GHULAM MUSTAFA2013-ag-997

•Energy crises effected the economy of Pakistan

Introduction

An Energy Crisis is any great shortfall in the supply of energy to an economy

It usually refers to the shortage of oil, electricity or other natural resources

Effects on the economy

Unemployment increasedEffect on productionHigher electricity pricesEffect in agricultureEffect on industriesEffect on education

Impact on society

• Imported oil and coal and shortage of natural gas increase prices

• Dependent on other countries• Less agriculture yields

Causes of energy crises

1 .AGING OF THE EQUIPMENTOne very important reason attributed to this energy shortage is the aging of the generating equipment which could not develop the electricity as per the design requirement2 .WASTAGE OF ENERGY

So far energy conservation is limited to newspaper ads lip service in seminars. No serious thought is being given to utilize the energy at the optimum level.

3 .HIGH COST OF FUELThe cost of crude has increased from 40 $ to 140 $/barrel. it means the generation from thermal units are costing exorbitant price. WAPDA and KESC when purchasing electricity on higher cost are not eager to keep on selling the electricity on loss. Therefore they do not move on general complain of load shedding.

4 .MONOPOLY IN THE BUSINESSWapda and KESC are two generation and dispatch units in Pakistan. although NEPRA is a government authority to settle the tariff issues but the fact remains that once the question of WAPDA comes the authority has a very little influence.

• 5 .EXPLORING COALPakistan is blessed with large amount of the coal. again no serious work is done to explore the coal for power generation. This is complained that the coal quality is inferior. however tailored made solutions are available to burn any type of coal. Government is looking for private sector to play its role

• 6 .RENEWABLE ENERGYThe government exerting great efforts to develop the renewable energy. PPIB has issued letter of intent to many private sector sponsors. If a serious work is done then the total shortage can be met from Hydro and wind power sector.

7 .ROLE OF GOVERNMENT So far the government is looking for private sector investment in energy sector and for itself it choose a role of facilitator and arbitrator

• 8 .ENERGY PLANNINGin spite higher costs immediate relief is only possible with thermal power plants which can be commissioned in 24 months time. A comprehensive and realistic planning will help to develop generating units in Pakistan which will be a catalytic element for the economic growth , poverty elevation and prosperity in Pakistan

9 .DISTRIBUTION SYSTEM Wapda briefing highlight the poor distribution system as the main cause of tripping and break down of the system. However we consider as the last of our concern

SWOT Analysis

Strength

Government import and increase taxes to generate revenue.

Explorations of more oils, gas and coal reserves

Conservation of energy

resources

Weakness

Industries destroyed

Lack of investor

Economy slowdown

Recession

Unemployment increases

SWOT Analysis

Opportunities

Increase the number of IPPs (Independent Power Producers).

Monopolistic environment

Profitable for some business like generator, ups

THREATS

Protest of general public

Vulnerabilities leading toward political instability

Lack of new projects but just seminars only

People buying power decreases

Installed capacityElectricity – total installed capacity 21,103MW • Electricity – Sources– fossil fuel – 13,637 MW – 65% of total– hydro – 6,654 MW – 31% of total– nuclear – 812 MW – 4% of total

• There are four major power producers in country: WAPDA (Water & Power Development Authority), KESC (Karachi Electric Supply Company), IPPs (Independent Power Producers) and PAEC (Pakistan Atomic Energy Commission).

• WAPDA Hydel• Tarbela 3478 MW Mangla 1000 MW• Ghazi – Barotha 1450 MW• Warsak 243 MW• Chashma 184 MW• Dargai 20 MW• Rasul 22 MW• Shadi-Waal 18 MW• Nandi pur 14 MW• Kurram Garhi 4 MW• Renala 1 MW• Chitral 1 MW• Jagran (AK) 30 MW• Khankhwar 72 MW• AllaiKhwar 121 MW• Total Hydel 6,654 MW

• WAPDA Thermal• Gas Turbine Power Station, Shahdra 59 MW• Steam Power Station, Faisalabad 132 MW• Gas Turbine Power Station, Faisalabad 244 MW• Gas Power Station, Multan 195 MW• Thermal Power Station, Muzaffargarh 1350 MW• Thermal Power Station, Guddu 1655 MW• Gas Turbine Power Station, Kotri 174 MW• Thermal Power Station, Jamshoro 850 MW• Thermal Power Station, Larkana 150 MW• Thermal Power Station, Quetta 35 MW• Gas Turbine Power Station, Panjgur 39 MW• Thermal Power Station, Pasni 17 MW• Total Thermal 4811 MW

• WAPDA’s total hydel and thermal capacity is 11,272 MW. Hydel electricity generated by WAPDA varies between two extremities, i.e., between minimum of 2,414 MW and maximum of 6,761 MW depending upon the river flow.

• Karachi Electric Supply Company• Thermal Power Station, Korangi 316 MW• Gas Turbine Power Station, Korangi 80 MW• Gas Turbine Power Station, SITE 100 MW• Thermal Power Station, Bin Qasim 1260 MW• KESC total generation capacity is 1756 MW.

Steps to overcome energy crises

• 1) Govt. should pay the dues of power generation Companies so that they can produce electricity at their level best.

• 2) Immediately replace Street Lights of our Big Cities with an LED Panel Lights. Through this we can save approximately 1900 MW of Electricity.

• 3) Replace florescent Bulbs with Energy Saver bulbs and encourage the Citizens to use Energy Saver bulbs as through this policy we can save 1150 MW of Electricity.

• 4) We must collect reliable and credible data for solar and wind mills development. In meanwhile in few selected areas, projects of wind and solar energy should be taken up.

• 5) Whatever we do, it must be affordable. Symbolic Houses like PM House, and Presidency should be the part of load shedding schedule.

Solutions

• Short term planning

• Mid term planning

• Long term planning

Conclusion

This study recommends Government of Pakistan to take strong

steps to overhaul its existing infrastructure and transformed it

to utilize renewable energy for future needs.

Government should also take steps to utilize the coal reserves

though it will give us energy for next 25 years.