Water & Power
The Peoples’ Government inherited a number of problems and constraints in the
power sector. Having realized the magnitude and the impact of the crisis on
socio-economic development and the masses, the Ministry of Water & Power in line
with economic policy took various measures to address the root causes.
Despite numerous constraints like non-availability of gas and fuel for power
generation, lack of financial sustainability, old age of generation plants and
growing number of consumers, a number of initiatives were taken by the
Democratic government and the Ministry has been able to add 3400 MW in the
Institutional Reform Initiatives
In September 2010, the Prime Minister issued Power Sector Reform Plan (PSRP) to
ensure uninterrupted power supply to the people at affordable prices. Since inception of the PSRP, various
reforms have been undertaken in the power sector which include:-
Conducting Energy Summit chaired by the Prime
Minister and comprising representatives from each province in May 2010 to decide
on policies related to energy conservation and new generation.
Dissolution of PEPCO and creation of Central
Power Purchasing Authority (CPPA) to go into the multi buyer market.
Separation of generation and distribution in the
sector. Restructuring of DISCOs with induction of new BoDs resulting in greater
managerial and financial autonomy.
in the NEPRA Act to allow for automatic fuel price adjustment in electricity
Implementation of increase in electricity tariffs
to improve financial performance of the sector.
Private Power Projects Development
Both hydel and thermal private sector power projects are processed by the
Private Power and Infrastructure Board (PPIB). Hydropower potential in Pakistan
is around 60,000 MW. PPIB during the last three years has commissioned twelve
(12) thermal projects with the capacity of 2530 MW, while thirty three multiple
fuel power projects with a cumulative capacity of around 8145 MW are currently
under process. Further two hydropower projects by private sectors of cumulative
capacity of 231 MW are being processed by them.
Energy Efficiency Programs
Energy Efficiency and Energy Conservation are one of the most important and
critical areas. Number of projects and interventions in this regard have been
initiated in last 3-4 years to achieve energy conservation and efficiencies.
Some of the initiatives include launching of national awareness campaign using
energy audits, targeted technical services and pilot demonstrations, launching
of projects and establishment of Clean Development Mechanism Cell, barrier
removal to cost effective development of Energy Efficiency Standards and labels,
energy conservation through training and mass awareness and Tubewell Efficiency
The GoP With the assistance from international donors, is introducing programs
for loss reduction, improvement of monitoring system, pilot scale smart grid,
demand side management, improved metering and other initiatives for efficiency
improvement in the DISCOs. The Government is trying to increase efficiency and
power restoration in the three public sector GENCOs through USAID funding. It is
expected to add approximately 600 MW of energy to the national grid, once the
program is completed.
It is conducting technical audits of GENCOs to identify key issues in the
companies and to enhance their efficiency.
NTDCL and DISCOs have initiated technical and administrative measures to enhance
operational and managerial efficiency to reduce power losses. This also includes
construction of new lines and grid stations.
Over the years, the energy generation mix in Pakistan has seen an increase in
the generation of furnace oil. With the increase in global oil prices, there is
a need to rely on other sources of energy generation. Since 2008, the Ministry
through WAPDA has been working to increase generation of hydro sources. Some of
the achievements include:-
Commissioning of new projects such as Neelum
Jhelum (969 MW), Jinnah Hydropower Projects.
Fast tracking mega-projects such as Diamir Basha
Initiating private sector investment in upcoming
new hydropower projects through Private Power Infrastructure Board.
Completion of main works of Mangla Dam Raising
Project which will increase water storage capacity up to 2.88 MAF and additional
power capacity of 644 GWh.
Central Asia South Asia Electricity Trade and Transmission Project (CASA-1000)
is designed to transmit 1300 MW of surplus electricity from Tajikistan and
Kyrgyzstan through Afghanistan to Pakistan. MOU among the member countries has
been signed for advancement of project in the order of tariffs security and
ownership of transmission lines. Import of 100 MW electricity from Iran is also
in the process.
Alternate Sources of Energy
Alternate Energy Development Board’s role as a facilitator has been strengthened
and it has been provided legal cover through enactment in May 2010. The
provinces and private sector experts are also represented in the Board. The
target for 2015 has been set as 3000 MW. The announcement of feed in tariff has
fast tracked the wind energy project where already 3 projects (150) MW are under
construction. AEDB has also taken various initiatives under remote village
electrification program and 7874 remote village off grid villages in Sindh and
Balochistan provinces are being electrified under this program.
Thar Coal Project
The total coal reserves in Thar are estimated to be around 185 billion tones
which have the potential to generate around 50,000 MW. To harness the huge coal
reserves of Thar by utilizing it as a cheap source of energy for power
generation through international investment, both Federal and Provincial
Governments are taking concrete steps to translate this potential into reality.
Government of Sindh has allocated huge funds for development of infrastructure
and leased out a coal block for integrated mining project and 400 MW coal based
project through international companies. Government of Sindh has also entered
into joint ventures with M/s Engro Power Generation (Pvt) Limited for coal
mining and installation of 600 to 1000 MW power plant.
The present Government has launched Village Electrification Program with full
vigor and accorded high priority to this area. Approximately 41,000 villages
have been provided electricity in the last four years. The village
electrification facility has increased by approximately 9% in 2010-11.
NEPRA grants licenses for generation, transmission and distribution of electric
power, determines tariff, rates, charges and other terms and conditions for the
supply of electric power services by generation, transmission and distribution
companies, addresses complaints of electricity consumers, prescribes procedures
and enforce performance standards, etc.
NEPRA, considering its role as regulator to safeguard the interests of the
investors and the consumer at large, advises the stakeholders to make country’s
power sector efficient to make the price more affordable.
NEPRA has granted / approved the following sixty eight (68) Generation Licenses:
Independent Power Producers (IPPs)
Captive Power Plants (CPPs)
Power Plants (HPPs)
Nuclear Power Plants (NPPs)
A Special Purpose Transmission License was granted to Karachi Electric Supply
Company Limited (KESC).
The Authority granted / approved five (05) Distribution Licenses (DL) 01 SEPCO
(due to bifurcation of HESCO into HESCO & SEPCO) and 04 Engro Chemicals Pakistan
Limited, Ibrahim Fibers Limited, Bharia Town (Private) Limited (Rawalpindi
region) and Crescent Powertec Limited.
During the period from FY 2008-09 to Dec 2011, NEPRA’s Consumer Affairs Division
has received 4736 electricity consumer complaints, out of which 4707 complaints
have been redressed (i.e. 99.38% of total complaints received).
(For more detail please visit: http://www.ppib.gov.pk)