Introduction

Energy
Energy is a physical quantity that describes the amount of work done by a force.
Importance of Energy
Life on Earth is driven by energy. Energy is more than a need. Energy is considered to be the
backbone of human activities. It is a fundamental requirement and is crucial to provide for
adequate living such as food, water, health care, education, shelter and employment.
Electricity is the most convenient form of energy available to Human beings. This energy is
fundamental to human well being and prosperity. The strong correlation between the availability
of electricity and the level of human social development has been known since at least 1895 with
the electrification of Niagara Falls with the then new polyphone alternating current (AC)
technology invented by Nikola Tesla.
Resources of Energy in World
The energy resources being consumed in the world at present can be broadly classified into three
groups;
(1) Fossil fuels (Coal, oil and natural gas)
(2) Nuclear power (nuclear fission and nuclear fusion reaction energy)
(3) Renewable energy (wind power, solar energy, hydropower, biomass energy, and geothermal
energy)
In near future Hydrogen is also expected to be another resource for the generation of energy.
Resources of Energy in Pakistan
Pakistan is one of the most populous, geographically and strategically important countries
situated in south Asia. The energy supply base of Pakistan consist of two major segments.
Commercial
Non Commercial
At the time of independence in 1947, the proportion of energy received through Commercial
channels is reported to be equivalent to about 1.2 million tone oil equivalent .For the total
population of about 33 million, the installed electricity generating capacity was 50 MW.
The non-commercial base still makes up a considerably large proportion of the total supplies in
the country. According to an estimate ,the biomass based non-commercial form of energy makes
up almost 35% of the total consumption in the country,
Hydro Power
Hydropower is one of the most important and reliable energy resources for Pakistan. In 1947,
only two hydropower projects of collectively 10.7 MW(9.6MW Malakand power station and 1.1
Mw Renala power station)existed in Pakistan.
in 1958 the water and power development authority (WAPDA) was established, the installed
hydropower capacity stood at only 52 MW .By 1960, the installed capacity grew to as much as
253 MW. Hydropower currently makes around 32.7% the total installed power generation
capacity in the country.
Thermal Power
In 1960, Pakistan also slowly developed its thermal power base. The rational thermal power base
been developed and is controlled by three major players
WAPDA
Independent Power Producers (IPPS)
Karachi electric supply company (KESC)
Nuclear Power
Nuclear power accounts for around 2.3% of the total installed capacity in Pakistan , it is
controlled by the state owned department Pakistan Atomic Energy Commission(PAEC).
In May 1972, Pakistans first nuclear power plant KANUPP was commissioned. The plant
operated safely for 30 years and generated 1.7 billion KWH before retiring in December 2002. It
was reconditioned in 2004 to extend its life by fifteen years with a reduced capacity.
A second nuclear power plant CHASNNUPP located at Chasma with gross capacity of 325 MW
was established in September 2000.
Efforts are being made to construct a third nuclear power plant of 325 MW at Chasma and was
expected to be completed by 2011.
Renewable Energy
Several initiatives were taken in Pakistan almost three decades ago in respect of renewable
energy productions. Appropriate Technology Development Corporation (ATDC), National
Institute of Silicon Technology(NIST), Pakistan council of Renewable energy
technologies(PCRET) and Pakistan Council for Appropriate Technologies were setup to promote
the cause of renewable energy.
In 2002 the Alternate Energy Development Board (AEDB)was setup to pursue vigorous targets
particularly with regard to wind power. The long term task ahead of AEDB was to contribute 5%
of the total national power generation capacity i-e about 9700 MW through renewable
technologies by 2030.
AEDB has achieved the following tasks up to mid 2009;.
(1) 6MW wind farm installed in Jhimpir
(2) Two Wind turbines each of 10kw capacity installed at Kallar Kahar.
(3) 100 Micro wind turbines each of 500W capacity installed in Sindh and Balochistan.
(4) Solar home system each of 80W capacity installed in 1000 homes.
Oil and Gas
Pakistan does not have rich oil and gas reserves. The oil reserves in particular are very limited.
During 2007-2008 the country production of natural gas stood 1418billion cubic feet.
Energy Resources of Pakistan
There are two main types of energy resources available in Pakistan.
Conventional energy resources
a) Crude Oil with a potential of 339 million barrels recoverable reserves
b) Natural Gas with a potential of 31,266trillion cubic feet recoverable reserves
c) Coal with a potential of 185 billion tones recoverable reserves
d) Hydro Energy with a potential of 46,000 MW
e) Nuclear Power with nuclear power capacity 425 MW
Renewable energy resources
a) Wind Energy
b) Solar Energy
c) Bio-mass & Bio-fuels
d) Geo-Thermal Energy

Energy Sector in Pakistan

At present energy is generated by only three modes
a) thermal 65%
b) hydel 33%
c) nuclear 2%
Two are the mian companies that produces electricity in Pakistan
a) WAPDA
b) KESC
Supply and Demand Situation
The total power production capacity in country is 19,500MW. Country is falling short of 4500MW. The
demand of electricity is growing at the annual rate of 9%, while supply of electricity is increasing at
comparatively slower rate of 7%.
According to a survey energy requirement for different sectors of an economy are as follows;
Household sector 44.2%
Industries 31.1%
Agriculture 14.3%
Government sector 7.4%
Commercial 5.5%
Street lights 0.7%
Supply through power plants are as follows;
Thermal power stations
a) WAPDA operates-11 stations
b) KESC operates -4 stations
c) IPPS operates-14 stations independently
Hydel power Generation
a) Tarbela Dam1750 MW
b) Mangla Dam-900MW
Nuclear power generation
a) Two nuclear reactors of 425MW power to generate electricity

Energy Crisis
An energy crisis is any great shortfall in the supply of energy resources to an economy. It is
usually refers to the shortage of oil and additionally to electricity and other natural resources.
The crisis often has effects on the rest of the economy. In particular, the rise in production costs
of electricity rises the manufacturing costs.
Energy Crisis in Pakistan
Pakistan has been facing an unprecedented energy crisis since the last few years. The problem
becomes more severe during summers. Initially, during the peak crisis there was a power outage
of 3-4 hours daily but it keep on increasing as the demand of electricity rises. According to the
reports of WAPDA, the electricity need of Pakistan increases more rapidly than it can be
generated which cause a major increase in the duration of load shading.
The number of electricity consumers has increased from the 7.9 million in 1992 to 19.9 million
in 2008. Despite such a sharp rise in consumers number, still only 60% of the total population is
connected to the national grid. WAPDAs daily report on 3 January, 2008 recorded a supply of
7,237 MW against the demand of 11,509MW, recording a shortfall of about 37%. Similarly,
WAPDA sources suggest that on 22 March,2010 as weather was in transition from winter to
summer, the country faced a deficit of about 5,300MW. It is forecasted that the electricity
demand will increase to about 8 times more i-e from 19,540 MW in 2005 to 163,000 MW by
2030.
Causes of Energy Crisis in Pakistan
The Present crises are also a self-inflicted problem resulting for years of poor policies and reckless
attitude on the part of concerned authorities. The scale of the Problems has now almost grown beyond any
instant solution.
Analysis brings for the various factors that have combined together to land Pakistan into this
mess.
Monopolization: In Pakistan, the government has monopolized the generation, transmission
and distribution of electricity. This monopolization has destroyed the spirit of entrepreneurship.
For example KESC.
Institutional decay: There is chronic and persistent lack of planning in Pakistan. Or
alternatively there is poor planning. Pakistan has a huge capacity for hydropower and large
deposits of coal, but Pakistan been slow to exploit those resources. For example in 1990s,
construction on Kalabagh was delayed.
Corruption: According to the former chairman WAPDA, engineer Shams ul Mulk, there is no
electricity shortage present in the country and the present electricity crisis is the result of non-
payment (of circular debt) to the IPPs. According to the Minister for Power, the total circular
debt was to be paid to these IPPs by June 2009, but the government has no fiscal capacity to
finance the debt at this time.
Government has all this money to spend on its non-developmental expenditure and fund the
hordes of ministers, parliamentarians and their armies of assistants and advisers. But the
government does not have any money to pay its internal debts.
Neglected Efficiency: Neglected improvements in efficiency remain as the single largest
untapped source of energy. The lack of investment into the existing structures and into the
development and installation of more efficient infrastructure is another major reason for the state
we are in.
Political wrangling and vested interests: Pakistan is a mess. It is controlled by a cadre
of active and retired military and civil personnel in collusion with landlord Politicians. This elite
class controls the countrys biggest, and most important businesses, and holds most of the
political power as well. All decisions are based on what serves their interest. For example , in
January 2006, the construction of Kalabagh Dam.
The Shortage Conundrum: A close study into the long term pattern of electricity absence
reveal several patterns of shortage ranging from full access to no access. There are on top of
planned load shedding, lengthy and frequent electricity breakdowns.
Moreover to these some of the causes are as follows,
Economic and political instability (Effects our GDP & Energy growth)
Fluctuation of oil prices in international market (WAPDA & KESC purchase expensive oil)
Faulty distribution system (Wastage of 15 to 20 % energy through poor distribution system)
Ageing of equipment (Unable to generate required electricity)
Unproductive efforts (Only seminars & conferences but no implementation)
Silting process (It is a naturally caused process which reduces the storage capacity of reservoirs)
Mismanagement of resources (Lack of technical knowledge and equipment to utilize
existing resources)
Effects of Energy Crisis on Pakistan
Energy crisis effects an economy very badly.Some of effects are as follows;
a) Energy crisis badly effects Education
b) Great effect on Industries
c) Effects on Economic development
d) Higher electricity prices
e) Effect on agriculture
f) Unemployment increased
g) Imported oil and coal
h) Dependent on other countries
i) Social Issues
j) Poverty
Planning to overcome Energy Crisis
A good planning is needed to overcome this increasing crisis:
Short Term Plan
a) Increase IPPs (Independent power producers)
b) Reactivate closed power stations
c) Renew power distribution system
d) Import electricity till crisis
Mid-Term Plan
a) Utilization renewable energy resources
b) Installation of solar,wind, biogas and wind projects in eligible areas
Long Term Plan
a) Developing and installing coal based power houses
b) Initiate energy agreements with friendly countries
c) Exploration of more oil, gas and coal fields
d) Up gradation in training courses for engineers
Electricity Generation Potential in Pakistan
Pakistan can solve its energy crisis and join modern world provided our leaders are willing to
adopt effective laws, transparent policies, get rid of corrupt practices, and adopt renewable
energy.
Hydropower Projects
Pakistans total identified potential for hydropower is about 42 G.W (gigga watts) out of which
only 15% amounting to nearly 6.4 GW has been exploited so far. In order to meet the energy
challenges faced by the country and to ensure a sustainable energy future, multifold exploitation
of hydropower is imperative.
At present, there are at least seven potential hydro projects with capacity in multigiggawatts.
These include Bhasha (4500MW), Bunji (7100MW), Dasu (4320MW), Kalabagh (3600MW),
Kohala (1,100MW), Patan (2800MW) and Thakot (2800MW). Apart from these , there are a
number of other projects with the capacity in hundreds of megawatts. These include Neelam
Jehlum (950MW), Munda(750MW) Akori (600MW), Dubar Khwar (130MW), Alai Khwar
(121MW) Golan Gol (106MW) and Khan Khwar with capacity of 72 MW. More over their
generation capacity can further be enhanced provided arrangement was made for maximum
utilization of water.
Wind Energy:
Pakistan can have wind energy on lines of China to generate 20,000 MW. Pakistan has been
gifted with an immense wind resource. The Ghoro - Keti Bandar Wind Corridor spreading 60 km
along the coastline of Sindh province and more than 170 km deep towards the land alone has a
potential to generate more than 60,000 MW of electricity.
Solar Energy:
Solar sector is the fastest-growing clean-energy industry in the world. Prices of solar panels have
declined by more than 60 per cent in the last 30 months. In 2010 alone, 17 GW of solar-
generation capacity was added in the world which could power more than 12.5 million homes.
China produced 48 per cent which is about 13GW, of the worlds solar panels.
Solar Energy is available at a rate of 1000 watts per square meter in Pakistan (about 19 Mega
Joules per square metre of solar energy) according to the Alternative Energy Development Board
(AEDB) sources. This can be converted to DC electricity with the help of Solar Photovoltaic
cells, which may be used to pump water, operate fans, TV and telecommunications directly
during daytime. The electrical energy generated during the day time (5-8 hours of sunshine), can
also be stored in deep cycle lead acid batteries which can be used at night to provide power for
lighting, radio, Television and fans. In addition, Solar Photovoltaic Panels can generate enough
electricity to pump water from depth of 350 ft, 700 ft and up to 1000 ft.
Solar energy is the best and suitable form for Pakistan as the country has a potential of
generating 100,000 MW electricity or over 2.324 million MW electricity per annum through
solar system.
Coal:
Few years back Pakistan used to get half of its electricity from hydel power and remaining from
thermal generation. The largest coal reserves of Pakistan exist in Thar which are about 175
Billion Tons or 850 Trillion Cubic feet. There this source can be cashed. A pilot project has been
completed for the generation of 100MW electricity.
Global Power Generation from coal

Australia 80%
China 78%
India 69%
USA 50%
Germany 47%
 Pakistan 0.1%

Kala Bagh Dam:

Kala Bagh Dam is the most important project that must be completed to overcome the energy as
well as water crises of Pakistan. It was to be completely functional in 1986 at a cost of 6 Billion
but was never constructed and now if it is to be constructed it cost a price of 600 Billion. The
project has its too much importance for the future of Pakistan but is under high political
monopoly.
Conclusion
After all the literature that we reviewed we can sketch up some rough hurdles that are there that
wont let implement our identified solutions. These hurdles are explained in short below;
Hurdles Implementing the Solutions to this Crisis:
Circular Debt
We identified that the Government is not serious in paying the IPPs circular Debt. Once this debt
is paid off, the IPPs can pay off their petroleum import expenses and start producing at optimum
levels. As long as the debt is left un-paid, we may continue to have such crisis forever.
Line Losses
We identified that WAPDA is facing huge line losses due to electricity theft or illegal usage of
electricity. We must ensure that no body breaks into the transmission system.
Inadequate Power Generation Capacity
We identified that most of the systems here run on either Gas or Coal i-e they are thermal
systems. Both Gas and Coal are considered as scarce and expensive commodities for electricity
producers. We must not rely mostly on such production systems. We must ensure usage of
efficient Thermal plants instead of in-efficient ones to conserve the scarce resources.
Lack of Capacity of Transmission of Electricity
We identified that most electricity transmission lines here in Pakistan are incapable of
transmitting electric voltages of more than two phases. This makes them in-compatible to carry
higher voltages, so even if we produce 3 phase electricity, it would be of no use in this case. We
need to upgrade our transmission lines.
Lack of Capacity of Distribution of Electricity
We identified that we lack high quality lower end grids that are used to carry electricity from
power houses to the ultimate consumers via grid stations. The infrastructure is old and
deteriorated. The system is unable to sustain extreme weather conditions hence most of the grids
shut down at extreme temperature or either completely stops working.
Privatization of K.E.S.C
After the privatization of K.E.S.C is enhanced its production capacity but the Government for a
certain reasons did not provide it with adequate distribution network. As production alone is not
sufficient, the Government must provide a clean transmission system for IPPs especially to
K.E.S.C as it is responsible to provide electricity to two of our provinces Sindh and
Balouchistan.
Governments dependence on IPPs
The IPPs at current are responsible to provide electricity to half of our country. As the Govt. did
not pay their debt so now they are charging or demanding higher per unit prices from the
consumers. This hike in electricity prices is affecting not only our local industries and homes but
is also affecting our exports of manufacturing goods. The govt. must intervene and pay out the
circular debt. Or provide subsidy on electricity.
Lack of Governments interest in building dams
Pakistan being rich in hydro-electricity resources can generate all of its electricity through water
but this sector is totally neglected by the Government and no mega Dam project is initiated for
the last 30 years. Hydroelectricity being the cheapest is the need of the country but was totally
neglected. The govt. should take this seriously and allocate funds for the initiation of Mega Dam
projects.
Recommendations
Following are some recommendations for resolving the energy crisis in the country:
Funds must be initiated on the priority basis to solve the biggest and most important
problem of the energy crises.
To overcome the problem on urgent basis, electricity from the neighboring countries can be
utilized and during this duration means should be adopted to generate energy.
Removing the Circular Debt of WAPDA and PEPCO. This requires a lot of investment to be
put into WAPDA for the purchase of oil however with the current financial condition the
government cannot take such a valiant step. A proposed solution is giving electricity on
credit to the industries as well as the government institutions.
Ensuring payment of dues by the government departments and agencies. This will require
moral courage on part of the government but the payment of outstanding dues by the
government agencies is imperative for removing the circular debt of WAPDA.
IPPs should be paid on regular basis so that no short fall from the Thermal power sector is
encountered.
Improvement of the efficiency of various Thermal Power units. This is very important for
utilizing the installed capacity of the National Grid. The investment required for the
rehabilitation of the Thermal
Mega projects like construction of Big Dams should be initiated on priority basis and for this
purpose foreign investment should be taken.
The funds allocated by the Federal Government are not large enough to initiate mega
generation projects such as Bhasha Dam and Bunji Dam, funding for these projects has to be
brought in from International monetary agencies, for which rescheduling and improvement
in debt to GDP ratio is required.
 The funds allocated for solving energy crisis should be used for rehabilitation of thermal
power units, establishment of small and medium sized hydroelectric power plants.
Along with big dams, small dams and micro-hydro projects must also be started for the short
term solution.
Government should take all the provinces onboard and solve confusions regarding Kalabagh
dam keeping in view of its importance for the betterment of the country.
Alternative energy from unconventional means like Thermal, Solar, Tidal and wind must be
encouraged. For this purpose private sector can be involved.
The government should also enhance partnership with trade partners like China to establish
Photo Voltaic cell manufacturing units in Pakistan in order to promote solar energy.
The electricity for agricultural sector can be provided by covering the irrigation canals with
solar panels. The initial funding required for this project can be derived from the agricultural
subsidy.
Bank loans without interest must be initiated for the private sector and people for the use of
Solar and Wind and resources locally.
Immediate funding must be done for the completion of Thar Coal project and the project
must be extended to the large scale for the utilization of Thar coal for energy purposes.
In northern areas, Private sector must be encouraged for the installation of turbines on high
energy streams to overcome the energy need locally. For this purpose community funding
can also be done to meet the initial cost.
The air corridor of Gawadar must be utilized completely only for the purpose of wind
energy.
Industries that consume 32% of our electricity, must apply Energy Conservation Systems and
Management measures. They can start producing their own energy with their own investment
without depending upon the grid.
Industrialists and new investors must consider the Energy Sector as good an investment as
any other. Needs image building.