PRESENTATION

INTRODUCTION

• Energy is considered to be life line of any economy and most

vital instrument of socioeconomic development of a country.
• Energy is pivotal in running machinery in factories and
industrial units, for lighting our cities and powering our
vehicles etc.
• Electricity crises in Pakistan is one of the severe challenges the
country is facing today.
• Electricity is the essential part of our daily life and its shortage
has severely affected the economy and overall living.
• Pakistan is currently facing up to 12 to 18 hours of electricity
outage a day, is expected to face more if not dealt with in time.
ROBERT ALAN SILVERSTEIN SAID:

We can create a more sustainable, cleaner

and safer world by making wiser energy
choices.
I SAID:

“Energy and persistence alter all things. Energy was

compulsory in our past, energy is compulsory in our present
and energy will compulsory in our future so make energy
efficiently”
 WHAT IS ENERGY CRISES?
An energy crises is any great shortfall (or price rise) in the supply of
energy sources to an economy. It usually refer to the shortage of oil and
additionally to electricity or any other energy resources.
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• Moreover, rapid demand growth, transmission losses due to outdated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.
ELECTRICITY AND GAS SHORTFALL:
• Pakistan needs around 19,600 MW
electricity per day, however,
currently it is able to produce about
14,800 MW per day hence there is a
shortfall of about 4800 MW per day.
This shortage is badly hampering the
economic growth of the country.
• At present, the Sui Northern Gas
Pipelines Limited (SNGPL) is facing
an overall shortfall of 1400 mmcfd.
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 sources are limited and expensive. These resources cannot be
replenished.
 There are three main types of fossil fuels:
1. Coal
2. Petroleum
3. Natural gas
PETROLEUM PRODUCT:
• 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.
• 0.07 gallons of petroleum is also used in
generation of 1KWh electricity.
• 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.
NATURAL GAS:

 Importance of natural gas is increasing rapidly.

 Average production of natural gas is 4,058.76 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 49 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.
COAL:
 Pakistan has coal reserves estimated at over 185 billion tonnes,
including 175 billion tonnes 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.
RENEWABLE RESOURCES:
 Renewable energy resources are those, which are naturally
replenished and comes from resources such as water, sunlight, wind,
rain, tides, and geothermal heat.
 They are limited.
HYDRO POWER:
 Hydro power is generated by using
electricity generators to extract energy from
moving water.
 Pakistan is having rich resource of energy
in hydral power, however, only 33 % of
total electricity generation is coming from
hydro power.
Current Hydropower stations
 Tarbella Dam: 3,478 MW
 Ghazi Brotha: 1450 MW
 Mangla: 1,120 MW
 Warsak: 243 MW
 Chashma: 184 MW
POTENTIAL HYDROPOWER STATIONS
 Diamer-Bhasha Dam: 4500 MW
 Munda Dam – Swat river in Mohamand Agency: 740 MW
 Kalabagh Dam: 3600 MW
 Bunji Dam: 5400 MW
 Dasu Dam: 3800 MW
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 56.4 MW has been installed in first phase in Jhampir through a Turkish
company.
 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 100,00 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.
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.
• 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.
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 690 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.
PAKISTAN NUCLEAR POWER REACTORS:
Reactor Type MW Construction started Commercial operation
Karachi: PHWR 90 (1966-1972)
Chashma 1: PWR 300 (1993-2000)
Chashma 2: PWR 300 (2005-2011)
Total : 690 MW
* Pressurized heavy water reactor (PHWR) - Canadian based
reactors
** Pressurized water reactor (PWR) – Chinese based reactors
CAUSES OF ENERGY CRISIS

Growing Energy Demand:

Over the years there is greater need of energy because of;
• Increase in population,
• Enhancement in lifestyle
• Industrial and agricultural growth
• Greater transportation needs
Lack of proactive and integrated planning for
production of energy:

 Pakistan has had wider potentials to tap energy, however, due to lack
of any integrated/proactive planning, very less number of power
producing plant were installed to meet futuristic demands.
 Resultantly, over the years, the gap between energy demand and
supply drastically grew and now against demand of 19600 MW, we
are having around 14800 MW.
CIRCULAR DEBT:

 The recurring issue of circular debt creates cash flow problems

for all players at each stage of the supply chain and results into
reduction in power generation. More reliance on furnace oil not
only enhances circular debt, it also pushes up the cost of
electricity and government has to spend more on subsidy. The
2014-15 budget has earmarked an amount of Rs.350 billion for
power subsidy while the actual subsidy is expected to come
close to Rs.600 billion and this situation may further complicate
the energy shortage problem.
REDUCTION IN HYDROPOWER PRODUCTION:

 Pakistan has the capacity to produce 6600 MW electricity, but

the country is generating around 3600 MW hydroelectricity due
to water shortage on account of lack of water reservoirs.
 NON-UTILIZATION OF ENORMOUS
INDIGENOUS ENERGY RESOURCE:
Thar Coal:
 Pakistan is having one of the largest coal fields in Thar, having
reserves of more than 175 billion tones, which exceeds equivalent
oil reserves of Saudi Arabia, Iran etc.
 In addition to power generation, this coal can be used for chemical
and fertilizer production.
 Moreover, employment provided to workforce can be instrumental
in increasing GDP and economic prosperity to many families.
CONSEQUENCES OF ENERGY CRISIS
i). Economic Factors:
 Energy is pivotal for running all other resources and crisis of energy
directly influences all other sectors of the economy.
 The economic progress is hampered by decline in agricultural
productivity as well as by halting in operations of industries.
 One important factor of lower GDP and inflation of commodity
prices in recent years is attributed to shortfalls in energy supply.
ii). Agriculture Sector:
 Agricultural productivity of Pakistan is decreasing due to provision
of energy for running tube wells, agricultural machinery and
production of fertilizers and pesticides.
 Thus higher energy means higher agricultural productivity.

iii). Industrial Sector:

 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.
 iv). Unemployment:
 By closure of industrial units and less
agricultural productivity, new employment
opportunities ceased to exist and already
employed manpower is shredded by the
employers to increase their profit ratios.
 Thus energy crisis contributes towards
unemployment.
v). Social Issues:
 This factor is primarily related to the domestic usage
of energy (cooking, heating and water provision).
 Load shedding cause unrest and frustration amongst the
people and results in agitation against the government.
vi). Poverty:
 Declination in economic growth, lower agricultural
productivity, unemployment and shackling industrial
growth result in increasing poverty.
 Currently, around forty percent of our population is
living beyond poverty line and this ratio is increasing
day by day.
 Ample control of energy crisis will surely yield in
curbing the menace of poverty.
 PAKISTAN-IRAN GAS PIPELINE

 Discussions between the governments of Iran and Pakistan

started in 1994. A preliminary agreement was signed in 1995.
This agreement foresaw construction of a pipeline from South
Pars gas field to Karachi in Pakistan. Later Iran made a proposal
to extend the pipeline from Pakistan into India. In February
1999, a preliminary agreement between Iran and India was
signed.
 ROUTE OF GAS PIPELINE

 The 2,775-kilometre (1,724 mi) pipeline will be supplied from

the South Pars field.
 HURDLES OF GAS PIPELINE

 Delay from India:

The gas project which was initiated by Iran India and Pakistan was
having many constraints.
 US opposition to Pak-Iran gas pipeline
US has been opposing this gas pipeline agreement between
Pakistan and Iran since the day of inception of the idea of this
project.
• Cost:
Pakistan and India is facing international Bans, which
decreases their revenue.
 BENEFITS OF GAS PIPELINE

The government estimates that the power crisis in the country

reduces economic growth by between 2% and 2.5% of gross
domestic product every year. Supplies from Iran could go a long
way towards helping to mitigate that crisis.
Larger gas fields tend to be far cheaper to extract gas from Iran.
Countries have yet to finalize a gas price or sign the gas sales
purchase agreement which has been done between Pakistan
and Iran.
RECOMMENDATIONS OF ENERGY CRISIS :
Reducing unnecessary energy use:
 Usage of electricity saving devices
 Awareness campaign for energy saving
 Reduction in unnecessary transportations by developing good public
transport systems and strengthening Pakistan railways.
 Reduction in industrial uses with installation of effective equipment/
energy efficient and with increasing efficiency of workforce (cost
effective).
 Decreasing reliance on rental power projects, because instead of doing
any good, they are increasing prices of electricity.
 Decreasing line losses by using efficient power transmission cables
Developing new energy resources:
 Tapping indigenous resources (Thar coal)
 Using renewable resources (water) by constructing new dams and
hydro power plants.
 Import of natural gas by IPI (Iran, Pakistan, India) and TAPI
(Turkmenistan, Afghanistan, Pakistan and India) pipelines
 Import of electricity from Tajikistan -through Pak Afghan Tajikistan
transmission- and Iran (approximately 1000 MW from each of them)
pipelines.
Utilizing alternative energy resources :
 Wind power
 Biodiesel /Biomass
 Solar
 Tidal
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.