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ALTERNATIVE ENERGY
[Prospects for Pakistan]
Individual Research Paper
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MOTHER THEME
PAKISTAN'S ENERGY CRISIS AND WAY FORWARD
Pakistan is in the grip of an energy crisis that is seriously affecting all sectors
of the economy and even the society. Prolonged power-outages have become a way
of life; and have made life miserable for a large portion of the population, while
millions are facing uncertainty of livelihood. Today, despite having the capability of
producing !""" #$, the country is producing average %""" to &""" #$ due to
mismanagement. The power deficit oscillates between &""" #$ to !""" #$,
bringing the industries and the economy to a virtual halt. $ith the dwindling gas
fields and sharp increase in the prices of fuel, Pakistan is importing fossil fuels
'furnace oil( for generation of thermal power with foreign assisted initiatives like
rental power plants at an enormous cost in foreign e)change. The irony is that
despite the presence of enormous reserves of Thar *oal deposits, no serious efforts
have been made to tap them. +n the absence of +ran-Pakistan gas pipeline, the
possibility of gas turbines for power generation is also not foreseeable. ,n the other
hand, Pakistan is rich in hydro-electric potential but ma-or pro-ects have been
politici.ed for parochial interests. /ven the undisputed pro-ects have been delayed
painfully. +n addition, the country can generate electricity with the help of alternate
sources like nuclear, wind and solar energy; but the areas have not been e)ploited to
meet the deficit. $hile the potential is obvious, lack of foresightedness, inept
management, over dependence on e)ternal resources and lack of e)ploitation of
indigenous resources are apparently the ma-or reasons for this crisis. +nefficient
consumption, distribution and lack of conscious austerity culture in the lifestyles are
other oft-0uoted reasons for the acute shortage.
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*arryout an in-depth study of the e)isting energy potential and reasons of
crisis at hand, with a view to recommending short, mid and long term measures to
achieve self-sufficiency.
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iii
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SUB - THEME II
PAKISTANS ENERGY CRISIS VIS-A-VIZ OPTION OF EXPLORING ALTERNATE
ENERGY POTENTIALS IN THE COUNTRY
Pakistan is in the grip of an energy crisis that is seriously affecting all sectors
of the economy and even the society. Prolonged power-outages have become a way
of life; and have made life miserable for a large portion of the population. $hile
millions are facing uncertainty of livelihood, the e)isting energy crisis has brought the
industry and the economy to a virtual halt. $ith the rise of fuel prices across the
world, dwindling gas resources and perils of nuclear energy, the world is on the
0uest for various alternate energy resources and has been successful in e)ploiting
wind, biomass, hydrogen and solar energy. The irony is that Pakistan is blessed with
huge potentials of alternate energy resources like solar, wind and biomass etcetera,
however, no serious efforts has ever been made to e)plore them. $hile the potential
of untapped alternate energy resources is obvious, lack of foresightedness, over
dependence on e)ternal resources and lack of will to e)ploit these resources are
apparently the ma-or reasons for their non-e)ploration.
*arryout an in-depth study of the untapped alternate energy potential in
the country while highlighting various impediments in tapping them, with a
view to recommend viable measures to utilize these alternate resources to
produce sufficient energy to overcome the crisis.
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ABSTRACT
Pakistan is presently facing an energy crises and available electric power is
far less than industrial and domestic re0uirements. The problem of power shortage is
likely to be accentuated in the future as the likely out put will not be able to meet the
increasing demand. #oreover, the rapid decrease in fossil fuel reserves all over the
world, are also making the uninterrupted supply of much needed energy to the
developing world, 0uestionable. There is a dire need to find the solution of this
problem through e)ploiting the alternative sources of energy. 1enewable sources of
energy if harnessed can address our future energy needs. 2or e)ample, Pakistan
being located in solar belt has a vast potential of solar energy. 3tmospheric
conditions in parts of 4alochistan and 5indh favour generation of wind energy. $ork
is also under progress on other renewable technologies like 4iomass, 4iodiesel, 2uel
*ell and Tidal energy etc.
+n this paper, an endeavour has been made to analyse the potential of
renewable energy vis-6-vis potential energy re0uirements of Pakistan. 3fter having
discussed the future needs and energy strategy of Pakistan, an effort has been
made to evaluate the present status of renewable energies with special reference to
their prospects for Pakistan. 4efore giving out a few concrete recommendations,
certain functional barriers7 impediments in harnessing the renewables have also
been highlighted.
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PREFACE
The research topic focuses on opening new vistas to address our growing
energy needs. 5till being in nascent stage, concrete facts and figures are hard to
ac0uire. 8ata available with 3lternative /nergy 8evelopment 4oard '3/84( provided
an insight into alternate energy resources, potential and plans to harness it.
/)tensive net browsing and reading books on the sub-ect were also 0uite useful.
9oing through many of the articles and special papers written by renowned
intellectuals in newspapers, -ournals and lectures by e)cellent and level writers has
certainly helped enhancing understanding about the sub-ect. 3s the canvas of
research got enlarged, phenomenon of information overload emerged and, owing to
lack of 0ualification on the sub-ect, it was found difficult to condense this information
and personal ideas to limited number of words. :owever, an endeavour has been
made to draw a balance between the available reference material and personal
thoughts on the topic.
;ibraries of, latest /conomic 5urvey of Pakistan, articles by specialists and
research work from 3lternative /nergy 8evelopment 4oard '3/84( have been
instrumental in providing re0uisite reference 7 research material. 2inally, + e)press
my profound gratitude to my instructor for his continual supervision and intimate
guidance in development of this research paper.
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ABBREVIATIONS AND ACRONYMS
Abbre!"#!$% N"&e !% F'((
1/ 1enewable /nergy
3/84 3lternative /nergy 8evelopment 4oard
#T,/ #illion Tons of ,il /0uivalent
T*2 Trillion *ubic 2eet
$3P83 $ater and Power 8evelopment 3uthority
</5* <arachi /lectricity 5upply *orporation
#$ #ega $att
<$ <ilo $att
<$h <ilo $att :our
98P 9ross 8omestic Product
P= Photovoltaic
<# <ilometer
;,+ ;etter of +ntent
P*1/T Pakistan *ouncil of 1enewable /nergy Technologies
1 > 8 1esearch and 8evelopment
?/P13 ?ational /lectric Power 1egulatory 3uthority
913 9as regulatory 3uthority
<P< <hyber Pakhtunkhwa
94 9ilgit-4altistan
384 3sian 8evelopment 4ank
1/85+P 1enewable /nergy 8evelopment 5ector +nvestment Programme
P5, Pakistan 5tate ,il
Abbre!"#!$% N"&e !% F'((
95P 9eological 5urvey of Pakistan
3@>< 3.ad @ammu and <ashmir
*5P *oncentrated 5olar Power Technology
,913 ,il and 9as 1egulatory 3uthority
,#*s ,il #arketing *ompanies
?+, ?ational +nstitute of ,ceanography
25T 2uel 5aving Technology
#,A #emorandum of Anderstanding
?15P ?ational 1ural 5upport Program
P15P Pun-ab 1ural 5upport Program
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TABLE OF CONTENTS
Ser!"( C$%#e%#) P"*e N$
. Title +
%. #other Theme ii-iii
B. 5ub Theme ++ iv
&. 3bstract v
C. Preface vi
D. 3bbreviations and 3cronyms vii-viii
E. Table of *ontents i)-)ii
!. +ntroduction
F. 3im and 5cope %
". C+",#er - . E%er*/ Se0#$r $1 P"2!)#"%
a. ,verview.
b. P$3er Se0#$r I%)#!#'#!$%)
'( #inistry of $ater and Power.
'%( ?ational /lectric Power 1egulatory 3uthority.
'B( 3lternative /nergy 8evelopment 4oard.
4--5
B
B
B
&
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viii
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'&( Private Power +nfrastructure 4oard.
'C( Provincial and 3@>< agencies.
'D( Power utilities.
c. *urrent /nergy 5ituation.
d. Present Power 9eneration *apacity.
e. 2uture /nergy 2orecast.
f. A(#er%"#!e Re)$'r0e) . F'#'re E%er*/ Re(!"%0e
'( 5hifting Trends
'%( *hallenge to #eet.
'B( 5uitable 9eographic Gone.
&
&
C
C
D
F
F
"
"
.
C+",#er 6 . A(#er%"#!e E%er*/ S$'r0e) - Pr$),e0#) 1$r
P"2!)#"%
a. 1enewable7 3lternative 5ources.
b. S$("r E%er*/
'( Photovoltaic 'P=(.
'%( 5olar H Thermal /lectric.
'B( S$("r T+er&"( P$3er P("%# Te0+%$($*!e)
'a( 5olar /ngine 8ish Technology.
'b( 5olar Parabolic Trough Technology.
c. $ind /nergy.
d. 4iomass.
e. 4io-diesel.
f. 2uel *ell.
g. 9eothermal.
h. /nergy 9eneration from +ndus 8elta *reeks.
Re%e3"b(e E%er*!e) . C$%#e&,$r"r/ S#"#')
----7
%
%
%
B
B
B
B
&
&
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i)
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i. #ega $ind Power Pro-ects.
-. 4io 8eisel.
k. 4io 9as Pro-ects.
l. 5mall :ydro.
m. 5olar
n. Pakistan *ouncil of 1enewable /nergy 1esources
&
C
C
C
D
D
%.
C+",#er 4 . A%"(/)!) $1 P$(!0/8 I%)#!#'#!$%"( Fe"#'re)
"%9 B"rr!er) I&,"0#!%* Re%e3"b(e E%er*/ Ge%er"#!$% :
D!))e&!%"#!$%
a. +nstitutions and their 1oles.
b. P$(!0/ I%0e%#!e) b/ #+e G$er%&e%#
'( 2ocal Point for 1enewable /nergy 3ctivities.
'%( ?ational 1enewable /nergy Policy.
'B( #id Term Policy.
'&( ;ong Term Policy.
c. Policy #aking and +mplementing 4arriers.
d. I%)#!#'#!$%"( B"rr!er)
'( ;ack of *learly 8efined +nstitutional #andates.
'%( ;ack of *oordination between
Policy #akers, 1egulators and Atilities.
e. Re*'("#$r/ B"rr!er)
'( ;imited ,rganisational *apacity.
'%( ;ack of 2inancial 3utonomy.
'B( 2iscal and 2inancial 4arriers.
f. +nformation and Technological 4arriers.
-;-66
E
E
E
!
!
F
F
%"
%"
%"
%
%
%%
%%
B.
C+",#er < . Re0$&&e%9"#!$%)
64 . 6=
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)
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a. ,vercoming Policy #aking7 +mplementing 4arriers.
b. ,vercoming +nstitutional 4arriers.
c. ,vercoming 1egulatory 4arriers.
d. ,vercoming 2iscal and 2inancial 4arriers.
e. ,vercoming +nformation and Technological 4arriers.
f. #iscellaneous 1ecommendations.
%B
%B
%&
%C
%C
%D - %!
&. C$%0(')!$% %F
C. A%%e>e) B" - BE
D. E%9%$#e) B!
E. B!b(!$*r",+/ BF
!. Me&$!r) $1 &/ Re)e"r0+ &" H &B
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ALTERNATE ENERGY SOURCES - PROSPECTS FOR PAKISTAN
I%#r$9'0#!$%
. The phenomenal pace of technological progress, which has brought about a
transformation in the world economy; is dependent on a countryIs own degrees of
self-reliance on the availability of conventional sources of energy. #odern energy
services are a powerful engine of economic and social development, and no country
has managed to develop much beyond a subsistence economy without ensuring at
least a minimum access to energy services for a broad section of its population.
5ubsistence energy supply and ensuring the efficient use of energy is one of the
ma-or challenges of the %st century.
%. Pakistan lacks in conventional energy resources e)ploration and spends more
than ! billion dollars on import of oil. +t has relied almost e)clusively upon fossil fuels
and hydroelectricity as its primary energy supplies. 4ecause of fast growing
economy and population the demand of energy is rapidly increasing. Pakistan is in
danger of facing huge deficits in the coming years and even at present the primary
energy supplies are not able to meet the e)isting demand in proper way.
B. ,wing to above mentioned reasons especially the high energy cost 7 energy
shortages, the national growth is not at par to its potential. The fossil fuel forecast will
further compound the problem unless Pakistan finds an alternative. 1enewable
energy resources can provide a viable alternative to overcome the shortages in
e)isting energy supply system. 3lthough interest in this sector as part of national
energy supplies is growing, but need of the hour is to reali.e the problem of energy
shortage in its entirety and make a strategy which should capitali.e on e)ploration7
development of renewable energy resources. $e need to have a paradigm shift in
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the energy production from the traditional resources to the more sustainable and
environment friendly renewable resources, while bringing an affordable strategic
balance between cost effectiveness and environment friendly sources.
A!&
&. To +dentify 7 assess the potential of alternate energy resources in Pakistan
with a view to recommend measures to harness these sources in order to overcome
e)isting and pro-ected energy short fall.
S0$,e
C. This paper will be discussed under following chaptersJ-
a. C+",#er I - /nergy 5ector of Pakistan.
b. C+",#er II - 1enewable7 3lternative 5ources of /nergy -
Prospects for Pakistan
c. C+",#er III - 3nalysis of Policy, +nstitutional 2eatures and
4arriers +mpacting 1enewable /nergy 9eneration 7 8issemination
d. C+",#er IV - 1ecommendations.
e. *onclusion.
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4
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CHAPTER . -
ENERGY SECTOR OF PAKISTAN
D. Oer!e3 . /nergy is identified as one of the four ma-or drivers of growth.
Pakistan realising the importance, is making concerted efforts to speedup the
development of energy resources so as it may effectively contribute to the nationKs
economic growth and well-being. The four ma-or components of governmentIs
strategy for energy sector development includeJ-
f. +ncreasing energy supplies to meet the growing demand.
g. /)panding and upgrading transmission and distribution infrastructure.
h. +ncreasing end use energy efficiency.
i. #a)imum indigeni.ation.
. P$3er Se0#$r I%)#!#'#!$%)
-
. The following institutions are of relevance in
facilitating electricity generation, transmission, and distribution in PakistanJ-
a. M!%!)#r/ $1 W"#er "%9 P$3er . #inistry of $ater and Power is the
e)ecutive arm for all issues relating to electricity generation,
transmission and distribution, pricing, regulation, and consumption in
the country, and e)ercises this function through its various line
agencies as well as relevant autonomous bodies. +t also serves to
coordinate and plan the nationIs power sector, formulate policy and
specific incentives, and liaise with provincial governments.
b. N"#!$%"( E(e0#r!0 P$3er Re*'("#$r/ A'#+$r!#/ . The ?ational
/lectric Power 1egulatory 3uthority '?/P13( was established under
Regulation of Generation, Transmission and Distribution of Electric
Power Act, 1997, to function as an independent regulator and ensure a
transparent, competitive, commercially-oriented power market in
httpJ77www.aedb.org7Policy71/policy.pdf
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Pakistan. The 3uthorityIs main functions include, inter alia, issuing
licenses for generation, transmission and distribution of electric power;
establishing and enforcing standards to ensure 0uality, safety, and
proper accounting of operation and supply of electric power.
c. A(#er%"#!e E%er*/ Dee($,&e%# B$"r9 . The 3lternative /nergy
8evelopment 4oard '3/84( was established as an autonomous body
with the aim of promoting and facilitating the e)ploitation of renewable
energy resources in Pakistan. The 3/84 is tasked with implementing
government policies and plans, developing pro-ects, promoting local
manufacturing, creating awareness and facilitating technology transfer
and coordinating all associated activities.
d. Pr!"#e P$3er I%1r")#r'0#'re B$"r9 . The Private Power and
+nfrastructure 4oard 'PP+4(, which includes representation from each
of the four provinces of Pakistan and 3@<, acts as a Lone-windowI
facilitator for conventional private sector power generation pro-ects,
including 1/ hydel pro-ects of more than C" #$ capacity.
e. Pr$!%0!"( "%9 A?K A*e%0!e) . Provincial and 3.ad @ammu and
<ashmir '3@<( governments support the implementation of renewable
energy pro-ects within their geographical -urisdiction, either on their
own or in collaboration with the 3/84.
f. P$3er U#!(!#!e) . /lectricity utilities in Pakistan comprise nine
separately corporati.ed distribution companies serving different regions
of Pakistan and a private integrated company, the <arachi /lectric
5upply *orporation '</5*(, serving the <arachi metropolitan area. +n
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addition, there are four generation companies and $3P83 :ydel
$ing. *ontrol of power transmission and despatch is allocated to the
?ational Transmission and 8ispatch *ompany '?T8*(.
%. C'rre%# E%er*/ S!#'"#!$% . 3 profile of Pakistan primary energy
resources shows its dependence on conventional energy resources. +ts share in
energy supply mi) is highly dependent on oil, li0uid petroleum and natural gas. The
primary commercial energy supplies during recent years were DB. million tons of oil
e0uivalent '#T,/(
%
. The share of natural gas in primary energy supplies was &!.!M
B
followed by oil B.&M, hydroelectricity ".DM, coal E.BM, nuclear electricity .M,
;P9 ".DM, and imported electricity ".M.
ENERGY SUPPLIES AND CONSUMPTION BY SOURCE AND SECTOR
<
%
httpJ77www.research.org.pk78atabank7/nergyM%"andM%"renewableM%"energyM%"scenarioM%"of
M%"Pakistan.pdf
B
Pakistan /nergy Near 4ook %""
&
Page %", Pakistan /nergy Near 4ook %""
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B. Pre)e%# P$3er Ge%er"#!$% C","0!#/ . Presently, the electricity generation
capacity in Pakistan is %",F%% #$
C
. This is not enough to meet our electricity
demands and with an average increase of around """ #$ per year in this demand,
the problem will continue to grow. 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 proven reserves of %!.D% trillion cubic
feet 'T*2(. 3t this production level PakistanIs reserves would finish in %& years. The
measured coal reserves are in large 0uantity 'B,B"B million tons(. :owever, currently
coal is not playing a noticeable role in PakistanIs current energy mi).
ELECTRICITY INSTALLED CAPACITY BY TYPE
C
Pakistan /nergy Near 4ook %""
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ENERGY FLOW CHART - 65-5
7
D
Pakistan /nergy Near 4ook %"", :ydrocarbon institute of Pakistan, #inistry of Petroleum and
?atural 1esources.
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&. E%er*/ F$re0")# . PakistanKs economy is undergoing significant changes
since FF!-FF. The real 98P fluctuated from C.M in %""%-"B to %.&M
E
for the fiscal
year %""- 'decline mainly attributed to devastating floods in year %""(.
3lthough, both the demand and supply of energy has been increasing for the last
decade and a half, the per capita consumption of energy in Pakistan remains low.
3ccording to the year %""- /conomic 5urvey, there is a plan to increase the
installed capacity to B&,""" #$ by %"B" with a cumulative capacity of "D""" #$.
I%)#"((e9 "%9 P$3er C","0!#/ F$re0")# B65-5 #$ 6545C
=
C. A(#er%"#e Re)$'r0e) . F'#'re E%er*/ Re(!"%0e
a. S+!1#!%* Tre%9) . The conventional energy sources have remained
the energy sources of choice of the world for centuries. ?ow, there has
been a growing recognition of the dangers inherent in e)cessive
consumption as reserves of fossil fuels would not last very long. There
has been a growing world opinion in favour of looking at alternatives to
conventional sources that would ensure eco-friendly sustainable
development and energy security.
b. C+"((e%*e #$ Mee# . 4iggest challenge facing renewable energy
technologies is to e)cel in state of the art technologies, where more
E
Pakistan /conomic 5urvey %""-, 2inance 8ivision, +slamabad, Pakistan.
!
/conomic 5urvey %""-.
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renewable options can generate energy at cost; competitive with
conventional sources. Pakistan has wide spectrum of high potential of
renewable energy sources 'conventional and non-conventional(, which
have not been ade0uately e)plored, e)ploited or developed.
c. S'!#"b(e Ge$*r",+!0 Z$%e . Pakistan has total land area of
!"",""" kmO. The offshore /)clusive /conomic Gone covers over
%B,DE& kmO in the 3rabian 5ea. *onsidering the geological setup,
geographical position, climatological cycles and the agricultural
activities, various renewable resources are technologically viable and
have bright prospects to e)ploit commercially in Pakistan.
CHAPTER . 6
ALTERNATIVE ENERGY SOURCES . PROSPECTS FOR PAKISTAN
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D. Re%e3"b(e: A(#er%"#!e S$'r0e) . Pakistan has a large resource base
for employing 1/ for meeting its energy needs. The best technologies for the
Pakistani market are solar; mini, micro and small hydro power plants; biogas and
wind power plants. 5olar potential in the central parts of the country is significant.
PakistanIs hydropower potential, based on the report of the Planning *ommission is
over B!,""" #$
F
. ;arge potential for smaller hydropower pro-ect i.e. micro, mini and
small hydropower plants 'less than C #$( e)ists especially in the northern areas of
Pakistan. The four key strategic ob-ectives
"
for developing PakistanIs renewable
energy resources includeJ-
a. /nergy 5ecurity.
b. /conomic 4enefits.
c. 5ocial /0uity.
d. /nvironmental Protection.
E. S$("r E%er*/ . Pakistan