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Electricity Demand Witnesses 20 % Increase This Year: Hammad Azhar

CrazyZ

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Electricity Demand Witnesses 20 % Increase This Year: Hammad Azhar

Umer Jamshaid 7 hours ago Mon 21st June 2021 | 05:03 PM

Federal Minister for Energy Mr. Muhammad Hammad Azhar has said that immense growth in demand of electricity upto 20% has been witnessed this year, of which the industrial demand is well above 12% to 13%

ISLAMABAD, (UrduPoint / Pakistan Point News - 21st Jun, 2021 ) :Federal Minister for Energy Mr. Muhammad Hammad Azhar has said that immense growth in demand of electricity upto 20% has been witnessed this year, of which the industrial demand is well above 12% to 13%.

He said that the increase in demand is a very positive sign not only for the entire economic health of the country but also for the energy sector as it has boosted the confidence of investors, said a press release issued here Monday.

The Minister was talking to U.S. Embassy Charg� d'affairess, a.i. Lesslie Viguerie who called on him here.
Secretary Power Division Mr. Ali Raza Bhutta, Mr. Daniel Froats Economic Counselor US Embassy and other senior officials were present during the meeting.

Hammad Azhar informed the US Embassy Charg� d'affairess that due to prudent policies and effective measures undertaken by the present Government, the growth of Circular Debt has been reduced by Rs. 200 billion this year as compared to previous year.

The Federal Minster also briefed about the approximate $ 800 million investment that Pakistan has made in expansion and improvement of country's Transmission and Distribution system in two and half years which led to record transmission of more than 4000MW this year.

He said that another $ 117 Million have been earmarked for next financial year for improvement of Transmission and Distribution system.

He invited the US based companies to explore possibilities of investment in the energy market.
The Federal Minister said that Pakistan and United States are having excellent working relations in the energy sector, which will further boost with the new investor friendly policies of the present government.

While mentioning the close partnership between Power Division and USAID, the Federal Minister said that yet another milestone for long term energy planning has been achieved with their assistance in the shape of IGCEP which is bound to address many issues relating to planning and demand assessments. He also mentioned the DFC investments in renewable energy projects in Pakistan.

Mr. Hammad Azhar apprised Mr. Lesslie Viguerie that Pakistan new Renewable and Alternative Energy Policy has set ambitious targets to enhance the share of renewable energy upto to 30% by the year 2030 which will have direct implication for the clean and green initiatives that Pakistan is embarked upon.

He said that it will not only tap the indigenous energy potential but will also offer good return on investment to the potential entrepreneurs.

Embassy Charg� d'affairess, a.i. Lesslie Viguerie appreciated the Government of Pakistan's policy to attach preference to clean and green energy sources.

He said that American companies are taking keen interest in the energy sector of Pakistan. He expressed the confidence that the current cooperation between Pakistan and USA in the Energy Sector will further be enhanced.

Mr. Lesslie Viguerie informed the Federal Minister that the effective policies of Government of Pakistan to address issues specially steps taken to arrest the growth of Circular Debt are sending positive signal to the investors.


Surge in energy consumption is an indirect measure of strong economic growth. It is interesting that USA embassy is taking note of Pakistan's renewable energy potential.
 

CrazyZ

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East Asia during its boom times experienced double digit energy sector growth as well as double digit export growth. Pakistan is one of the few countries in the world that is doing this today. This can be sustained with good planning and investment. USA can offer investment as well as know how. Pakistan should be open to this. It should cooperate with USA against AQ/OBL types.

In additional to renewables, Pakistan has untapped shale oil and gas resources.....recent studies by ogdcl indicate that Pakistani shale rock are of similar characteristics to known productive shale rocks in North America. USA has shale oil and gas expertise that Pakistan will need if oil prices continue to climb.
 

HAIDER

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Hang those sign IPP contracts .. payments award in dollars and produce power or not ..billing will continue .. what a ripoff..............highway robbery ...
 

CrazyZ

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Hang those sign IPP contracts .. payments award in dollars and produce power or not ..billing will continue .. what a ripoff..............highway robbery ...
Capacity payments are standard all over the world. In the USA...power plants are paid whether they produce power or not. Please do some research.
 

hydrabadi_arab

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Hang those sign IPP contracts .. payments award in dollars and produce power or not ..billing will continue .. what a ripoff..............highway robbery ...
No one is going to build plant worth $2b if its going to sit there.
 

HAIDER

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No one is going to build plant worth $2b if its going to sit there.
Well, these are GCC-based companies, and our (front men of these companies, the traitors) dogs who loyal to sheiks, they made the nastiest binding agreements. Where Pakistan has no way to escape and in coming years these surcharges will increase and people will feel more burden of power tariff.
The more you study the agreement of these IPP more boil the blood, how this house of Shareef and our corrupt bureaucracy sign these contracts to make others happy. Where the country has totally obsolete grid network, which is not capable enough to take the load............... it is something you made the train/locomotives, but you don't have a track to run the train.
 

Patriot forever

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Capacity payments are standard all over the world. In the USA...power plants are paid whether they produce power or not. Please do some research.
The problem lies in the amount paid and the amount of excess capacity, and the agreements. No where in the world the overall capacity charge per unit comes to more than the generation cost, our capacity payment per unit will become twice the amount of generation cost per unit by 2023.

The 20% figure is only for summer month ( 20% is somewhat bloated because of low base effect last May due to corona) , the round the year increase is 6.7% 11 months FY2021.

Even than our utilizatiin is not more than 13, 010Gwh at peak summer month, which is led by industries 13-15% growth ( again driven due to subsidies in the form of abolition of peak time and low unit cost on any additional electricity consumed more than the average, the package has been extended to june 2022)
 
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Patriot forever

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No one is going to build plant worth $2b if its going to sit there.
Bro i agree with your point (lets keep the cost factor seperate to keep the argument simple).

What we needed was a couple of plants after every 2 years etc instead of front loading plants without transmission capacity increase at similar pace and ignoring the demand curve. This has led to blaoting of capacity charges.

1.3t is no joke in capacity payment by 2023,( 900b for the ongoing year).
 

N.Siddiqui

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Capacity payments are standard all over the world. In the USA...power plants are paid whether they produce power or not. Please do some research.
In addition to capacity payment IPPs are paid in US dollars. Double loss for the country.

This was all done in haste and with no future planning, kickbacks can't be ruled out.

Read that current govt has renegotiated with the IPPs and there is some lesser rate for the government.
 

CrazyZ

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In addition to capacity payment IPPs are paid in US dollars. Double loss for the country.

This was all done in haste and with no future planning, kickbacks can't be ruled out.

Read that current govt has renegotiated with the IPPs and there is some lesser rate for the government.
This is our fault. If our financial system can not generate the needed investments and we have to look abroad then foreign investors will look to protect themselves by requiring payment in dollars.

IMO, oil based generation should be phased out and retired. That solves some of the capacity payment issue, if a plant is not being used then it should be retired. This is an issue with grid planners.
 

El Sidd

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This is natural energy requirements on the move.

Nothing this rented Zardari governments doing.
 

313ghazi

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All that extra bijli is used by unemployed watching TV whilst using AC. Can't be linked to increased economic output.
As we know Pakistan is in free fall, awam can't afford anything etc...
 

CrazyZ

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All that extra bijli is used by unemployed watching TV whilst using AC. Can't be linked to increased economic output.
As we know Pakistan is in free fall, awam can't afford anything etc...
Economies in free fall do not increase energy use or exports by double digits. Decline in buying power is tough but needed to align to reality. Import and consumption driven growth is not sustainable and will require economic readjustments that are tough.
 

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