Pakistan's Energy & Water - News and Updates

[Hyde]

Sparklingway

It seems we are locked in a never-ending cycle of electricity deficit, by looking at the statistics you posted

our energy demands are too high. Western countries total energy demand is only around 70% of their installed capacity (this is true for at least UK i believe). But here in Pakistan we are about 4500MW in deficit and in 10 years time our energy demands are expected to grow like 200%.

Now if you look at the stats posted by Sparklingway it is clearly indicating that we will be in deficit of about 4200MW in 2014 and trust me that is a great news. If we can manage to keep this deficit closer to 4000MW by the time Bhasha Dam and Neelum Jhelum and few other hydro projects going to be completed we will have enough electricity to meet our energy demands. In another words by 2017/2018 you can expect electricity for 23/24 hours a day for 2-3 years and then we have to come with another major plan to tackle with future energy crisis we are hoping to face in 2030.

PS: - The stats sparklingway posted does not include Rental Power Plants so expect less deficit in 2014.

 

[Hyde]

The future, at this moment, sadly does not look any better. We might be able to meet our demands around the end of the decade. Radical measures are required. راجہ پانی اور بجلی might just be right about the RPPs.

Actually Raja Parvez Ashraf has a big mouth. I kept saying peoples that whatever he is saying is not possible. Even the best minister could never overcome these energy crisis in such a short period. We need long term solution and not like for month or two. We will have to complete Diamer Bhasha (4500MW), Bungi (7100MW) and Dasu dam (4300MW) before 2025 to tackle with future energy crisis.

Dams requires years to be completed, similar is the case for Nuclear plants so it was never possible to say Good bye to electricity crisis in a span of only few months.

I am hoping energy deficit of less than 1000MW (or nill) by 2018 after the completion of Bhasha dam and few coal power plants (as projected).

 

[sparklingway]

I found docu about RPPs as well. These are already initiated projects for which the GoP has made advance payments (the political mess was over this matter). It's a total of 1156.1 MW.

 

[Hyde]

I found docu about RPPs as well. These are already initiated projects for which the GoP has made advance payments (the political mess was over this matter). It's a total of 1156.1 MW.

You are doing a great job here sparkingway...... trust me....... sixer pe sixer maaray jaa rahay ho lagta hai aaj Afridi ka record kya Sachin ke saare records bhi toot jayen ge

Great news.......... although i am strictly against RPP's (12/13 cents per unit ) but we have no other alternative in such a short period. Foreign investor are running away from the country, our own domestic industries are moving abroad like in bangladesh and other countries. We need to tackle with energy issues in no time. This should be our first, second, third and the tenth priority.

 

[Omar1984]

‘German firm to install 50MW solar plant in Thatta’ ​

A German company is likely to install 50 megawatt (MW) solar energy plant in Thatta district. This was stated at the second meeting of Board of Investment (SBI) chaired by Chief Minister Sindh Syed Qaim Ali Shah at the CM House on Tuesday.

Initially, a 5-10 MW capacity unit would be installed to collect data on this new sector. Three probable sites have been identified at Dhabeji, Education City and Bhambhore. The meeting was told that there was a plan to set up a 35MW wind energy farm for which around $6 million grant would likely be sought from Holland with the help of a firm, Transatlantic Energy.

Besides, around 20,000 acres of land on Thatta coastline has been identified for shrimp and fish farming. It was said that the marketing of 100 fully developed fish farms of 25 hectares each will be managed jointly with Chinese experts for two years and the cost of the farm would be paid back in five years.

The SBI has set up a consultative group for the dates sector in Khairpur. Shah told the meeting that 300 acres of land have been identified near the Northern Bypass for the proposed Marble City.

The SBI suggested that “rural industrialisation” would help reduce poverty as well as developing the deprived areas. It also decided to delete the name of Asad Umar from the SBI and nominated Qaisar Bangali and Mehmood Nawaz Shah as its new members.

Addressing a press conference at the CM House after the meeting, Vice Chairman SBI Zubair Motiwala said that an international investment conference would be held in the city on April 10 to explore Sindh’s potential for investment in agriculture, dairy, cattle farming, wind and solar energy, fisheries and horticulture sectors.

He said that investors from Germany, Italy, Korea and Japan would attend the conference. He, however, clarified that their targeted audience would be the local investors. “It will be a unique international conference which would give a signal that Sindh is alive and a vibrant province,” he said, adding, they were considering focusing on “mechanized farming” in agriculture in order to yield double production. CM’s Advisor for Planning and Development Department Dr Kaiser Bengali also spoke.

 

[Omar1984]

Pakistan in ‘civil nuclear deal’ with China ​

* Two plants with a capacity of 640 megawatts to be set up in Chashma
* China to provide 82% of total $1.912bn financing

By Sajid Chaudhry

ISLAMABAD: Pakistan has entered a civil nuclear deal with China for the establishment of two nuclear power projects of 640 megawatts in Chashma, Daily Times has learnt.

The breakthrough deal – under which Pakistan would be provided a loan, technology and installation facilities – was finalised ahead of the latest round of the Pak-US strategic dialogue, as the federal cabinet granted financial approval at a meeting on March 24.

Sources privy to the deal said the federal cabinet had approved an inter-government framework agreement on the financing of ‘Chashma Nuclear Power Project 3’ and ‘Chashma Nuclear Power Project 4’ with China.

The sources said under the agreement, China would provide 82 percent of the total $1.912 billion financing to Pakistan as a 20-year soft loan, with an eight-year grace period.

In a bid to guarantee financing for the two plants, the inter-government framework agreement requires both countries to enter three loan agreements. Under the first loan agreement, Pakistan would be provided $104 million with an annual interest rate of 1 percent, management fee of 0.2 percent and a commitment fee of 0.2 percent. Under the second preferential buyer credit agreement, Pakistan would get $1 billion with an annual interest rate of 2 percent, a management fee of 0.2 percent and a commitment fee of 0.2 percent – while the third buyers credit agreement would provide Pakistan $474 million with an annual interest rate of 6 percent, a management fee of 0.75 percent, a commitment fee of 0.5 percent and an insurance rate of 7 percent.

However, according to the inter-government framework agreement, the annual composite interest rate would not exceed three percent in any case.

The sources said that frequent visits by President Asif Ali Zardar and Prime Minister Yousaf Raza Gilani helped secure the deal. They said the Executive Committee of the National Economic Council (ECNEC) had already approved the two projects.

The Pakistan Atomic Energy Commission would be the executing agency for the establishment of the two plants – which would be completed in eight years.

The sources said each 320-megawatt unit would contain a nuclear steam supply system, a turbine-generator set and the associated auxiliary equipment and installations.

 

[SHAMK9]

‘German firm to install 50MW solar plant in Thatta’ ​

A German company is likely to install 50 megawatt (MW) solar energy plant in Thatta district. This was stated at the second meeting of Board of Investment (SBI) chaired by Chief Minister Sindh Syed Qaim Ali Shah at the CM House on Tuesday.

Initially, a 5-10 MW capacity unit would be installed to collect data on this new sector. Three probable sites have been identified at Dhabeji, Education City and Bhambhore. The meeting was told that there was a plan to set up a 35MW wind energy farm for which around $6 million grant would likely be sought from Holland with the help of a firm, Transatlantic Energy.

Besides, around 20,000 acres of land on Thatta coastline has been identified for shrimp and fish farming. It was said that the marketing of 100 fully developed fish farms of 25 hectares each will be managed jointly with Chinese experts for two years and the cost of the farm would be paid back in five years.

The SBI has set up a consultative group for the dates sector in Khairpur. Shah told the meeting that 300 acres of land have been identified near the Northern Bypass for the proposed Marble City.

The SBI suggested that “rural industrialisation” would help reduce poverty as well as developing the deprived areas. It also decided to delete the name of Asad Umar from the SBI and nominated Qaisar Bangali and Mehmood Nawaz Shah as its new members.

Addressing a press conference at the CM House after the meeting, Vice Chairman SBI Zubair Motiwala said that an international investment conference would be held in the city on April 10 to explore Sindh’s potential for investment in agriculture, dairy, cattle farming, wind and solar energy, fisheries and horticulture sectors.

He said that investors from Germany, Italy, Korea and Japan would attend the conference. He, however, clarified that their targeted audience would be the local investors. “It will be a unique international conference which would give a signal that Sindh is alive and a vibrant province,” he said, adding, they were considering focusing on “mechanized farming” in agriculture in order to yield double production. CM’s Advisor for Planning and Development Department Dr Kaiser Bengali also spoke.

awesome news . good job and keep sharing please

 

[ameer219]

Pakistan endowed with energy resources: World Bank report

RECORDER REPORT

FAISALABAD (April 05 2010): Pakistan is quite well endowed with energy resources. An estimated 54 trillion cubic feet (TCF) of gas reserves have been discovered to date, and about 32 TCF (about 900 bill m3) remain unproduced. In 2008, domestic gas production was about 1.3 TCF (37.5 bill m3). About 937 million barrels of oil have been discovered, of which 354 million barrels remain unproduced.

The coal reserves are estimated to 185 billion tonnes, nearly all located in the Thar Desert in Sindh province. Notably, Pakistan also has a hydropower potential of about 40,000 MW, of which about 6,450 MW has been developed, the remaining economically exploitable potential is around 20,000 MW (or more as alternative fuel costs rise), a World Bank Project Report on "Pakistan Energy Sector" says, which was prepared recently.

To address the electricity shortages, WB Report mentioned that Pakistan government has taken steps to fast track the development of additional power generation capacity. Two medium-sized plants of 165MW and 225MW, owned by independent power producers (IPPs), have recently been added, and a further 450 MW (in 2 IPPs) are likely to be added in 2010. The fast-track IPP projects and new, mostly oil-fuelled rental plants were expected to add about 2,000 MW of new capacity by end of 2009; however, seven of the rental plants, totalling about 1000 MW, will be delayed. Thus, load shedding is likely to continue in 2010 as well.

he operational and commercial performance of the public sector entities is quite low; about 25 percent of generated electricity is lost in transmission and distribution compared to an international norm of less than 15 percent.

The gas transmission and distribution system is experiencing losses or Unaccounted-for Gas (UFG) of about 8 percent as compared to about 1 percent for well-run systems internationally.

In view of the weak fiscal position, the government is no longer able to subsidise the power sector to the same extent as in the past, and it has (a) committed to restrict subsidies to the power sector to Rs 55 billion ($ 670 million) in FY10 and to cease all operating subsidies from the subsequent fiscal year. Furthermore, the government has (b) amended the legislation to automatically (on a monthly basis) pass through to the end consumers any changes in fuel prices and also make other quarterly tariff adjustments to cover changes in non-fuel costs; (c) agreed to allocate more gas to the power sector, thereby improving efficiency and reducing cost by diminishing the need to run the oil-based power plants; (d) taken on itself the burden of public policy-induced liabilities that were earlier vested with the power companies - by assuming debts and other liabilities that the power sector companies had incurred during FYs 07-09 to finance their operations; and (e) agreed with the above finance institutions to increase electricity tariffs by overall about 26 percent in the period from October 2009 through June 2010. Power tariffs were increased by 6 percent on October 1, 2009, by 12 percent on January 1, 2010, and further 6 percent is scheduled for April 2010.

To further address the challenges in energy sector, the government has formulated an Energy Sector Development Strategy whose primary objective is to enhance the supply of energy in a sustainable manner while reducing the dependence on imported oil. The Strategy includes implementation of both policy and investment measures.

On the policy side:

-- Enable a financial recovery of the energy sector from large losses accumulated over several years and ensure the continued improvement of the financial viability of the sector.

-- Design and implement measures to enhance gas supply to the power sector, including incentives to increase gas production from existing fields and encourage new exploration and production of natural gas, reduction of UFG, review of current priorities of natural gas use, and institution of conservation measures.

-- Design and implement a social protection programme that would ensure that vulnerable sections of the population would receive a minimum amount of electricity in an affordable manner.

-- Promote demand-side energy efficiency measures

-- Enhance regional co-operation in energy trade as a means of diversifying energy supply and thereby increase energy security

-- Streamline the institutional set up within the government to increase the efficiency of decision making in policy formulation, planning and investments, and private sector participation; strengthen the autonomy and accountability of the sector entities which continue to be public sector owned, especially distribution companies, and refine the industry structure to enable more private sector participation with less government guarantees, and promoting power trading.

As to investment measures to support the strategy, WB report pointed out that the government would prioritise investments that can improve efficiency in electricity and gas supply, lead to conservation of energy, and develop the country's hydropower potential and other renewable energy. Investments to strengthen the energy grids are considered important both for reducing technical losses and providing more reliable supply.

Furthermore, the government focuses on the options for electricity import from Central Asia under the Central Asia-South Asia Regional Electricity Market (CASAREM) and gas imports in the form of LNG or through pipeline projects (IPI - Iran-Pakistan-India, TAPI-Turkmenistan-Afghanistan-Pakistan-India).Also, the government supports the utilisation of domestic coal sources, and likewise supports two IPP power plant projects based on imported coal.

Under new proposed Natural Gas Production Enhancement and Efficiency Project WB will provide $ 236 million for Pipeline system replacement, metering and control systems in Pakistan.

WB report stated that Pakistan's second Poverty Reduction Strategy Paper (PRSP-II) places a high priority on developing the energy sector, which presupposes significant investment in the sector to underpin economic growth and to pull its citizenry out of poverty. The energy sector in Pakistan is going through a difficult period characterised by shortages of electricity supply necessitating loadshedding of up to a quarter of peak demand. The problems are exacerbated by the sector's precarious financial situation precipitated by the high oil prices and lagging power tariff adjustments (during November 2003 - February 2007 period). The problems are further compounded by shortages of natural gas, which fuels a third of the generation capacity.

In 2006-07, gas-fired power plants accounted for nearly half of the electricity generated, whereas nearly a quarter was based on furnace oil. All natural gas consumed in Pakistan is indigenous, and there has been no addition to the existing reserves lately.

There are significant inefficiencies in the gas distribution system, and priority is given to allocating gas to socially sensitive consumers (fertiliser production and households). The government of Pakistan's strategy for energy sector development, and the proposed bank sector assistance programme over the short and medium term (covered by this PCN), focuses on enhancing gas supply and make more of it available to the power sector, says the WB report.


Copyright Business Recorder, 2010
Business Recorder [Pakistan's First Financial Daily]

 

[ameer219]

35MW electricity supply: 'agreement with Iran soon'

TURBAT (April 05 2010): Federal Minister for Water and Power Raja Pervaiz Ashraf said the federal government will be going to ink an agreement with Iran soon to ensure supply of more 35 MW electricity from Iran to Pakistani areas located near Pak-Iran border particularly Makran Division.

Talking to Senator Ismael Buledi here on Sunday, he said that already Iran was providing electricity to Makran division and other Pakistani areas located near Pak-Iran border.

He maintained that keeping in view, power crisis, the federal government had intended to reach an agreement with Iranian government for provision of more 35MW electricity to Pakistani areas. He noted the government concerned over power load shedding being faced by the masses, steps were being taken to resolve this problem as early as possible Pervez Ashraf said.


Copyright Associated Press of Pakistan, 2010
Business Recorder [Pakistan's First Financial Daily]

 

[Omar1984]

Use of bagasse with coal as fuel : Sugar industry allowed to co-generate power in lean season ​

ISLAMABAD: After facing tough criticism in convincing parliament on rental power plants, the government has decided to promote power co-generation by sugar industry on fast track basis.

Over 750MW power is planned and will be added in the system in 36 months timeframe, official sources informed Daily Times Monday.

In this regard, Federal Cabinet has approved in principle amendments in policy for power co-generation by the sugar industry and many incentives to be extended to the industry to ensure power generation by 36 months, official sources added.

The incentives proposed to the federal cabinet, sugar industry would be allowed to use bagasse along with imported and locally produced coal as co-fuel for power co-generation, official sources said.

The sugar industry had been trying to get approved furnace oil as co-fuel for power co-generation, due to rising price of furnace oil the government has substituted imported and locally produced coal as co-fuel for sugar industry, sources added.

The sugar mills would no more be required to under pre-qualification feasibility study and letter of intent and the government would issue Letter of Support (LOS) to the sugar mills. Sugar mills would be required to ensure generation of power within the timeframe of 36 months after issuance of LOS.

National Transmission and Dispatch Company (NTDC) and distribution of companies of Pakistan Electric Power Company (PEPCO) would purchase the power generated by the sugar mills under agreements to be reached between the parities.

Sugar industry would be required to approach National Electric Power Regulatory Authority (NEPRA) for revision in power tariff for the co-generation.

The NEPRA had earlier determined 8.286 cents per unit as power tariff for the sugar mills that would generate power under co-generation policy.

However, the sugar industry is asking the government to enhance the already determined power tariff from 8.286 cents per unit to 11.115 cents per unit and this difference was the one of the reason that resulted implementation of Power Co-generation Policy in the country.

The sugar industry had demanded the government to allow sugar mills to use furnace oil or make sure availability of natural gas as co-fuel for power production to overcome the worst ever energy crisis in country’s history. The sugar industry can produce about 2000MW electricity in five years.

An earlier initiative about two years ago by the government to utilise sugar industry’s capacity for power generation had failed to materialise because of gas shortages and the government did not consider furnace oil as an alternative fuel at that time. The scheme envisages use of bagasse (dry pulp) for power generation during the sugarcane-crushing season that lasts six months (November-April).

For the remaining six months, imported or locally produced coal would be used as an alternative fuel.

A senior official informed the government had announced a ‘national power policy for sugar industry in November 2005 but it could not take off mainly because of unavailability of natural gas, which was to be used as alternative fuel with bagasse.

Sources said it has been agreed in principle tariff to be offered by the industry would be higher because of its dependence on imported or locally produced coal instead of gas but it would be acceptable to the government in a crisis situation.

The government was focusing on power co-generation by sugar mills as a short gestation period energy source to meet the increasing energy demand in the country.

In November 2005, the economic coordination committee (ECC) of the cabinet had approved a national policy of power co-generation, under which 750mw electricity was to be produced by the selected sugar mills by using bagasse as fuel.

 

[Omar1984]

KESC adds coal-based power to system ​

KARACHI: The Karachi Electric Supply Company (KESC) has added 15 MW of electricity generation capacity to its network from coal-based power plant of Al-Abbas Sugar Mills Limited located in Dhabeji.

This is the first coal-fired power plant connected to the KESC network, the utility said in a press release on Monday. Tabish Gauhar, CEO, KESC, said that the company aims to add more power to its network to effectively manage the energy requirements of the city.

“KESC is working on more such projects to narrow down power demand and supply gap in its franchise areas with special emphasis on promoting and encouraging coal-based plants.” The power utility has signed three memorandums of understanding in recent past for adding coal-based power into its system, the press release said.

These have been signed with Oracle Coalfields for a 300 MW power plant at Thar and with Chinese companies to bring in around 700 MW using local and imported coal. KESC, in the last 20 months, added 450 MW to its generation capacity.

Under a program to enhance supply, KESC is constructing a 560 MW power plant at Bin Qasim, which is expected to be commissioned by 2012 and 87 MW of third party contracts have been signed with small suppliers under the Captive Power Policy.

 

[ameer219]

KESC adds 15 megawatts to its system through coal-fired plant


KARACHI (April 06 2010): Karachi Electric Supply Company (KESC) has added 15 MW to its network from coal-based power plant of Al-Abbas Sugar Mills Limited located in Dhabeji. According to a press release issued here on Monday this was the first ever coal-fired power plant connected to the KESC network.

Appreciating the KESC's team efforts in achieving this milestone, Tabish Gauhar, CEO KESC, said that the Company aims to add more power to its network so as to effectively manage the energy requirements of the city. KESC is working on more such projects to narrow down the power demand and supply gap in its franchise areas with special emphasis on promoting and encouraging coal-based plants, he said.

While, KESC, in the last 20 months, added 450 MW to its generation capacity, an ambitious programme has been embarked upon to add more megawatts to manage the rising demand. Under this programme, the release said, 560 MW power plant, is under execution at Bin Qasim which is expected to be commissioned by 2012, 87 MW of third party contracts have been signed with small suppliers under the Captive Power Policy.-PR


Copyright Business Recorder, 2010
Business Recorder [Pakistan's First Financial Daily]

 

[Omar1984]

President assures overcoming power shortage ​

ISLAMABAD, Apr 5 (APP): President Asif Ali Zardari Monday said the government is addressing the problem of power shortage with the help of the private sector.In his annual address to the joint sitting of parliament here, construction of the Neelum Power Project in Azad Kashmir has started.

Bhasha Dam has also been launched and it will generate 4500 megawatts of power and store over 6.5 million acre feet of water and the Thar Coal Project has been revived, he added.

He said he was aware that the crippling power shortage was slowing economic and industrial growth.

“We inherited a shortfall of thousands of megawatts but will not offer any excuses. We realize the suffering that loadshedding causes to our people.”
“We are painfully aware of the darkness it spreads, how children study by candlelight, and how the wheels of industry often stop,” he added.
The President said some people have tried to make the rental projects controversial.

He said they will not dwell on the past, as to how the independent power projects launched by Shaheed Mohtarma Benazir Bhutto, were made controversial.

President Zardari said the government is mindful of the water issue and for the first time a Special Assistant to Prime Minister on water has been appointed.
He said he raised the water issue in his first contact with the Indian leadership and then raised it at every meeting.

“We will continue to raise it at every international forum, within the terms of the Indus Water Treaty.”

He informed that the government is also addressing water issues between the provinces.

The issues will be resolved through available constitutional and legal mechanisms, he added.

President Zardari said 32 small and medium dams will be built in the country and work on three of the dams has already started.

For the first time in over four decades, agriculture is being revolutionized through hybrid seed, improved technology and high intensity cultivation, he said adding for the first time state land in their command areas will also be irrigated and distributed free among the women of the area.

 

[Omar1984]

Is there an end to energy woes? ​

The country has been facing power crisis since the summer started, as has been the case for the last several years in summer. The shortfall has reached as high as 5,000 MW. The United States during the recent Strategic Dialogue offered to provide $125 million for energy development in Pakistan and to assist in thermal power projects. However, it is not ready to consider Pakistan’s request for nuclear power plants and said that the United States wants to confine itself to supporting non-nuclear sources of energy.

The US said it would go beyond government-to-government relationship and was keen to involve the private sector. But the private sectors should be provided incentives to invest in Pakistan. America has shown its determination to help Pakistan to overcome socio economic challenges by providing technical and economic assistance so that Pakistan can use its human and natural resources and entrepreneurial skills. The two governments would discuss issues related to the Bilateral Investment Treaty, in order to attract investment in Pakistan. An investment fund would be created to support Pakistan’s energy sector and other high priority areas. The US would expand cooperation in the energy sector, including through the Signature Energy Program.

The USA is not happy with the plan of gas import from Iran. Pakistan has finally signed the Iran-Pakistan gas pipeline project, excluding India. Iran has also offered to provide electricity at one third cost of RPPs, which would almost halve the electricity deficit of Pakistan. But in spite of an average 10 to 14 hour countrywide daily load shedding, the response to this offer from the Pakistani side is not encouraging.

The insiders attributed this cool response to lack of financial resources, inadequate infrastructure and differences over tariff. On the other hand, the Iranian Ambassador said Iran was ready to help build infrastructure and extend financial assistance.

The present situation can be related to the US’s ongoing campaign to isolate Iran. US is continuously pressuring Pakistan not to accept Iranian offer of electricity. In lieu of this, it would help to bring electricity from Tajikistan and also develop the Thar coal reserves to generate electricity. At the end of two-day strategic dialogue, the United States said it would work towards enhanced market access for Pakistani products as well as towards the early finalization of Reconstruction Opportunity Zones (ROZs).

Iran is already providing 39 MWs electricity for Gwadar at a rate of 5 cents per unit. Iran is now demanding 11.5 cents per unit. Pakistan has signed another agreement with Iran for import of 100 MWs of electricity and necessary infrastructure is being constructed for this purpose.

One more agreement was signed, last year, under which Iran would supply 1000 MWs of electricity to Pakistan. Iran would first lay a 400 km gas pipeline from Zahidan to Pakistan border to build a thermal power unit. The project will take at least five years to complete. Japan has also extended a soft loan of $260 million (23.3 billion yen/ Rs 29.339 billion) to Pakistan for the National Transmission Lines and Grid Stations Strengthening Project.

This is the first Japanese loan under the Official Development Assistance (ODA) based on the Pakistan Donors’ Conference. Japanese government hosted the conference in April 2009 in which $1 billion aid was promised over a period of two years. The strengthening of transmission lines and grid stations project would improve the efficiency of power supply of 500KV and 220KV transmission lines and grid stations in Punjab and Sindh. The project will increase efficiency of the power transmission by 156MW, which is equivalent to the annual power consumption of two million people.

Trailer-mounted small power plants: To cope with the power crisis immediately, a Karachi based company, Meshe International, has offered to provide trailer-mounted packaged small power units. The company indicated that about 22 countries in the world have already installed such power stations to overcome power shortages.

The company officials said the quickest and easiest way is to install 1 MW, 1.5 MW and 1.7 MW power generation plants on furnace oil, diesel and gas on 40-foot containers. These plants can provide power to about 3,000 houses, industrial units and hospitals, major cities, villages, etc.

Presently, Balochistan is facing 600 megawatts power shortfall, therefore, demanding installation of Rental Power Plants (RPPs) and expediting work on laying down Dadu-Khuzdar and Dera Ghazi Khan-Loralai power transmission lines. The shortage has resulted in 16 to 18 hours of load shedding both in rural and urban areas and causing irreparable losses to the economy of the province. Such small power plants can also be installed in far flung areas in Balochistan and other parts of the country where Wapda cannot supply electricity through transmission lines.

These plants can start production within 10 to 12 months. The company has installed 939 units all over the world with power generating capacity of 1,785 MW. According to AEDB, the government has accepted the proposal to create a Renewable Energy Development Fund, which would invest and would be a partner of the private sector.

With the passage of time, energy demand is increasing in Pakistan and it spent about $12 billion on importing energy in 2008 that was 63 percent of the total export earnings. In 2009 the oil import bill increased to $13 billion.

In Pakistan, only 63 percent of Pakistanis have grid-connected electricity and 80 percent of the population is without piped natural gas. AEDB is facilitating provinces and around 8 projects totaling 110 MW are already being implemented in the private sector and more than two dozen projects are in the pipeline. Since late 2008 Pakistan has increased electricity tariff by nearly 60 percent and the IMF is again demanding further increase by next month. Therefore, it is high time government developed wind and solar energy resources immediately.

 

[SMC]

Good initiative. 15 megawatts is not much in the context but it's still better than nothing. The problem is most of the projects are still under construction/proposed and seeing how things work in Pakistan, I want to see it (i.e. the powerplant being functional) to believe it.