors of the United States, China, Germany and Turkey also took part in the seminar.

On supply sides, the government with the support of the international partners is adding thousands of megawatts to the national grid, but controlling the distribution losses was the main concern. For this purpose, the federal government has been making hectic efforts and bringing more check on the power distribution companies (Discos) to rein in the ballooning circular debt being causing by their inefficiencies. The government is also seeking the support of the provinces and law enforcement agencies to come forward to help us in improvising power sector recoveries.

Leghari said that this summer in peak season we would be in a position to supply same amount of energy as much needed, however, those areas where bills are not paid and their losses are high would still face power outages. Those who pay (their bills) will get power, as we cannot spend tax money for covering inefficiencies and theft (at these Discos).

“The government has finalised a new ‘National Electricity Policy’ and by end April or start of May 2018, we would take its final draft to Council of Common Interests (CCI). This policy envisaging the roadmap for future development of electricity generation, transmission and distribution capacity and its market structure is being finalised which will be announced soon after the CCI’s approval. Likewise, a National Electricity Plan is being developed to specify the energy mix, sources of energy capacities, locations of projects, share of renewable and various conventional fuels,” he said.

In order to increase energy security and improved service delivery for the end consumers, necessary amendment in the Regulation of Generation, Transmission and Distribution of Electric Power Act (Nepra Act) has also been made and is in final stage of approval by the Parliament. This would strengthen Nepra to introduce an open market for sale and purchase of electricity and enable competitive transactions as new players could be introduced with an energy exchange, electricity traders and electricity supplier’s regime.

“We are committed to renewable energy sources inclusion in energy mix. It is basis of our policy and is way forward. By end of this month, the government would auction solar and wind power projects of 1,200MW. Besides, a PC-I has been sent to the Planning Commission envisaging conversion of 30,000 agriculture tube wells to solar power instead of grid-based power to save Rs50 billion subsidy that is being given to them every year,” said the minister.

Chinese Ambassador to Pakistan Yao Jing said that Pakistan is strategically located having more than 200 million population and its economic take off needs energy infrastructure. “China wants to see Pakistan developed. China believes that its development is related to the development of all of its neighbours and CPEC is one of the initiatives,” he said.

Yao Jing said that we are also joining for Pakistan’s development like other partners. “China has been working on 19 power projects in hydro and coal etc. over last four years, six have been completed,” he said.

A panel discussion also took place with Ambassador of China Yao Jing, Ambassador of US David Hale, Ambassador of Germany Martin Kobler and Ambassador of Turkey Ihsan Mustafa Yurdakul.

Ambassador Hale emphasised that the United States has been engaged in supporting Pakistan’s energy sector since the 1950s. “In the last 70 years, we contributed in enabling Pakistan to provide electricity for one in six of its citizens and we are very proud of this contribution,” he said.

David Hale also pointed out that America was working with Pakistani authorities on good management and best practices in terms of policy development. “We have enabled Pakistan to have access to our top managers and expertise from the US Department of Energy and an initiative called integrated energy planning,” he said.

He said the American companies would be eager to participate and compete in the energy sector in Pakistan.

Martin Kobler said from decades now, Germany is supporting Pakistan in energy sector.

“Global energy transition is underway and renewable energy is gradually changing energy mix. Private companies drive the renewable,” he added.

He further said why Pakistan requests the US, Germany and others (for help in technology, equipment and expertise)? “It should invest in its research and development (R&D). Since Pakistan is a nuclear state, it should work on R&D in energy sector and develop its own solar cells and other equipment and make itself self-reliant technology wise,” he said.

The German ambassador said that transparency in the CPEC and other project related to energy should be ensured.

The Turkish ambassador said that Turkey has good experience in renewable energy generation.

“Energy security is a key to development of a country. We have developed Quaid-i-Azam Solar Power Park and its first 100 megawatts were commissioned in May 2015 and is expandable to 300MW,” he said.

Yao Jing said Pakistan and China energy cooperation is on sound basis. He said both the countries need to learn from each other.