“What does ‘LOL’ stand for in Pakistan?

‘Lots-of-Load shedding’

nergy is lifeline of all modern societies. All productive and supportive activities in today‘s world are heavily dependent on assured supply of energy. Whether it is industry or agriculture, transport or communication, services or education, health care or entertainment, water supply or sanitation, it is unimaginable to pursue any of these activities without the availability of adequate and reliable energy in one form or the other. Electric power, which is the most widely used form of energy in today‘s world, is also dependent on other forms of energy inputs for its generation. Thus access to reliable and affordable supply of energy is the key to economic growth and welfare of any society. Studies by International Energy Agency and other international organizations have shown strong correlations between access to energy, particularly electricity, and sustained economic growth, human welfare, governance and security, underscoring the need for ensuring energy security. The energy policy of Pakistan is formulated and determined by the federal, provisional, and local institutional entities in Pakistan, which address the issues of energy production, distribution, and consumption of energy, such as gas mileage and petroleum standards

Definition:

“It is a capacity of a physical system to perform work. (Shortage of oil, natural resources etc.)It plays a very important role in Socio-Economic Development of any country.”

“An energy crisis is any great shortfall (or price rise) in the supply of energy resources to an economy. It usually refers to the shortage of oil and additionally to electricity or other natural resources.”

HISTORY:

1960:

A large civilian energy input and infrastructure was built by the Pakistan military, with the financial funds provided by various countries and international monetary sources.
Much of the energy was produced by the hydroelectric dams and thermal power stations.

1970:

In the 1970s, Pakistan's energy consumption expanded to nuclear power sources with the establishment and commissioning of first nuclear power station in Karachi.
Highest oil production in major industrial nations (Germany, United States, Canada, etc.)

1973:

Oil crisis

1980:

The dependence on nuclear sources further grew and the military continued engineering and building the nuclear power infrastructure.

1994:

Prime Minister Benazir Bhutto of Pakistan People’s Party (PPP) launched the country's

Out of the total installed capacity of 11000 MW, 60% of energy was produced from the hydroelectric power sources.To resolve the growing crisis, the Pakistani government implemented a new policy, which was designed to attract foreign investment in the power sector and as a result there was construction of oil based power plants. These power plants were cheaper and faster to construct compared to other electricity generation plants such as hydroelectric dams.

1995:

Only 27 IPPs were able to generate 6,335MW of electricity.

2001:

The military government led by President Pervez Musharraf and Prime Minister Shaukat Aziz, while contributing to the growth of domestic demand for electricity through large-scale provision of bank loans for the purchase of air-conditioners and home appliances (share of domestic energy consumption had jumped to 46% of the total by 2008)

2005:

In 2005, Prime Minister of Pakistan, Shaukat Aziz announced the Long-term energy security program which was aimed to the development of the power infrastructure from all energy sources.

2008:

After the general elections the mismanagement and weak policies increased the cycle of load shedding in the country.
Prime Minister, Yousaf Gilani announced the "energy policy" on 22 April 2010

2013:

Musadik Malik has been entrusted to develop Energy Policy for Pakistan. He was appointed Federal Minister, Water and Power of the Pakistan Government in 2013.

Energy Crisis in Pakistan slideshare

Power Production in Pakistan:

Presently in Pakistan energy is generated in the form of:

Hydal Power:

Hydal power stations in Pakistan are working at Warsak, Mangla, Tarbela and Ghazi Brotha.

Advantages to hydroelectric power:

1.Fuel is not burned so there is minimal pollution

2.Water to run the power plant is provided free by nature

3.Relatively low operations and maintenance costs

Disadvantage:

1. Hydroelectric plants are very expensive to build.

2.The creation of dams can also create flooding of land, which means natural environment destroyed.

Thermal Power:

In Pakistan, thermal power stations are located in Multan, Hyderabad, Karachi and many other places.

Advantages:
1. The fuel used is quite cheap.

2. Less initial cost as compared to other generating plants.

3. It require less space as compared to Hydro power plants.

Disadvantages:
It pollutes the atmosphere due to production of large amount of smoke and fumes.

Wind power

Advantages:

1. It's a clean fuel source.

2. It doesn't pollute the air such as coal or natural gas.

Disadvantage:

1. wind farms are noisy and may spoil the view for people living near them.

Pakistan‘s Energy Scenario During 2011-12

Pakistan‘s total energy availability was 66.015 million tons of oil equivalent (mtoe), of which 45.251 mtoe (i.e. 68.54%) was indigenous production while 20.764 mtoe (31.46%) was imported. The domestic energy sources comprised natural gas, hydel power, about one third of our crude oil supply, and small quantities of coal and nuclear energy. Imported energy mainly comprised petroleum and petroleum products. The share of various energy sources in energy supply was as follows:

Natural gas 49.5%

Oil 30.8%

Hydel energy 12.5%

Coal 6.5% Nuclear

LPG & Imported elect 0.7%

Electric Power Key Players in Power Sector

WAPDA and KESC were vertical utilities and sole players in the power sector until a few years ago in all aspects from generation to transmission and distribution. WAPDA has been split up into a number of entities.

A new entity, PEPCO, was created as the controlling company of the various public sector generation (GENCOs), transmission (NTDC) and regional distribution companies (DISCOs) for thermal power in the country. PEPCO has since been wound up and replaced by Central Power Purchase Agency (CPPA). The power companies have all been made independent commercial entities.

WAPDA is only concerned with 3 Source:

International Energy Information Agency (IEIA)
4 Pakistan‘s Energy Crisis- From Conundrum to Catastrophe, Michael Kugelman, The National Bureau of Asian Research, USA.
8 Solutions for Energy Crisis in Pakistan hydel power generation now.

Twenty seven Independent Power Producers (Thermal) and three public-private hydropower companies have also entered the field now.
PSO, SNGPL and SSGP being fuel suppliers for thermal power, are also important players for the power sector. National Electric Power Regulatory Authority, NEPRA, is another important player. It regulates the power sector, determines the tariffs and efficiencies, technologies and performance standards and so many other aspects that govern the power sector and its functioning. iv. Alternate Energy Development Board, AEDB, is a small player for alternate energy. As the energy crunch continues, there is more and more emphasis on developing alternate sources of energy such as solar, wind and micro-hydel etc.

Generation Capacity:

§ Installed power generation capacity as in 2011-12 22797 MW
§ Average dependable capacity in summer 15000 MW
§ Average dependable capacity in winter 12000 MW
§ Actual generation as on 14.6.2012 10658 MW
§ Average shortfall fluctuation 3500 to 6000 MW

The Following Table Shows the Source-wise Generation Capacity in the Country

Public Sector
Source	MW	%
Thermal (GENCOs)	4434	19.4
Hydel (WAPDA)	6870	30.1
Nuclear (PAEC)	696	3.1
Sub Total	12000	52.6
Private Sector
Source	MW	%
IPPs (Thermal)	8395	36.8
KESC (Thermal)	1952	8.6
SPP and Rental (Thermal)	450	2.0
Sub Total	10797	47.4
Grand Total	22797	100

The following figures show the fuel mix for generating this power:

1. Oil 35.2

2. Gas 29.0

3. Hydel 29.9

4. Nuclear & Imported Elect 5.8

5. Coal 0.1 Total 100.0

Coal

Coal has traditionally been the most widely used source of energy in the world followed by oil and gas which are cleaner and more convenient fuels. However, the last two are much more expensive fuels compared to coal which is by far the cheapest, barring hydel and renewable energy. Technological development has also helped make coal a cleaner fuel and it is still being widely used in the world for power generation and other purposes. Pakistan has not paid much attention to coal development as a fuel for industry and power sector although we have estimated reserves of 187 billion tons which are said to be the second largest in the world. The main reasons advanced for non-development and utilization of our Thar coal deposits are its low quality and the difficulties involved in mining it. However, the actual causes are our inept handling of prospective investors, lack of agreement between federal and provincial governments about ownership and control of the project, lack of technical and administrative capacity to do it in public sector.

HOW COAL IS CONVERTED INTO ELECTRICITY

How does Pakistan generate its Electricity?

This diagram breaks down Pakistan’s electricity generation by source. Thermal power, which includes natural gas, oil, and coal generated electricity, accounts for 70 percent of Pakistan’s total electricity generation, while hydroelectric generation is roughly responsible for the remaining 30 percent.

For reading more about Solar energy, Nuclear energy and Coal power go to the link

Crisis in Pakistan:

· Increasing in population
· High prices

Ø Especially increasing in oil prices since 2003

· Industrial sector

Ø Faisalabad industrial zone

Ø Industries shifting to abroad

· Growing GDP and Energy requirement

Ø Double in 2015

Ø 7 times by 2030

· Gap between Demand and Supply

Ø Energy supply per capita in 2012 decline 3.09%

· Over consumption
· Infrastructure damage
· Misuse of electricity and water

Reasons of the Energy Crisis in Pakistan:

1. Wastage of energy

2. High cost of fuel

3. Monopoly in the business

4. Exploring coal

5. Renewable energy

6. Role of government

7. Energy planning

8. Distribution system

9. Fluctuation of oil prices in international market

10. Unproductive efforts

11. Economic and political instability

12. Failure in using nuclear power

13. Lack of dams

14. Mismanagement of energy resources

15. Corruption and lack of accountability

16. Lack of modern technique facilities

Conservation and Consumption:

Due to rising demand and a failing power infrastructure severe electricity shortages have occurred in Pakistan. Power outages can last 6–8 hours a day in the cities and many more in the rural areas.
Children can't do their homework.
Housework doesn't get done, as washing machines and other appliances cannot work.
When you go home from work, you have no idea whether there will be electricity at home.

Impact of Energy Crisis:

Effect Education System

5-7 hours of electricity outage effect on Student’s studies.

Effect on Industrial Sector

Minimum supply of Energy resource to Industries leads minimum Production.

Higher Electricity Price

Consumer to pay high price of electricity due to insufficient supply and high cost of electricity production

Effect on Economy

Minimum Supply of Energy into an economic will lead to less economy activity as whole production of country will not be as per its capacity.

Resolving Pakistan’s energy crisis:

A step in the right direction by PML-N

Pakistan has been facing shortage of energy for a number of years now, and there have been some attempts to resolve the crisis. The installed capacity to generate electricity is around 22,000 MW and peak demand remains at 17000MW. However, due to lack of maintenance and investment, some of the installed sources of electricity are unable to run at full capacity, leading to reduction in supply.

The previous government, led by President Asif Zardari, did take some steps to reduce the supply-demand gap through implementing consumer friendly energy policies. A mega corruption scandal involving high-level officials eventually got taken up by the National Accountability Bureau (NAB), which reported massive losses to the government. These corrupt practices increased the gap in supply and demand of the total output supplied via Distribution Companies (DISCOs) and National Transmission and Dispatch Company (NTDC).

Subsequently, when the government of Prime Minister Nawaz Sharif took over in June 2013, the energy shortfall was already at dangerous levels with overall supply deficit reaching 6000MW to 7000MW during the summers. Prime Minister Nawaz Sharif and his team took few steps to reduce load shedding by implementing shortfall reduction policies for commercial and residential areas. Furthermore, six coal-based power projects in Punjab and Sindh during late 2013 and early 2014 that were meant to increase the power generating capacity by up to 14000MW.

Government taking steps to overcome energy crisis: Abid Sher Ali

ISLAMABAD:

State Minister for Water and Power Abid Sher Ali has said that the Government is pro-actively executing diverse programmers for resolving the energy crisis in the country.

Talking to APP here he said Prime Minister Muhammad Nawaz Sharif has been reiterating that the power sector is central to the country’s development and economic stability and his Gov. Try to resolve the issues of energy crisis through Short, Medium and Long Term Plans.

The Minister has said that as a result of government’s commitment and efforts, the power situation in the country is much better, as compared to previous years and there was no load shedding in the country from Oct – Dec 2013.

The Minister said, the Government of Pakistan under the august leadership of Prime Minister Muhammad Nawaz Sharif has taken bold measures in the power sector, including: successful initiation and implementation of the National Power Policy 2013, clearance of circular debt of Rs. 480 billion improved demand and supply side development.

He mentioned that system still sees a supply and demand gap. The government has several plans in place to reduce. These plans include

Coal based power plant at Port Qasim
Gadanni power park where 6600 MW coal based power plants will be setup
ADB approval of jamshoro coal based power plant
World bank’s commitment and their approval of Dasu project
Speedy work at Neelum Jhelum hydro power project
Import of power from India and CASA-1000
The inauguration of 747 MW Guddu power plant
402 MW Uch ll power plant
The revival of 425 MW Nandipur power plant
Super critical coal based power plants in Punjab
The power generation addition of about 2200 MW by the end of this year
Sukki Kenari, karoot and Patrind hydro power projects
The reduction in line losses by about 1%
Improvement in recovery by 2.1% to name a few.

Abid Sher Ali shared that IMF Mission Chief in Pakistan Jeffery Franks has also stated that there was improvement as number of projects for increasing power generation was already underway and cited the examples of Dasu and Basha hydro power projects. The government has been working on LNG facility and making investment on increasing gas production. However all this will not happen overnight and will take couple of years to achieve the desired results.

By Imtiaz Ali Qazilbash

Published: November 22, 2015

Pakistan has 65,000 megawatts of identified projects and 100,000MW potential.

Resolving energy crisis by 2018 top priority, says Nawaz in this website

Recommendations:

To overcome present energy crisis, Pakistan needs to take the following steps in form of:

1. Short Term Plan

2. Medium Term Plan

3. Long Term Plan

Short Term Plan:

· Increase the number of IPPs (independent Power Producers).
· Reinstalled the closed power generating units.
· Improve the existing poor distribution system.
· Import electricity to fulfill the current need for industries.
· Government should have strict check on energy indicators on regular basis to counter such crisis in future

Medium Term Plan:

· Transformation of existing system to renewable energy resources.

· Developing and installing biogas, solar, wind and micro hydro based projects in villages

Long Term Plan:

· Developing and installing coal based power houses.
· Initiate agreements for mega projects with the energy extensive countries for sustainable energy resources.
· Exploration of more oil, gas and coal reserves.
· Provide incentive for up gradation and training to the engineers for new technology.

Conclusion:

Pakistan is facing electricity and gas shortfalls. Oil and gas supply the bulk of the country‘s energy needs. The indigenous reserves of oil and gas are limited and the country is heavily dependent on the import of oil. On the other hand, there is abundant potential of hydropower, wind energy, solar energy and biomass energy in the country.

· Pakistan is blessed and rich in resources.

· Policies should be implemented now.

· Policies should not change with the change in government.

· We can even export energy if we produce it at optimum level

Energy Crisis In Pakistan

Saturday, 28 November 2015

Energy Crisis in Pakistan