Current Energy Scenario of Pakistan

Sustainable Energy System

Current Energy Scenario of PakistanPersonal PerspectiveWritten by: Syed Adnan Ali

IntroductionThe economic stability of any country is directly related to growth of its energy sector. Whenever the demand of energy increases from the supply, the economic integrity of a country is compromised. This situation is often termed as energy crisis. It means less supply of energy resources and is related to many other factors. For example, shortage of oil or other natural resources can lead to less production of electricity and consequently energy crisis. Higher prices of natural resources can have same effect as well. Many of the analysts propose that the world will soon go through a global energy crisis due to lesser availability of cheap oil. This lesser availability is related to depletion of natural reserves. It is need of the hour that we shift towards a sustainable energy system that should be based on renewable energy resources and alternate fuels. The complication in using alternate fuels is that they generate more pollution and cheaper energy production would be on the cost of environmental integrity.Energy Scenerio (Crisis) of PakistanThe current cumulative installed capacity of Pakistan is 22500 MW while the peak demand is 22000 MW. The availability of installed capacity (due to expensive fuel, plant maintenance etc.) is 17000 MW. This leads to a shortfall of 5000 MW. This deficiency in energy has impacted various industrial as well as domestic users of Pakistan. There is a strong need to address this shortfall with the provision to cater for the upcoming requirements. The annual demand is increasing at the rate of 10 % while the supply is increasing by 7 %. The projected requirement of electricity by 2030 will be 45000 MW. If, in the near future, major steps are not taken regarding energy production, then it is obvious that Pakistan will go through serious economic downfall.The solutionThe imminent action to stabilize energy sector, hence economy of Pakistan, would be to focus on Energy sector. This can be done through organizational changes as well as investment.Organizational ChangesThe organizational changes can be made to address the circular debt and tariff. Circular debt arises from poor recovery of electricity bills. This leads to a burden on government and, to lessen this burden, government reduces purchase of fuel to be given to power plants for electricity production. This lesser production is managed by load shedding. If the organization is effective enough for the complete collection of electricity bills then this situation will not arise.However, there are other factors as well that lead to circular debt on government. One of them is the management of tariff regarding fuel (raw material for electricity) and electricity. Currently, it is controlled by two different organizations i.e. NEPRA and OGRA. The price of electricity should be in line with the price of fuel which is used to produce electricity. This is only possible when these two organizations are integrated enough. The better option is to unify these organizations and regulations should be made by single organization that can seek such a balance between money invested in fuel for electricity and money collected form recovery of electricity bills that can lead to minimum circulate debt.Alternate Fuels and renewable ResourcesPakistan is full of renewable resources and various alternate options to produce electricity. Exploitation of these options for the production of electricity can be a game changer in current energy scenario of Pakistan. These options include: Thar Coal Hydro Potential Solar Energy Wind Energy BiogasThar CoalThar Desert contains 7th largest coal reserves of the world that total to approximately 175 Billion Tons of coal. These reserves are 68 times higher than Pakistans total gas reserves.The minute 1 % of these reserves equals 25 % of electricity production of Pakistan in 2010 and complete utilization of these reserves can product 100,000 MWs of electricity for over straight 200 years. The investment to utilize this coal includes technology advancement in mining as well as coal fired power plants that can suffice environmental challenges. This investment has the potential to shift the current economic stand of Pakistan in international market. Hydro PotentialThe current installed capacity of Pakistan based on hydro is 6500 MW which is minute when compared with geography of Pakistan. The Indus river system can offer economically viable production of 60,000 MW. To cash these MWs the only thing needed is the capital investment and political will. After that it will be one of the cheapest energy in Pakistan. Solar EnergyPakistan is rich will solar energy as it receives an average of 5.5kWh/m2/day. It has almost 2500 hours of sunshine form 25 to 25 degree north. Investment in solar section can generate more than 50,000 MW of electricity. Although solar energy has higher capital and maintenance cost but it has the potential to ease current energy scenario.Wind EnergyAccording to surveys, Pakistan can produce three times the installed capacity from wind. The viable production of energy from wind is more than 60,000 MW. The Government of Pakistan also offers certain incentives to the organizations investing in wind energy.BiogasPakistan is the 4th largest dairy in the world and production of biogas from organic waste can be considered for electricity production. This will greatly impact the living of people in rural areas and will facilitate them as well in their farming and other activates. Biogas production has the potential to replace half of the natural gas requirement in Pakistan.Sustainable Energy System Syed Adnan Ali