Energy Projects...Updates
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ghazi52
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With import restrictions, Pakistan's import-substituting manufacturing sectors, which are highly dependent on imports for raw materials, are crippling. And one reason is that the country relied on duty covers to let the domestic sectors spur and was never able to create a level playing field in a true sense.
Enhancement in productivity and innovation in processes is the way to go. In many sectors, Pakistan can do away with local production and could rely on imports (such as an automobile). Still, at the same time, the country needs to step up in some sectors with a competitive edge to not only provide for domestic needs but could also export.
One key area is energy, where competitive pricing and sustained and reliable supply is imperative for many other sectors to be competitive. For example, after recent price revisions, higher energy prices are hitting the country's most prominent exporting sector, the textile sector, badly. And there are many other examples, as many businesses lost their viability at the feasibility stage due to energy pricing and reliability issues.
Here, the critical component is inefficiencies in the transmission and distribution system feeding the circular dent, eventually leading to higher consumer prices. And with curbs on imports, the supply of materials and equipment, which are essential for lowering the T&D losses and streamlining the supply, is hindered too. That is further exacerbating the problem.
In a recent conference, an expert mentioned that Rs470 billion of imported equipment and material has localization potential. This ranges from printed circuit boards to safety harnesses, which must be tapped to improve the energy supply chain. There are incidences where local manufacturing is entering the market, albeit on a limited scale, but it still shows the possibility.
Capturing this potential may be difficult in the current economic conditions, but this is where business groups can play a crucial role in shaping the policies that can channel capital in a targeted manner to spur activity at a grassroots level. These are long-term visions that require stability and clarity to thrive. However, if successful, they can bolster Pakistan's export potential and make the country self-sufficient.
Distribution companies share their long-term multi-year investment plans, which the regulator approves. This money has to come in to maintain or improve service levels. For example, MEPCO plans to invest Rs 149 billion from FY22 to FY26. KE is currently awaiting approval on the Rs 484 billion plan until FY30.
There are tangible performance improvement targets committed against these investments and active scrutiny on whether the projected funds are deployed. Barring variations in response to external macro factors, these provide a clear horizon.
Future sustainability rests on our ability to create resilient supply chains, foster local growth, and break barriers to collaboration. First, of course, governance frameworks will have to be improved - the task seems futile in the current scenario. But when many are working on addressing or worrying over the immediate issues, we must keep our eyes on the future. Otherwise, we run the risk of being caught in a myopic cycle.
Localization of energy supply chain
BR ResearchWith import restrictions, Pakistan's import-substituting manufacturing sectors, which are highly dependent on imports for raw materials, are crippling. And one reason is that the country relied on duty covers to let the domestic sectors spur and was never able to create a level playing field in a true sense.
Enhancement in productivity and innovation in processes is the way to go. In many sectors, Pakistan can do away with local production and could rely on imports (such as an automobile). Still, at the same time, the country needs to step up in some sectors with a competitive edge to not only provide for domestic needs but could also export.
One key area is energy, where competitive pricing and sustained and reliable supply is imperative for many other sectors to be competitive. For example, after recent price revisions, higher energy prices are hitting the country's most prominent exporting sector, the textile sector, badly. And there are many other examples, as many businesses lost their viability at the feasibility stage due to energy pricing and reliability issues.
Here, the critical component is inefficiencies in the transmission and distribution system feeding the circular dent, eventually leading to higher consumer prices. And with curbs on imports, the supply of materials and equipment, which are essential for lowering the T&D losses and streamlining the supply, is hindered too. That is further exacerbating the problem.
In a recent conference, an expert mentioned that Rs470 billion of imported equipment and material has localization potential. This ranges from printed circuit boards to safety harnesses, which must be tapped to improve the energy supply chain. There are incidences where local manufacturing is entering the market, albeit on a limited scale, but it still shows the possibility.
Capturing this potential may be difficult in the current economic conditions, but this is where business groups can play a crucial role in shaping the policies that can channel capital in a targeted manner to spur activity at a grassroots level. These are long-term visions that require stability and clarity to thrive. However, if successful, they can bolster Pakistan's export potential and make the country self-sufficient.
Distribution companies share their long-term multi-year investment plans, which the regulator approves. This money has to come in to maintain or improve service levels. For example, MEPCO plans to invest Rs 149 billion from FY22 to FY26. KE is currently awaiting approval on the Rs 484 billion plan until FY30.
There are tangible performance improvement targets committed against these investments and active scrutiny on whether the projected funds are deployed. Barring variations in response to external macro factors, these provide a clear horizon.
Future sustainability rests on our ability to create resilient supply chains, foster local growth, and break barriers to collaboration. First, of course, governance frameworks will have to be improved - the task seems futile in the current scenario. But when many are working on addressing or worrying over the immediate issues, we must keep our eyes on the future. Otherwise, we run the risk of being caught in a myopic cycle.
ghazi52
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Dasu Hydropower Project ...
Construction work continues simultaneously on more than a dozen sites of Stage-I of the 4320 MW-Dasu Hydropower Project. Electricity generation from the project likely to commence in 2026..
Construction work continues simultaneously on more than a dozen sites of Stage-I of the 4320 MW-Dasu Hydropower Project. Electricity generation from the project likely to commence in 2026..
ghazi52
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Tarbela 5th Extension Hydropower Project,
It is being constructed on Tunnel No. 5 of Tarbela Dam, is likely to start electricity generation in July 2025.
With installed power generation capacity of 1530 Mega Watt (MW), it will provide 1.347 billion units of low-cost and environment-friendly hydel electricity to the National Grid every year on the average.
Installed capacity of Tarbela Hydel Power Station will increase from 4888 MW to 6418 MW after completion of Tarbela 5th Extension.
It is being constructed on Tunnel No. 5 of Tarbela Dam, is likely to start electricity generation in July 2025.
With installed power generation capacity of 1530 Mega Watt (MW), it will provide 1.347 billion units of low-cost and environment-friendly hydel electricity to the National Grid every year on the average.
Installed capacity of Tarbela Hydel Power Station will increase from 4888 MW to 6418 MW after completion of Tarbela 5th Extension.
ghazi52
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SYED AKHTAR ALI
April 17, 2023
Two news have been reported in newspapers recently – World Bank’s support for energy conservation in Pakistan, and government’s drive to shift consumption from gas to electricity. The issues have commonality and deserve discussion and suggestions.
Shifting gas consumption to electricity may have been motivated by the continuous decline in gas reserves and supplies. New gas finds have not been there. There is despondency in the gas sector partly due to law and order issues in the potential gas deposit-containing areas.
Liquefied natural gas (LNG) supply was not there as well due to the international situation, where prices have been unstable and increased to unaffordable levels.
The assumption in substituting gas with electricity is that local energy sources like solar, wind, hydro and Thar coal, which are cheaper and abundant, would be used in generating electricity. And if at all, combined-cycle gas-fired power plants would be used, which are efficient and produce cheaper electricity than others.
On the user side, in the industrial sector, the prospects for conversion of thermal users to electricity are much lesser as gas may continue to be the efficient source for thermal applications.
In the case of household users, rich and well-to-do may be able to shift to electricity much easily than the lower-income group.
Electrical appliances are expensive. One may think of the high-income group buying induction cookers for cooking but cannot imagine the low-income group doing so.
For higher-income groups, the options are many such as induction cookers as mentioned earlier, inverter ACs for cooling and heating, roof-top solar and solar water heaters.
Inverter ACs are mostly used for cooling and many owners of ACs continue using gas heaters, although inverter ACs are a clean and good source of heat as well. Perhaps people want options. Comparative prices may incentivise the shift.
There are two options that have been largely neglected by the government and international donors – roof-top solar water heaters (RTSWH) and biogas/ bio-CNG.
Private sector and individual users have been installing RTSWH on their own. China and Turkey have substantial installation of these devices. These are imported from China and can be locally manufactured. Lack of after-sales support has discouraged expansion of demand for this equipment.
Gas heaters may literally be banned if sufficient support is not given by the government, Neeca and possibly financial sector. It costs under Rs100,000 and cheaper credit may boost its expansion.
Similarly, bio-CNG has been neglected. Electric vehicles (EVs) may take time to get popularised. CNG stations are already there and many vehicles already converted. Natural gas and LNG are currently used in vehicles.
CNG use has gone down due to irregular availability. Bio-CNG can increase CNG availability and save natural gas supplies. An example for supporting this argument is that India plans to install 5,000 bio-CNG plants in the next five years. One bio-CNG plant can provide gas to several CNG stations.
Similarly, biogas use in rural households can be promoted. Plastic cylinder biogas producers have been developed which are handy, easy to install and much cheaper than the classical earthen ones.
World Bank’s energy conservation project
The World Bank has offered a $300 million loan to Pakistan for energy conservation, out of which there is a grant assistance of $15 million for studies and consulting work. Earlier, the loan amount was half of this – $150 million.
The history of assistance projects in the energy sector has not been very successful. USAID spent $80 million in the 1980s and onwards. The project helped install Enercon.
However, not much could be achieved, although many studies and paperwork were done. Partly, energy prices and availability issues were not as severe then as these are now. And the associated technologies were not available; things like LED, solar, energy-efficient fans, EVs, etc.
It is hoped that the World Bank will act as a hard task monitor in doling out money. Resources should be directed to end-users than intermediaries.
The situation is really bad, particularly the inefficient building sector, although wall, roof and window insulation technology is available for several decades now.
Posh building areas and designs have evolved tremendously but with hardly any move towards energy conservation. Imagine if building insulation was adopted by the building sector, so many houses and buildings would have opted for it.
Similarly, one gets sad seeing diesel engines driving agricultural pumps in an age where solar PV has become so affordable and reliable.
Fortunately, the government has already launched an initiative in solar area. Cheap credit made available through the World Bank project may be very helpful. World Bank resources would be better utilised if interest rate subsidy cost is provided to local banks and leasing agencies.
Energy-efficient fans have a lot of potential in energy saving and saving the money for end-users, especially lower-income groups. Neeca has already done a lot of work in this respect. An efficient installment financing scheme providing cheap credit can make a lot of difference.
We have indicated some other possibilities in the area of energy efficiency and conservation in the beginning of this article, which may be given consideration by the donors and the recipients. There are many other possibilities, detailing which may pose space limitations.
Opportunities are many. Resources should be spent diligently with maximum involvement of private sector. We never needed energy conservation and efficiency more than ever before.
The writer is former member energy, Planning Commission and author of several publications on energy
Energy efficiency and conservation initiatives
Situation is really bad, although wall and roof insulation technology is available for decadesSYED AKHTAR ALI
April 17, 2023
Two news have been reported in newspapers recently – World Bank’s support for energy conservation in Pakistan, and government’s drive to shift consumption from gas to electricity. The issues have commonality and deserve discussion and suggestions.
Shifting gas consumption to electricity may have been motivated by the continuous decline in gas reserves and supplies. New gas finds have not been there. There is despondency in the gas sector partly due to law and order issues in the potential gas deposit-containing areas.
Liquefied natural gas (LNG) supply was not there as well due to the international situation, where prices have been unstable and increased to unaffordable levels.
The assumption in substituting gas with electricity is that local energy sources like solar, wind, hydro and Thar coal, which are cheaper and abundant, would be used in generating electricity. And if at all, combined-cycle gas-fired power plants would be used, which are efficient and produce cheaper electricity than others.
On the user side, in the industrial sector, the prospects for conversion of thermal users to electricity are much lesser as gas may continue to be the efficient source for thermal applications.
In the case of household users, rich and well-to-do may be able to shift to electricity much easily than the lower-income group.
Electrical appliances are expensive. One may think of the high-income group buying induction cookers for cooking but cannot imagine the low-income group doing so.
For higher-income groups, the options are many such as induction cookers as mentioned earlier, inverter ACs for cooling and heating, roof-top solar and solar water heaters.
Inverter ACs are mostly used for cooling and many owners of ACs continue using gas heaters, although inverter ACs are a clean and good source of heat as well. Perhaps people want options. Comparative prices may incentivise the shift.
There are two options that have been largely neglected by the government and international donors – roof-top solar water heaters (RTSWH) and biogas/ bio-CNG.
Private sector and individual users have been installing RTSWH on their own. China and Turkey have substantial installation of these devices. These are imported from China and can be locally manufactured. Lack of after-sales support has discouraged expansion of demand for this equipment.
Gas heaters may literally be banned if sufficient support is not given by the government, Neeca and possibly financial sector. It costs under Rs100,000 and cheaper credit may boost its expansion.
Similarly, bio-CNG has been neglected. Electric vehicles (EVs) may take time to get popularised. CNG stations are already there and many vehicles already converted. Natural gas and LNG are currently used in vehicles.
CNG use has gone down due to irregular availability. Bio-CNG can increase CNG availability and save natural gas supplies. An example for supporting this argument is that India plans to install 5,000 bio-CNG plants in the next five years. One bio-CNG plant can provide gas to several CNG stations.
Similarly, biogas use in rural households can be promoted. Plastic cylinder biogas producers have been developed which are handy, easy to install and much cheaper than the classical earthen ones.
World Bank’s energy conservation project
The World Bank has offered a $300 million loan to Pakistan for energy conservation, out of which there is a grant assistance of $15 million for studies and consulting work. Earlier, the loan amount was half of this – $150 million.
The history of assistance projects in the energy sector has not been very successful. USAID spent $80 million in the 1980s and onwards. The project helped install Enercon.
However, not much could be achieved, although many studies and paperwork were done. Partly, energy prices and availability issues were not as severe then as these are now. And the associated technologies were not available; things like LED, solar, energy-efficient fans, EVs, etc.
It is hoped that the World Bank will act as a hard task monitor in doling out money. Resources should be directed to end-users than intermediaries.
The situation is really bad, particularly the inefficient building sector, although wall, roof and window insulation technology is available for several decades now.
Posh building areas and designs have evolved tremendously but with hardly any move towards energy conservation. Imagine if building insulation was adopted by the building sector, so many houses and buildings would have opted for it.
Similarly, one gets sad seeing diesel engines driving agricultural pumps in an age where solar PV has become so affordable and reliable.
Fortunately, the government has already launched an initiative in solar area. Cheap credit made available through the World Bank project may be very helpful. World Bank resources would be better utilised if interest rate subsidy cost is provided to local banks and leasing agencies.
Energy-efficient fans have a lot of potential in energy saving and saving the money for end-users, especially lower-income groups. Neeca has already done a lot of work in this respect. An efficient installment financing scheme providing cheap credit can make a lot of difference.
We have indicated some other possibilities in the area of energy efficiency and conservation in the beginning of this article, which may be given consideration by the donors and the recipients. There are many other possibilities, detailing which may pose space limitations.
Opportunities are many. Resources should be spent diligently with maximum involvement of private sector. We never needed energy conservation and efficiency more than ever before.
The writer is former member energy, Planning Commission and author of several publications on energy
ghazi52
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Apr 21, 2023
JHANG - On April 19, 2023, the Pakistan Jhang 1263 MW thermal power plant, operated by China Machinery Engineering Corp. (CMEC), achieved a significant milestone as its turbine generator was successfully connected to the power grid for the first time.
The unit is operating smoothly and all parameters are meeting the design requirements, thus setting a solid foundation for the next 168-hour reliability test run of the combined cycle section.
After achieving COD of the two gas turbines in August last year, the Jhang project has completed the installation and commissioning of the main and auxiliary systems for the combined cycle section, the steam blowing of two heat recovery boilers, hot-state flushing, PPA8.2 testing, and now, the first turbine generator synchronization to the power grid.
The synchronization of the combined-cycle power generation unit with the power grid signifies that all equipment on site has been put into normal operation. "The next step will mainly involve adjusting the unit under different load conditions, optimizing the system and its degree of automation, and conducting a 168-hour reliability test," said the operation director of the project, Mr. He, "The entire project is marching closer and closer to COD."
Last year, the government-owned company Punjab Thermal Power (Pvt) Ltd (PTPL) signed a contract with China Machinery Engineering Corp (CMEC) to operate two thermal power plants in Punjab's Jhang district. CMEC also served as the plants' engineering, procurement, and construction (EPC) contractor.
Jhang Power Plant in Grid Synchronization, Nearing COD
By Staff Reporter | China Economic NetApr 21, 2023
JHANG - On April 19, 2023, the Pakistan Jhang 1263 MW thermal power plant, operated by China Machinery Engineering Corp. (CMEC), achieved a significant milestone as its turbine generator was successfully connected to the power grid for the first time.
The unit is operating smoothly and all parameters are meeting the design requirements, thus setting a solid foundation for the next 168-hour reliability test run of the combined cycle section.
After achieving COD of the two gas turbines in August last year, the Jhang project has completed the installation and commissioning of the main and auxiliary systems for the combined cycle section, the steam blowing of two heat recovery boilers, hot-state flushing, PPA8.2 testing, and now, the first turbine generator synchronization to the power grid.
The synchronization of the combined-cycle power generation unit with the power grid signifies that all equipment on site has been put into normal operation. "The next step will mainly involve adjusting the unit under different load conditions, optimizing the system and its degree of automation, and conducting a 168-hour reliability test," said the operation director of the project, Mr. He, "The entire project is marching closer and closer to COD."
Last year, the government-owned company Punjab Thermal Power (Pvt) Ltd (PTPL) signed a contract with China Machinery Engineering Corp (CMEC) to operate two thermal power plants in Punjab's Jhang district. CMEC also served as the plants' engineering, procurement, and construction (EPC) contractor.
ghazi52
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Neelum Jhelum Project Tunnel
Significant development at blockade in tail race tunnel of Neelum Jhelum Project
Tunnel collapse of 150 ft length restored on Eid Day.
Chairman WAPDA asks for resuming power generation from Project by end July.
April 23, 2023: A significant development at the blockade in tail race tunnel of 969MW-Neelum Jhelum Hydropower Project has been achieved on Eid day. .
Tunnel collapse of 150 ft length has been restored. Restoration works are continuing during Eid Holidays..
Neelum Jhelum Project Tunnel
Significant development at blockade in tail race tunnel of Neelum Jhelum Project
Tunnel collapse of 150 ft length restored on Eid Day.
Chairman WAPDA asks for resuming power generation from Project by end July.
April 23, 2023: A significant development at the blockade in tail race tunnel of 969MW-Neelum Jhelum Hydropower Project has been achieved on Eid day. .
Tunnel collapse of 150 ft length has been restored. Restoration works are continuing during Eid Holidays..
ghazi52
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WAPDA’s Portfolio of under-Construction Projects
8 Projects; Phased Completion from 2024 to 2029;
9.7 Million Acre Feet Gross Water Storage;
3.5 Million Acres Land to be Irrigated;
9013 Mega Watt Power Generation;
560 Million Gallon Per Day Drinking Water;
Rs. 102 billion for CBMs;
35,000 Job Opportunities.....
WAPDA’s Portfolio of under-Construction Projects
8 Projects; Phased Completion from 2024 to 2029;
9.7 Million Acre Feet Gross Water Storage;
3.5 Million Acres Land to be Irrigated;
9013 Mega Watt Power Generation;
560 Million Gallon Per Day Drinking Water;
Rs. 102 billion for CBMs;
35,000 Job Opportunities.....
ghazi52
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Construction work continues simultaneously on 14 sites of multi-purpose Mohmand Dam Project.
The Dam envisages to store 1.2 million acre feet of water and generate 800 mega watt of green, clean and cheap electricity.
In addition, it will also supply 300 million gallon per day drinking water to Peshawar.
Construction work continues simultaneously on 14 sites of multi-purpose Mohmand Dam Project.
The Dam envisages to store 1.2 million acre feet of water and generate 800 mega watt of green, clean and cheap electricity.
In addition, it will also supply 300 million gallon per day drinking water to Peshawar.
ghazi52
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Mohmand Dam is being constructed on River Swat in Khyber Pakhtunkhwa. It has a gross water storage capacity of 1.2 MAF and installed power generation capacity of 800 MW. The project is scheduled for completion in 2026-27.
The Project is a multipurpose facility with the following objectives:
i-Hydropower generation of 800 MW.
ii-Flood control.
iii-Irrigated agricultural development of 6,773 hectares.…
Mohmand Dam is being constructed on River Swat in Khyber Pakhtunkhwa. It has a gross water storage capacity of 1.2 MAF and installed power generation capacity of 800 MW. The project is scheduled for completion in 2026-27.
The Project is a multipurpose facility with the following objectives:
i-Hydropower generation of 800 MW.
ii-Flood control.
iii-Irrigated agricultural development of 6,773 hectares.…
ghazi52
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Tarbela 5th Extension Hydropower Project is being constructed on Tunnel No. 5 of Tarbela Dam. World Bank and Asian Infrastructure Investment Bank (AIIB) are providing financial assistance for the project to the tune of US$ 390 million and US$ 300 million respectively.
The cumulative generation capacity of the project stands at 1530 MW with three generating units of 510 MW each.
The project will provide 1.347 billion units of environment-friendly and low-cost hydel electricity to the National Grid on average every year.
With the completion of the Tarbela 5th Extension, the installed capacity at Tarbela Dam will increase from 4888 MW to 6418 MW.
Tarbela 5th Extension Hydropower Project is being constructed on Tunnel No. 5 of Tarbela Dam. World Bank and Asian Infrastructure Investment Bank (AIIB) are providing financial assistance for the project to the tune of US$ 390 million and US$ 300 million respectively.
The cumulative generation capacity of the project stands at 1530 MW with three generating units of 510 MW each.
The project will provide 1.347 billion units of environment-friendly and low-cost hydel electricity to the National Grid on average every year.
With the completion of the Tarbela 5th Extension, the installed capacity at Tarbela Dam will increase from 4888 MW to 6418 MW.
ghazi52
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Images showcasing the progress of construction activities of Diamer Basha Dam. This massive and strategically important project is set to be finished by 2029 and can house up to 8.1 million acre-feet (MAF) of water, increasing irrigation capacity by providing resources for 1.23 million additional acres (MA) of land.
It can also generate 4,500 megawatts (MW) of hydroelectric energy which is environmentally sustainable and cost-effective, contributing approximately 18 billion units to the national grid yearly.
Images showcasing the progress of construction activities of Diamer Basha Dam. This massive and strategically important project is set to be finished by 2029 and can house up to 8.1 million acre-feet (MAF) of water, increasing irrigation capacity by providing resources for 1.23 million additional acres (MA) of land.
It can also generate 4,500 megawatts (MW) of hydroelectric energy which is environmentally sustainable and cost-effective, contributing approximately 18 billion units to the national grid yearly.
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