_Solutions for Energy Crisis in Pakistan

8/12/2019 _Solutions for Energy Crisis in Pakistan

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Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline projects are

moving ahead, though at a slow pace.

Studies reveal that Pakistan has a huge potential for generating

renewable energy from sources such as solar, wind and water. Biomass, coal

and nuclear power generation are other untapped cheaper options. The central

challenge facing the country at the moment is to find cheaper and sustainablemeans of generating electricity and to reconfigure the energy mix for continued

supply of uninterrupted power, at an affordable price a task easier said than

done.

An analysis of the prevailing situation suggests that the energy crisis

requires immediate attention of the government at the policy level. Considering

the importance of this issue, Islamabad Policy Research Institute (IPRI)

organized a two-day national conference in collaboration with Hanns Seidel

Foundation (HSF), Islamabad, on the topic Solutions for Energy Crisis in

Pakistan , on May 15-16, 2013, in the Islamabad Hotel, Islamabad.

The objective of this conference was to formulate policy recommendations

which provide short-term as well as long-term solutions to Pakistans energy

crisis. Specifically, the aim was to formulate a National Energy Vision: 2030 ,

covering aspects like policy making, alternative energy sources, attraction of

investments and developmental strategies. The conference focused on

generating energy through economically viable means and estimating the

amount of electricity required in 2030 in order to sustain a growth rate of 6-8

percent.

Conference Proceedings

May 15, 2013 (Wednesday Day I)

Inaugural Session

Welcome Address: Dr. Noor ul Haq , Acting President IPRI in his opening and

welcome address, highlighted the importance of the topic of the conference. Hewelcomed the speakers, guests and audience to the two-day national

conference. He said that Pakistan is suffering from persistent energy crisis

causing hardships for the people, adversely affecting industry and economy. He

said that the purpose of conference was to formulate policy recommendations

which would be shared with the relevant ministries and departments.

Opening Remarks: Mr. Kristof W. Duwearts, Resident Representative HSF,

Islamabad, welcomed all participants of the conference on behalf of HSF. He


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said that HSF has continuously been collaborating with think tanks, government

departments and the civil society in Pakistan. He highlighted that regional

approaches play very important role in a globalized world. In 2010, the German

government developed its energy concept with concrete steps to be taken and

the target was to transform the German energy system to low emission arena.

Germany decided to speed up the process after the horrendous events inFukushima, and a new energy concept was passed by German parliament in

2012. Furthermore, it was decided that by the year 2050, the amount of

renewable energy production should be brought up to at least 80%. Germany

has been trying to greening its economy and likewise Pakistan should also do the

same. There is a need to correct the energy mix in Pakistan. There is a need of

strengthening individual responsibly with every single citizen in Pakistan and

everywhere in the world, as energy is a very precious good and it should not

lavishly used.

Inaugural Address by the Chief Guest: Dr. Masoom Yasinzai , Vice

Chancellor, Quaid-i-Azam University, Islamabad, cautioned that we as a nation

cannot survive with an economic growth rate of 3 to 4% with a population

growing with over 2%. So, we must double the economic growth to counter that

population outburst. Pakistan has been blessed by Allah with natural resources

i.e., wind, solar, coal and bio energy. We must tap these. He claimed that country

had both physical and scientific resources to solve the energy problem but the

policy makers just didnt want to listen. He said that Dr. Samar Mubarakmand

had been crying hoarse as far as coal is concerned. There are 175 billion tons of

coal buried in Thar, Sindh. Russia, Australia, Europe and even Central Asian

States have been doing it with coal. China is generating 81% of energy from

coal, India 64% and US 56% while Pakistan is generating less than 1%. Pakistan

is also blessed with more than 1000 kilometers of coastal belt, but its pity that wedont use wind mill or wind turbine to get wind energy from there. Pakistan has

sufficient sun exposure, are we benefiting from it?

He mentioned molasses from the sugar industry of which 80 percent was

being exported at junk market rates instead of being used as a source for energy

generation. He said making biogas and using biomass for energy generation was

not rocket science that the country could not use as a sustainable and

environment friendly source; but the academias research work was being

neglected and all of its research was going waste. We need to involve academia


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as Pakistan has been investing so much in academia. He quoted UNESCO

which says countries that made no use of their natural resources were bound to

become poor. Present economic growth rate needs to be doubled and allocation

for education must be raised to 4 percent if the country has to be saved from

economic doom. We cannot enter into knowledge economy era with just 7% of

youth in higher education. We must increase that number on emergency basis toat least 15% so that energy research institutes could be opened.

Session I Correcting the Energy Mix: Selecting Alternatives

Mr. Mirza Hamid Hasan, former Secretary, Ministry of Water and Power, spoke

on An Overview of Pakistans Energy Sector: Policy Perspective . He said

that energy is the lifeline of all modern societies and access to reliable, affordable

and uninterrupted supply of energy is the key to economic growth and welfare of

any society. He talked about Pakistans current energy scenario; Pakistan has

been facing severe energy shortage for the last few years, both of electric power

and natural gas, which are two major sources of energy for our industry,

domestic supply and transport sectors. The shortage of natural gas which is

widely used in four sectors i.e., domestic supply, industry, power generation and

transport, in descending order, has been caused by fast depleting gas reserves

and rapidly increasing demand. However, the electricity shortage has not been

caused by a lack of generation capacity which at the moment exceeds the peak

demand by about 5000 MW.

He pointed out number of factors such as excessive line losses caused by

inefficient transmission and distribution systems coupled with high level of theft,

low recovery of revenues by distributions companies (DISCOs) from public as

well as private users, and inadequate and delayed payment of subsidy by the

government owed on account of non-revision of tariff imposed by them for

political considerations result in a chain of defaulting entities making it difficult forthe power generation companies (GENCOs) and IPPs to utilize their existing

generation capacity due to financial crunch. This has also given rise to a huge

circular debt which is currently at a level of Rs.400 billion.

He further said that excessively high power prices have also driven

electricity out of reach of a large number of people and made it unsustainable for

industrial consumers, resulting in closure or relocation of many industrial units.

The electric power supply thus suffers from the multiple problems of availability,

affordability and reliability at the consumer end. He emphasized that the current


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state of affairs lies with poor governance and management, lack of policy or bad

policy choices have also played an equally big, if not bigger, role in bringing us to

this pass.

Talking about Pakistan energy scenario, he said that during 2011-12

Pakistans total energy availability was 66.015 Million Tons of Oil Equivalent

(mtoe), of which 45.251 mtoe (i.e., 68.54%) was indigenous production while20.764 mtoe (31.46%) was imported. He said that our energy supply has not

been able to keep pace with the demand and the supply-demand gap is

constantly increasing. According to some estimates, energy shortages have cost

the country up to 4% of GDP over the past few years. They have also forced the

closure of hundreds of factories paralyzing production and exacerbating

unemployment.

Then he talked about the key players in the power sector. WAPDA and

KESC were vertical utilities and sole players in the power sector until a few years

ago in all aspects from generation to transmission and distribution. But as a

result of restructuring of the power sector and induction of private producers into

power generation the institutions have greatly proliferated. WAPDA has been

split up into a number of entities. A new entity, Pakistan Electric Power Company

(PEPCO) was created as the controlling company of the various public sector

generation (GENCOs), transmission (NTDC) and regional distribution companies

(DISCOs) for thermal power in the country. PEPCO has since been wound up

and replaced by Central Power Purchase Agency (CPPA). The power companies

have all been made independent commercial entities. WAPDA is only concerned

with hydel power generation now. KESC continues to be a vertically integrated

utility but has since been privatized. National Electric Power Regulatory Authority

(NEPRA) is another important player. Alternate Energy Development Board

(AEDB) is a smaller player for alternate energy. As the energy crunch continues,

there is more and more emphasis on developing alternate sources of energysuch as solar, wind and micro-hydel etc.

He said that there are different issues which power sector is facing and

they are the policy, Governance and management issues, technical issues and

cost issues. The energy sector has long suffered with fragmented and ad-hoc

policies and decisions. The absence of a single energy institution and lack of

coordination and synergy between various institutions dealing with different sub-

sectors of energy is an important issue that was never addressed. Hydel power is

the cheapest way and we have abundant of it but we did not pay any attention to


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utilize it. He said that quality of governance has a direct bearing on the access,

reliability and pricing of power. Poor management, coupled with corruption and

other factors related to governance, results in poor delivery of electric power and

puts it beyond the reach of low income groups due to excessive cost. Another

factor is the inadequate maintenance and repair of public sector power

generation plants, either due to financial constraint or sheer neglect, which haseither drastically reduced the operating efficiency of the plants thereby increasing

cost of generation to unsustainable levels or made them unserviceable. He

mentioned that circular debt is one of the most important problems. He pointed

out that greater reliance on thermal power, use of expensive furnace oil as fuel,

non-availability of natural gas, poor governance and management resulting in

large scale power theft and non-recovery of revenues, expensive power from

IPPs and low efficiency of public sector power plants are the driving factors which

have contributed to making the price of electricity unaffordable for average

domestic user and unsustainable for industrial users. He emphasized that there

should be some short term; medium term and long term measures as well as

some hard policy decisions in order to overcome this deficiency.

Prof. Dr. Khanji Harijan, Professor Mehran University, Jamshoro, presented his

paper on Renewable Energy: Potential and Prospects . Dr. Khanji said that

the renewable energy is generated from natural resources such as sunlight,

wind, water, tides, and biomass which are renewable (naturally replenished).

Solar Energy, Wind Energy, Hydel Energy, Biomass Energy, Biogas, Bio Fuels

(Ethanol & Biodiesel), Bio Power (Cogeneration from Biogases), Tidal, OCTE

and Wave Energy, and Geothermal Energy are types of the renewable energy

sources (RES).

Talking about the use of renewable energy source he said that at present,

RES contribute about 16.7% of the global energy consumption. Main renewableenergy contributions are traditional, mainly non-commercial biomass such as fuel

wood, crop residues and dung (8.5%), and hydropower (3.3%). All other modern

renewables provided approximately 4.9% of the energy consumption in 2010 and

have been experiencing rapid growth in many developed and developing

countries alike.

He further described that these renewable energy sources if utilized

properly will be more advantageous for us as they are indigenous, abundant, free

of cost (resource material), environment friendly, and decentralized. Sustainable


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renewable energy resources are being replaced/generated at the same rate that

they are being utilized. Hence they will last indefinitely.

About the consumption of biomass energy, he elaborated that 65% of the

population of Pakistan lives in rural areas. Majority of these rural people have no

access to commercial energy such as gas, electricity etc. Traditional fuels like

firewood, dung and crop residues currently contribute a major share in meetingthe energy requirements of rural and low income urban households especially for

cooking and heating purposes. The rural people meet more than 95% of their

domestic energy needs by burning bio fuels. About 89% of the total final biomass

energy is consumed in the domestic sector and the remaining 11% is consumed

in the industrial sector as industrial process heat.

He gave reasons that why the development of these renewable is required

as the nation is facing energy crises widening demand and supply gap (7-8

GW power supply shortage), dwindling recourses of fossil fuel, increasing

environmental concerns, increasing energy price, increasing energy supply

security concerns, high cost and safety and security concerns regarding nuclear

power, indigenous, abundant, environment friendly, and decentralized nature of

renewable energy sources.

Talking about the potentials, he categorized it in four different types;

theoretical potential, available potential, technical potential, and economical

potential. The theoretical potential refers to the total amount of energy available

for extraction in a defined region without consideration of availability or

technological restrictions. For several energy forms such as solar, wind, and

wave the theoretical potential is therefore very huge. The available potential is

defined as the part of the theoretical potential that can be harvested easily

without causing impacts on the environment. The technical potential refers to the

amount of energy that can be harvested using existing technologies and thus

depends on the time point assessment. The economical potential refers to theamount of potential that is economically viable by using currently available

technologies.

He explained the opportunities for renewable energy utilization in Pakistan

are that these energy sources can be used instead of fossil fuels for many

applications. Power generation sector (28.2%) is the major consumer of fossil

fuels. Wind energy, solar energy, hydropower and biomass energy can be

exploited for electricity generation instead of fossil fuel in the country. Electricity

requirements of the un-electrified rural households can be met through


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decentralized renewable energy systems. All these technologies except solar PV

are mature and economically viable in the country. Solar PV is expected to be

competitive to other power generation options by the year 2015. These

renewable energy sources have the potential to meet all the current and future

electricity requirements of Pakistan.

Finally he came up with the conclusion that Ethanol fuel could meet about1% of the energy needs of the transport sector. Overall, renewable energy

sources could meet about 17% to 30% of the net energy needs of Pakistan by

2030. The exploitation of these technologies would reduce many of the current

environmental and economic problems as well as mitigate national energy

insecurity associated with the production cost and use of fossil fuels. The

planners and policy makers should formulate proper polices and guidelines to

promote RETs? for a more sustainable and secure energy system.

Dr. Vaqar Ahmed , Deputy Executive Director, SDPI, talked on Economics of

Energy Mix . He said that Pakistan is in a desperate need to implement an

integrated energy plan. He highlighted the key areas on which we need to focus

in order to overcome the growing energy crisis. He said that we need to

consolidate various ministries and departments dealing with energy sector in

Pakistan under one ministry or authority. Fragmented government is also one of

the major issues. He emphasized that provincial governments must be given

some role in order to reduce this crisis factor; similarly the capacity of regulators

in this area will need to be strengthened.

There must be some private investment in power, gas, hydro and coal

sectors in order to overcome this situation. He said that urgent reforms must be

done to deregulate pricing, generation and distribution. Private investment must

be there in order to reduce these factors. He said that prices should be regulated

with quality that is going in thermal power sector. There should be policyregarding the renovation of thermal plants; by this we can get more energy. A

policy must be there to convert our oil into coal water slurry fuel and this can

reduce current 18 oil units to 8 units. He said that trade in energy sector needs to

be evaluated. Talking about the inefficiencies of existing plants and reduction in

transmission, distribution and administrative losses, he said that they can provide

a short term breather, however, in the longer run a deliberate effort will be

required for changing the energy mix away from expensive imported oil. Finally

he opined that: quick fix solution for circular debt may be for the government to


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take the existing burden on its books, after which energy sector entities may be

made available for private sector participation.

Dr. Gulfraz Ahmad , Former Secretary, Ministry of Petroleum and Natural

Resources, spoke on Least Cost Power Generation . He started his speech by

pointing out some of the strengths and challenges in the energy sector. One ofthe main challenges, according to him, was low per capita energy consumption

besides that the cost for power generation was so high; there was a huge

shortfall in power and gas supply, power and gas theft and heavy losses caused

huge damage to the energy sector. Then he talked about different strengths i.e.,

Pakistan have gas based energy economy, we have country wide power and gas

infrastructure and the most important one is that strategically Pakistan is located

close to regional energy export sources in West and Central Asia.

He also talked about the issues in gas sector. He said that policy failure is

the main issue as energy sector has heavy reliance on gas and this is because of

the policy distortion. One of the factors is natural decline in the production of

energy fields. Projects like IP, TAPI, LNG and LPG, since early 1990, were

initiated but still these are in the process. He said that vision is already there but

implementation is the most important factor in order to overcome the energy

crisis. Our markets are not feasible; there are unattractive economic and financial

returns for the exploration companies. He further said that cost of generating

electricity can be minimized by optimal choice of technology of power plant and

its thermal energy, by the type of fuel that plant uses, by the size of plant to

exploit economies of scale, and by locating plants in relations to the center of

consumptions. He said that we should buy maximum capacity (90%-95%) from

efficient power plants to reduce per unit tariff to save power cost. He emphasized

that gas should be diverted from inefficient captive power plants to more efficient

IPPs which will add 40% more electricity from the same amount of gas. This willalso cut the cost of power. He further elaborated that efforts were being made to

acquire technology for economy of scales 1000 MW nuclear power plants that

would give a boost to power sector. In the end he concluded that conservation of

energy is a huge source of adding to energy supply; it could add over 20% to our

energy consumption within the present energy supply.

Session II Energy at Affordable Price: Evaluating Options


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Dr. Ehsan Ali, Head of Department, Centre for Energy System, NUST,

deliberated on Prospects of Biofuel . He opined that to meet the

consequences of fossil fuel depletion and maintain the continuous supply of

energy, Pakistan needs to set trends towards cheaper biofuel from locally

available feedstock and resources. Cost effective production of biofuel depends

upon the availability of cheap and sustainable raw material. Focusing on localresources may lead us to establish new trends in the history of biofuel

contributing towards prosperity of the people of Pakistan. Pakistan has the

potential to utilize biomass/residual crops for energy purposes if it could be

managed at national level. Pakistan is exporting about 80% of available

molasses at very cheaper rates which can be used to produce fuel grade ethanol

by upgrading the possible facilities. In addition, the presence of 6.3 million

hectares of saline land in Pakistan is a big challenge and may be encountered to

contribute for the management of fuel and mitigating environment and economic

crisis by using algae cultivation at the expense of residual salts and saline water

for biofuel/biomass production. Pakistan has been suffering from a serious but

temporary energy crisis, he opined that it could be reversed in coming few years.

Even after recovery of the damaged energy systems and tracking to resolve the

energy related issues, there is a need of bioenergy/biofuel in Pakistan to

maintain the existing industrial and locomotive system. Pakistan needs biofuel for

self-sufficiency, prosperity and better climatic conditions. There are number of

issues regarding feedstock for biofuel which is always in conflict with the edible

oil crops and land utilization for fuel purposes. He further said that Pakistan has

the potential to produce Biofuel without creating any conflict with the edible crops

and fertile land utilization. In Pakistan, approximately 6.3 million hectares of

agricultural land is salt-affected. Almost all salt-affected area is underlain with

brackish ground water. In addition several more million acres in coastal areas

and in non-saline areas are also underlain with brackish water and unfit forconventional agriculture.

Salt concentration in the soil does not allow any cash crop to grow

properly but algae have a natural potential to withstand high salt concentration as

in the saline lands. Through this strategy, salts in saline lands are likely to reduce

with cultivation of algae because utilization of salts by addition of organic matter

and other algal metabolites would trigger leaching of salts, possibly leading to

cultivation of cash crops after a few years. In addition to biofuel, biomass (animal


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feed) and Carbon dioxide so sequestered may be subjected to earn sufficient

carbon credits from the International Market.

Syed Shaukat Hasan , Director, Pakistan Atomic Energy Commission, talked on

Nuclear Power Generation: Challenges and Prospects . He said that energy

is the driving force for economy. Without a reliable and affordable supply ofenergy, sustainable economic growth cannot be achieved, however, the

distribution of energy resources is not uniform globally which brings in the

concept of energy security. Energy security comprises 4 As i.e., availability,

accessibility, acceptability and affordability. The uneven distribution of energy

supplies among countries has led to significant vulnerabilities. To achieve energy

security, a country should try to exploit its indigenous energy sources, renewable

energy sources and diversify its energy mix so that there is no major dependence

on any one of the source. He further explained that most of the global primary

energy supplies are consumed for generation of electricity, the demand for which

is expected to keep on rising. The world electricity demand is projected to be

around 34, 000 TWh in 2035 almost double the 2010 figures while for

Pakistan it is projected to around 600 TWh almost six times the 2010 figures.

Talking about the energy scenario, he said that currently Pakistan is facing

severe energy crisis resulting in frequent electricity and gas load shedding.

Pakistan has scarce fossil fuel resources and is forced to import almost one-third

of its oil and gas to meet its energy needs. He said that renewables including

hydro, solar, and wind were also among the options for electricity generation.

During the year 2011-12, hydropower provided 29.0% of electricity in Pakistan.

Although, Pakistan has relatively high endowment of hydropower potential, only

6, 716 MW (12%) of the identified resources have been exploited so far. The

World Bank estimates that the worldwide electricity production comprised of 40%

coal, 19% gas, 16% nuclear, 16% hydro and 7% oil, while for Pakistan it was35.8% oil, 33% hydro, 27% gas, 3.6% nuclear and 0.1% coal and 0.28%

electricity was imported in 2011.

He emphasized that in the current energy scenario; nuclear power can

play a vital role. Nuclear power is a safe, clean and reliable source of electricity.

Nuclear power has a key significance in providing base-load electricity and

minimizing imports of oil, gas and coal. It is essential to continue the

development of nuclear power, even at a modest pace, in order to develop local

capabilities and to meet Pakistans future electricity needs.


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He further explained that nuclear power generation contributed 4.9% to

the total electricity generation of Pakistan in year 2011-12. Pakistan has three

operating nuclear power plants (NPPs): KANNUPP (137 MW) at Karachi which

started commercial operation in 1972, C-1 & C-2 (325 MW each) located at

Chashma started commercial operation in 2000 and 2011, respectively. Two

nuclear power plants C-3 & C-4 (340 MW each) are under construction atChashma site. Talking about the Energy Security Plan of Pakistan, he said that

this plan as approved by the Government of Pakistan envisaged construction of

8, 800 MW nuclear power generation capacities by 2030. The target has now

been raised to more than 30,000 MW of nuclear power by 2050 to meet the

electricity needs of the country.

He said that Pakistan is currently facing a number of challenges to

increase the generation of nuclear electricity. These challenges are of two types:

internal and external. The internal challenges are due to current financial crisis

and yet to be fully developed indigenous industrial infrastructure. Nonetheless,

notwithstanding the financial crunch, the Government of Pakistan is fully

committed to provide the necessary finances for running the nuclear power

programme. The external challenges are the embargoes, sanctions and denials

regarding supply of nuclear equipment and components in some cases even

those which are related to the safe operation of nuclear power plants. The

Nuclear Suppliers Group (NSG) of which Pakistan is not a member does not

allow any civil nuclear trade with non-NPT member countries.

Talking about the opportunities for nuclear power generation in Pakistan,

he said that they are extensive and increasing. Nuclear power is one of the most

suitable options for base-load electricity production. Pakistan has invested

substantially in the nuclear sector during the past several decades. Rather than

sowing the seeds, now is the time to harvest the crop.

In the end, he concluded that the energy requirements of a progressiveand thriving Pakistan demand an aggressive investment of resources, financial

as well as technological, for nuclear power development. Pakistan has a solid

base of engineering and technology and time-tested human resource which can

handle the challenges and benefit from the opportunities which are available in

the nuclear arena. Notwithstanding the challenges associated with nuclear power

generation, there had never been such an opportunity in Pakistan, albeit due to

many reasons, for exploiting the benefits of nuclear power for sustainable growth


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of the country. Energy brings economic prosperity and nuclear power is one of

the major options to bring energy to Pakistan.

Dr. Shaheen Akhtar , Associate Professor, NDU, gave her presentation on

Hydel Power: Confronting Dwindling Resources . According to her, Pakistan

is currently facing a critical energy crisis which is resulting in frequent and longpower breakdowns, shutting down of industrial units, affecting economic growth

and creating social chaos and political instability. In 2011, World Bank report

estimated production loss to the economy is two percent of the GDP per annum,

and may be more. A recent report by the State Bank of Pakistan says, the peak

shortfall for the system of the Pakistan Electric Power Company (PEPCO) rose

from 2, 645 MW in 2007 to 8, 398 MW in 2012 which indicates a deepening of

the energy crisis in the country. It is estimated that the national demand of

electricity would keep on growing rapidly, at about 10% annually, owing to

growing population and economic activities. The energy crisis is generated by

variety of reasons, in particular, widening demand-supply gap, increased shift to

oil-based expensive energy mix, and lack of integrated energy strategy and

energy governance. Pakistan needs to diversify its energy options; rebalance its

energy mix with preference to cheaper energy sources; and improve energy

governance by fixing the management issues, increasing energy production

efficiency and conservation.

Hydropower is the cheapest and cleanest renewable source of energy.

Pakistan is endowed with rich hydro power potential of 60,000 MW which can be

tapped to meet its current and future energy requirements. She looked at the

potential of hydropower resources and hydropower development in the country

by examining various technical, financial, infrastructural and management

challenges that are impeding the optimum utilization of the hydro resources of

the country. She was of the opinion that the country needs to reverse the energymix in favour of hydropower, prioritize run of the river power projects and try to

remove all the hurdles in way of hydro development.

While there are many benefits, development of hydropower projects pose

numerous technical and economic challenges to the investor and developer.

Infrastructural constraints: projects are site-specific; sites are located in far-flung,

isolated and high-altitude areas lacking basic infrastructural facilities and

connectivity to transmission network. Detailed studies of topography, hydrology,


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site geology and engineering geological conditions are required. Hydropower

project thus involves high capital cost and long gestation period.

Mr. Ejaz Ahmad Khan , Secretary, Coal and Energy Development Department,

Sindh, spoke on Power Generation from Coal . He said that energy plays an

important role in industrial and economic growth of nations. He explained thatpower production through furnace oil is costly and coal being cheap, abundant

and safe seems to be the prime candidate as it caters to over 40% of the worlds

power generation and is increasing day by day specifically in developing

countries. He said that according to the survey of World Energy Outlook (WEO),

future energy demand in emerging Asian countries will increase by 60% in 2020

as compared to 26% in 1980 .

He emphasized that Pakistan faces a number of critical challenges in

energy sector and realizing these challenges, the Governments of Sindh &

Pakistan are focusing on the huge potential of developing indigenous coal

resources on fast-track basis and put coal-based power as a major portion in

overall energy mix. Coal resources in Sindh, particularly Thar Coal, form an

integral part of this planning. The current energy supply matrix is a composite of

various technologies. Oil and gas form the bulk of primary commercial energy

supply mix of Pakistan, contributing in the following ratio. Oil: 37%, Gas: 30%,

Coal: 0.1%, Hydroelectricity: 30% and Nuclear electricity: 1.8%. He said that oil is

an extremely expensive mode of developing energy and is depleted at a very

rapid speed. Moreover, its import is a heavy burden on the exchequer.

He said that coal-based power generation can provide considerable

contribution to local economic development including monetary benefits to the

province, the development will generate direct and indirect employment, the mine

and power development will require infrastructure, such as roads, rail, water,

power, and communications networks, all of which will be shared underagreements with the local non-mine and non-power related users. This project

will play an important role in the reduction of circular debt through cheap

electricity; and by this, we can save US$ 250 Million per annum. In the end, he

said that this project can transform the Pakistan economy and bring in economic

sustainability but there must be some real and effective energy policy.

May 16, 2013 (Thursday Day II)


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Session III Governance and Legislation

Barrister Aemen Maluka , Advocate High Court, gave her presentation on

Legislation for Energy Conservation . Ms. Aemen Maluka started her

presentation by linking economy and law. She said that one cannot

make/regulate laws or economic principles in isolation. Regulation is basically

dictated through economics. She stated that energy efficiency has risen to thetop of the law and policy agenda during the past one decade, in many countries,

including Pakistan. However, in the case of third world countries where there is

rampant corruption in the energy sector, including the problem of electricity theft

and abuse, the assessments of its potential benefits vary widely. Through the

example of Pakistani law and policy, she looked at what the current energy

consumption trends show. Based on these, she sought to explain, what have

been the public sectors priorities in addressing the energy shortage. Ms. Maluka

opined that Pakistans energy conservation policy-makers and legislators,

particularly those who were reviewing and constructing the regime for

environmental taxation based on the very much-overrated Pigouvian taxation

theory, needed to take another look at the current legal framework that aimed at

promoting energy conservation. Also, it needs to be seen that Pigouvian taxes

may not be the best solution for Pakistans political and legal environment even

though they may have, in the past, produced the desired results in many Western

jurisdictions.

Taking the case of Pakistan, she said that the continuity in environmental

policy and stability in the tax policy had suffered because the overall plan for

energy independence had followed the civil paths. With the example of

ENERCON, in the case of Pakistan, the competing rather conflicting and

contradictory politicized agenda have counter-added the intended effectiveness

of tax credits and incentives programs for energy efficiency. In the oil and gas

sector in Pakistan, the tax credits and incentives have come and gone due topolicy disruptions, nominal actions and competing policies. To elaborate it

further, she said, it is important to discuss the general principles behind

Pakistans environmental policies and the regulatory principles. Ms. Maluka with

reference to tax policy of Pakistan stated that it has potential impact on the socio-

economic and consumer demand. She said that there is also need to discuss the

fuel economy within Pakistan and the tax and environmental agendas.

A special tax that is often levied on companies that pollute the environment or create excess social costs, callednegative externalities, through business practices. In a true market economy, a Pigouvian tax is the most efficient andeffective way to correct negative externalities.


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Unfortunately, we have done little about it i.e., to promote the technical aspects

of it through regulation.

Ms. Maluka then emphasized on the current proposed energy

programmes and legal energy policies of Pakistan that are blatant in regard to

fundamental environmental norms. The law states that energy conservation is

more effective than energy generation. She gave historical background ofENERCON that it was established in 1980s with the US technical and financial

assistance and principally the organization has aimed to legislate through this

law of conservation but it has not been able to do well in Pakistan due to political

and economic pressure which have emerged in the last few decades. At the

same time, there is a growing public and private apathy towards the subject of

energy conservation. The ENERCON Bill of 2013 has some interesting upcoming

provisions that a council must be established that can have a suitable structure

or mechanism for the implementation of this act. The Bill aims for the

enforcement of effective energy standards, incentives, fines and other related

requirements under this act. The council has also been given power for collection

of taxes but it has become a constitutional issue with the regulatory authorities

like PEMRA etc. The private sector and third parties are also challenging this fine

and taxation system. Ms. Maluka also discussed about the purpose of Pakistan

Energy Conservation Council (PECC) that aims to promote effective use of

energy and conservation of Energy in Pakistan. The council is making effort to

remove ambiguities related to power and energy allocation and about the

collection of energy taxes and fines.

While concluding her presentation, Ms. Maluka opined that Pakistans

energy sector will not work or progress unless the improved infrastructure is in

line with the regulations.

Advocate Ameena Sohail , Senior Associate IPS, talked on Impact of 18th

Amendment on Energy Generation . Speaking about the Spirit of 18 th

Constitutional Amendment, she said that energy sector was broadly divided into

power and hydrocarbons. Both had different legislative structures prior to 18 th

amendment. Elaborating the text provisions of the 18 th amendment related to

energy generation Ms. Ameena explained the Article 157 related to electricity

which stated that the Federal Government may in any province construct or

cause to be constructed hydroelectric or thermal power installations or grid

stations for the generation of electricity and lay or cause to be laid inter Provincial


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transmission lines shall consult the Provincial Government concerned and in

case of any dispute between the Federal Government and a Provincial

Government in respect of any matter under this Article, any of the said

Governments may move the Council of Common Interest (CCI) for resolution of

the dispute. She said that the electricity is now shifted to part II of the Federal

legislative list. Advocate Ameena also discussed the impact on exploration and

production of Hydrocarbons (Oil& Gas). She threw light on the Article 172 on the

ownerless property which has given joint ownership rights to federal and

provincial government under 18 th amendment. About the Article 161 related to

Natural gas and Hydro-electric power, she said that before the 18 th amendment,

natural resources especially mineral oil and natural gas being part of the Federal

Legislative List were exclusively owned and regulated by the Federal

Government. She criticized the Article 161 by stating that Article 161 is silent as

to the treatment of royalty on crude oil, which would hence be dealt with in

keeping with the provisions of the revised Article 172(3) and be shared equally

between the Federal Government and the Provinces. The case of natural gas

should also be treated in the same manner and Article 161 should be

appropriately amended. The legislative, regulatory, institutional and policy control

should remain with the Federal Government as per the existing institutional

framework and all institutions; public sector entities and regulatory authorities

should continue to operate as before. She said that missing links should be

plugged and regulatory functions should be overhauled and developed for the

promotion of an integrated energy sector.

Dr. Nazir Hussain , Associate Professor, QAU, presented his paper on

Diplomacy and International Dimension of Energy Management . Dr. Nazir

Hussain started his presentation by focusing on the serious energy crisis which islikely to aggravate in the coming years. He said that the under-production,

inefficiency, mismanagement and lack of a coherent national energy policy have

severely undermined Pakistans ability to cope with the challenging situation.

However, there are few internal and external options which can be utilized to

address its short-term energy needs and formulate long-term energy

requirements. He proposed four trans-regional pipeline options: overland Iran-

Pakistan (IP) Gas-Pipeline, overland Turkmenistan, Afghanistan, Pakistan, India

(TAPI) Gas-Pipeline, underwater Qatar-Pakistan Gas-Pipeline, and imported


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Liquefied Natural Gas (LNG) through the sea. But each option is studded with

multiple challenges such as the US opposition to IP, Afghan security issue with

TAPI, expensive cost of Qatar-Pakistan pipeline, and heavy cost of LNG import.

Dr Nazir while speaking on the Pakistans energy scenario stated that

Pakistans electricity demands are mainly met through hydel production as the

country was blessed with abundant water resources and the two major damsbuilt in early 1960s; Terbela and Mangla. However, the unplanned growth of

industry and massive use of gas for commercial and transport purposes led to

the over-reliance on gas. Subsequently, the electricity generation was also

converted to thermal, which increased the production cost of electricity being met

through government subsidies. In the absence of a national energy policy, the

demand and supply gap continued to increase with no substantial alternatives.

Political controversies over building of new dams, massive reliance of industry on

gas, un-planned growth of CNG for transport, and substantial theft/line-losses led

to the massive demand-supply gap. This has resulted in massive electricity and

gas load-shedding which has not just hampered the everyday life of Pakistani

citizens but has also severely affected economic growth and political stability.

While discussing the available energy options for Pakistan, the speaker

said that Iran, crippled by the sanctions in place and fearing further sanctions, is

desperate for the IP pipeline to be completed. Other than the economic benefits

that Pakistan can acquire from IP, the most significant benefits however can be

achieved if the IP becomes IPC; the Iran-Pakistan-China pipeline. India backed

out, presumably under the US pressure and also its own distrust of Pakistan.

TAPI project is expected to generate 2000 MW of electricity for energy-starved

Pakistan, besides earning transit fee from India. This project would not only

substantially reduce Pakistans energy demands but could also become an

important economic dynamic for bridging Indo-Pakistan rivalry. Despite TAPIs

economic potential and commercial viability, the project faces a number ofchallenges. Although the US is pushing for the project and India is a willing

partner, it is the Russian Federation that is opposed to the project mainly

because it would like to transport the Turkmenistan gas to Europe through its

own territory thus keeping a check on the Central Asian energy resources,

besides benefiting economically. Another important bottleneck is the instability

and insecurity in Afghanistan, which is likely to aggravate after 2014, in the post-

withdrawal period. Moreover, the project is still being considered as a

pipedream as the project has not yet been kick-started. Similarly Gulf-South


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Asia/Pak-Qatar Gas Pipeline is blessed with the US approval as its company is

technically involved, besides the Qatari company ready to finance the project, the

proposed project is costly due to its under-water route. It is estimated that an off-

shore pipeline has, at least, twice the cost of an overland pipeline. Therefore, the

project is still on the paper, and no substantial progress is being witnessed. Yet

another option being considered is to import liquefied natural gas (LNG) fromQatar to Pakistan with potential to include China and India at later stage.

However, natural gas transported through overland or undersea pipeline in its

natural state or as LNG in oil tankers is a costly affair.

Concluding the presentation, Dr. Nazir stated that out of the four external

options available to Pakistan, only one, the IP gas pipeline project, is without the

regional/international cooperation. In the remaining three options, the financial

support, investment opportunities and international cooperation are available.

Therefore, Pakistan has bright chances to fast-track the available options by

involving other regional/international stack-holders but that requires a proactive

diplomacy. He argued that a land-based pipeline would be four times cheaper

than any other option. Therefore, the first and foremost priority should be to work

on the overland pipelines like IP and TAPI, and later to also include GSUSA and

LNG. And lastly in order to meet the massive demand of energy, a coherent

national energy policy is required that should cover effective management, short

to long term planning, tapping of additional local energy sources, building of new

dams and fast-track working on regional pipelines.

Mr. Muhammad Mustansar Billah Hussain , ARO, IPRI, spoke on Role of

Universities and Think Tanks in Energy Conservation . Mr. Mustansar Billah

started his presentation by introducing the basic concept of energy conservation.

He said that energy conservation is a way of reducing energy consumption

through economy, elimination of waste and rational use. It also refers to effortsand steps taken to reduce the use of energy. It can be done through judicious

use of energy, efficiency enhancement, and curtailing the consumption by

minimizing the need of energy. He highlighted the importance of energy

conservation for Pakistan as energy has a credible role in national building and

development. Globally, the appeal for energy conservation is gaining popularity

and there is an urge for energy conservation for energy security. In the context of

Pakistan, energy conservation is important because we have fossil fuel

dominated energy supply, which is a costly business. Moreover, there is low


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reserve/ production ratio of indigenous fossil fuels (oil and gas). With the rising

demand for energy in the country, unfortunately there is a very low capital

investment in energy generation projects particularly alternative energy

resources and slow progress in alternative energy spectrum.

Moving further on the subject, the speaker emphasized the role of

Pakistani universities and think tanks for the energy conservation. He discussedfour major types of universities in Pakistan: Sciences, Engineering &

Technological Universities, Agricultural Universities, IT & Administrative Sciences

Universities and Social Sciences Universities. He explained the role of

Engineering Universities that: by designing energy efficient buildings, curtailing

consumption on lighting through building designs, insulation material, and

peculiar specifications for different climate regions in the country, these

universities can facilitate conservation of energy. Speaking about the Agricultural

Universities, he said that energy can be conserved by promoting irrigation

technologies that use less water; hence there would be less energy consumption

for pumping underground water. The IT and Administrative Universities may

contribute by designing software which could contribute in energy conservation

using occupancy sensors and daylight sensors. These universities can also

make software for weekly and monthly energy audits.

Social sciences universities could cultivate a sense of responsible use of

energy by promoting a replica of Setsuden Spirit electricity conservation

national movement in Japan. Mr. Billah also gave examples of Boston University

which has reduced 9% of its energy consumption since 2005 and example of

MITEI (MIT Energy Initiative) which has saved energy worth over US$4.5 million

per annum during 2007-2012. He also mentioned about the Think tanks

specializing on energy security that can also play vital role in the energy

conservation through conferences, research and publications and by organizing

workshops and symposiums in order to train people from industry, media andgeneral public.

Session IV Energy Conservation through Infrastructure Efficiency

Mr. N.A. Zuberi , MD Private Power and Infrastructure Board, deliberated on

Private Power Generation and Infrastructure . Mr. Zuberi started his

presentation by highlighting Pakistans economy which has historically been

marred by power shortages and has remained one of the chronic problems


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hampering socio-economic growth of the country. He said that the phenomenon

of load-shedding was first experienced by the nation in the early nineteen

eighties and since then the country has been facing acute power outages from

time to time. Back in the eighties, the electricity demand for Pakistan was

progressively increasing at an estimated rate of 7-8 percent per annum but the

required capacity additions in the national grid could not be matched with thesame pace. This situation called for immediate intervention by the Government of

Pakistan (GoP) through adoption of policy measures aimed at massive resource

mobilization for investment in the power/energy sector. In 1985, Government of

Pakistan developed a long-term strategy for attracting multinational investment

for construction and operation of electric power generation facilities. The

objective of the energy strategy was to implement a plan that cultivates an

atmosphere conductive to high-level electricity generation growth without

straining the governmental resources. The key features of that policy were

establishment of the Private Sector Energy Fund (PSEDF) for financing the

private sector power projects.

The speaker then discussed about the creation and objective of Private

Power and Infrastructure Board (PPIB) that was created in August 1994 as a

one-window facilitator on behalf of GoP and its Ministries/Departments to

promote private investments in power sector. It received statutory status on 6 th

March 2012 through an Act of the Parliament. It monitors progress of

development/operation of IPPs. It also provides support to Ministry of Water &

Power, Provinces/AJ&K in technical, financial and legal matters and

coordinates/liaises with local and international multilateral development/Financial

Institutions. The speaker also mentioned about several power and infrastructure

policies processed such as Power Generation Policy 1994 (besides 1292 MW

HUBCO project which was processed prior to 1994 Power Policy); Hydel Policy

1995; Transmission Policy 1995; Policy of Private Freight Train Operations;Power Generation Policy 2002 and Policy for Power Co-Generation by Sugar

Industry January 2008.

Mr. Zuberi also stated that PPIBs proactive approach towards enhancing

power generation capacity through private sector on urgent basis is not being

matched/reciprocated by other stakeholders. The slow tariff determination by

NEPRA has negative impact on IPPs. Similarly, lack of sufficient infrastructure

for hydro and coal projects and other issues related to land acquisition issues,

Inter Provincial issues for hydropower projects and Law & Order situation in


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northern region are also adversely affecting the power sector. He also talked

about the dire need for the establishment of two mega imported coal based and

local coal based power projects in order to fulfill the future demand and supply

requirements of the country.

Mr. Salman Qaisrani , Director, CWS Technologies, talked on Grids andInfrastructure: CWS Combustion Technologies . Mr. Salman Qaisrani

highlighting the significance of coal and stated that despite mounting concerns

over regulatory supply and quality risks, Pakistani coal sector remains under

limelight as an attractive option. Pakistan remains one of the worlds largest coal

reserve countries with indicated coal reserves of 185, 000 Million Metric Tons.

About 80% of Pakistani coal reserves fall under low/medium rank coal, such as

lignite and sub-bituminous coal. However, coal has one or two disadvantages;

among those are its mineral content, especially the sulfur bearing component,

and the problems in handling and storing of coal, such as dust and the need for

expensive mechanical handling and reclamation systems. However, coal is

abundant, widespread, and fairly cheap to produce; while oil reserves are much

smaller and are concentrated in politically unstable areas, and the commodity

can become very expensive. Therefore, utilization of coal as primary feedstock

for power generators will still remain a high priority option in the future. Mr.

Qaisrani also highlighted the environmental hazards of dry coal burning such as

dangerous emissions of gases like NOX, SOX, CO2, acid rain, greenhouse effect

etc.

He focused on the basic concept, history and usage of Coal Water Slurry

(CWS). He explained that CWS is an environment friendly coal based liquid-Fuel

that can be used to replace petroleum. It is prepared through a technical process

by blending 65% to 70% coal with 29% to 34% water, and minor (1%) quantities

of chemical additives. CWS is slurry of powdered coal and water, whichmaintains a stable state over a long period when a small amount of additive is

provided properly. It was initially developed in Russia about 80 years ago and

developed in 1950s in Europe. Low oil prices and huge oil reserves discovered

led to a complete stagnation in CWS development. In 2000, the program was

started in China to meet the Beijing Olympics environmental challenges. Mr

Qaisrani emphasized on the advantages of CWS such as: CWS is a viable

source of energy both at generation & grids; less infrastructure cost; CWS can be

made by using low quality coal and is most suitable for local indigenous coal;


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capital investment costs is very low relative to coal gasification and liquefaction

processes, which can be more than US$6.5 billion for a

100, 000 BPSD complex, as compared to US$150 million for CWS of the same

size; and CWS has high combustion efficiency and is low in pollution discharge.

He said that successful introduction of CWS technology into the industries,

in China, to replace heavy fuel oil has made a very significant impact in theutilization of low rank coal, for new 100 Thermal Power Plant. Simultaneous and

parallel development of advanced coal cleaning technologies as in the case of

CWS could allow Pakistan to make a fast transition, economically, away from our

limited resource of oil and natural gas to our most abundant resource of coal.

Moving further the speaker discussed how coal based CWS will be the

fuel of this century and beyond. The comparison of Pakistani coal specification

with the limits of coal as allowed for usage in CWS combustion technology shows

that local Pakistani Coal is ideal for usage in CWS Combustion Technology. The

combustion efficiency of CWS is 96%-99%, combustion temperature of CWS is

approximately 1200 to 1300 degree C.

Concluding Session National Energy Vision 2030

Presenting Energy Vision 2030 on the concluding day of the conference Dr.

Shaukat Hameed Khan , Vice Chancellor, Sir Syed-CASE Institute of

Technology, Islamabad, said that modern economies are based on cheap

carbon-based energy and we are no exception. Energy and consumption go

together. Energy policy evolution is shared both by the governments and

consumers. We have deliberately ignored the energy factor in our economic

growth. We need energy to fuel our economic growth. As far as coal is

concerned there is huge issue of massive mining as mining in Pakistan is in its

terrible state. We do not do large scale mining at all and nobody knows how to

mine it properly. Turkey last year mined 50 million tons of coal. This is calledlarge scale mining. Though he favoured coal based energy but since mining of

Thar coal could take long Pakistan should import coal for immediate use in place

of diesel and furnace oil. He said that Pakistan is probably the only country in the

world where household tariffs are lower than commercial and industrial rates.

Rates should not vary that much. This is something that we have to change in

Pakistan as it would promote efficient use of energy in homes and resultantly we

would see energy conservation.


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Dr. Khan warned that there were no easy and quick solutions to the power

shortage problem being faced by the country as there was grave dichotomy at

the policy base, the planning commission had been overshadowed by the finance

ministry, and absence of continuity had deprived the concerned authority of

institutional memory. On top of that fuel needed for energy generation as well as

funds to pay the enormous circular debt were in short supply. The energy systemwas not attuned to technology which determined the demand supply equation.

On regional energy grid, he said that the IP and TAPI pipelines seem vulnerable

due to the involvement of more than two countries. There were home grown

solutions available and coal above every other resource offered a natural option

but planners had been neglecting these for over three decades now. Again we

have been unable to formulate energy pricing for many years. Unless the new

government harmonized the fragmented governance in this respect, it would be

hard to end power outages anywhere in the near future. He estimated the

country would need US$210 billion in the next 20 to 25 years to meet the growing

energy needs.

Renewable energy is beneficial and can be a solution but only for long

term; and it (solar, wind, tidal) does not offer base load as we need electricity

24/7 whereas renewable energy does not offer this. The problem is we dont

take/collect data; we need to start wind and solar profiling in Pakistan on every

single minute basis the whole year.

He gave a comprehensive comparative cost benefit analysis of nuclear

power generation and concluded that nuclear power generation is one of the

viable options for Pakistan. He said that though western countries are moving

away from nuclear power generation, Asian counties are projecting a

phenomenal growth rate over the coming decades. China and South Korea are

producing nuclear power at one third to one fifth the cost as compared with

western countries. Cheap labour and different industrial approach arecontributing factors toward lowering of cost. Unless indigenous supply of cheap

gas is assured, nuclear power generation presents the next cheap and long term

solution, beside hydel power. Nuclear fuel is cheap and does not throw up

volatile fluctuations like oil. Moreover, cost of nuclear fuel is a small fraction of

the overall cost. Though setting up of nuclear plants need initial heavy capital

investment and it takes about 48 months to come on line, these plants have long

operational life of 80-100 years. Once the initial cost is properly sunk in, which is

a long process, nuclear power plants virtually become cash machines.


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He recommended that Pakistan should gradually reconfigure its energy

mix to reduce dependence on costly thermal fuels like furnace oil, and move

toward greater reliance on water, coal and nuclear fuel.

Conference Recommendations

Deliberations during the conference brought forth a number of recommendationswhich are summarized below:

The energy crisis is a serious challenge that requires serious and sustained effort

on part of the Government. There can be no quick fixes. It would require short

term, medium term and long term measures as well as some hard policy

decisions. It is imperative to improve governance in order to formulate power policies based

on merit rather than vested interests, check power theft, ensure full revenuerecovery, and curb corruption.

A well deliberated, clearly articulated and sustainable policy based on least-cost

options is the foremost requirement. Circular debt is by far the most serious problem that needs to be addressed on

urgent basis. One possible solution to deal with circular debt is through creation

of a circular debt retirement fund under an organization. The fund could be

financed by a consortium of banks and financial institutions under guarantee of

the government. Cost of generating electricity can be minimized by: optimal choice of technology

of power plant and its thermal efficiency; type of fuel that the plant uses; size of

the plant to exploit economy of scales; and location of plant in relation to the

centres of consumption. Across the board subsidies are never a good policy option. Such subsidies not

only result in wasteful use of valuable resources but also put unnecessary

burden on other consumers and the public exchequer. Pigouvian taxes may not be the best solution for Pakistans political and legal

environment even though they may have, in the past, produced the desired

results in many Western jurisdictions. In this context a policy review is warranted. 18 Amendments touched upon electricity in a cursory manner, leaving behind a

number of lacunas. However, the CCI, could manage the affairs through a pro-

active approach.

Provincial governments should generate energy and start building power plantson their own.


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would be minimal. An Ultra Mega Power Park of at least 3600 MW may be built

there. Coal Water Slurry (CWS) is a new type of liquid fuel that can, to some extent,

replace petroleum as fuel in the energy conversion and process industries. It also

has less infrastructure cost and high combustion efficiency. In order to meet the massive demand of energy, Pakistan has four external

options: the Iran-Pakistan (IP) gas pipeline, Turkmenistan-Afghanistan-Pakistan-

India (TAPI) gas pipeline, Pak-Qatar gas pipeline project and import of Liquefied

natural gas (LNG). Out of these options, only the IP gas pipeline project is

without the regional or international cooperation. For the remaining three options,

the financial support, investment opportunities and international cooperation are

available. Therefore, Pakistan can fast-track the available options by involving

other regional, international stake-holders through a proactive diplomacy. Direct electricity purchase agreements may be concluded with neighbouring

countries on the pattern of Central Asia South Asia Electricity Trade and

Transmission Project (CASA 1000), while keeping the primary focus of

purchasing the commodity at affordable price. Conservation of energy is a huge source of adding to the energy supply. It aims

at bringing the existing energy into efficient use by eliminating wasteful internal

use, minimizing losses and theft and reducing the energy intensity. By a broad

estimate we could add over 20% to our energy availability through conservation. Steps should be taken to educate the public in power conservation by launching

media campaigns against electricity wastage. Universities, think tanks and media

can play an important role in energy conservation through innovative concepts

and public awareness. Energy efficiency in buildings can be improved by incorporating design related

best practices appropriate to our environment, coupled with traditional materials,

technologies and craftsmanship. An energy efficient building could reduce annualenergy bills up to 40%.

Rebalancing in energy mix with increased focus on hydroelectricity and nuclear

power generation offers a way out of energy crisis. Public-private partnership in hydropower sector should be reinvigorated. This will

help in raising financial resources for these projects. Political consensus on the big hydro projects should be developed.

The formation of a single ministry in charge of the entire energy sector, theformulation of a long-term integrated policy and complete autonomy to regulators


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_Solutions for Energy Crisis in Pakistan

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