Energy Crisis in Pakistan
Energy Crisis in Pakistan
Energy Crisis in Pakistan
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Abstract : The study was conducted in the department of Electrical Engineering, University of Gujrat,
Punjab, Pakistan to highlight the burning issue of energy crisis. Firstly, it overviewed the phenomenon on
global level and estimated it as a global issue. Secondly, it studied the issue with reference to the present
situation and position of Pakistan. It also high pointed the statistics of demand and supply and power
production resources of the country. It discussed the causes of energy crisis in detail. It also put forth the
consequences of the crisis with different dimensions. It also offered some solutions to improve the present
situation. It also presented suggestions in order to resolve the issue. It was concluded that by owing to the
recommended measures Pakistan can get rid of the dilemma of load shedding and short fall.
Keywords – Energy Crisis, Pakistan, Non-renewable resources, Renewable resources, Short fall,
WAPDA
1. INTRODUCTION
Globally, the “main cause of energy crisis” directly refers to the natural problem of scarce resources. As
the whole world has scarce natural resources that are depleting with every tick of clock, the chance of
converting natural assets into electrical energy is decreasing day by day [1]. Many countries are
producing energy, solely, by burning coal. Some other countries are managing their electric needs mainly
by nuclear production. Others do handle it by burning coal or natural gases. Some countries like India
are utilizing water to produce energy [2]. The question is for how long these resources would be
available to accomplish the escalating energy needs of human beings. So, simply we can say that our
planet is relying on coal, natural gas, water, fossil fuels and petroleum to extract energy. We have
depleted about 80% of our oil resources [3]. Moreover, we have used about more than 50% of our oil
resources till now and if we continue to use the oil resources at same rate then we would probably run
out of oil resources in about 32 years [4]. The whole world is trying to extract maximum oil and are
enthusiastic to find more preservatives to fulfill the ever increasing demands but a study by M. King
Hubbert [5] gave a concept of “peak oil”. According to him, a time would come when the whole world
would reach at maximum rate of extraction called “the peak” after which it will start to decline with time.
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This concept adds more despair to the present depressing situation. Fossil energy would also become
rare, erratic and expensive in near future. Conversely, with the continuous appraisal in our living
standards, electrical energy utilization is also increasing day by day. These statistics and discussion
portraits that we are running short of our energy producing resources which simply imply that we are
running out of electricity in near future.
The above stated problem becomes more serious if we dig it deep. The reliability on oil, gas and
petroleum for energy generation is also not a secure step. Globally, major oil and gas suppliers are Qatar,
Iran and Russia [6]. If they stop their supply around the world then many countries would face serious
energy crisis and long hour’s blackouts. Furthermore, they emit hazardous gases that cause
environmental pollution and greenhouse effect. So, indirectly human being’s survival is closely related to
energy crisis. This highlights the importance of this central issue for the whole world.
To avoid this overwhelming situation, people around the globe are working hard to find
alternate/renewable resources to prevent the world from blackout [7]. Some are starting “save energy”
campaigns. Seminars and reports on the topic of “energy conservations” are also becoming common. The
real solution of this problem can only be done by replacing all these above mentioned non-renewable
resources with alternate renewable sources. Solar and wind are considered major example of this but
they are not as reliable as coal or gas. So, what we should do to overcome this energy crisis. This is the
major question of today.
The answer is to use all of our available resources in an intelligent way. A fraction of energy should be
produced by no-renewable resources and the remaining amount should be fulfilled by that of renewable.
Secondly, the ever increasing electric energy demands shall be discouraged and proper awareness should
be provided to consumers about energy crisis; its impacts and challenges that world is facing, today, due
to it. Thirdly, new resources should be explored. Fourthly, serious research shall be conducted to
increase the efficacy or energy producing units and new technologies shall be introduced in this regard.
Fifthly, a law should be made and implemented around the globe that no country can emit greater than
specified amount of hazardous gases that cause pollution, greenhouse effect and environmental changes.
Point to ponder here is that is energy crisis only related to scarcity of non-renewable energy resources.
Some intellects of United States of America directs energy crisis towards “affordability”. According to
them the expensive per unit cost of electricity is the main cause of this entire situation. America is more
threatened because of this situation as it consumes around 25% of all energy produced around the globe
and that cannot last forever [8]. So, we can say that not only Pakistan but also the whole world is affected
by this termite. Pakistan gets its electrical energy supply from mixed resources; renewable and non-
renewable. Renewable resource includes hydral, wind, tidal and solar, whereas Non-Renewable includes
thermal and nuclear.
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1.1 Energy Demand and Supply Statistics
According to 2014 report total installed capacity of electrical energy production in Pakistan is 22,957.4
Mega Watts (MW). Total demand is 17000MW. Shortfall is about 4000-5000MW [9].
The Energy sector of Pakistan is categorized as under-developed, due to inadequate planning, supervision
and management. The main problem is the gap between energy supply and demand so the major issue is
energy generation that can never be balanced with ever increasing demand and constructive economic
progress. Due to this, now we are at the edge of despair standing in condition where no short cut is
available to sort out the problem. If we thoroughly ponder the situation from the other side, we would
come to know that we have also done nothing practical to contain the ever increasing demand from the
past two decades. To narrow down the gap between demand and supply, Pakistanis suffer from so called
load management or more precisely “load-shedding”. This crisis has omnipresent and extensive impacts
and consequences on budget, economy, academics, society and overall operations of the country.
1.2 Power Production Sources
As described above, Pakistan has mix energy producing sources [10]. According to layman knowledge,
the major contributing part of energy generation is hydral because every day we see discussion about
new dams on media. However, the major contributing part is thermal. Unfortunately, Pakistan is also in
that category of countries which has major reliance on non-renewable sources like coal, gas and
petroleum [11].
The detail that how all these mix resources contribute a little to make the grand total installed production
capacity of the whole country is tabulated below:
Hydral 6,611
Nuclear 775
Wind 206.4
Solar 1,000
Total 22,957.4
The above table clearly shows that maximum contribution emanates from thermal resources. Thermal
power is a wide category comprising coal based, oil based, diesel/petroleum based and steam based
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power plants. They produce cheapest energy. The per unit production cost of solar is many times less
than hydral and nuclear [12]. The comprehensive discussion about all the above stated power sources
and their brief comparison is presented below:
1.2.1 Thermal Power Source
As described above, thermal power plants are contributing about more than 50% to illuminate Pakistan.
The biggest power plant is situated in Kot Adhu having production capacity of about 1600MW [13].
Second biggest power plant is in Karachi called Bin Qasim Plant 1. Its production capacity is about
1260MW [14]. Its second branched plant called Bin Qasim Plant 2 has production capacity of 560MW
approximately [14]. Another thermal plant is located near Karachi in Hub industrial area called Hubco
Power Plant. There is another power plant at Jamshoro having production capacity of about 850MW [15].
A coal based power plant is located in Lakhra called Lakhra Coal Power Station having production
capacity of 150MW [16]. .
1.2.2 Hydral Power Source
Terbela dam has biggest power production capacity of 3475MW [17]. The second biggest dam is Ghazi
Brotha having production capacity of 1450MW [18]. Mangla stands third in production capacity that is
around 1120MW [18]. Neelam Jehlum power plant produces 960MW [19]. A power plant at Kakar
produces 4500MW [19]. Warsac dam has production capacity of 243MW [20]. Some other dams’
construction plans are under process for many years.
1.2.3 Nuclear Power Source
There are two mainly considerable nuclear power plants installed in Pakistan. One is at Chashma having
power production capacity of about 650MW [21]. The second one is built at Karachi, called Nuclear
Power Complex Karachi, having power production capacity of 125MW {22]. The erection of new nuclear
power plants always remains controversial not only in Pakistan but even around the globe due to long
security permission taking procedures.
1.2.4 Wind Power Source
We have two wind power stations in Pakistan. The dominating one is at Jhimper having power
production capacity of 56.4MW [18]. The other one is located in Thatha having power production
capacity of 150MW [23].
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2 DISCUSSION
The above described power production capacities of plants create a very pleasant scenario because the
total power production capacity of all plants is 22,957.4MW and the demand is only 17000MW. Now, the
question arises that if these figures are correct then why Pakistan is facing load shedding, power cuts and
blackouts every day. Why we have shortfall in production if we are capable of cumulatively producing
22957.4 MW. Actually, the word “production capacity” is deceiving the whole country. If plants have
capacity to produce the above specified megawatts of energy, then why they are not able ,or more
precisely, capable of producing that specified amount and if they are not capable to produce that specific
quantity, then why that specified capacities are mentioned by our country’s officials. If the first
implication (that they are truly capable) is true, then the concept of scarcity does not apply to Pakistan.
Because we have resources and we have installed power plants but still we have power crisis issues. So,
what are the causes of electricity deficiency in Pakistan? The detailed analysis of main causes of energy
crisis is discussed below under the heading of causes of electrical energy crisis and depreciations.
If second implication is true, then all the above mentioned facts and figures are wrong. All the stats
provided by officials would probably be bogus. Or, we can say that there are “ghost power plants” in
Pakistan. This seems a really depressing and annoying situation for the natives. So, let’s evaluate basic
causes and problems that Pakistan is constantly suffering from many years. What are those issues that
couldn’t get resolved? Many scholars at a seminar at the Woodrow Wilson International Centre for
Scholars, Washington read many essays from the book “Pakistan’s Interminable Energy Crisis: Is there a
way out?” and implied that this issue is too complex to be sorted out overnight.
The present review highlights the main causes of this giant issue, its consequences on our country’s
economy and suggestions in this regard to sort out this problem, if not even in midnight then as early as
possible.
There are many factors that collectively result in energy crisis. Some of them are local but many of them
overlap with the problems faced globally. The main causes are as follows:
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3.2 Power Theft and Under Recovery Bills
The rate of theft is increasing as per unit rates are increasing. This also adds to transmission losses
leaving bad impacts on economy. This is the major factor for me because it directly impacts our economy.
Consider, we have produced 100 units. 22 of them are the calculated transmission and distribution losses.
If another 18 units are loosed due to theft, then government would only get bill of 70 units. If total
subsidy per unit is 6 Pakistani Rupees, then we can simply figure it out that how much revenue is being
generated on 100 units collectively after all losses. It is approximately 60%. This means that we have
clear deficits of 40%. These calculations do not include power factors yet. After their inclusion, the
deficit will increase much more. That’s what Water and Power Development Authority (WAPDA) talks all
about. Pakistan is not only facing domestic level theft but also facing commercial and industrial level
theft.
Power theft and under recovery of bills by DISCOs (Distribution Companies) collectively resulted into the
big loss of Rs.260 billion to the power sector and this badly affected the investment in the power sector.
The National Transmission and Despatch Company (NTDC) purchased 98342 GWh (Gega Watt-hour) in
2013 for transmission to DISCOs while the units billed by DISCOs were only 75926 GWh, the difference
between these two statistics clearly indicates the power theft at great level across the country. The
consumers’ annual arrears have increased greatly from 10 billion in the year 2008 to 63 billion in 2013.
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3.6 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.
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3.12 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.
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3.18 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.
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4.1 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 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.
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4.5 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.
4.8 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.
i. Maximum outputs should be taken from installed units. Efficiency of these units should be
increased. Proper fuel supply to these plants should be insured.
ii. 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.
iii. 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.
iv. 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.
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v. Transmission and distribution system should be renovated and their great maintenance should
be carried out.
vi. A critical improvement in billing procedures and retrievals from DISCOs to progress the cash
flows is required. This will directly help in increasing power production and reducing load
shedding. This step can only be taken by the administration. Moreover, improved management’s
performance and better accountability procedure should be adopted.
vii. To ensure consistent gas supply to gas power stations is required, for greater generation at low
cost.
viii. Applications of Independent Power Plants (IPP’s) should be approved without delay.
ix. The quality of services provided by WAPDA and other power companies should be enhanced.
x. Making policies that convince public to investment in power sectors. This will make GENCOs and
DISCOs efficient organizations.
xi. Finding alternative sources of energy to fulfill the gap between demand and supply. To eradicate
reliance on thermal power alternate power/fuels should be searched and utilized like fuel cells,
hydrogen fuel, bio methanol, and biodiesel and Karrick process. Moreover, more green energy
power plants like solar, tidal and wind energy should be deployed. In Pakistan, only
hydroelectricity, solar power plants and nuclear power plants have been considered the effective
alternatives to thermal energy but they have great ecological problems.
xii. Start buying energy efficient products .i.e. replacing old bulbs with energy savers and LED’s.
These devices consume less wattage of electricity and lasts for longer times. Similarly, old energy
consuming big Cathode ray oscilloscope Televisions should be replaced by smart energy saving
devices.
xiii. We should move our maximum load on renewable resources. To improve overall conservation
efforts the best step is to switch to renewable resources. Most of the industrial age was
formulated using fossil fuels, but these new emerging technologies that utilize renewable
energies like solar, wind, and steam etc. can take their place easily. The major concern is not only
the problem of scarcity but also the pollution. As the use of coal is continually polluting the
environment and is destroying other natural resources that deteriorate in the process of mining
of coal. This would need a great reform because our entire industrial and commercial load is
powered by coal, gas and steam power plants.
xiv. The easier grid access should be made. A common person, that can generate power from several
different options, should be given special approval to plug into the grid and generating
revenue/credit for power that they feed into the system. The annoyances of getting credit of
supplying spare power back into the grid should be removed.
xv. Energy simulation software should be used by big companies and firms to reform building unit
and should lessen running business energy costs. Engineers, designers and architects could use
this design to come with most energy efficient building and reduce carbon footprint.
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xvi. Energy audit should be done. It is a process that helps us to identify the specific area or sector
where our system i.e. home or office is losing energy. It helps us to improve our energy efficacy.
If it would be done by professionals, then it can not only help us in saving energy and reducing
billing amounts but also can lessen our carbon footprint; thus, eradicating the energy crisis.
xvii. A serious stand on climatic changes should be taken. Though, we are under developing country
but we should take stand against climatic changes as equal as developing countries are taking.
We should focus to decrease greenhouse gas emissions.
xviii. Enhancing civilian nuclear capacity
xix. More Dames should be set up.
xx. Awareness should be given on usage of electricity saving devices.
xxi. Awareness campaign for energy saving should get started.
xxii. We should tap home-grown resources like Thar coal.
xxiii. The industrial power usage should be controlled and decreased with the installation of effective
equipment, energy saving and energy efficient machinery.
xxiv. We should decrease our reliance on rental power plants, because they are producing less energy
at greater cost.
xxv. We should decrease line losses by using efficient and highly conductive power transmission
cables.
xxvi. New energy resources should be developed.
xxvii. 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
xxviii. Alternative energy resources like wind, biomass, tidal and solar should be incorporated.
xxix. Offices, academic institutions, markets, marriage halls should be closed till 8 pm to keep balance
in peak hours.
xxx. Before installation of new systems forecasting should be done.
xxxi. Restrictions on energy demands should be applied. Actions should be made to consume reduced
amount of Energy. Evidently, reduction of energy consumption not only decreases the energy
crisis, but also restricts environmental hazards. Thus, there is covenant between environmental
and energy interests on the need for conservation. Actions required in this aspect include:
Progress of an energy conservation program
Mass transportation
Resource regaining programs
Fuel economy labeling programs
Land usage program
Creation and adaptation of more competent auto propulsion units.
xxxii.“Save energy” campaigns should be started for awareness of the masses.
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xxxiii. Natural Gas prices should be deregulated. Presently, the shortage of natural gas is due to the fact
that it is underpriced as compared to other energy sources. Underpricing produces motivations
for extreme consumption. The resulting natural gas shortages direct the users towards coal,
petroleum and oil that considerably cause more damage to the environment
xxxiv. Regulation of Coal Mining should be done.
xxxv. A systematic process should be followed for locating power plants sites. A review of total capital
costs, production capacity and revenues should be done prior to the construction.
xxxvi. Pakistan should adopt more robust maintenance regimes to ensure that power plants, transmission
lines, and other key infrastructure do not fall into serious disrepair.
xxxvii. Pakistan should enhance collection rates by having budget adjusters that will help to recover
arrears throughout the provinces. Improved bill collections can be made by issuing serious
threats to disconnecting supplies to those customers who refuse to pay.
xxxviii. In power sectors financial planning should be done on monthly basis.
xxxix. To fill the gap between supply and demand, government should make and implement energy
conservation law. To eradicate load shedding and to decrease shortfall institute stricter building
codes should be made.
xl. Unexploited resources with tremendous capacity of producing energy should be tapped. In Thar,
175 billion of coal reservoirs are available. We should extract it to get maximum benefits.
6 CONCLUSION
Keeping in view the above mentioned ground realities, it is concluded that burning issue of energy crisis
is not new to Pakistan rather this is the global issue. Not only under developed countries like Pakistan
but also many developed countries are threatened by energy crisis.
As tabulated above, Pakistan has already enough installed capacity that can cope with the present
demand if all the installed units would operate and give their maximum possible outputs. Moreover,
according to the given records, 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.
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