In Khyber Pakhtunkhwa, the provincial government is actively encouraging private sector participation in hydropower development
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ub-engineer Syed Khan, a former union council chairman, hails from the picturesque Matiltan Valley about 10 kilometres from Kalam, a scenic town in Upper Swat. Renowned for its natural beauty, the area attracts a large number of tourists during the summers.
Syed Khan recalls that nearly 30 years ago, a non-governmental organisation initiated a micro-hydropower project in the valley to provide electricity to residents. “To date, this project continues to supply power to around forty households,” he says. “The cost is minimal. Initially, our tribe used to pay a collective annual bill of Rs 40,000; with rising costs, it has now reached Rs 80,000.”
The community pays this annual fee to ensure timely maintenance and quick repairs in case of any technical malfunction. “This way, we can keep the power running,” Syed Khan says.
The electricity generated is used primarily for lighting and basic needs. “We use it for essentials—heating water, ironing clothes—but mostly for lighting,” he says.
During peak tourist season—typically June to August—locals voluntarily ration electricity during the day so that the visitors can use it too. “Tourists need power to charge their phones and cameras, so we prioritise their needs. Fortunately, the weather is pleasant, and there’s no real need for fans,” he notes.
The micro-hydropower project has not only improved the quality of life for the community but also enhanced the tourist experience in the region. Visitors depend on the available electricity for their daily needs, and the sustainable setup often leaves a lasting impression.
Hundreds of similar community-driven micro-hydropower initiatives have emerged across Malakand, Dir, Chitral, Swat and the Hazara division—many spearheaded by local communities, others by federal and provincial authorities. Additionally, several larger-scale private sector projects are under way and expected to be completed over the next five years, potentially transforming the energy landscape of these mountainous regions.
Khyber Pakhtunkhwa holds immense potential for hydropower investment. The provincial government has actively encouraged private sector participation. Currently, dozens of private hydropower projects, capable of generating over 1,000 megawatts, are nearing completion.
The Khyber Pakhtunkhwa Hydropower Policy, introduced in 2016, aims to provide low-cost power generation, attract private sector investment and promote green energy.
According to open data from the Pakhtunkhwa Energy Development Organisation, 63 MW public sector hydropower projects are also nearing completion. Public sector projects totalling 718 MW are expected to be operational by 2028. In the private sector, projects generating 1,087 MW are slated for completion by 2030.
However, significant challenges remain. These include the absence of a dedicated provincial power grid and adequate transmission infrastructure. The government has acknowledged the issue and initiated steps to address it but the progress has been slow.
To provide affordable electricity to residents, the provincial government established the Khyber Pakhtunkhwa Transmission and Grid System Company in 2020. However, five years on, no significant progress has been made on developing a dedicated provincial grid.
Abrar Ahmad, a resident of Kalam, says that most micro-hydropower projects were built with funding from the European Union. These projects were completed with the support of the Sarhad Rural Support Programme and the local community. Primarily community-driven or supported by some NGOs, these small-scale power stations offer electricity to domestic consumers at just Rs 4 per unit, significantly cheaper than utility rates in other parts of the country.
However, Kalam’s growing population and booming hospitality sector have outpaced the supply from these micro-hydro plants. Hotel owners have resorted to running diesel generators and those with larger establishments are now spending between Rs 40,000 and Rs 50,000 daily on fuel alone. Kalam is now grappling with a serious electricity shortage, especially in the tourism-driven hotel industry.
Ahmad says the situation is exacerbated by the fact that the main WAPDA transmission line serving Kalam was destroyed in the 2010 floods. Fifteen years later, it has yet to be restored. While the micro-hydro stations have provided critical support, he says, grid electricity is also essential for the area’s growing needs.
He notes that micro-hydro projects across Upper Swat serve as a lifeline for local communities. However, the 2022 floods caused widespread destruction, wiping out dozens of these essential power sources and deepening the area’s energy crisis.
Last year, on November 2, PEDO initiated Khyber Pakhtunkhwa’s first-ever power transmission line. A formal signing ceremony took place at the Chief Minister House in Peshawar.
The project involves constructing a 40 kilometre, 132/ 220 KV transmission line from Matiltan to Madian in Upper Swat. With an estimated cost of Rs 8 billion, the project is expected to be completed in 18 months. However, no substantial progress on the project has been reported since the signing of the MoU.
Once operational, the transmission line will facilitate transfer of electricity from PEDO’s 84 MW Matiltan Hydropower Project and other regional projects. This energy will either be fed into the national grid or supplied directly to local industries. According to PEDO, the line is expected to generate at least Rs 7 billion annually.
This transmission line also marks the first phase of the Swat Corridor Transmission Line Project, with plans for a second phase to extend the line an additional 80 kilometres from Madian in Swat to Chakdara in Lower Dir. Several high-capacity hydropower projects are already under way along this corridor.
According to a recent study by Ember, a global energy think tank that supports clean energy transitions through data and policy, Pakistan’s largest source of clean electricity is hydropower (19 percent). However, Pakistan’s combined share of wind and solar energy (13 percent) remains below the global average (15 percent).
The writer is a multimedia producer. He tweets @daudpasaney