Electricity sector in Pakistan

Electricity in Pakistan (Urdu: بجلی پاکستان میں‎) is generated, transmitted, distributed, and retail supplied by two vertically integrated public sector companies, Water and Power Development Authority (WAPDA) for all of Pakistan (except Karachi), and the Karachi Electric (K-Electric) for the city of Karachi and its surrounding areas. There are around 42 independent power producers (IPPs) that contribute significantly in electricity generation in Pakistan.

Electricity generation
in Pakistan

History

Pakistan electricity sector is a developing market. For years, the matter of balancing the country's supply against the demand for electricity had remained a largely unresolved matter. The country faced significant challenges in revamping its network responsible for the supply of electricity. Electricity generators were seeking a parity in returns for both domestic and foreign investors indicating it to be one of the key issues in overseeing a surge in electricity generation when the country was facing growing shortages. Other problems included lack of efficiency, rising demands for energy, and political instability.[1] Provincial and federal agencies, who are the largest consumers, often do not pay their bills.[2] At one point electricity generation had shrunk by up to 50% due to an over-reliance on fossil fuels.[3] The country was hit by its worst power crisis in 2007 when production fell by 6000 Megawatts and massive blackouts followed suit.[4] Load Shedding and power blackouts had become severe in Pakistan before 2016.[5]

Economic Survey 2019-20 unfolds that Pakistan's installed capacity to generate electricity has surged up to 37,402 MW by June 2020 which stood at 22,812 MW in June 2013, showing the growth of 64 percent.[6]

Installed capacity

According to the Pakistan Economic Survey 2019-20, the installed electricity generation capacity reached 37,402 MW in 2020.[7] The maximum total demand coming from residential and industrial estates stands at nearly 25,000 MW, whereas the transmission and distribution capacity is stalled at approximately 22,000 MW.[8] This leads to a deficit of about 3,000 MW when the demand peaks. This additional 3,000 MW required cannot be transmitted even though the peak demand of the country is well below its installed capacity of 37,402 MW.

Electricity Concerns

Although Pakistan has reduced blackouts and increased electricity production significantly, blackouts are still common, and Indices (Base Year 2007-08) | Pakistan Bureau of Statistics|website=www.pbs.gov.pk|access-date=2020-01-15}}</ref> Recent tariff have contributed to this increase in prices.

Electricity generation[9]
  • Electricity – generation: 148.25 GWh (2019)
  • Electricity – generation by source (2019)
    • Furnace oil: 14% of total
    • Natural gas: 31% of total
    • Coal: 16% of total
    • Hydroelectric: 29% of total
    • Nuclear: 4% of total
    • Renewable (solar & wind): 5% of total
    • Others (Bagasse, Waste Heat Recovery etc.): 1% of total

Electricity consumption[9]
  • Electricity – consumption: 90.36 GWh (2015-2016)
  • Electricity – exports: 6.01% (2015-2016)
  • Electricity – imports: .49% (2015-2016)
  • Electricity Consumption per Capita = 529 kWh/Capita on PEPCO and 892 on KE system as per "State of Industry Report 2019 by NEPRA"

Governance and sector reform

Recent reforms include the unbundling and corporatization of the Water and Power Development Authority (WAPDA) into 10 regional distribution companies, 4 government-owned thermal power generation companies and a transmission company, the National Transmission and Despatch Company. The hydropower plants were retained by WAPDA as WAPDA Hydroelectric. All are fully owned by the government. K-Electric Limited (formally known as Karachi Electric Supply Company), which is responsible for power generation and distribution in the Karachi area, is listed on the stock exchanges and is privately owned. Privately owned independent power producers generated 53% of the country's power in FY2016.[10]

Effects of natural and man-made disasters

During 2010 Pakistan floods and 2005 Kashmir earthquake power stations, power distribution and transmission and other energy infrastructures were damaged. During the floods and rainfalls the recently constructed Jinnah hydroelectric power plant was flooded in addition to severe damages to transmission and distribution network and installations while several power plants and refineries were threatened by rising waters and had to be shut down. Natural gas field output had to be reduced as the flood waters approached the wells. There has also been some concern by Pakistani nuclear activists over the effect of natural disasters on nuclear plants specially over the Chashma Nuclear Power Plant, since the plant lies over a geological fault.[11][12][13][14][15][16][17][18][19][20][21][22][23][24] Due to over reliance of Pakistan on dams for electricity generation,[3] some environmental impacts of dams such as submergence of usable/ecological land and their negative impact on Pakistan's mangrove forests due to loss of river silt load, as well as increased risk of severe floods have become evident.[25][26][27][28]

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See also

References
  1. http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/pakistan/16-loadshedding-to-end-by-next-summer-us-hs-06
  2. Power Politics:Pakistan's energy crisis The Economist, 21 May 2012
  3. "The News International: Latest News Breaking, Pakistan News". www.thenews.com.pk. Retrieved 6 April 2018.
  4. "Pakistan's Ongoing Electricity Shortage". Energy Tribune. Retrieved 19 October 2011.
  5. "More Crises in Pakistan: Electricity, Flour, Sugar, Water, Sui Gas Crises – What is the way out? : ALL THINGS PAKISTAN". Pakistaniat.com. Retrieved 19 October 2011.
  6. https://www.thenews.com.pk/print/309535-country-s-installed-electricity-capacity-increases-by-30pc-to-29-573mw
  7. Bhutta, Zafar (11 June 2019). "Installed power production capacity rises". The Express Tribune. Retrieved 4 June 2020.
  8. Rehman, Maha (3 September 2018). "Pakistan's electricity generation has increased over time. So why do we still not have uninterrupted supply?". DAWN.COM. Retrieved 4 June 2020.
  9. "State of Industry Report 2015" (PDF). National Electric Power Regulatory Authority (NEPRA). National Electric Power Regulatory Authority (NEPRA). Retrieved 6 February 2017.
  10. Asian Development Bank (2016), Access to Clean Energy Investment Program, Energy Sector Summary, p.2
  11. "Asia Times: Pakistan's nuclear program built on shifting sands". Atimes.com. 23 December 1999. Retrieved 19 October 2011.
  12. "Leading News Resource of Pakistan". Daily Times. 16 September 2010. Retrieved 19 October 2011.
  13. "Archive | Your Source of News on the World Wide Web". Dawn.Com. Retrieved 19 October 2011.
  14. "Archived copy" (PDF). Archived from the original (PDF) on 25 December 2009. Retrieved 16 August 2010.CS1 maint: archived copy as title (link)
  15. chandru. "Chashma Power Plant: Chansnupp will continue to be accident prone". Southasiaanalysis.org. Archived from the original on 20 January 2012. Retrieved 19 October 2011.
  16. "The Citizen's Trust". Thecitizenstrust.blogspot.com. Retrieved 19 October 2011.
  17. "Fresh flood warnings issued". PakTribune. 4 August 2010. Retrieved 19 October 2011.
  18. "Pakistan Cuts Qadirpur Gas Field Output After Demand Declines". Businessweek. Retrieved 19 October 2011.
  19. "Downpours hamper Pakistan flood relief for 15 million – Detail News : Nepal News Portal". The Himalayan Times. 7 August 2010. Retrieved 19 October 2011.
  20. Anis, Khurrum (11 August 2010). "Pakistan Cuts Qadirpur Gas Field Production After Floods, Reduced Demand". Bloomberg. Retrieved 19 October 2011.
  21. "Kapco power plant may shut down on flood concerns | Pakistan | News | Newspaper | Daily | English | Online". Nation.com.pk. 5 August 2010. Archived from the original on 15 November 2011. Retrieved 19 October 2011.
  22. "Leading News Resource of Pakistan". Daily Times. 7 August 2010. Retrieved 19 October 2011.
  23. http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/pakistan/12-pakistan+floods+threaten+power+plants--bi-07
  25. https://web.archive.org/web/20070317035727/http://www.islamonline.net/servlet/Satellite?c=Article_C&cid=1157962466160&pagename=Zone-English-HealthScience%2FHSELayout. Archived from the original on 17 March 2007. Retrieved 17 August 2010. Missing or empty |title= (help)
  26. Archived 5 July 2010 at the Wayback Machine
  27. "Middle East Report Online | Middle East Research and Information Project". Merip.org. Archived from the original on 21 August 2010. Retrieved 19 October 2011.
  28. "US bombs flood-devastated Pakistan". Mwcnews.net. 14 August 2010. Retrieved 19 October 2011.

Further reading
  • Robert M. Hathaway, editor, and Michael Kugelman, editor, Powering Pakistan, Oxford University Press, USA (15 January 2010), hardcover, 216 pages ISBN 978-0195476262
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