Alternative Energy Resources in Pakistan

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Alternative Energy Resources in Pakistan

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Alternative Energy Resources in PakistanMade by: Muhammad Affan Qamar

Contents

EXECUTIVE SUMMARY ............................................................................................................... 2

1. Introduction: ........................................................................................................................ 3

2. Most common types of alternative energy: ......................................................................... 3

3. Current energy situation: ..................................................................................................... 6

4. Pakistan looking at alternate energy resources: .................................................................. 7

5. Power & Alternative energy sector of Pakistan: ................................................................... 8

6. Summary of Alternative Energy Resources in Country: ...................................................... 11

7. Pakistan Council of Renewable Energy Technologies: ........................................................ 16

8. Alternate Energy Development Board: .............................................................................. 19

9. References: ........................................................................................................................ 19


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EXECUTIVE SUMMARY

Pakistan is an oil importing country and its economy suffers the most by the oil prices inflict.

Majority of its power generation is thermal with furnace oil, high-speed diesel and natural gas

as fuel; coal is almost now existent. Because of fast growing economy and population the

demand of energy is rapidly increasing. The electricity generation capacity in Pakistan is over20,000 MW. This is not enough to meet our electricity demand. According to GOP estimates

the generation capacity needs to grow by 50% by 2010 in order to meet the expected demand.

Pakistan is endowed with various renewable energy resources such as hydel, solar, wind,

geothermal and bio-fuel. It can earn dividends if these resources are explored, exploited and

developed properly. Hydropower source of energy is well known in Pakistan and there is ever

growing experience in the sector to develop the hydropower potential indigenously in the

country. Hydro-potential is estimated at about 50,000 MW, out of which about 6595 MW has

been developed. Pakistan lies in an area of one of the highest solar insulation in the world.

Wind energy is another important area where Pakistan can benefit by exploiting it in efficient

manner. The wind potential is estimated upto 50,000 MW. Urban areas of Pakistan generate

over 55000 tonnes of solid wastes daily. There are 56.9 million animals (Buffaloes, cows) in

Pakistan, which can generate 21.35 million M3biogas and 36.0 million tonnes of bio-fertilizer

per day. The creek systems of Indus Delta extend over an area of 170 Km. It is estimated that

about 100 KW power can be produced from the source. There are more than 6000 surface

indications of geo-thermal energy resources with an estimated potential of 800,000 KW.

Renewable Energy account for 180 MW of Pakistans present power output, small to medium

size hydropower plants offer the greatest renewable energy potential for Pakistan. The solar

potential is estimated over 100,000 MW. Possibilities also exist in promoting greater use of

wind, solar and biomass project. The GOP had approved the policy for development of

Renewable Energy for power generation 2006. . Furthermore, 7,874 remote off-grid

villages in province of Sindh and Baluchistan will be electrified through Renewable Energy.

Bio-diesel will be gradually blended with petroleum diesel to achieve a maximum share of 5%

by volume of the total diesel consumption in the country by the year 2015 and 10% by 2025.

The international donor agencies like Asian Development Bank (ADB), German Agency for

Technical Corporation (GTZ), United Nations Development Programme (UNDP), European

Union (EU-Asia) and World Bank have launched various projects for the promotion, utilization

and development of renewable energy technologies within the country.


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d. Geothermal energy:

Geothermal energy is the natural energy formed by the earth. The hot rocks that are under

the ground heat the water to produce steam. Then you can drill holes in this area, causing the

steam to shoot up and drive turbines. The turbines then power electric generators.

There are some advantages to geothermal energy. Just as wind and solar power,

geothermal energy does not pollute or cause harmful by-products. A geothermal plant is a

very self-sufficient energy source once it has been built. These plants are typically rather small

and do not have much affect on the beauty of the landscape, so no complaints there like the

complaints with the wind turbines.

As usual, there are always some negatives. If the geothermal plant is not produced

correctly, there can be pollutants. Also, if the drilling is not done correctly, there will be

hazardous minerals and gases released into the air. Finally, geothermal sites can run out ofsteam at some point. You can see that it is vitally important that the geothermal plants are

done correctly in order for them to be effective, and they will not last forever.

e. Hydro electric power:

Hydroelectric power is generated from dammed water that drives a water turbine and

generator. Tidal power is one version of this. The power of the water of a tide creates

pressure that will turn either a turbine or a water wheel. This power then is able to provide

energy to the electric generator.

Hydroelectric Energy has some advantages. First, water can be held in order to provide for

times of less water. This is a difference from the other forms of alternative energy since with

hydroelectric energy you have the ability to accumulate the water. This means that the energy

can be generated consistently. Hydroelectric power, like wind, solar, and geothermal energy,

has no waste or pollution. Additionally, it is renewable because the water can be reused.

Disadvantages of hydroelectric energy include that the dams can be rather expensive to

build. There also needs to be enough supply of water to create energy, and that supply of

water needs to be powerful.

f. Bio-fuels:

Biofuels are fuels that are made from animals or plants. They may include methane from

animal waste, wood chippings, or wood. Today ethanol has been getting a lot of attention for

its use in combination with gasoline for transportation use.


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There are various types of bio-fuels, mainly being used to power machines, for cooking, and

to heat homes. The technology used to create and utilize bio-fuels is still fairly new, but is

gaining popularity in Europe, Asia, and America. One of the big advantages of bio-fuels is the

fact that they can be renewable. Ethanol, which is made from corn, can be made as long as

there is a steady supply of corn. Bio-fuels are also less hazardous on the environment.

Biofuels do have some disadvantages. One is the amount of resources it takes to make a

bio-fuel. It costs more and takes more resources to make a gallon of ethanol than it takes to

make a gallon of gas. It also takes fossil fuels to grow and harvest the corn to make the bio-

fuel. Another disadvantage is the cost of conversion. With everything set up to run off of

fossil fuels, it would cost a lot of money to covert cars and homes to run off of bio-fuel. Add to

that the cost of the fuel itself, converting costs more than most people have.

g. Hydrogen:

Hydrogen so far has not proven to be a very profitable energy source since it takes more

energy to manufacture than the hydrogen actually produces. It is, however, a very good fuel

for the environment and has turned out to be a good energy source for vehicles.

Hydrogen fuel is used primarily in batteries, and while it hasn't been profitable yet, it is

promising. This type of alternative energy is used primarily in batteries, by combining oxygen

and hydrogen to create power. The only by-product is water vapor, instead of dangerous and

damaging carbon dioxide.

If there was an easier way to produce the hydrogen needed for the reaction in the

batteries, hydrogen would be a great energy source. Unfortunately, it takes more to produce

the hydrogen than it is currently worth.

h. Nuclear energy:

Nuclear energy is energy created through atoms. By either splitting atoms (fission) or merging

them (fusion), it creates energy from the reaction. Nuclear energy, while it does produce a

large amount of power, has several other hazards. Nuclear energy creates dangerous nuclear

waste which is difficult to deal with. It must be stored in a secure location until it can beproperly dealt with.

Power plants also run the risk of a meltdown. If one stage of the process is destroyed, it

can lead to a radiation leak which can make the area around the plant unlivable for years. The

radiation created with many nuclear plants can be devastating to the environment. The

Chernobyl incident, which is one of the worst nuclear accidents ever, caused the resettlement


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of over 300,000 people and exposed even more to dangerous radiation, which can lead to

increased cancer rates in both people and animals. Even though the area of the incident is still

under quarantine, many consider the area to be safe for resettlement.

One of the big advantages of nuclear energy is the amount of power it can produce from

one plant, although the cost for building one is quite high. The dangerous effects nuclearpower can have on people or the environment have led many of the more developed

countries to steer away from the use of nuclear energy until the risks can be eliminated.

3. Current energy situation:

A profile of Pakistan primary energy resources shows its dependence on conventional energy

resources. Its share in energy supply mix is highly dependent on oil, liquid petroleum andnatural gas. The primary commercial energy supplies during 2007-2008 were 62.9 million

tones of oil equivalent (MTOE). The share of natural gas in primary energy supplies during

2007-2008 was 47.5% followed by oil 30.5%, hydro electricity 10.9%, coal 9.2%, nuclear

electricity 1.2%, LPG 0.7%, and imported electricity 0.1%. Fig. 2 shows primary energy supplies

by source.

Natural gas production during 2007-2008 was 3,973 million cubic feet per day and oil

production 69,954 barrels per day. During 2007-2008, 27 exploratory and 53 developments

wells were drilled mostly of gas/condensate, out of which 5 were by Oil & Gas DevelopmentCorporation Limited (OGDCL) and 6 by other companies. The energy consumption by section

is shown in Fig.

Energy consumption by sector

Total: 39.4 TOE


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Coal production increased by 13% in 2007-2008 over the previous year due to multifold

increased production from Barkhan Coal filed in Baluchistan. The consumption of coal in

power generation increased by 1.3% from 164,397 tones in 2006-07 to 162,200 tones in 2007-

08 and the electricity generation during 2007-20was 95,860 Gwh (including 199 Gwh ofelectricity imported from Iran). The generation included 66.5% thermal, 30.0% Hydel, 3.2%

nuclear and 0.2% imported. Presently, the electricity generation capacity in Pakistan is over

20,000 MW. This is not enough to meet our electricity demands and with an average increase

of around 1000 MW per year in this demand, the problem will continue to grow. According to

Government of Pakistans estimates, the generating capacity needs to grow by 50% by 2010 in

order to meet the expected demand.

The high dependence on oil import has a huge negative impact on economy and energy

security of the country. The natural gas reserves are not in great position either with provenreserves of 28.62 trillion cubic feet (TCF). At this production level Pakistans reserves would

finish in 24 years. The measured coal reserves are in large quantity (3,303 million tones).

However, currently coal is not playing a noticeable role in Pakistans energy mix.

4. Pakistan looking at alternate energy resources:

Owing to the alarming energy crisis in Pakistan, the supply has to be substantially increased to

avoid any severe consequences, industry officials say.

The massive shortage of energy the country is facing is damaging the socio-economics and the

sovereignty of the country.

As the economy grows, population increases and urbanization surges, the demand for energy

registers a steep rise. Therefore, the challenges of rising energy demand come to the center

stage, especially because the gestation period for generating energy for different sources is

large and financial requirement huge, they say.

The officials of ministry of petroleum and natural resources say, Presently, Pakistan meets its

75 percent energy requirement from domestic resources. We meet 50.4 percent requirement

through indigenous gas supply, and 12.7 percent through hydro electricity. Contribution of

coal and nuclear energy is limited to 7 percent and 1 percent, respectively.

The major energy consumption sectors of the country are: industrial (38.3 percent), transport

(32.8 percent), residential and commercial (25 percent), agriculture (2.5 percent) and others

(2.2 percent).

During the last 10 years, the consumption of petroleum products has decreased at an average

of 0.4 percent per annum due to lower consumption of oil in the household and agriculture


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sector. The consumption of gas, electricity and coal has increased at an average rate of 7.8

percent, 5.1 percent and 8.8 percent per annum, respectively.

During this period, the transport sector was the largest user of petroleum products, on

average accounting for 50.7 percent of consumption, followed by the power sector (32.1

percent), industry (11.4 percent), government (2.3 percent), household (2.2 percent) and

agriculture (1.3 percent).As regards electricity, the household sector has been the largest consumer over the last 10

years, on average consuming 44.8 percent, followed by industrial sector (29.4 percent),

agriculture (12.2 percent), and commercial sector (5.9 percent), street lights (10.6 percent),

the officials say.

The officials say crude oil supply grew at 2.4 percent per annum during the last 10 years

reaching 87.5 million barrels output in 2006-07). Gas supplies rose at 7.8 percent per year,

petroleum products by about 2 percent per year, coal by 5.7 percent per annum and electricity

by 5.1 percent per annum.

The number of electricity consumers grew from 15.9 million in 2005-06 to 16.7 million in 2007,

showing a growth of about 70 percent over the last 10 years. Historically and as of now

domestic sector consume most of the electric energy (42.4 percent) followed by industrial

sector (26.5 percent), bulk supply at public lighting (12.7 percent), agriculture (12.1 percent)

and commercial (6.2 percent).

They are of the view that of late, a number of countries including Pakistan have realized that

traditional sources of energy might not keep pace with demand increase, hence exploring

alternative energy sources was not an option but a necessity.

Pakistan was seeking to explore alternative sources of energy production and use wind and

solar technologies with the aim to produce 9,700 MW wind power by 2030, thereby providing

electricity to 7,874 off-grid villages in Sind and Baluchistan.

The government is giving top priority to hydel power with the potential of producing 40,000

mega watt powers of which only 15 percent had been exploited so far, they add.

The coal-based power generation was being given serious consideration to diversify the

energy resources, to minimize the rising cost of imported fuel and to supplement the fast

depleting gas resources.

5. Power & Alternative energy sector of Pakistan:

a) Electrical Power GenerationThe Countrys energy demand had grown at an annual consumption growth rate of 4.8% in

the past five years but now it is expected to grow at 8 to 10% per annum till the end of

current decade. Therefore, need exists for a high and sustained growth in energy supply


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and infrastructure capacity of 7 - 8% per annum to support the steady growth in the

Countrys GDP. Hydel power being most inexpensive needs utmost attention.

b) Power & Alternative Energy Sectors of Pakistan

Pakistan has abundant energy resources, which need to be harnessed through an

institutionalized strategy for optimum utilization. The Government has set out an action

plan to achieve exploration and maximum utilization of indigenous resources like oil, gas,

coal and alternative sources like solar and wind energy etc. Maximum participation of the

private sector in this regard is encouraged.

c) Alternative / Renewable Energy

"Government of Pakistan is putting greater emphasis on Renewable Energy and has set atarget of 10% renewable energy or 2700 MW in the Country's energy mix by 2015.

Pakistan, like other developing countries of the region, is facing a serious challenge of

energy deficit. Renewable Energy resources can play an important role in bridging this

deficit. More importantly, Renewable Energy can take electricity to remote rural areas,

where power transmission becomes too expensive. The Government of Pakistan aims that

all localities not planned to be connected with national grid in next 20 years are earmarked

for Alternative/ Renewable Energy resources and the solar/ wind energy related

technologies be indigenized in next decade through national/ international collaboration.

d) Hydro Power

The energy of water has been harnessed as early as the antiquity through the water mill.

Nowadays, this energy is used in hydroelectric power stations to generate electricity. Its

working principle is simple: water drives turbines, which in turn drive alternators. These

alternators turn the mechanical energy developed by the turbines into electrical energy.

The power of a hydro power plant depends on the quantum and head of water that is

available.

Hydro energy is a renewable source of energy based on the natural rhythm of water cycle.

It generates about 15% of the power generated in Europe. About 80% of all the

hydroelectric production of the world is concentrated in four regions: North America,

Western Europe, South America and Eastern Asia.


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e) NaturalGas

Natural gas is the worlds second most important fossil fuel and Natural gas is currently the

worlds most important source of energy. The investment associated with gas procurement

is projected to increase. Pakistan has signed a multi-billion dollar contract for procuring gas

through pipeline from Iran, while another from Turkmenistan is poised to be signed after abit calm in Afghanistan.

As per the EIA (Washington D.C) Reports, natural gas consumption in Middle East only is

projected to double by 2025, where the share of energy demand met by natural gas is

projected to increase from 39% in 2002 to 45% in 2025, while the share of energy demand

met by oil is projected to decline from 53% in 2002 to 48% in 2025. Consumption of natural

gas worldwide is projected to increase by almost 70% from 92 to 156 TCF.

f) Solar Energy

The earth receives an incredible supply of solar energy the sun provides sufficient energy

in one minute to meet the worlds energy demand for a full year. In one day it provides

more than our current population would consume in 27 years. Solar energy is the cleanest

source in environmental terms.g) Power Sector of Pakistan - Key Statistics:

Total Generation Capacity 19,222 MW

Electricity Distribution Network 360,000 Km

Sectoral Share of Energy Consumption

34.4% Transportation

34.2 % Industrial

23 % Residential

3.1 % Commercial

2.6 % Agriculture2.7 % Government

Fuel Share Of Energy Consumption

43.8 % Natural Gas

39 % Oil

11 % Hydroelectricity

5.2 % Coal


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1 % Nuclear

Total Supplies to the Energy Mix 48.12 Million TOE

Average Growth in Energy Consumption 4.8 % per annum

6. Summary of Alternative Energy Resources in Country:

Pakistan is blessed with various renewable energy resources, such as water, solar, wind,

geothermal and bio-fuel. It can benefit, if these resources are explored, exploited and

developed properly.

a. Hydro Energy:

A hydropower source of energy is well known in Pakistan and there is ever growing

experience in the sector to develop the hydropower potential indigenously in the country.

Hydro-potential is estimated at about 50,000 MW out of which about 6595 MW has been

developed over the past 50 years. In addition, canal system with total of 58,450 km

watercourses, farm channels and field ditchers running another 160,000 km in length has a

huge hydropower potential at numerous sites/locations on each site, ranging from 1 MW to

more than 10 MW hydel plants can be installed.

b. Solar Energy:

Pakistan lies in an area of one of the highest solar insulation in the world. There are certainregions of south, Quetta valley and Central Punjab that receive maximum solar radiation, the

nation wide average, however, has been recorded on daily basis as 5.5 KW/m2. This means

that there is a vast potential for converting the untapped solar energy source for useful

means. This potential can be exploited to produce electricity, which can be provided to off-grid

communities in the northern hilly areas and the southern and western deserts. According to

the Pakistan Energy Book 2004-05, solar energy falling on 0.25% Baluchistan province would

be adequate to meet the current requirement of the country with 20% efficient devices.

c. Wind Energy:

Wind energy is another important area where Pakistan can benefit by exploiting it in efficient

manner. This sector is getting worldwide attention with the development and availability of

inexpensive technology that allows its easy conversion to useful energy. Recognizing the vast

potential that wind energy offers i.e. up to 50,000 MW, a number of initiatives in Public and

private sector have been taken. Pakistan has 1000 Km long coastline, which could be utilized


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for installation of wind farms. There are regions in the mountainous areas of Pakistan, which

has the potential for wind energy generation.

d. Biomass:

Urban areas of Pakistan generate over 55000 tones of solid wastes daily. More than a total of15 million layer-chicken and 528 broiler chicken birds were approximately produced in 2003

with a share of 22%, 68%, 3.5% and 6.5% of Sindh, Punjab, Baluchistan and NWFP provinces

respectively. According to unofficial estimates, hardly 5 to 10% poultry farms have

membership of Pakistan Poultry Association (PPA). [7]. As per livestock Census 2006 there are

56.9 million animals (Buffaloes, cow, and bullocks) in Pakistan. [5]. On the average the daily

dung dropping of medium size of animal is estimated 15 kg per day. This would yield 854

million kg dung/day. Assuming 50 % connectivity the availability of fresh dung comes out to

be 427 million kg/day. Thus 21.35 million M3 biogas can be produced through bio-

methanation. In addition it will also produce 450 million ones of bio-fertilizer per day, which isessential requirement for sustaining of the fertility of agricultural land.

e. Tidal Energy:

The creek system of Indus Delta extends over an area of 170 km. Tidal water flows in these

creeks with high velocity during flood and ebb of tidal wave, which are very favorable

condition for the extraction of energy from tidal currents. It is estimated that about 100 kW

power can be produced from these altogether.

f. Geothermal Energy:

Most of the high enthalpy geothermal resources of the world are within seismic volcanic

activity. A global seismic belt passes through Pakistan and the country has long geological

history of geotectonic events. In Tibet, which occupies more or less the same geological

position in Himalayan mountain ranges as Pakistan, more than 6000 surface indications of

geothermal energy resources have been discovered with an estimated potential of 800,000

KW.

g. Nuclear energy:

The increasing use of nuclear energy in the world has the potential of contributing significantly

to lowering carbon emissions. Today, at least, 7% of the total primary energy supplied in the

world is sourced in the nuclear sector. Though this remains an option worth exploring for

Pakistan, there remain many barriers associated with employing nuclear energy including

financial constraints, safety, waste management, the proliferation of nuclear technology, long-

term fuel resource constraints without recycling and the adverse public opinion, nationally and


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internationally, regarding its usage.3 Due to these reasons, many new definitions of alternate

energy do not incorporate the use of nuclear energy. With the serious environmental

concerns, political and international constraints associated with the use of this fuel, the

authors of this report have decided that it will not be included with in the discussion of this

report.

h. Clean coal:

Clean coal technology seeks to reduce the environmental effects of using coal for energy

production by using multiple technologies to contain emissions from using coal. When coal

burns, it releases carbon dioxide and other emissions which are characteristic of fossil fuels. In

an effort to alleviate the impacts on the environment, clean coal technologies have been

employed which purify the coal before burning. Coal washing, low-NO2 (nitrogen oxide)

burners, electrostatic precipitators and gasification are examples of technologies used to clean

coal.

Clean Coal technologies are of crucial relevance to Pakistan as the country has 185 billion tons

worth of coal reserves which to date have remained unutilized. Future development in the

utilization of coal in Pakistan is marked by a series of hurdles including poor quality of the coal,

financial constraints, location disadvantage and limited experience in clean coal technologies.4

While coal does offer a cheaper and readily available source of energy, its grave environmental

impacts does not make it an ideal source to be tapped by Pakistan. Emissions from coal will

directly undermine mitigation efforts undertaken and prevent the initiation of low carbon

growth in the country. Moreover, while clean coal technologies continue to evolve, they arenot an alternate source of energy as the raw material remains fossil fuel i.e. coal. Drawing

from this, clean coal does not fall into the confines of alternate energy and thus will not be

discussed within this report.

i. Oil resources and exploration:

Pakistan produced 61,769 barrels per day (bbl/d) of oil in 2003 (of which 60,000 bbl/d was

crude oil), and consumed 360,000 bbl/d of petroleum products. Net oil imports were 308,000

bbl/d in 2003. While there is no prospect for Pakistan to reach self sufficiency in oil, the

government has encouraged private (including foreign) firms to develop domestic productioncapacity. Pakistani domestic oil production centers on the Potwar Plateau in Punjab and lower

Sindh province.

State-owned Oil and Gas Development Corporation Limited (OGDCL) is a leading firm in

the industry, producing around 22,334 bbl/d according to company information. A 5% stake

was sold in a public offering in November 2003 for approximately $119 million. OGDCL is


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Pakistan's second-largest oil producer after UK-based BP. The government will also offer a

stake of up to 15% of Pakistan Petroleum Limited (PPL), the largest exploration and production

firm in Pakistan. Currently the government controls93%of the company, which owns the Sui

fields in Baluchistan, as well as exploration interests in 22 blocks. The government also has a

35% stake in Pakistan Oilfields Limited (POL).

Oil sector reforms in Pakistan are generally on track, but the privatization of several firms,

including Pakistan State Oil (PSO), continues to be postponed. The government's divestiture of

its 51% stake in PSO to a strategic partner has been planned for several years. PSO holds a 60%

domestic market share in diesel fuel and has more than 3,750 retail outlets. Deregulation of

prices for petroleum products is being pursued in parallel with the privatization of PSO.

As part of the country's privatization process, Pakistan is setting up a Gas Regulatory

Authority (GRA) and the Petroleum Regulatory Board (PRB), which will separate out

government functions from state-owned companies to be privatized. Pakistan's governmenthopes to reap significant revenues from these privatizations over the next several years. The

two most significant foreign oil firms in Pakistan are BP and Eni. BP operates 43 fields in

Pakistan and had reported average production of 25,877 bbl/d in 2003. Other firms include

BHP Billiton (Australia) OMV (Austria), Petronas (Malaysia) and Premier Oil (UK).

Pakistan's net oil imports are projected to rise substantially in coming years as demand growth

outpaces increases in production. Demand for refined petroleum products also greatly

exceeds domestic oil refining capacity, so nearly half of Pakistani imports are refined products.

Pakistan's Pak-Arab Refinery (PARCO) became operational in late 2000, adding to the country'srefining capacity, and alleviating refined product import dependence. The PARCO Mid Country

Refinery at Mahmood Kot was formally commissioned in 2001 and has capacity of 100,000

bbl/d of throughput (mostly crude oil from Abu Dhabi and and Light Arabian Crude from Saudi

Arabia), supplied to the plant by pipeline from Karachi.

A small, 30,000 bbl/d refinery operated by private Bosicor Pakistan Limited (BPL) near

Karachi began commercial operation in November 2003. The plant is supplied with

shipments of crude oil from Qatar. The Bosicor plant will allow Pakistan to become a new

supplier of naphtha to Far Eastern markets. Naphtha makes up approximately 9% of theplant's output. The plant produces about 10,800 bbl/d of fuel oil, 6,980 bbl/d of diesel, and

4,350 bbl/d of kerosene, among other products. PSO has a supply contract to purchase the

totality of the Bosicor refinery's products for the next 10 years.


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Another major planned project is the "Iran-Pak" refinery, which would have a capacity of

130,000 bbl/d. The refinery will be located near the border with Iran in Baluchistan province

and would be a 50:50 partnership between Pakistan's Petroleum Refining and

Petrochemical Corporation (PERAC) and the National Iranian Oil Company (NIOC). Oil

processed at the Iran-Pak refinery would come almost exclusively by sea from Iran, and would

be unloaded at a terminal to be built for the refinery. The project has failed to reach financialclosure, however, as NIOC's demand for a guaranteed rate of return is at odds with Pakistan's

policy against such guarantees.

j. Natural gas:

Pakistan has 26.8 trillion cubic feet (Tcf) of proven gas reserves, and currently produces

around 0.8 Tcf of natural gas per year, all of which is consumed domestically. Natural gas

producers include Pakistani state-owned companies Pakistan Petroleum Ltd. (PPL) and Oil

and Gas Development Corporation (OGDCL), as well as BP, Eni, OMV, and BHP. As part ofits energy sector reform program, the government is committed to privatizing a 15% stake of

PPL (see above), the largest gas producer in the country, capable of producing 770 million

cubic feet per day (Mmcfd). The largest currently productive fields are Sui, by far the largest

at 650 Mmcfd, Adhi and Kandkhot (120 Mmcfd), Mari, and Kandanwari.

Pakistan's demand for natural gas is expected to rise substantially in the next few

years, with an increase of roughly 50% by 2006, according to Pakistan's oil and

gas ministry. Pakistan also plans to make gas the "fuel of choice for future electric power

generation projects, hoping to substitute domestic gas supplies for imported foreign oil. Thiswill necessitate a sharp rise in production of natural gas, and also has generated interest in

Pakistan in pipelines to facilitate imports from neighboring countries.

Development of new natural gas fields with the help of foreign investors is proceeding, with

Pakistan's government expecting recently discovered fields to add about 1 billion cubic feet

per day (Bcfd) to Pakistan's natural gas production. Currently, fields in production include

Sawan at about 366 Mmcfd, Bhit at about 316 Mmcfd, and Zamzama in Sindh province

producing about 248 Mmcfd, but possibly able to produce 380 Mmcfd following a new gas

discovery in January 2004.

Pakistan's government restated its willingness to permit a natural gas pipeline linking Iran's

massive reserves to Indian markets across Pakistani territory. Pakistan would earn transit

fees for Iranian gas supplied to India and also would be able to purchase some gas from the

pipeline when and if its own demand was sufficient. While Iran and Pakistan have shown

great interest in the project, India has been reluctant to move forward as long as political and


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lamination of cells into PV modules. As a result, a number of products are being fabricated on

a limited scale in the Councils laboratories.

These include silicon wafers, Solar cells, PV modules, PV systems, such as solar lantern/Torch,

Home light Systems, Street lights/Park Lights, solar Fountain and solar mobile charger etc. A

number of such systems have been designed and installed for applications of lighting, fencing,water pumping and telecommunication. PCRET is up-grading its laboratory facilities under a

PSDP project by constructing new laboratories, equipped with new state-of-the-art facilities

which will enhance its solar module production capacity upto 80 KW annually extendable to

over 1MW. In the next PSDP project the solar cell production capacity will further be

enhanced to 500 KW annually to meet the growing demand of solar energy in the

remote/rural area. The Council is also establishing renewable Testing Laboratories at par with

international standards through Government PSDP projects. These Laboratories will test

renewable energy based commercial products in line with ISO/IEC standards. During the last

three years, 134 PV systems of 26.5 KW capacities have been installed by PCRET electrifying124 houses, schools and community centers.

b. Solar thermal:

A number of solar thermal appliances including, solar water heaters, solar fruit and vegetable

dryers, solar water distillation stills, solar room heating system, and solar cookers have been

developed/fabricated by PCRET for domestic and commercial purposes. Recently PCRET has

designed and developed a solar hybrid dryer for dehydration of apricot on commercial basis.

Under PSDP project PCRET designed, developed and installed 10 solar dryers having 500 Kgcapacities for drying of dates in Punjab. Research and Development work in the field of other

solar thermal devices is in progress.

c. Bio-gas Technologies:

Biogas Technology is an environment friendly technology. It contributes towards eco system

management and biodiversity conservation. It provides soot-free clean gas for meeting

domestic fuel needs as well as enriched bio-fertilizer for improvement of fertility/productivity

of agricultural lands. The dung from animal is the source of biogas. The raw material is

available in Punjab, NWFP, Sindh and some parts of Baluchistan. So far PCRET has installed3500 biogas plants (with net generation capacity of 14395 M3/ day) on cost sharing basis

throughout Pakistan.


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d. Micro hydel power:

Pakistan is endowed with hydel potential of more than 50,000 MW, but only 16% have beentabbed till now and rest needs to be harnessed to reduce dependency on oil import. Northern

hilly areas of Pakistan are rich in small hydro sources. PCRET is actively working on this

technology with an objective to electrify remote hilly human settlements, which are beyond

the reach of national grid, through installation of micro hydropower plants (5-50 KW) by

harnessing the natural water falls. Until now nearly 5.5 MW electrical power generations

capacity has been tabbed by PCRET through installation of 415 MHP plants electrifying 50,000


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houses. Under other programmes 151 MHP plants are being built by PCRET with the help of

NWFP government. The activity will not only provide electricity to houses, but also power

small-scale industrial units. The Council has launched a project for the provision of electricity

to earthquake-affected areas by installing 100 MHP plants. Pakistan also has a great canal

network. These canals have thousand of sites of small falls to keep the flow of canal water.

Such falls are good sources for small power generations. PCRET is developing the technologyand has installed a demonstration of 7.5 MHP plant at Taxila. The Council has initiated another

project to develop and install 200 KW MHP plants at canal fall for demonstration and

commercial applications.

e. Wind energy Technology:

Pakistan has a coastal belt of 600 kilometer long and 50 kilometer wide in the province of

Sindh and Baluchistan. There is also a wind belt in the Thar Desert of Sindh and the Cholistan

desert in Punjab. In Sindh alone, it is estimated that 50,000 MW electricity can be generatedthrough wind from Keti Bandar to Gharo in Thatta District. PCRET has installed 135 wind

turbines ranging from 0.5 10 kW and has provided electricity to 1400 houses in the remote

coastal area of Sindh and Baluchistan by 2007.

8.Alternate Energy DevelopmentBoard:

The government of Pakistan created Alternate Energy Development Board (AEDB) in May 2003

through act as central body on the subject of Renewable Energy. The main objective of the

Board is to facilitate, promote and encourage development of renewable energy in Pakistan.The main functions of AEDB are to develop national strategy, Policies and plan for utilization of

alternate and renewable energy resources to achieve the targets approved by the Federal

Government in consultation with the Board. It acts as a forum for evaluating, monitoring and

certification of alternate or renewable energy projects and products. It is interacting and

coordinating with National and International agencies for promotion and development of

alternate and renewable energies. AEDB has launched the Policy Development of Renewable

Energy for power generation 2006 approved by the Economic Coordination Committee of the

Federal Cabinet. The Board plans to indigenes on solar/wind related technologies in the next

decade through national/international collaboration.

Documents

Alternative Energy Resources in Pakistan