Power Sector in Pakistan

8/14/2019 Power Sector in Pakistan

1/24

Power sector development in Pakistan

Letter of Transmittal

Date: October 30th, 2009

Sir Rafique

Instructor, Economic development,

KUBS

Dear Sir,

With reference to the topic assigned, this report is being submitted to you on

October 31st 2009, as requested. It is based on the Power sector

development. The report has been drafted to provide a perspective on the

past considerations and current scenario of power development in Pakistan.

The report includes the supply and demand of the electricity and methods of

electricity generation and their respective sectorial distribution. The report

also includes the expansion plan of government regarding the power

development in Pakistan.

We have tried our level best to use the basic concepts taught in this course.

Hope you enjoy viewing our work and it is satisfactory.

Thank You

Sincerely,

Shazhad Rafique # 25

Sohaib Akram # 13

Economic Development - KUBS Page 1


2/24


Table of contents

S.NO. PARTICULARS PAGENO.

1 Introduction 3



3/24


2 Overview of electricity sector 4

3 Installed generation capacity 6

4 Supply sources of electricity 7

1.WAPDA 7

2.KESC 11

3.Nuclear Energy 11

4.Independent power projects 12

5 Transmission &Distribution 146 Consumption of electricity 15

7 Growth in consumers 17

8 Village electrification 19

9 Expansion of generating

capacities

21

10 conclusion 21

INTRODUCTION

Pakistans energy infrastructure is under-developed, insufficient and poorly

managed.PresentlyPakistan has been facing severe energy crisis. Despite strong economicgrowth and rising energy demand during the past decade, no serious effortshave been made to install new capacity of generation. Consequently, thedemand exceeds supply and hence load-shedding is a common phenomenonthrough power shutdown. Pakistan needs around 14,000 to 15,000 MWelectricity per day, and the demand is likely rise to approximately to 20,000MW per day by 2010. Presently, it can produce about 11,500 MW per day



4/24


and there is a shortfall of about 3000 to 4000 MW per day. This shortage isbadly affecting industry, commerce, daily life and posing risks to theeconomic growth. The overall requirement of Pakistan is expected to beabout 80 MTOE in 2010, up by 50% from the 54 MTOE of the current year.During the past 25 years energy supply in Pakistan has been increased by

about 40 times but still the demand outstrips supply. With the increase ineconomic activities, per capita energy consumption had also been increased.Industrialization, growth in agriculture and services sectors, urbanization,rising per capita income and rural electrification has resulted in aphenomenal rise in energy demand (NBP, 2008). Inefficient use of energyand its wastages has further widened the demand-supply gap and exertsstrong pressure on the energy resources in the country. The annual growthof primary energy supply increased from 3.17% to 4.3% during 1997-98 to2006-07. The share of natural gas reached to 48.5%, followed by oil 30.0%,hydro electricity 12.6%, coal 7.3%, nuclear electricity 0.9%, LPG 0.5% andimported electricity by 0.1% during the year 2006-07.

In Pakistan the current energy crisis stems from the decline in hydro sourcesof energy and over reliance on the expansive source of electricity. Presently,oil-based thermal plants accounts for 68% of generating capacity,hydroelectric plants for 30% and nuclear plants for only 2% This has led to ahuge generation costs, which in turn adversely affect the economy over thepast eight years. Rise in the oil prices pushing electricity tariff very high. As aresult, manufacturing costs and inflation are at the rising trend, exportcompetitiveness is eroded and the pressure on the balance of payments isincreasing. These factors adversely affect the present growth trajectory ofthe economy .

OVERVIEW OF ELECTRICITY SECTOR IN PAKISTAN

At the time of independence in 1947, the power generation capacity ofPakistan was only 60 MW for a population of 31.5 million, with a per capitaconsumption of 4.5 units. However, the power sector gained momentum in



5/24


1970, and the installed capacity rose from 636 MW in 1970 to 1331 MW in1975. In 1980, the system capacity touched 3000 MW, and thereafter itrapidly grew to over 8000 MW by 19901991 (Government of Pakistan,2008).

At present, electricity demand is 13,021 MW, which is expected to increasein the coming years. Responsibility for the generation and supply ofelectricity rests with two utilitiesthe Pakistan Water and PowerDevelopment Authority (WAPDA) and the Karachi Electricity SupplyCorporation (KESC).WAPDA supplies electricity throughout the country whileKESC is responsible for supplying electricity to Karachi and its adjoiningareas. The Pakistan Atomic Energy Commission owns nuclear power plants,which are connected to WAPDA and KESC networks. The Independent PowerPlants (IPPs) are connected to the national grids at various locations.

The total installed generation capacity is around 19,420 MW and the

customer base is about 17.73 million in 20072008 (Government of Pakistan,2008). The current installed capacity of electricity is about 19,420 MW.During the year 20062007, the power system generated 98,213 million kWhof electricity (Table 6) of which 64.3 per cent comes from thermal plants,while hydroelectricity and nuclear power account for 33.4 and 2.4 per cent,respectively. Pakistans total generation capacity has increased rapidly dueto the establishment of IPPs; this almost eliminated the power shortage inthe 1990s. The supply of hydroelectricity is season dependent and decreasesby about 30004000 MW when the water level in the dams gets low duringwinter. The effective generating capacity of WAPDAs power plants hasdecreased slightly. In the past several years, the installed capacity has been

insufficient to meet the demand. Current supply is estimated at 15,055 MWagainst demand of more than 17,600 MW.A deficit of 2500 MW was recordedthrough load shedding, which reduced the industrial growth and adverselyaffected the economy. Many villages do not enjoy access to electricity, andonly 60 per cent of the population are connected to the national grid.

During the period 19702000, the industrial sector consumed 35 percent ofelectricity, followed by households (33 per cent), agriculture sector (17 percent), 8 per cent by bulk and the commercial sector by 6 per cent. However,during 20012006, the electricity consumption of households dramaticallyincreased to 47 per cent. During the same period, the industrial and

agriculture sectors consumption reduced to 33 and 11 per cent, respectively.Commercial sector consumption remained at 6 per cent while bulk share inconsumption reduced to 6 per cent. Similarly, during 20062007, householdelectricity consumption remained dominant (46 per cent), followed byindustrial sector (29 per cent), agriculture sector (11 per cent), commercialsector (7 per cent), bulk supplies (6 per cent) and street lights (1 per cent)(Hydrocarbon Development Institute of Pakistan, 2007). Thus, the hugeincrease in household consumption of electricity is the major reason for the



6/24


demandsupply gap. The total installed power generation capacity isinsufficient to meet the growing needs of the country and has hit theeconomy badly. The growing electricity demandsupply gap has forced theauthorities to resort to load shedding for very long duration. This hasadversely affected the public, businesses and trading communities. To tackle

the power crisis, the government has to come up with mega hydroelectricprojects and encourage domestic and foreign investors to invest in theenergy sector and extend and improve the nuclear power generation.

Installed Capacity of Electricity by source



7/24


Sectorial Consumption of Electricity from 1970-2000

INSTALLED GENERATION CAPACITY

In 1947 the total installed generation capacity, hydro and thermal was 70MW, 60 MW in now WAPDA system and 10 MW in Karachi. It is 19754 MW in2009, hydro 6555 MW; thermal 13119 MW which includes conventionalsteam and combined cycle power plants and nuclear 462 MW ownerPakistan atomic energy commission.The total installed generation capacity of WAPDA in 2008-09 is 11,454 MW,including 6,555 Hydel and 4,899 Thermal. Other sources of generation areKESC 1,884 MW and IPPs 5,954 MW.

Total Installed Generation Capacity(MW)

Power Company Installed

Capacity(2008-

2009)

Share(%)

1. WAPDA 11,454 58

2. Hydel 6,555 57.2 (share in WAPDA

System)

3. Thermal 4,899 42.8 (share in WAPDASystem)

4. KESC 1,884 9.5

5. IPPs 5,954 30.1

6. Nuclear 462 2.3



8/24


9/24


2002-03 22,350 34.9 41,690 65.1 64,064

2003-04 27,477 39.8 41,617 60.2 69,094

2004-05 25,671 34.9 47,849 65 73,520

2005-06 30,855 37.5 51,370 62.5 82,225

2006-07 31,942 36.4 55,895 63.6 87,837

2007-08 28,667 33.23 57,602 66.77 86,269

July-March

2007-08 21,606 33.5 42,963 66.5 64,569

2008-09 20,665 33.7 40,653 66.3 61,318

Source: PEPCO

WAPDA THERMAL ELECTRICITY GENERATION

WAPDA's Thermal Power Generation is mainly based on generation of power

from its Steam Turbo-Generators, Gas Turbines (simple as well as Combined

Cycle Units) installed at different Power Stations located in Sindh, Punjab and

Balochistan provinces. Indigenous Gas & Coal is the main fuel whereasFurnace oil and HSD are also used as alternative fuel. The total installed

capacity is 4664 MW.

Thermal power plants generated a total of 21.593 Billion units (kwh) of

energy during the year 2006-07. The energy generated during 2008 was

62% on gas,37% on furnace oil and 1% on coal.

As per Government of Pakistan policy all thermal power generation has been

restructured and four corporative companies namely Jamshoro Power

Generation Company Limited (GENCO-1) head quarter at Jamshoro district

Dadu near Hyderabad Sindh, Central Power Generation Company Limited

(GENCO-2) head quarter at Guddu district Jacobabad Sindh and Northern

Power Generation Company Limited (GENCO-3) head quarters at

Muzaffargarh and Lakhra Power Generation Company Limited (GENCO-IV) at

Khanote (Sindh) have been formed and registered. Functioning of GENCOs

has commenced.



10/24


WAPDA HYDEL ELECTRICITY GENERATION

As a consequence of partition of the Indo-Pakistan Sub-Continent in 1947,India and Pakistan became two independent sovereign states. Hydelgeneration capacity of only 10.7 MW (9.6 MW - Malakand Power Station & 1.1MW - Renala Power Station) existed in the territory of Pakistan. With thepassage of time, new Hydel Power Projects of Small and Medium capacitieswere commissioned including the first water storage dam and power houseat Warsak due to which country's Hydel capability raised to about 267 MWup till 1963. The Irrigation System which existed at the time of partition in1947 was divided between the two countries without any regards to theirrigation boundaries which resulted in an international water dispute whichwas finally resolved by signing of the Indus Water Treaty in 1960 under the

aegis of World Bank. The Treaty assigned three Eastern rivers (Ravi, Beasand Sutlej) to India and three Western rivers (Indus, Jhelum & Chenab) toPakistan. It also provided construction of replacement works called IndusBasin Projects (IBP) to compensate for perpetual loss of Eastern rivers' water.The works proposed under the Treaty included two multipurpose dams i.e.Mangla Dam on Jhelum river and Tarbela Dam on Indus river having theprovision of power generation. These were commissioned in 1967 & 1977respectively. However, their capacities were subsequently extended indifferent phases

HYDEL GENERATION CAPACITY

The total capacity of 13 No. Hydel Stations as of today is 6444 MW which is35.88% of total installed generation capacity of WAPDA. During 2008~2009,aggregate energy sharing during the year was 33.07%.

SEASONAL VARIATIONS OF HYDEL GENERATION

The seasonal variations of reservoir levels and consequent reduction inPower outputs of storage type hydel projects in Pakistan are verypronounced. Tarbela with maximum head of 450 ft. experiences variation of181 ft. while Mangla has 162 ft. variation against the maximum head of 360ft.

The lean flow period of Tarbela reservoir is from November to June when the

Capability reduces to as low as about 1884 MW against the maximum of3714 MW during high head period i.e. August to September (15% permissibleoverloading on Units 1~10).

Lean flow period of Mangla reservoir is observed from October to Marchwhen the minimum generating capability is 496 MW. The capability rises toas high as 1150 MW during 'high head' period (15% permissible overloading).



11/24


In all, WAPDA's Hydel generating capability varies between the twoextremities of 3506 MW and 6750 MW over the cycle of a year.

SALIENT FEATURES OF WAPDA HYDEL STATIONSStation Water Way

(River/Canal)Units No. Capacity of

Unit(MW)

InstalledCapacity

(MW)

Date ofCommissioning

Tarbela Indus(Reservoir)

1~45~89~10

1112~14

175175175432432

Total

700700350432

12963478

Jul. 1977Dec. 1982Apr. 1985Feb. 1993Nov.1992

Barotha Indus(D/S Tarbela)

12

345

290290

290290290

Total

290290

290290290

1450

July. 2003Aug. 2003

Oct. 2003Dec. 2003

April. 2004

Mangla Jhelum(Reservoir)

1~45~67~8

910

100100100100100

Total

400200200100100

1000

1967 - 1969Mar. 1974Apr. 1981Sep. 1993Jul. 1994

Warsak Kabul(Reservoir)

1~45~6

40.041.48Total

16083243

Jul. 1960Mar. 1981

Chashma Chashma(Barrage)

12~34~5

67~8

2323232323

Total

2346462346184

Jun. 2001Apr. 2001Mar. 2001Feb. 2001Dec. 2000

RasulUpper Jhelum Canal from River

Jhelum1~2 11.0 22.0 Jul. 1952

DargaiSwat canal from River Swat 1~4 5.0 20.0 Dec.1952

NandipurUpper Chenab Canal from River

Chenab

1~3 4.6 13.8 Mar. 1963

ShadiwalUpper Jhelum Canal from River

Jhelum1~2 6.75 13.5 Jan. 1961

ChichokiUpper Chenab Canal from River

Chenab1~3 4.4 13.2 Aug. 1959

RenalaLower Bari Doab Canal fromBalloki Headworks on Ravi

1~5 0.22 1.1 Mar. 1925



12/24


K/GarhiKachkot Canal from River

Kurram1~4 1.0 4.0 Feb. 1958

ChitralLudko 1~2

3~40.30.2

Total

0.60.41.0

19751982

2.KARACHI ELECTRIC SUPPLY COMPANY (KESC):

KESC fleet has 1890 MWs of installed capacity to cater to the city loadrequirement. The main generation units consisting of Bin Qasim PowerStation, Korangi Thermal Power Station, Site Gas Turbines and Korangi GasTurbines, with a new power plant at Korangi (Combined Cycle PowerPlant).Presently the situation is as under

S.No.

Name of Power Plant Location AvailableCapacity

(MW)

1 Bin Qasim PowerStation

Port Qasim IndustrialArea

1021

2 Korangi Thermal PowerStation

Korangi Creek 55

3 GEJB- 1 SITE, Karachi 80

4 GEJB- 2 Korangi IndustrialArea

35

5 Combined Cycle PowerStation

Korangi Creek 160

GRAND TOTAL=1351

3.NUCLEAR ENERGY:

Pakistan Atomic Energy Commission (PAEC) is responsible for the planning,construction and operation of nuclear power plants in the country. Presently,two nuclear power plants; KarachiNuclear Power Plant (K-1) and Chashma Nuclear Power Plant unit-1 (C-1) areoperational, whileconstruction of a third plant, Chashma Nuclear Power Plant unit-2 (C-2), is inprogress. K1, has



13/24


been in commercial operation since 1971. After completing its design life of30 years, K-1 isoperating on extended life at 90 MWe. K-1 generated 317 million kWh ofelectricity duringthe period July-March 2008-09, raising its life-time generation to 12.21 billion

kWh. C-1, a PWR type plant with a gross capacity of 325 MWe, and has beenin commercial operation since September 2000. C-1 generated 602 millionkWh of electricity during July-March 2008-09, raising its lifetime generationto 16.86 billion kWh. The construction and installation activities of C-2 are inprogress as per schedule. The commercial operation of C-2 is expected in2011.

In Pakistan, nuclear power makes a small contribution to total energyproduction and requirements, supplying only 2.34% of the country'selectricity. Total generating capacity is 20 GWe and in 2006, 98 billion kWhgross was produced, 37% of it from gas, 29% from oil.

Its first nuclear power reactor is a small (125 MWe) Canadian pressurizedheavy water reactor (PHWR) which started up in 1971 and which is underinternational safeguards - KANUPP near Karachi, which is operated atreduced power.

The second unit is Chashma-1 in Punjab, a 325 MWe (300 MWe net)pressurised water reactor (PWR) supplied by China's CNNC under safeguards.The main part of the plant was designed by Shanghai Nuclear EngineeringResearch and Design Institute (SNERDI), based on Qinshan-1. It started up inMay 2000 and is also known as CHASNUPP-1.Construction of its twin,Chashma-2, started in December 2005. It is reported to cost PKR 51.46

billion (US$ 860 million, with $350 million of this financed by China). Asafeguards agreement with IAEA was signed in 2006 and grid connection isexpected in 2011.

Reacto

r

Typ

e

MW

e

net

Construct

ion start

Commer

cial

operatio

n

Plann

ed

close

Karach

i

PHW

R

125 1966 12/72

Chash

ma 1

PWR 300 1993 6/00

Chash

ma 2

PWR 300 2005 2011

Total 425 operating



14/24


5. INDEPENDENT POWER PROJECTS:

The 17 largest independent power producers in Pakistan all operate thermal

generating plants only . The two largest privately owned power producersare the HUB Company (HUBCO) and the Kot Addu Power Company (KAPCO).HUBCO belongs to a consortium formed by National Power (Great Britain),Xenal (Saudi Arabia) and Mitsui Corporation (Japan) and possesses just under1,300 MW of generating capacity. KAPCO, with more than 1,600 MW ofpower generating capacity, was privatized in 1996 and now belongs to theBritish enterprise National Power. Between 1994 and 1997, 19 IPP projectsamounting to an overall capacity of 3,158 MW and a total investment volumeof some US$ 4 billion were awarded competitive bidding contracts. By theend of March 2003, 2,728 MW of the total had already been installed. Thepower-producing volume was so large that the Pakistani electricity market

began to exhibit intermittent overcapacities. The city of Karachi receives allits electricity from KESC, while WAPDA serves the rest of the country. In themedium to long term, though, the sale of electricity is also supposed to beliberalized.

Detail of the IPPs Projects commissioned and under commercialoperations is as under

Sr.

#

Name of

Project

Technology Commercial

Operation

Date

Gross

Capacity

(MW)

Net

Capacity

(MW)

Energy Received

July, 2006 to June,

2007 (GWh)

1 KAPCO GTs, Combined

cycle, Steam

Turbine on

LSFO/Gas/ Diesel

27.06.1996 1638 1345 8183

2 Hubco Steam Turbine on

Fuel Oil

31.03.1997 1292 1207.3 7212

3 Kohinoor

Energy Ltd

Diesel engines on

fuel oil

20.06.1997 131 124 806

4 AES Lalpir Steam turbines on

fuel oil

06.11.1997 362 350.7 1356

5 AES Pakgen Steam turbines on

fuel oil

01.02.1998 365 350.5 1943

6 Southern

Electric

Diesel engines on

fuel oil

10.03.1999 117 103.791 539



15/24


Power

7 Habibullah

Coastal

Power

Combined cycle on

natural gas

11.09.1999 140 129.15 966

8 Fauji

Kabirwala

Power

Combined cycle on

gas

21.10.1999 157 151.2 1184

9 Rousch

(Pakistan)

Power

Combined cycle on

fuel oil

11.12.1999 450 395 3090

10 Saba Power Steam turbine on

fuel oil

31.12.1999 134 125.55 868

11 Japan Power

Generation

Diesel engines on

fuel oil

14.03.2000 135 107.0 528

12 Uch Power Combined cycle on

low Btu gas

18.10.2000 586 551.25 3889

13 Altern

Energy

Flared gas/Gas

Engine

06.06.2001 10.5

5.13 0

14 Liberty

Power

Combined cycle on

natural gas

10.09.2001 235 210.341 1305

15 CHASNUPP Nuclear 325 300 1944

16 JAGRAN Hydel 23.10.2000 30 30 96

17 RETNAL

POWER

STATION

Gas Turbine 22.02.2007 150 150 213

18 TAVANIR,

IRAN

Import from Iran Sep. 2003 39 39 171

Total: 6296.5 5674.912 34293

TRANSMISSION & DISTRIBUTION

In 1947, we had only 1200 KMs Transmission Lines. The total length of

transmission lines now stands about 4665 Km. WAPDA's Power Transmission

Lines system is interconnected through a National Grid which extends power

from Peshawar to Karachi - Quetta and Azad Kashmir linking all important

cities of the country.



16/24


There are 9 Distribution Supply Companies namely Each Distribution

Company is headed by Chief Executive. Area of Jurisdiction in respect of each

Distribution Company is as under

Name ofDistributio

n

Company

Area of Jurisdiction

LESCO Sheikhupura , Kasur , Lahore , Okara .

GEPCO Gujranwala, Sialkot, Mandi Bahauddin ,

Hafizabad , Narowal , Gujrat .

FESCO Faisalabad , Sargodha , Khushab , Jhang , Toba

Tek Singh , Bhalwal , Mianwali , BhakkarDistricts of Punjab Province .

IESCO Islamabad , Rawalpindi , Attock , Jhelum ,

Chakwal .

MEPCO Rahim Yar Khan , Multan , Khanewal , Sahiwal,

Pakpattan , Vehari , Muzaffargarh , Dera Ghazi

Khan , Leiah , Rajan Pur , Bahawalpur , Lodhran

, Bahawalnagar .

PESCO Whole Province of NWFP .

HESCO Whole Province of Sindh except Karachi where

KESC is responsible for distribution of power .

QESCO Whole Province of Balochistan .



17/24


CONSUMPTION OF ELECTRICITY

With the sole exception of fiscal year 1998/99, power consumption hasgrown steadily in recentyears. Between 1990/91 and 2003/04, total consumption increased by morethan 84%, from 31 TWh to 57 TWh. Again, with a single exception - fiscalyear 1990/91 the domestic sector was the consumer group with the largestproportion of consumption, followed by industry and agriculture. The demandfor electricity will continue to rise in the years to come. An average annualincrease of 7% has been postulated.

After recording at an average rate of 6.1 percent per annum since 1999-00to 2007-08, the electricity consumption by different sectors increased merely

by 0.7 percent during July-March 2008-09 against the comparable period lastyear. This trend of the decelerating growth of electricity consumption startedin 2006-07. With the exception of Other Government Sector, all remainingsectors witnessed a negative growth during July-March 2008-09 over thesame period last year. Reduction in consumption of electricity by differentsectors is due to a shortage of electricity, its higher cost due to gradualphasing out of a subsidy on electricity, and the circular debt problem.



18/24


CONSUMPTION OF ELECTRICITY

Fiscal

Year

ELECTRICITY (Gwh) Increase (%)

1998-99 43,296 -

1999-00 45,586 5.3

2000-01 48,584 6.6

2001-02 50,622 4.2

2002-03 52,656 4.0

2003-04 57,491 9.2

2004-05 61,327 6.7

2005-06 67,603 10.2

2006-07 72,712 7.6

2007-08 73,400 0.9

Avg. 10Yrs

6.1

CONSUMPTION OF ELECTRICITY BY SECTORS Gwh (000)

Year Househ

old

Gwh(000)

Commer

cial

Gwh(00

0)

Industri

al

Gwh(00

0)

Agricult

ure

Gwh(00

0)

Street

Light

Gwh

Other

Govt.

Gwh(00

0)

1998-99 19.4 2.4 12.0 5.6 224 3.6

1999-00 21.4 2.5 13.2 4.5 239 3.6

2000-01 22.8 2.8 14.3 4.9 213 3.5



19/24


2001-02 23.2 3.0 15.1 5.6 212 3.5

2002-03 23.7 3.2 16.2 6.0 244 3.4

2003-04 25.8 3.7 17.4 6.7 262 3.7

2004-05 27.6 4.1 18.6 7.0 305 3.8

2005-06 30.7 4.7 19.8 7.9 353 4.0

2006-07 33.3 5.4 21.1 8.2 387 4.4

2007-08 33.7 5.6 20.7 8.5 415 4.5

GROWTH IN CONSUMERS

The pattern of consumption underwent a gradual transformation during theperiod 196098 The major beneficiaries of power sector development inPakistan were the general populace, i.e., the households. Its share went from12.81 percent in 1960 to 42.08 percent in 1998.

Electricity Used By Consumers Category(MLN Kilowatt Hours)

Year Domesti

c

Commer

cial

Industri

al

Agricult

ure

Others Total

1959-

1960

120 66 531 67 77 860

1964-

1965

258 179 1409 277 278 2401

1969-

1970

546 337 2299 965 590 4737

1974-

1975

917 468 3056 1539 851 6831

1979-

1980

2012 595 4056 2067 1069 9799

1984- 5091 1375 6317 2795 2030 17608



20/24


1985

1989-

1990

9402 1964 10333 5027 2469 29195

1994-

1995

15583 1941 12528 6252 5360 41664

1997-

1998

18724 2333 12297 7004 4143 44501

Source: WAPDA & KESC power system statistics

With the expansion of the electricity network, the number of consumers hasincreased by 7,675

thousands since 1998-99. During July-march 2008-09, the growth ofconsumers stood at 4.2 percent as it reached 18.5 million consumers duringJuly- March 2008-09 as compared to 17.7 million in same period last year.The share of domestic consumers remained 84.9 percent followed by thecommercial and industrial sectors having a 12.3 percent and a 1.4 percentshare respectively

CONSUMERS BY ECONOMIC GROUP(thousands)

Year Domesti

c

Commerc

ial

Industri

al

Agricultu

ral

Others Total

1998-99 8,912 1,517 190 173 8 10,800

1999-00 9,554 1,654 195 175 8 11,586

2000-01 10,045 1,737 196 180 8 12,166

2001-02 10,483 1,803 200 184 8 12,678

2002-03 11,044 1,867 206 192 9 13,318

2003-04 11,737 1,935 210 199 10 14,092

2004-05 12,490 1,983 212 201 10 14,896

2005-06 13,390 2,068 222 220 10 15,911

2006-07 14354 2,152 233 236 11 16,987

2007-08 15,226 2,229 242 245 11 17,955

Source:WAPDA & KESC power system statistics



21/24


VILLAGE ELECTRIFICATION

Pakistans increasing demand for energy is due in part to efforts designed topromote the process of rural electrification. Until 1995/96, the number ofvillages with access to grid power grew by 9 to 11% annually. Since then,however, the increasing connection costs have driven the growth rate downto about 2% per year. As of March 2003, approximately 73,000 (59%) ofPakistans roughly 125,000 villages were receiving electricity (compared withapproximately 46,000 villages, or 37%, in mid-1993. Recently theGovernment of Pakistan has publicly announced an ambitious plan to provide

basic power to all the citizens through out the country by the end of 2007.About 67.0 percent of the population of the country resides in rural areaswith agriculturebeing the main occupation Keeping this fact in view and inorder to increase the productivity of amajority of the population, the villageelectrification programme is being highlighted as acentral component of thetotal power sector development programme. The number of villageselectrified has increased to 66,280 since 1998-99. Furthermore, the villageelectrification facility has increased by 5.7 percent during the period of July-March 2008-09 as compared to same period last year. The detailed trend ofvillage electrification is.

VILLAGE ELECTRIFICATION (in numbers)

Year Total Cumulative Total

Pre WAPDA 609 609

1960-1963 1041 1650

1964-1968 557 2207

1969-1973 719 2926

1974-1978 4691 7617

1979-1983 7622 15239

1984-1988 12452 27691

1989-1993 17953 45644

1994-1997 18924 64568



22/24


1997-1998 1383 65951

VILLAGE ELECTRIFICATION (in numbers)

Year Addition

during the

year

Progressive

total

Growth(%)

1998 1,232 67,183

1999 1,109 68,292 1.7

2000 1,595 69,887 2.3

2001 1,674 71,561 2.4

2002 2,246 73,807 3.1

2003 7,193 81,000 9.7

2004 9,467 90,467 11.7

2005 12,764 103,231 14.1

2006 14,203 117,456 13.8

2007 10,441 127,897 8.9

July-March

2007-08 8,840 126,296

2008-09 5,566 133,463 5.7

The electrification of villages manifests transformation of the rural economyin checking the influx of rural workforce in search of work to the already



23/24


populous cities and towns where the essential services supplied by theutilities are already over capacitated

EXPANSION OF GENERATING CAPACITIES (FUTUREOUTLOOK)

By reason of the projected increase in the demand for electricity by some10,000 MW by the year 2010. To keep that from happening, or at least tominimize future supply deficits, Pakistan has adopted a systematicdevelopment plan called Vision 2025 that targets a long-term capacityincrease of around 35,000 MW by the year 2025. That would be nearly twiceas much power as was available at the end of 2002. Around two thirds of theadditional power (22,563 MW) is slated to come from hydroelectric powerplants. New gas-fired power plants are supposed to contribute 13% (4,680MW), the same percentage as that to be generated by coal fired powerplants (4,350 MW). New nuclear power plants with a total installed capacity

of 1,800 MW (5%) are planned3. Finally, renewable sources of energy aresupposed to account for more than 4% (1,500 MW) of the overall newlyinstalled capacity. The planned expansion will cost approximately US$ 30billion. In view of Pakistan's high national debt and persistent budget deficit,the government is intensifying its efforts to attract private investors.



24/24


CONCLUSION

In Pakistan the current energy crisis stems from the decline in hydro sourcesof energy and over reliance on the expansive source of electricity. Presently,

oil-based thermal plants accounts for 68% of generating capacity,

hydroelectric plants for 30% and nuclear plants for only 2%This has led to a huge generation costs, which in turn adversely affect theeconomy over the past eight years. Rise in the oil prices pushing electricity

tariff very high. As a result, manufacturing costs and inflation are at therising trend, export competitiveness is eroded and the pressure on the

balance of payments is increasing. These factors adversely affect the presentgrowth trajectory of the economy.

Economic Development KUBS Page 24

Power Sector in Pakistan

Documents

Transcript of Power Sector in Pakistan