ENERGY CRISIS IN PAKISTAN

OUTLINE:

1. Introduction
• Energy, a demand for all fields
• Cheap ways of producing Energy
2. Definition of Energy crisis
3. Present Situation
4. Pakistan’s Energy Sector
-Energy Supply
-Energy Consumption
5. Sources of Energy in Pakistan
1) Non-renewable resources (Fossil fuels)
a).Petroleum products
b).Natural Gas
c).Coal

2) Renewable Resources
a).Hydro power

3) Alternative Energy Sources

a).Wind
b).Solar
c).Agricultural biomass /biodiesel
d).Tidal

4) Nuclear

6. CPEC and Pakistan energy crisis

7. Causes of Energy Crisis
8. Consequences of Energy Crisis
9. Energy Policy (2013-2018)
10. Suggestion/ Recommendations and Solutions
11. Conclusion

Introduction:
Energy is the lifeline of a nation. The economic engine and the wheels of industry, agriculture and
business need energy to move forward. Pakistan faces a major energy crisis in natural gas, power and oil.
Power outages usually last 10 -12 hours a day in the cities and more in the rural areas. This has left the
industries of Pakistan (mainly agricultural, secondary and tertiary sectors) stunned and so they are unable
to fully operate. This has a very negative impact on the economy of the country. The demand of energy in
Pakistan is huge, and cannot be fulfilled by electricity production based on oil. It can only meet 20% of
our requirement through native production and the remaining oil is imported from Gulf States and other
countries. No major oil, field has been discovered in last three decades. It is clear that other alternative
production methods must be considered to meet the demand. Most likely one that is cheap, considering
initial setup cost, and costs attached.
The second method of production we use is thermal (i-e using coal to produce electricity). Pakistan has
been blessed with wealthy mineral resources, but the sad part is that we are too ign0rant to explore them.
We are sitting on gold mines and yet we do nothing about it. Baluchistan, for instance, is rich with all
sorts of minerals and could be exploited heavily. If we could solve the feudal problems of the provinces,
and let the national and international companies explore the area, we might solve our fuel problems too.
But this is a precious non-renewable resource, so we need better options.
Other major option is hydro-electric power generation. This is the cheapest and most feasible way of
producing electricity for our country. Two major energy dams in Pakistan are Tarbela and Mangla. If only
the proposed Kalabagh darn would be constructed, 80% of our energy needs would be fulfilled. Best
option is to construct this dam, and take advantage of the natural hydrography of Pakistan in maximum
possible extent.
Wind power and solar power generation are good alternatives as well. Their initial costs are low when
compared to other methods, and are definitely in the best interests of our country.
Definition of Energy crisis:
An energy crisis is any great shortfall in the supply of energy resources to an economy. It usually refers to
the shortage of oil and additionally to electricity or other natural resources.
The crisis often has effects on the rest of the economy, with many recessions being caused by an energy
crisis in some form. In particular, the production costs of electricity rise, which raises manufacturing
costs.
For the consumer, the price of petrol and diesel for cars and other vehicles rises, leading to reduced
consumer confidence and spending, higher transportation costs and general price rising.
Current Situation:
Looking at 2014-15 figures, Pakistan’s total energy mix is: – Thermal, 65 percent; hydropower, 31.5
percent; nuclear, 3 percent; wind and solar, 0.5 percent. The public sector’s contribution is 58.5 percent in
this mix including thermal (fossil fuels and nuclear) and hydropower, while private sector’s thermal
(fossil fuels), hydropower and wind energy is 41.5 percent. Breaking this down further, public sector
contributes 31 percent from hydropower, 25 percent from Gencos, 3 percent from nuclear while private
sector IPPs contribute 40 percent from thermal, 0.5 percent from wind and only 1 percent from
hydropower generation. By the way, nuclear energy is also a form of thermal energy; therefore, Pakistan’s
current energy mix relies on 68 percent thermal energy resources and only 32 percent from renewable
resources like hydropower, solar and wind when all is said and done.
If we analyze the government figures for the period of 2015 to 2018, Pakistan plans to add 10,400 MW to
the system via liquefied natural gas (LNG), coal fire, wind, solar and hydropower projects. The current
installed capacity is 22,571 MW (based on February 2015 figures), out of which 7,097 is based on
hydropower generation and 15,474 on thermal generation. The additional 10,400 MW should take
Pakistan up to 32,971 MW installed capacity by the end of year 2018. This should effectively end load-
shedding if all goes according to the plan.
The new energy mix would get 52 percent from renewable (solar, wind and hydropower), and 48 percent
from thermal (LNG, coal and nuclear) by the year 2018. Yes, this would be totally sustainable. However,
if the energy policy doesn’t get derailed, by the year 2022, the energy mix again would tilt towards 70
percent from thermal resources and only 30 percent from renewable with total installed capacity of
around 53,000 MW. The installed capacity would be in surplus; however, the energy per unit will not be
cheap. Currently, the consumers are paying between PKR 12 to 18 on an average.

Pakistan’s Energy Sector:

Pakistan’s energy infrastructure is not well developed, rather it is considered to be underdeveloped and
poorly managed. Currently the country is facing severe energy crisis. Despite of strong economic growth
and rising energy demand during past decade, no serious efforts have been made to install new capacity of
generation. Moreover, rapid demand growth, transmission losses due to outdated infrastructure, power
theft, and seasonal reductions in the availability of hydropower have worsened the situation.
Consequently, the demand exceeds supply and hence load-shedding is a common phenomenon through
power shutdown.
Energy Supply:

During 2009-10, Energy supply and per capita availability of energy witnessed a decline of 0.64 % and
3.09 % respectively in comparison to previous year. Pakistan needs around 15,000 to 20000 MW
electricity per day, however, currently it is able to produce about 11,500 MW per day hence there is a
shortfall of about 4000 to 9000 MW per day. This shortage is badly hampering the economic growth of
the country.

Energy Consumption:
Pakistan’s energy consumption is met by mix of gas, oil, electricity, and coal and LPG sources with
different level of shares. Share of gas consumption stood at 43.7 %, followed by oil 29.0 percent,
electricity 15.3 percent, coal 10.4 percent and LPG 1.5 percent.
Sources of Energy in Pakistan:
Non-renewable resources (Fossil fuels):
Non renewable resources are primarily fossil fuels emanating from remains/decomposition of animals and
plants deposited deep into the earth crust and converted into oil and gas. These resources cannot be
replenished. There are three main types of fossil fuels: coal, petroleum, natural gas and liquefied
petroleum gas (LPG).
a). Petroleum products:
In 2009-10, consumption of petroleum products was 29% of total share of energy. Majority of crude oil is
imported from gulf countries to meet the demand. Power, industry and transport sectors consume higher
quantity of petroleum followed by agriculture and households. Petroleum is also used in generation of
electricity, which counts 64 percent of total electricity generation (34 coming from hydro generation).
Balance recoverable reserves of crude oil in country have been estimated at 303.63 million barrels and we
are extracting approximately 24 million crude oil annually, meaning if we do not explore new wells, we
will exhaust our current crude oil reserves in 12-13 years.
b). Natural Gas:
Importance of natural gas is increasing rapidly. Average production of natural gas is 4,048.76 million
cubic feet per day as against 3,986.53 million during corresponding last year, showing an increase of 1.56
percent. Natural gas is used in general industry to prepare consumer items, to produce cement, for
manufacturing fertilizers and to generate electricity. In form of CNG, it is used in transport sector. Share
of natural gas in energy consumption is 43.7 percent. Due to price differential between CNG and Petrol,
vehicles are using converted to CNG and approximately 2.0 million vehicles are using CNG and currently
Pakistan is the largest CNG user country in the world. Liquefied petroleum gas (LPG) contributes around
0.7 percent to total energy supply in country and is being imported to stop deforestation in hilly areas.
c). Coal:
Pakistan has coal reserves estimated at over 185 billion metric tons, including 175 billion metric tons
identified at Thar coalfields. Coal is primarily being used in brick kiln and cement industries and
approximately 67 percent coal is imported because indigenous coal is not considered of good
quality.Guddu plant is largest plant thermal operated plant with a capacity of 1,650 MW, while two
largest Independent Power Plants (IPPs) in Pakistan are Kot Addu (1,600 MW) and Hubb River (1,300
MW).
2) Renewable Resources
Renewable energy resources are those, which are naturally replenished and come from resources such as
water, sunlight, wind, rain, tides, and geothermal heat.
a).Hydro power
Hydro power is generated by using electricity generators to extract energy from moving water. Pakistan is
having rich resource of energy in hydal power; however, only 34 % of total electricity generation is
coming from hydro power. Currently we are having 6555 MW against the potential of 41000 to 45000
MW.

Current Hydropower stations:

Tarbella Dam : 3,478 MW

Ghazi Brotha: 1450 MW
Mangla 1,000 MW
Warsak 240 MW
Chashma 184 MW

Potential Hydropower stations:

Diamer-Bhasha Dam 4500 MW
Munda Dam – Swat river in Mohamand Agency 740 MW
Kalabagh Dam 2400-3600 MW
Bunji Dam 5400 MW
Dasu Dam 3800 MW

3).Alternative Sources of Energy

a). Wind:
Wind power harnesses the power of the wind to propel the blades of wind turbines. These turbines cause
the rotation of magnets, which creates electricity. Though Pakistan has potentials of wind energy ranging
from 10000 MW to 50000 MW, yet power generation through wind is in initial stages in Pakistan and
currently 06 MW has been installed in first phase in Jhampir through a Turkish company and 50 MW will
be installed shortly. More wind power plants will be built in Jhampir, Gharo, Keti Bandar and Bin Qasim
Karachi.

b). Solar:
Solar power involves using solar cells to convert sunlight into electricity, using sunlight hitting solar
thermal panels to convert sunlight to heat water or air. Pakistan has potential of more than 100,000 MW
from solar energy. Building of solar power plants is underway in Kashmir, Punjab, Sindh and
Balochistan. However, private vendors are importing panels / solar water heaters for consumption in the
market. Alternative Energy Development Board (AEDB) is working for 20,000 solar water heaters in
Gilgit Baltistan. Mobile companies have been asked by the government to shift supply of energy to their
transmission towers from petroleum to solar energy panels.
c). Agricultural biomass /biodiesel:
Biomass production involves using garbage or other renewable resources such as sugarcane, corn or other
vegetation to generate electricity. When garbage decomposes, methane is produced and captured in pipes
and later burned to produce electricity. Vegetation and wood can be burned directly to generate energy,
like fossil fuels, or processed to form alcohols. Brazil has one of the largest renewable energy programs
from biomass/biodiesel in the world, followed by USA. Alternative Energy Development Board (AEDB)
of Pakistan has planned to generate 10 MW of electricity from municipal waste in Karachi followed by
similar projects in twenty cities of country.
d). Tidal:
Tidal power can be extracted from Moon-gravity-powered tides by locating a water turbine in a tidal
current. The turbine can turn an electrical generator, or a gas compressor, that can then store energy until
needed. Coastal tides are a source of clean, free, renewable, and sustainable energy.
Plans are underway in Pakistan to harness tidal energy; however, no implementation has been made so
far.
4).Nuclear:
Nuclear power stations use nuclear fission reaction to generate energy by the reaction of uranium inside a
nuclear reactor. Pakistan has a small nuclear power program, with 425 MW capacity, but there are plans
to increase this capacity substantially.

Since Pakistan is outside the Nuclear Non-Proliferation Treaty, it is excluded from trade in nuclear plant
or materials, which hinders its development of civil nuclear energy. Remaining issues in development of
nuclear energy are enrichment of uranium from U235 to U238, controlling chain reaction and dumping of
solid waste.
Pakistan started construction of its first nuclear power plant, KANUPP, in 1966 in Karachi. The plant was
connected to the national grid on 18 October 1972. KANUPP, a pressurized heavy water reactor of
137 MW gross capacity was constructed by Canadian General Electric under a turnkey contract.
The construction of Pakistan’s second nuclear plant, C-1, a pressurized water reactor (PWR), was made
possible in 1993 with the help of the China National Nuclear Corporation (CNNC). The plant was
connected to the national grid on 13 June 2000 and has a gross capacity of 325 MW. A third nuclear
power plant, C-2, with 325 MW gross capacity started commercial operation on 18 May 2011. The fourth
unit, C-3, started commercial operation on 6 December 2016. It has a gross capacity of 340 MW and a
similar plant, C-4, sited beside C-3, was connected to the grid on 25 June 2017.
CPEC and Pakistan energy crisis:
This is quite unfortunate that despite having vast energy resources especially the coal reserves in Thar,
Baluchistan, and Punjab, Pakistan is in the throes of energy crises. Its energy potential remains largely
untapped or goes to waste due to incapable management and lack of effective framework and policies.
The frequent and prolonged electricity outages could lead to economic collapse of the state. As per some
estimates, over 140 million Pakistanis do not have access to the power grid and are suffering twelve hours
or more of load shedding on daily basis. This not only causes suffering at the individual level, agitation
and anger against the government, but adds to the socio-economic plight of the state as well. Loss of GDP
growth rate and decline in the industrial and commercial output has been frequently witnessed.
China and Pakistan attempted to address this dire problem together and in November 2014 came up with
some early harvest energy generation projects based on coal, solar, wind and hydel power. The reason
why the energy projects with a total capacity of 10,400MW were given priority (categorized in early
harvest scheme) is obvious: it is the most pressing issue Pakistan is facing today and merits an immediate
attention along with substantial practical measures to overcome the issue. CPEC at the moment covers 12
early harvest energy generation projects including Sahiwal coal fired project, Port Qasim power plant and
Karot Hydro power station. It is also strongly believed that these projects will be completed by 2017-18
which would help to meet energy requirements of the country sufficiently.
According to the new agreement there shall be 15 CPEC prioritized energy projects with the installed
capacity of 11,110MW. The Three Gorges Pakistan Second Wind Power Project (50MW), the Three
Gorges Pakistan Third Wind Power Project (50MW), the Hubco Coal Power Plant (1,320MW) and
Oracle local coal power plants (1,320MW) are included in the prioritized list. The energy projects include
one solar, four wind, and four coal power plants, which are all anticipated to complete by 2019 with the
capacity of 6810 MW. It is hoped that this initiative will create employment opportunities, improve the
problem of load shedding, and will bring great socio economic dividends.
Causes of Energy Crisis:
Poor Distribution Infrastructure
The distribution system’s infrastructure of our country is very long-standing, aging, non-reliable and is in
very miserable condition. The condition of this old transmission network is too poor that intense weather
conditions affect them. This increase the line losses day by day as transmission lines gets older and older
resulting in increase in tolerance of line.
Poor Real Production Factor
Pakistan has already installed capacity that is more than demanded one but still it is facing worse energy
crisis. The installed units are not working enough. There are many dam turbines that are static for the
years. Many fuel generators that are not working for many years. Many plants are shut down. The only
reason told to Pakistanis is that we have lack of fuel, water and other resources. Is this the real truth?
Geologically, Pakistan has been gifted with many resources from Almighty ALLAH.
Ever Increasing Energy Demands
With the increase in standard of living, energy demands are increasing day by day making the crisis more
worse and the condition more miserable. New projects of electrification of rural areas are being made.
This adds more burden to the existing system.
Low Rate of Hydro-Power Production
We have few dams that are working 24/7 to produce electricity; however, we have many sites available
for building dams. We are not fully utilizing our available resources. On the other hand, India has made a
number of dams on the same rivers we have. This has made our situation more drastic.
Fuel Shortage
Fuel to run generators are mostly shorted. Fuel supply to power production areas is cut out resulting in
lack of generation. Gas cut downs are also common in Pakistan. Due to these shortages and cut downs
the operational equipment is not working for its total operational hours, thus, is not generating the rated
amount of electricity.
Poor Policy Making
The real policies to eradicate this major problem from the country are never witnessed by Pakistanis.
Every government makes a number of commitments, makes different committees, and creates new
policies but all in vain. No policy was ever up to the mark. Every government is focused to install new
plants. More money is invested on their capital cost and fewer revenues are being generated by them.
Even some of the new plans never reach to their operational conditions even for years.
Lack of Technical Staff in Decision Making
The decision making authorities are not aware of electrical analysis techniques, neither have they known
the technicalities nor they are well educated to understand it. This creates an acute problem in this regard.
Due to this condition, instead of solving problem; situation heads towards creating problems.
Lack of Energo-nomists
In Pakistan For finding effective solution of this problem we need those scholars that are being qualified
specifically in energy economics and are called energonomists. Pakistan is not focusing to give
education in this area.
Unmapped Renewable Energy Selections
As Pakistan has God gifted many resources, we should explore those new resources and make clever
selection among the available resources. Pakistan should take maximum benefits from available
resources.
Overpopulation
Population is increasing with the tick of clock. New connections are being made. That adds more
sharpness to increasing demand rate gradient. This situation needs that production should proportionally
increase with demand but, this is not happening making the situation more critical.
Impact of Instabilities in legislation
As the government changes, it seizes all the projects that were run by the previous government. This
instability creates a great problem in development and solving problem.
Inadequate Utilization of Nuclear Energy
Pakistan is sixth atomic power in the world. Yet we have a sole nuclear power production plant. There
are many countries in the world like, Belgium that are relying on nuclear power plants. Nuclear power
covers their more than 50% of the needs. Pakistan can also do this but is not taking the maximum benefit
even from nuclear power source.
Lack of dams
In Pakistan, no major dam was constructed after the completion of Mangla and Terbela Dams in early
1980s. Though the demand of electricity was increasing but many governments came and completed their
terms but neither government built dams which is the cheapest source of the energy. Pakistan needs to
make Kalabagh dam and Basha dams but due to politicisation and lack of dedicated politicians, Pakistan
is confronted in the problem of energy crisis. Electricity from hydel cost us Rs. 2-4 rupee per unit.
Consequences of Energy Crisis in Pakistan
Humanitarian Crisis
Energy crisis is actually the humanitarian crisis. Electricity has become the basic commodity today.
Load shedding and blackouts create frustration in society, lack of tolerance, increasing rate of crime, rate
of disputes, murders and such other social evils. Workers on daily wages are suffering a lot due to this
crisis.
Economic Effects
Energy crisis is penetrating in all key sectors of economy; shaking the quality and distressing the standard
of life of natives’ at large scales.
Economic sector is being adversely affected because energy is essential for the smooth running of its
various sectors. Economic losses are suffered due to less productivity and unusual termination of
operations due to load shedding. Inferior gross domestic profit (GDP) and extraordinary inflation rate can
be attributed directly to energy crisis. Textile sectors have turned to local markets. Many branded textile
producing industries like Gul Ahmed and Nishat have shifted their set ups to Bangladesh and India due to
power crisis. This phenomenon greatly affected our economy.
Agriculture Sector
Agriculture sectors are also affected badly due to power crisis because productivity profoundly depends
on the electronic machineries like tube wells etc. Moreover, production of insecticides, pesticides and
fertilizers is also hindered. Thus, decline in electrical production cause decline in agricultural output that
is the backbone of Pakistan’s economy.
Unemployment
As a consequence of the above mentioned consequences occurred due to energy crisis like closing of
units, breakage in operations, and shifting industries to abroad great dismissals of workers lead to
increasing unemployment. Moreover, increasing inflation rate also worsened the condition. New
employment opportunities are also not there because businessmen, financers and investors have stopped
investing in Pakistan.
Social and Psychological Problems
Due to the above mentioned problems, people got frustrated and they come to road, unbridling their
frustration on public and private property, raise slogans, making some of the most terrible scenes of
coarseness. This not only creates mental distractions to the natives but also leaves a very bad impact on
foreigners when they watch all this on media
Affecting Tourism
As described earlier, energy crisis has affected our country’s reputation to foreigners. Media is showing
all these negativities, curbs, social evils and frustrations 24/7 that is affecting our image globally. People
do not want to visit that country whose natives are frustrated and unsatisfied. This has declined the
tourism in Pakistan.
Poverty
Decline in industrial growth, low agricultural production, deteriorating economy, unemployment and
wicked social conditions: all result in aggregating poverty. Presently, about 40% of Pakistan’s population
is living below the poverty line and this numerical figure is increasing day by day. Sufficient control on
energy crisis is required instantly to eradicate this poverty.
Closure of industries
Nearly all Industrial units are run with the energy and breakage in energy supply is having dire
consequences on industrial growth. As a result of decline in energy supply, industrial units are not only
being opened, but also the existing industrial units are gradually closing.
Energy Policy (2013-2018)
The government has finally formulated the much-awaited National Energy Policy 2013-18. Under the
policy, power sector subsidy will be phased out by 2018 and loadshedding will be ended by 2017. It aims
at generating surplus electricity in 2018, privatizing government-owned power plants and a few power
distributing companies (Discos), bringing the double digit cost of power generation to a single digit,
restructuring the water and power ministry, National Electric Power Regulatory Authority (Nepra), Oil
and gas Regulatory Authority (Ogra), adjustment of outstanding dues owed by public and private
organizations through federal adjusters and formation of regional transmission and power trading system.
The policy comprises seven points envisions a profitable, bankable and investment-friendly power sector
which meets the nation’s needs and boosts its economy in a sustainable and affordable manner while
adhering to the most efficient generation, transmission and distribution standards.
To achieve the long-term vision of the power sector and overcome its challenges, the government has set
the following goals: Build a power generation capacity that can meet the country's energy needs in a
sustainable manner; create a culture of energy conservation and responsibility; ensure generation of
inexpensive and affordable electricity for domestic, commercial and industrial use; minimize pilferage
and adulteration in fuel supply; promote world class efficiency in power generation; create a cutting edge
transmission network; minimize .financial losses across the systen1; and align the ministries involved in
the energy sector and improve governance.
Suggestion/ Recommendations and Solutions

 Maximum outputs should be taken from installed units. Efficiency of these units should be
increased. Proper fuel supply to these plants should be insured.
  Power theft should be controlled. Implementation of law in this regard should be made. Thieves
should be punished severely so that it will become the benchmark for others.
 A research center should be made by the government to explore new energy producing resources
available in Pakistan and to find out the ways through which maximum output can be taken from
installed power plants.
 Production from non-renewable power resources like solar, tidal and biomass should be promoted
at public level as well as individual level. Government should provide finance, research and
technical facilities as well as expertise to common man through workshops and funds.
 Transmission and distribution system should be renovated and their great maintenance should be
carried out.
 To ensure consistent gas supply to gas power stations is required, for greater generation at low
cost.
 The quality of services provided by WAPDA and other power companies should be enhanced.
 More Dams should be set up.
 Awareness should be given on usage of electricity saving devices.
 Awareness campaign for energy saving should get started.
 We should tap home-grown resources like Thar coal.
 We should decrease line losses by using efficient and highly conductive power transmission
cables.
 New energy resources should be developed.
 Natural gas should be import of by IPI (Iran Pakistan India) and TAPI (Turkmenistan,
Afghanistan, Pakistan and India) gas pipelines. Electricity should be imported from China,
Tajikistan or any other country
 Alternative energy resources like wind, biomass, tidal and solar should be incorporated.
 Offices, academic institutions, markets, marriage halls should be closed till 8 pm to keep balance
in peak hours.
 Before installation of new systems forecasting should be done.
Conclusion:
Energy Crisis has, more or less, plagued all sectors of Pakistan’s machinery ranging from economy to
industry, agriculture to social life, inflation to poverty and it is hampering national progress in a drastic
manner. Nonetheless, menace of energy crisis can be overwhelmed by government through making
effective policies and its proactive implementation. Simultaneously, it is the responsibility of us, the
people of Pakistan, to utilize the available energy astutely and wisely to play our due role for progress of
the country. Pakistan has many untapped fuel reservoirs which may meet the increasing demands of the
country. Influential planning on the part of government is required. In that case, this issue can be easily
resolved. Furthermore, efforts are required on individual basis by wise consumption of energy as well as
timely bill payment system to improve the efficiency of the concerned department. In the same line,
media needs to play its positive role to improve our social behavior rather than creating any frustration
among the masses.