Final BC Reportttt

7/31/2019 Final BC Reportttt

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TERM REPORT

Business Communication

POWER SECTOR

&

ELECTRICITY CRISES IN PAKISTAN


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College of Business Management

POWER SECTOR

&

ELECTRICITY CRISES IN PAKISTAN

SUBMITTED TO: COURSE INSTRUCTOR

MR.ISHTIAQ AHMED KOLACHI

SUBMITTED BY: MBA(EXECUTIVE) SPRING 2012

M.NOMAN KHAN - 13836

M.BILAL KHAWAJA - 13893

S.M.ZEESHAN - 13910


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Table of Contents

1.0 EXECUTIVE SUMMARY ...................................................................................... 1 2.0 INTRODUCTION .................................................................................................. 23.0 HISTORY.............................................................................................................. 24.0 ELECTRICITY SECTOR IN PAKISTAN ............................................................... 3

4.1 WATER AND POWER DEVELOPMENT AUTHORITY (WAPDA) ..................... 34.2 PAKISTAN ELECTRIC POWER COMPANY ..................................................... 5

5.0 CURRENT ENERGY RESOURCES OF PAKISTAN ............................................ 65.1 FOSSIL .............................................................................................................. 65.2 HYDROELECTRIC ............................................................................................ 85.3 RENEWABLES .................................................................................................. 9 5.4 NUCLEAR ........................................................................................................ 10

6.0

PAKISTAN DEPENDENCY ON ENERGY.......................................................... 11

6.1 RELIANCE ....................................................................................................... 126.2 EXTEND NETWORK ....................................................................................... 126.3 ENERGY EFFICIENCY .................................................................................... 12 6.4 COMPETITION ................................................................................................ 126.5 ENERGY FRAMEWORK ................................................................................. 136.6

RENEWABLE ENERGY RESOURCES ........................................................... 14

7.0 CAUSES OF ENERGY CRISES ........................................................................ 16

7.1 POOR DISTRIBUTION SYSTEM ..................................................................... 167.2 LACK OF ENERGY CONSERVATION PROGRAM ......................................... 167.3 COST OF FUEL ............................................................................................... 16


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7.4 UNTAPPED ALTERNATE ENERGY RESOURCES ........................................ 167.5 POWER POLITICS .......................................................................................... 17

8.0 GOVERNMENT INVOLVEMENT ....................................................................... 189.0 CHALLENGES ................................................................................................... 19

9.1 WEAKNESSES OF PRIVATE SECTOR .......................................................... 2010.0 ANALYTICAL SURVEY ...................................................................................... 2111.0 RECOMMENDATIONS ...................................................................................... 24

11.1 ENERGY PLANNING CELL ......................................................................... 2411.2 PECIALIZED STAFF ..................................................................................... 2411.3 PROVINCIAL INVOLVEMENT...................................................................... 2411.4 PRIVATE POWER INFRASTRUCTURE BOARD ......................................... 2511.5 PROGRESS MONITORING ......................................................................... 2511.6 TECHNICAL HEAD OF DEPARTMENT ....................................................... 27

12.0 CONCLUSIONS ................................................................................................. 2813.0 BIBLIOGRAPHY ................................................................................................. 29


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DATE:AUGUST 11,2012

Letter of Authorization

August11, 2012

Dear Readers:

As student of Masters in Business Administration, Mr. Ishtiaq Kolachi, our respected

instructor of the course Business Communication, during the Spring Semester 2012 of

College of Business Management, has authorized us to prepare a report on Electricity

Problems in Pakistan.

Sincerely,

M.Noman Khan [13836]

M.Bilal Khawaja [13893]

S.M.Zeeshan [13910]


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Letter of Transmittal

August11, 2012

Mr. Ishtiaq Ahmed Kolachi

Business Communication

Institute of Business Management

Karachi

Dear Mr. Ishtiaq Ahmed kolachi:

Attached is the term report you required in the Course Business Communication.

This report studies the electricity problems in Pakistan. It is based secondary research

mentioned in the bibliography. We have tried to meet your requirements.

We hope the report is acceptable to you. We found the research quite interesting and

most of all rewarding in terms of understanding the business communication.

Sincerely,

M.Noman Khan [13836]

Bilal Khowaja [13893]

S.M.Zeeshan [13910]


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Letter of Acknowledgement

August 11, 2012

Dear Readers:

We feel privileged to extend our deepest, genuine and heartfelt gratitude to our

indulgent, sincere, and learned course instructor, Mr. Ishtiaq Ahmed Kolachi, who at all

stages of this semester, provided us with his valued teaching approach enough

motivation and will to complete this report in time.

Sincerely,

M.Noman Khan [13836]Bilal Khowaja[13893]

S.M.Zeeshan [13910]


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1.0 EXECUTIVE SUMMARY

This paper analyses is addressing different power generation resources of Pakistan.

Pakistan is mainly dependent on the different power sectors including hydel, fossils,

renewable and nuclear energy. Analysis shows that Pakistan is more dependent on the

hydroelectric and least on the renewable energy resources including wind, solar,

biomass and thermal energy resources.

Being a blessed country Pakistan is still facing lot of energy crises causing turmoil in the

nation. Every government accused the previous government for the dearth of power

crises in Pakistan. The root causes of the shortfall in supply are mentioned. A forecast

for next 10-12 years has been made using empirical data and preliminary calculations.

A brief review is given about the potential of Pakistan to produce electricity and energy

sources it has. Importance of utilizing coal resources of Pakistan also discussed in it.

Also potential of water resource for construction of hydro-electric power station is

described with mentioning the importance of run of river power station. Short and long

term solutions to overcome this crisis are discussed. Importance of renewable energy

sources such as solar and wind power is discussed in this article. This article provides a

brief review of energy crisis in Pakistan and the main area to be focused to minimize

shortfall of electricity in Pakistan.

Analytical data shows the huge panic suffered by the people of Pakistan for the power

crises. Our industry and economy is affected more by the energy crises. Proper

planning and implementation of laws and orders can mitigate the suffering of people

and can reform the economy of Pakistan. All we need the proper planning and sincere

efforts in this context.


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2.0 INTRODUCTION

Pakistan has been facing an unexampled energy crisis since the last few years. The

problem becomes more severe during summers those without alternate energy

resource are facing enormous problems. The prices of both are continued to increasedue to a sharp increase in their demand.

Almost two years ago the then WAPDA chairman admitted that WAPDA cannot meet

the current demand for electricity. Its surprising that such a senior and veteran took so

long to find this out. On top of that the government which talked about Pakistans

supposedly prosperous economy failed to understand the gravity of the situation.

General Musharraf (R) after becoming Chief Executive promised to build dams

especially Kalabagh Dam. But he couldn t put his words into action.

The policy makers of Pakistan have so far failed to understand the issue. None of the

person seems to be serious to resolve this issue. Alternate energy resources are not

been considered by the government so far which are inexpensive and quick methods for

producing electricity. Pakistan is a resources blessed country having solar in most cities

and wind energy readily available in the coastal areas. These energy sources if tapped

can provide help to mitigate demand supply gap.

3.0 HISTORY

One of the major problems facing the Pakistan is the energy crisis, which are intense,

costly and multi-dimensional. The unprecedented electricity and gas disruptions are

pushing the cost of living thus making the life difficult for people. Ever soaring crude oil

prices have been registering Energy Crisis in Pakistan all-time-highs, shooting 50% in

the past year. The country has nearly gone energy bankrupt while a total disaster

appears to be round the corner. It cannot be denied that something has been wrong

down the line that caused this crisis.

The golden age for energy in Pakistan has been 1960s and most of the 1970s, that is

when Tarbela and Mangla dams were put into operation and other dams, including

Kalabagh, were actively pursued. In subsequent years, action in the field of energy has

been utterly recklessness. The prevalent crisis is a consequence of imprudent energy


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policies over the last three decades. However, the crisis is still addressable as long as

there is due vision and devotion.

4.0 ELECTRICITY SECTOR IN PAKISTANElectricity in Pakistan is generated, transmitted, distributed and retail supplied vertically

integrated public sector utilities

4.1 WATER AND POWER DEVELOPMENT AUTHORITY (WAPDA)

Distribute to all of Pakistan except Karachi. WAPDA, the Pakistan Water and Power

Development Authority, was created in 1958 as a Semi-Autonomous Body for the

purpose of coordinating and giving a unified direction to the development of schemes inWater and Power Sectors, which were previously being dealt with, by the respective

Electricity and Irrigation Department of the Provinces.

Since October 2007, WAPDA has been bifurcated into two distinct entities i.e. WAPDA

and Pakistan Electric Power Company (PEPCO). WAPDA is responsible for water and

hydropower development whereasPEPCO is vested with the responsibility of thermal power generation, transmission,

distribution and billing. There is an independent Chairman and MD (PEPCO) replacing
http://en.wikipedia.org/wiki/Water_and_Power_Development_Authorityhttp://en.wikipedia.org/wiki/Water_and_Power_Development_Authority


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Chairman WAPDA and Member (Power) who was previously holding the additional

charges of these posts.

WAPDA is now fully responsible for the development of Hydel Power and Water Sector

Projects. The Charter of Duties of WAPDA is to investigate, plan and execute schemes

for the following fields:

Generation, Transmission and Distribution of Power.

Irrigation, Water Supply and Drainage.

Prevention of Water logging and Reclamation of Waterlogged and Saline Lands.

Flood Management.

Inland Navigation.

The Authority comprises of a Chairman and three (3) Members working through a

Secretary.

WAPDA is one of the largest employers of human resources in Pakistan. Over

the years WAPDA has built-up a reservoir of Technical know-how and expertise

which has made it a modern and progressive organization

PEPCO has been fully empowered and is responsible for the management of all

the affairs of corporatized nine Distribution Companies (DISCOs), four

Generation Companies (GENCOs) and a National Transmission Dispatch

Company (NTDC). These companies are working under independent Board of

Directors (Chairman and some Directors are from Private Sectors).


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4.2 PAKISTAN ELECTRIC POWER COMPANY

PEPCO has been fully empowered and is responsible for the management of all the

affairs of corporatized nine Distribution Companies (DISCOs), four GenerationCompanies (GENCOs) and a National Transmission Dispatch Company (NTDC). These

companies are working under independent Board of Directors (Chairman and some

Directors are from Private Sectors).

The Pakistan Electric Power Company (Private) Limited (PEPCO) has been entrusted

the task of managing the transition of WAPDA from a bureaucratic structure to a

corporate, commercially viable and productive entity. It is a mammoth task and progress

in the initial months was rather slow, but one should keep in mind that responsibility is

enormous and transition is a long drawn process.


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5.0 CURRENT ENERGY RESOURCES OF PAKISTAN

5.1 FOSSIL

Station Location Capcity StatusKot addu power

company Kapco

Kot Addu

Muzaffargarh1600

Operational; Oil- and Natural Gas-fired

thermal stations

Hub Power

Company1292 Operational; Oil-fired thermal station

Bin Qasim

Power PlantKarachi 1196

Operational; Oil- and Natural Gas-fired

thermal stations

Jamshoro Power Jamshoro 1054 Operational; Oil- and Natural Gas-fired
http://en.wikipedia.org/wiki/Hub_Power_Companyhttp://en.wikipedia.org/wiki/Hub_Power_Companyhttp://en.wikipedia.org/w/index.php?title=Bin_Qasim_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bin_Qasim_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Jamshoro_Power_Company&action=edit&redlink=1http://en.wikipedia.org/wiki/File:Feedwater-heating.pnghttp://en.wikipedia.org/w/index.php?title=Jamshoro_Power_Company&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bin_Qasim_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bin_Qasim_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/wiki/Hub_Power_Companyhttp://en.wikipedia.org/wiki/Hub_Power_Company


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Company thermal stations

Guddu Thermal

StationGuddu 1049

Operational; Natural Gas-fired thermal

stations

Lalpir & Pakgen

Thermal Station MuzaffarGarh 727 Operational; Oil-fired thermal stations

Uch Power PlantDera Murad

Jamali596


station

Rousch Power

Plant

Abdul

Hakeem450


station

TNB Liberty

Power PlantDharki 250


station

Foundation

Power Company

(FPCDL)

Daharki,

Ghotki177

Operational; Combined Cycle Power

Plant

Fauji Kabirwala

FKPCLKabirwala 157

Operational; Combined Cycle Power

Plant

Gul Ahmed

Korangi

Town,

Karachi

136 Operational; Furnace Oil

Altern EnergyFateh Jang,

Attock29 Operational; Gas-fired Diesel Engine
http://en.wikipedia.org/w/index.php?title=Guddu_Thermal_Station&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Guddu_Thermal_Station&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Lalpir_%26_Pakgen_Thermal_Station&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Lalpir_%26_Pakgen_Thermal_Station&action=edit&redlink=1http://en.wikipedia.org/wiki/Uch_Power_Planthttp://en.wikipedia.org/w/index.php?title=Rousch_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Rousch_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/wiki/Abdul_Hakeem,_Pakistanhttp://en.wikipedia.org/wiki/Abdul_Hakeem,_Pakistanhttp://en.wikipedia.org/w/index.php?title=TNB_Liberty_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=TNB_Liberty_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Foundation_Power_Company_%28FPCDL%29&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Foundation_Power_Company_%28FPCDL%29&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Foundation_Power_Company_%28FPCDL%29&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Fauji_Kabirwala_FKPCL&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Fauji_Kabirwala_FKPCL&action=edit&redlink=1http://en.wikipedia.org/wiki/Gul_Ahmedhttp://en.wikipedia.org/w/index.php?title=Altern_Energy&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Altern_Energy&action=edit&redlink=1http://en.wikipedia.org/wiki/Gul_Ahmedhttp://en.wikipedia.org/w/index.php?title=Fauji_Kabirwala_FKPCL&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Fauji_Kabirwala_FKPCL&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Foundation_Power_Company_%28FPCDL%29&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Foundation_Power_Company_%28FPCDL%29&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Foundation_Power_Company_%28FPCDL%29&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=TNB_Liberty_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=TNB_Liberty_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/wiki/Abdul_Hakeem,_Pakistanhttp://en.wikipedia.org/wiki/Abdul_Hakeem,_Pakistanhttp://en.wikipedia.org/w/index.php?title=Rousch_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Rousch_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/wiki/Uch_Power_Planthttp://en.wikipedia.org/w/index.php?title=Lalpir_%26_Pakgen_Thermal_Station&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Lalpir_%26_Pakgen_Thermal_Station&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Guddu_Thermal_Station&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Guddu_Thermal_Station&action=edit&redlink=1


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5.2 HYDROELECTRIC

Station Location Capacity StatusTarbela Dam Terbela 3478 Operational

Ghazi-Barotha

Hydropower ProjectGhazi town 1450 Operational

Mangla Dam Mirpur District 1000 Operational

Warsak Dam 243 Operational

Chashma Barrage Chashma 184 Operational

Khan Khwar

hydropower projectBesham District 72 Operational

Jagran-I Dam Neelum Valley 30 Operational

Rasul Barrage Mandi Bahauddin 22 Operational

Malakand Dam 22 Operational
http://en.wikipedia.org/wiki/Tarbela_Damhttp://en.wikipedia.org/wiki/Ghazi-Barotha_Hydropower_Projecthttp://en.wikipedia.org/wiki/Ghazi-Barotha_Hydropower_Projecthttp://en.wikipedia.org/wiki/Mangla_Damhttp://en.wikipedia.org/wiki/Warsak_Damhttp://en.wikipedia.org/wiki/Chashma_Barrage_%28Ramsar_Site%29http://en.wikipedia.org/w/index.php?title=Khan_Khwar_hydropower_project&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Khan_Khwar_hydropower_project&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Jagran-I_Dam&action=edit&redlink=1http://en.wikipedia.org/wiki/Rasul_Barragehttp://en.wikipedia.org/w/index.php?title=Malakand_Dam&action=edit&redlink=1http://upload.wikimedia.org/wikipedia/commons/5/57/Hydroelectric_dam.svghttp://en.wikipedia.org/w/index.php?title=Malakand_Dam&action=edit&redlink=1http://en.wikipedia.org/wiki/Rasul_Barragehttp://en.wikipedia.org/w/index.php?title=Jagran-I_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Jagran-I_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Khan_Khwar_hydropower_project&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Khan_Khwar_hydropower_project&action=edit&redlink=1http://en.wikipedia.org/wiki/Chashma_Barrage_%28Ramsar_Site%29http://en.wikipedia.org/wiki/Warsak_Damhttp://en.wikipedia.org/wiki/Mangla_Damhttp://en.wikipedia.org/wiki/Ghazi-Barotha_Hydropower_Projecthttp://en.wikipedia.org/wiki/Ghazi-Barotha_Hydropower_Projecthttp://en.wikipedia.org/wiki/Tarbela_Dam


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Dargai Dam waziristan 20 Operational

Nadipur Dam 13 Operational

Shadiwal Dam 14 Operational

Chihoki Dam 14 Operational

Renala Dam 1 Operational

Chitral Dam 1 Operational

Kuram Garhi Dam 4 Operational

5.3 RENEWABLES

Station Location Capacity StatusWah Industries Limited Solar Taxila, Punjab 1 -

Thatta Power Plant Sindh 150 -

Tech Access Solar Punjab 10 -

Solar Energy Pakistan Ltd Thatta 35 -

Roshan Power Solar Kasur 10 -

Jhimpir Wind Power Plant 6 OperationalFirst Solar Punjab 2 -

DACC LLC Solar Sindh 50 -

CWE Solar Cholistan 50 -

Bakhsh Energy Solar Lodhran 20 -

AM Pak Energy Punjab 50 -
http://en.wikipedia.org/w/index.php?title=Dargai_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Nadipur_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Shadiwal_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Chihoki_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Renala_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Chitral_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Kuram_Garhi_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Wah_Industries_Limited_Solar&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Thatta_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tech_Access_Solar&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Solar_Energy_Pakistan_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Roshan_Power_Solar&action=edit&redlink=1http://en.wikipedia.org/wiki/Jhimpir_Wind_Power_Planthttp://en.wikipedia.org/wiki/First_Solarhttp://en.wikipedia.org/w/index.php?title=Bakhsh_Energy_Solar&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=AM_Pak_Energy&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=AM_Pak_Energy&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bakhsh_Energy_Solar&action=edit&redlink=1http://en.wikipedia.org/wiki/First_Solarhttp://en.wikipedia.org/wiki/Jhimpir_Wind_Power_Planthttp://en.wikipedia.org/w/index.php?title=Roshan_Power_Solar&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Solar_Energy_Pakistan_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tech_Access_Solar&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Thatta_Power_Plant&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Wah_Industries_Limited_Solar&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Kuram_Garhi_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Chitral_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Renala_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Chihoki_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Shadiwal_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Nadipur_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Dargai_Dam&action=edit&redlink=1


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5.4 NUCLEAR

Station Location Capacity Status

Chashma Nuclear PowerComplex 1 (CHASNUPP-1)

ChashmaDist. Mianwali

300 Operational

Chashma Nuclear Power

Complex 2 (CHASNUPP-2)

Chashma

Dist. Mianwali300 Operational



Chashma

Dist. Mianwali300

Under

Construction



Chashma

Dist. Mianwali 300

Under

Construction

Karachi Nuclear Power

PlantKarachi 125

Partially

Operational
http://en.wikipedia.org/wiki/CHASNUPP-1http://en.wikipedia.org/wiki/CHASNUPP-2http://en.wikipedia.org/w/index.php?title=CHASNUPP-3&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=CHASNUPP-4&action=edit&redlink=1http://en.wikipedia.org/wiki/Karachi_Nuclear_Power_Planthttp://en.wikipedia.org/wiki/Karachi_Nuclear_Power_Planthttp://en.wikipedia.org/wiki/Karachi_Nuclear_Power_Planthttp://en.wikipedia.org/wiki/Karachi_Nuclear_Power_Planthttp://en.wikipedia.org/w/index.php?title=CHASNUPP-4&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=CHASNUPP-3&action=edit&redlink=1http://en.wikipedia.org/wiki/CHASNUPP-2http://en.wikipedia.org/wiki/CHASNUPP-1


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6.0 PAKISTAN DEPENDENCY ON ENERGY

Energy sources

Total installed electricity capacity

Thermal: 66%

Hydro-electric: 30%

Nuclear: 3%

Others: ~1%

Total primary energy supply

Biomass: 34.8%Natural gas: 31.9%

Oil and products: 24.1%

Coal: 5.8%

Hydro-electric: 2.9%

Nuclear: 0.5%

The annual growth of primary energy supply increased from 3.17% to 4.3%. Energysupply in Pakistan is highly dependent on oil and gas, which together contribute more

than 77% of the total primary energy supplied. The average share of gas and oil were

respectively 44.36% and 32.58%. The remaining sources of energy supply consist of

hydro-electricity and coal, with shares in total energy supply around 12% and 6%

respectively.

Electricity is used for domestic, commercial, agriculture and industrial purposes. Despite

its high per unit price, household demand for electricity is growing. This sector is the

largest consumer of electricity in the Pakistan with a share of 42%, whereas the

industrial and agriculture sectors shares are 25.2% and 13.3% respectively.


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6.1 RELIANCE

At present Pakistan meets 75% of its energy needs through domestic resources,

including gas, oil and hydroelectricity production. Only 25% of the country's energy

needs were managed through imports, in which oil has taken a major share. Further,

Pakistan has planned to import 1,100 MW of electricity from Iran for supply to Gwadar

and other coastal areas of Balochistan.

6.2 EXTEND NETWORK

Population Access to Electricity (2008): 57.6 %--------- (2012): 60%

Rural: 46%

Urban: 78%

70 million people do not have access to electricity. Two separate grids form the

electricity transmission network in the country, the national grid operated by the National

Transmission and Dispatch Company, and a dedicated grid for Karachi. These networks

are interconnected via a 220 kV line.

6.3 ENERGY EFFICIENCY

Pakistans energy demands will increase in the coming 20 years. The Pakistani energy

sector has discovered that it has huge untapped energy efficiency potential. Past

attempts to mainstream energy efficiency projects could not get expected results

because of lack of management capacity and financing. The government of Pakistan

wants to implement a systemic energy efficiency program and has been seeking a

flexible public sector financing mechanism and to establish private sector financing to (i)

scale up the deployment of proven energy efficiency technologies, and (ii) set up an

energy efficiency market.

6.4 COMPETITIONThe Pakistani power sector has historically been dominated by the public sector

utilities, WAPDA and KESC. Over the years, these institutions became large,

vertically-integrated utilities with problems with maintenance of Infrastructure,

financial and technical inefficiencies, and dependence on public sector development

resources.


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In order to mobilize private sector investment for the power sector, an IPP policy was

launched in 1994, and subsequently reviewed in 1998 and 2002. A Private Power

and Infrastructure Board (PPIB) was set up to provide support to the private sector.

The government also set up the National Electric Power Regulatory Authority

(NEPRA) in 1997. In 1998, it embarked upon a programmed of unbundling the

WAPDA through corporatization and commercialization. The WAPDA has now been

reorganized into nine distribution companies, one National Transmission and

Dispatch Company (NTDC) and four thermal generation companies, called

GENCOs. The hydroelectric power development and operation functions remain with

the WAPDA. To carry out this restructuring a facilitation company called Pakistan

Electric Power Company (PEPCO) was also incorporated in 1998. Several IPPs are

operating in Pakistan, while a number of projects are under construction. The gross

power generation capacity of the IPPs is 5,822 MW. The Kot Addu Power Company

(KAPCO) and the Hub Power Company (HUBCO) are the two largest IPPs, with

1,466 MW and 1,292 MW respectively.

6.5 ENERGY FRAMEWORK

During the mid-80s, Pakistan made its first move towards exploring renewableenergy options. The government invested 14 million rupees towards feasibility

studies for solar energy and biogas production between 1983 and 1988. However,

no significant project developments resulted from this investment.

New energy policies were also instituted in 1994, 1998 and 2002. The 2002 Power

Policy, currently still in place, encouraged the use of local resources, including

renewable energy. This policy aimed to develop approximately 500 MW of

renewable (non-hydro) power generation by 2015, and roughly 1,000 MW by 2020.Although various energy policies implemented between 1985 and 2002 stressed the

need for employing renewable energy resources, none provided a framework for the

implementation of such projects. RE development was virtually non-existent, as

these policies failed to attract private sector confidence and investment.


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6.6 RENEWABLE ENERGY RESOURCES

The nation is currently facing UPTO 8 GW power supply shortage, the most severe

energy crisis to have ever hit the country; yet abundant indigenous resources such as

wind, solar and biomass remain virtually untapped.

Solar

Pakistan lies in a region of high solar irradiance as such, it is ideally suited for solar

energy projects. Pakistan receives about 15.5x1014 kWh of solar irradiance each year,

with most regions receiving approximately 8 to 10 sunlight hours per day. The potential

installed capacity of solar photovoltaic power is estimated to be 1,600 GW per year,

providing approximately 3.5 PWh of electricity (approximately 41 times of current power

generation in the country). Current utilization is still at a developmental stage, withseveral pilot projects being implemented.

Wind

Wind energy also has strong technical potential in Pakistan, particularly in the southern

regions of Sindh and Balochistan. Pakistan has approximately 1,000 km of coastline

with steady average wind speeds ranging between 5 and 7 m/s. The projected installed

capacity for wind energy is estimated at 122.6 GW per year, providing approximately

212 TWh of electricity (approximately 2.5 times the current power generation level).

Biomass

Biomass availability in Pakistan is also widespread. Approximately 50,000 TON of solid

waste, 225,000 Ton of crop residue and over 1 million Ton of animal manure are

produced daily. It is estimated that potential production of biogas from livestock residues

is 8.8 to 17.2 billion meters3 of gas per year (equivalent to 55 to 106 TWh of energy).

Annual electricity production from bagasse is estimated at 5,700 GWh about 6% of

Pakistans current power generation level.

Hydropower

Hydro is the only sustainable energy resource which Pakistan has used for large-scale

power generation. Currently, Pakistan has installed hydropower capacity of


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approximately 6.6 GW. This is 16% of total hydropower potential, which is estimated to

be roughly 41.5 GW.

Biogas

Total biogas generation potential of is 14.25 million m3/day. The Pakistan Council ofRenewable Energy Technologies is designing, developing and disseminating biogas

plants. During the last 3 years, more than 1600 plants, mostly of 5 m3/day capacity,

have been installed by the PCRET. NGOs and private sector companies have

performed similar numbers of installations. This means that a total of 0.016 million

m3/day of biogas capacity was utilized during the last 3 years, with an annual

exploitation factor of 0.374 to 10.3. The working status of biogas plants installed before

the last 3 years is uncertain, as there are no repair and maintenance services.

Geothermal

Pakistan has considerable potential for geothermal energy (80,000 MW) as there are

numerous fumaroles and hot springs. However, the extent of the commercial potential is

not known, and further studies are needed.


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7.0 CAUSES OF ENERGY CRISES

7.1 POOR DISTRIBUTION SYSTEM

Let us chalk out the reasons for shortage of energy. Lopsided priorities, poor

management and lack of accountability can be denoted as the reasons for dearth of

energy in Pakistan. The number of consumers of electricity is now increased owing to

the rapid urbanization process. The facility of electricity is now provided to the remote

villages. We waste a lot of energy, about 15 to 20 percent through poor distribution

system. Industrial, transport and domestic sectors are the three important consumers of

energy.

7.2 LACK OF ENERGY CONSERVATION PROGRAM

Wastage of energy is a serious problem and if this is kept in check, then this problem

can be controlled to quite an extent. Currently, the elite class is consuming maximum

energy even with prior knowledge and understanding. High rate of illiteracy and the

masses, not paying heed to its proper and careful usage. However, what we see is that

the elite class is using it for its luxury. The need of the hour is energy conservation

programs.

7.3 COST OF FUEL

The high cost of fuel i.e. the price of crude has increased from $40 to $140 a barrel.

This obscene rise in cost means that the thermal source of production is resulting in

exorbitant prices. As WAPDA and KESC procure energy on high cost, hence, they will

sell it at a higher price too. The viable solution is to increase the energy cost. The

government will need to monitor the theft of electricity and make sure it doesnt prevail.

7.4 UNTAPPED ALTERNATE ENERGY RESOURCES

Pakistan is blessed country having abundance of alternative energy resources. But

improper planning leads us to the uselessness of the alternate energy resources. Wind


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in the coastal areas of Sindh, coal in Thar and solar energy can be used in many of the

warm areas of country.

7.5 POWER POLITICS

Several private power producers had to halt or slash production because the state-run

power purchasing company hadn't paid them. They had not been able, because the

biggest consumers (especially provincial and federal governments) had not paid their

own electricity bills. The bills that were paid are not enough to cover the cost of

generation.

This so-called circular debt, currently about $880m, is an ongoing problem. The

government usually bites the bullet, as it did this time, by paying off a portion when

power producers are about to sue for default, enabling them to start generating again

for the moment. What remain unaddressed are the structural issues that cause the debt

to pile up again: poor recovery of dues (receivables stand at $4 billion), electricity theft,

transmission losses, reliance on imported oil and politically sensitive subsidies for

certain groups. Perpetuating all of this is a lack of efficiency and co-ordination across a

maze of state-owned agencies including a power purchaser, distribution and generation

companies, a regulator and various ministries.


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8.0 GOVERNMENT INVOLVEMENT

Key activities being undertaken by the government to increase electricity supplies using

both public and private investment includes:

Encouraging the construction of conventional hydroelectric, oil-fired, nuclear, and

coal-fired facilities to generate additional electricity

Encouraging the development of the countrys small hydro, wind, solar, and

biomass

Resources through a recently-adopted Renewable Energy Development Policy,which hopes to build upon the US-prepared wind and solar maps that will be

released

Encouraging the exploration and development of domestic oil & gas resources

through anew draft Petroleum Development Policy, and through an updated

scientific assessment of the discovered and undiscovered resource potential of

the country

Exploring the potential for developing the countrys coal resources and exploiting

them for power generation and petrochemical use

Diversifying imported gas supplies through possible pipelines to bring gas from

Turkmenistan, Qatar, or Iran to Pakistan as well as encouraging imports of

Liquefied Natural Gas (LNG) through its newly-adopted LNG Import Policy

Expanding imports of electricity from Iran.


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9.0 CHALLENGES

Lack of technical and managerial capacity to carry out policies and programs in the

most effective manner is the big challenge for Pakistan. There should be some

capabilities in which government is facing dearth as described under

The ability to perform system-wide planning in the electricity and energy sector as

a whole, both in terms of technical analysis and ability to develop and implement

plans of action.

The ability to analyze project proposals to determine if the tariffs, costs, and

contracts being proposed are reasonable, particularly for hydroelectric, coal, and

wind projects where the country has less experience.

The ability to manage the electric generation, transmission, and distribution

companies created by the unbundling of WAPDA as commercial enterprises, with

a focus on improving customer service and reducing losses.

The ability to expand access to un-served and under-served population groups in

the most financially-sound and consumer-driven manner. For example, illegal

connections in Pakistan need to be rationalized to improve service and safety,

and to reduce technical and nontechnical losses, but the community outreach and

negotiation ability appears to be lacking within the utility. Similarly, electrifyingvillages with renewable energy presents unique opportunities and challenges for

community organizations to maintain and own the systems while fostering private

sector development opportunities.

The ability to compile and financially analyze the various economic incentive

programs and to develop a more targeted approach that will satisfy both the social

and economic goals of the government.

The ability to assess the existing resource base of the oil & gas resources of the

country to internationally accepted standards.

The ability to assess the coal resources to determine if their development is

economically and technically justified and feasible.

The ability to identify the most pragmatic energy conservation and load

management options, and to encourage their widespread adoption, as well as to


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develop policies and incentives to encourage improved energy efficiency over the

mid- to long-term.

9.1 WEAKNESSES OF PRIVATE SECTOR

The private sector lacks knowledge on how to improve its energy efficiency and

reduce energy costs. While the furniture industry has been exploring solar kilns as

a way to save energy and cut costs, they are probably an exception rather than

the rule.

The private sector lacks the skills analyze what is the most efficient captive power

system to purchase and operate, as well as lacking the knowledge to explore

options under existing government policies to sell captive power back to the utility

(i.e., net metering) or to invest in power generation facilities such as small hydro

or wind facilities that could produce power that the local utility would transmit to

the industrial user (i.e., power wheeling plus generator to consumer contracting).

Local governments lack the capacity to monitor the energy use of community

facilities, and to identify opportunities to conserve energy.

Communities and NGOs lack knowledge about renewable energy systems and

suppliers, and how they might partner with governments, donors, and the privatesector to bring energy services to remote populations in a cost-effective and

sustainable fashion (e.g., using livestock wastes to produce biogas, using crop

seeds or wastes to produce bio fuels).

Consumers of energy products and services, along with journalists and

community leaders, do not understand that the costs of these services must be

covered by either the consumer or the customerthere is no free lunch.

Consumers and the general public are also not fully aware of the opportunities to

make known their points of view on government policies and on energy company

performance to regulators and government representatives.


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10.0 ANALYTICAL SURVEY

42% employed professional face 4-8 hours of load-shedding at workplace every day


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42% employed professional face 4-8 hours of load-shedding at workplace every day.

64% employed respondents profess significant productivity loss in their work routinedue to excessive load-shedding at home, whereas only 8% feel their work productivityisnt affected by load-shedding


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Of the employed sector, 37% working professionals do not have any back-up powersupply at home, whereas 43% make do with a UPS when load-shedding occurs

51% working professionals report to have continuous power at office throughgenerators, 24% use both generator and UPS whereas 9% have no back-up power

supply to carry out their tasks


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11.0 RECOMMENDATIONS

The following recommendations may serve as first step in indicate planning for handling

energy crisis at various levels:

11.1 ENERGY PLANNING CELL

A dedicated & loyal cell should be formed at government level under the planning

commission/prime minister secretariat which should be responsible for detailed planning

of energy requirements, keeping in view the realistic annual growth. This cell should

serve as a think tank and should comprise specialist engineers and administrative staff.

The boss of this cell should ensure preparation of short term, medium term and long

term plans. The cell should have three sub cells, responsible for monitoring of studies,detailed planning and designing, award of contracts and finally implementation of

construction within each sub cell.

11.2 PECIALIZED STAFF

The staff should have specialization in both thermal and hydel projects. It should

operate through monthly meetings to be attended by representatives of ministry of water

and power, PPIB WAPDA and PEPCO. The head of this cell should be a technicallyqualified officer and has to be a hard task master to ensure that every target is met by

the scheduled date.

11.3 PROVINCIAL INVOLVEMENT

As per the National Power Policy, all the provinces are authorised to set up their own

power plants up to 50 MW.

To achieve meaningful results, all provinces (interested in set the feasibilitystudy should include following field work.

1. Detailed Mapping of the area.

2. Topographic study of the area.

3. Seismic refraction study.


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4. River flow data.

5. Weather data contain Temperature, Pressures and Rain humidity.

6. Water sampling and testing.

7. Environmental study.

8. Social impact.

9. Identification of stake holders of the area

There should be dedicated energy planning cell. The head of this cell again has to be a

specialist. All cases received from WAPDA, PEPCO in the shape of PCII and PC1

should be processed immediately. All queries be resolved through meetings rather

through letters which takes months to get up to date reply. The detailed organization

can be worked out at the Ministry.

11.4 PRIVATE POWER INFRASTRUCTURE BOARD

The Private Power Infrastructure Board, which is almost non-functional with relation to

physical result, is required to be made dynamic. No political interference should be

allowed. The PPIB, through pro-active approach, should only work on the projects

earmarked by the main core cell at Government level.

All Letters of Intent issued and agreements signed by PPIB should have cut off dates for

completion of feasibility studies, detailed designing and commencement of work. No

extension of time in any activity be granted. The present practice is that dummy

investors, having political influence, are coming forward with the sole aim of subletting

the project to some other investor and aiming at making money.

11.5 PROGRESS MONITORING

Progress of all agreements is monitored by the central cell and parties making no

progress be given immediate exit. Though WAPDA has already devised a verycomprehensive plan titled as Vision 2025, yet its implementation is lagging drastically

behind schedule. There could be many reasons for this failure, but the most important

being the bidding system.


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As per the prevailing practices, only the lowest bid is accepted. Land acquisition

process is time consuming and lacks flexibility. In most of the cases WAPDA fails

to acquire the land required for the projects due to litigation process. Some

projects have been delayed due to non-availability of material from identified

sources as the influential cartels get sources on lease and later on dictate their

terms with the contractor.

The Government of Pakistan/WAPDA should fix the cut off percentage lower

than the engineer estimate beyond which the contractor should be declared as

non responsive. Land acquisition process is started much before the award of

contract so that the land is available by the time the contract has been awarded.

It has also been seen that some contractors abandoning their work on one

project, instead of being put on blacklist and not to be considered for awarding of

further projects, still have been awarded contracts due to outside pressure. This

practice by WAPDA, instead of deterring, has encouraged other contractors to

also adopt the same approach and thus abandon projects once they feel that

they will be undergoing losses.

This vague policy of WAPDA has also contributed in the delay of a couple of

mega projects. It is recommended that any contractor who abandons his projects

site without any valid justification be blacklisted and should not be considered foraward of future contracts. WAPDA should expedite the commencement and

completion of all projects conceived in Vision 2025.

No time should be wasted on penny-wise, pound-foolish approach, which

presently is the main source of delay in the timely award of contracts. WAPDA

should also carry out analysis of additional cost due to delayed award and

subsequent delayed completion of projects, while undertaking projects bid

evaluations and making decisions for re-bidding.

The people responsible for causing delay in the schedule of completion should

be taken to task. There should also be some incentive, both for contractors and

project authorities for the timely completion of projects.


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11.6 TECHNICAL HEAD OF DEPARTMENT

It has remained the policy of the Government to reward some retired bureaucrats and

Government officials and make them the heads of technical departments, like WAPDA,

PEPCO; irrespective of their qualifications.

It is funny to assume that a good administrator would also be equally efficient in a

technical department. A non-technical boss will always look towards his immediate

subordinates, being totally unaware of the technical implications.

It is high time that people sitting at the helm of affairs should realize the ground realities

and post technically qualified, capable and competent officers as heads of technical

departments. If it is inevitable to reward non-technical, retired officers there are

hundreds of non-technical slots both at the provincial and federal levels.

It is time that our leaders realize this very important aspect and stop posting non-

technical officers as heads of technical departments. To conclude, it has gone beyond

doubt that Government of Pakistan has miserably failed to cater for energy needs of the

country. The concerned people have to make serious efforts to bridge the gap between

demand and availability.

This is only possible if all players responsible for initiation and completion of power

projects work in harmony and sincerely at each end and if our leaders stop posting non-

technical men in technical departments as bosses.


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12.0 CONCLUSIONS

After the analysis of the data we draw the conclusions that Pakistan is still going to

involve in the crisis in the coming years until specific attention is not been paid toward

the issues. There is need of some kind of technical and some of the managerialproblems to be resolved. The crises will lead to perish of economy and enhance the

turmoil in the nation. There is no betterment in the system has been adopted for many

time as far as role of government is considered. There is need to adopt the following

recommendations to overcome issues pertaining to power sector

Govt. must pay circular debt.

Govt. must invest to cover up line losses.

Industries that consume 32% of our electricity, must apply Energy Conservation

Systems and Management measures.

They can start producing their own energy with their own investment without

depending upon the grid.

Industrialists and new investors must consider the Energy Sector as good an

investment as any other. Needs image building.

Govt. must convert from inefficient gas plants to efficient ones in order to

conserve electric energy.

Govt. must consider investing in Solar Energy plants to produce Electricity as

they provide free energy, and are less mechanical than Wind Energy Plants.

Sincere efforts and proper planning can lead to evade us from this gigantic problem.


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13.0 BIBLIOGRAPHY

1. www.wapda.gov.pk

2. www.pepco.gov.pk

3. http://en.wikipedia.org

4. www.pakistaniat.com

5. http://tribune.com.pk/

6. http://pakistantimes.net/

7. http://dailytimes.com.pk

8. http://www.industryabout.com

9. www.thecurrentaffairs.com
http://www.wapda.gov.pk/http://www.pepco.gov.pk/http://en.wikipedia.org/http://www.pakistaniat.com/http://tribune.com.pk/http://pakistantimes.net/http://dailytimes.com.pk/http://www.industryabout.com/http://www.thecurrentaffairs.com/http://www.thecurrentaffairs.com/http://www.industryabout.com/http://dailytimes.com.pk/http://pakistantimes.net/http://tribune.com.pk/http://www.pakistaniat.com/http://en.wikipedia.org/http://www.pepco.gov.pk/http://www.wapda.gov.pk/

Documents

Final BC Reportttt