Pakistan

Major achievements

Pakistan has undergone some reforms in the electricity sector, though there have been difficulties with privatization. The total power generating capacity has increased rapidly in recent years with the assistance of foreign investment. To some extent, this has led to the alleviation of power shortages experienced by the country. However, rotating power shortages, or load shedding, are still necessary in some areas.

As part of the reform process, 14 public limited companies have been formed: four thermal power generating companies, one national transmission and power dispatch company and nine distribution companies.

Independent power producers, funded partially by foreign investors and partially by the Water and Power Development Authority, have in recent years contributed to growth in power generation. Plans are also under way to expand Pakistan’s hydropower capacity with the approval for construction of four new hydropower plants, which will generate several hundred megawatts of additional power.

Major challenges

The electricity sector is currently experiencing significant losses due to poor transmission infrastructure and power theft. Hydropower facilities are also affected by periodic drought, which can limit power supply.

The power sector is expected to grow significantly in the future as a large portion of Pakistan’s rural areas have yet to receive power and only around half the population is connected to the grid. Pakistan aims to privatize its power services, though there have been some difficulties.

Renewable Energy

Hydroelectric power is the dominant renewable energy resource, generating around 30 per cent of all electricity in the country with a number of new sites being planned. Significant hydropower potential exists in the north of the country, though difficulties in transmission and lack of access limit the likelihood of these resources being utilized.

Stand-alone electricity supply

Pakistan is turning to solar power to provide electricity for rural areas that are not likely to see electricity in the near future. In particular, solar-powered water pumps are being used to address the water needs of people in rural areas. The Government is hoping that solar power will reduce reliance on firewood and other biomass sources, which constitute about one-third of all energy consumed.

Environment impact

Pakistan’s energy consumption has nearly tripled in the last 20 years, though it still accounts for less than 0.5 per cent of the world’s energy consumption. Electricity losses and theft and a lack of energy efficiency standards have contributed to a high energy intensity and subsequent carbon dioxide emissions from Pakistan.

In an attempt to address some of the country’s environmental problems, the National Conservation Strategy Report was issued stipulating goals of natural resource conservation, promotion of sustainable development and improving resource use efficiency. A number of programmes were implemented, including energy efficiency improvements, renewable resource development and deployment, and integration of population and environmental programmes.

Pakistan is not a signatory to the Kyoto Protocol as the Government feels that the country needs to be free of emission ceilings in order to develop its economy. Unfortunately, Pakistan currently has limited resources to address environmental concerns.

Stakeholders

• Water and Power Development Authority
(WAPDA, http://www.pakwapda.com/)

• Karachi Electricity Supply Corporation – State-owned utility serving only Karachi and surrounding areas

• National Electric Power Regulatory Authority – determines electricity rates for the sector

• Hub Power Company – private power company

• Kot Addu power company – private power company

• Ministry of Industries and Production

• Southern Generation Power Company Limited (GENCO-1)
headquarters at Jamshoro district Dadu near Hyderabad Sindh

• Central Power Generation Company Limited (GENCO-2)
headquarters at Guddu district Jacobabad Sindh

• Northern Power Generation Company Limited (GENCO-3)
headquarters at TPS Muzaffargarh district Muzaffargarh Punjab

• Lakhra Power Generation Company Limited (GENCO-3)
headquarters at WAPDA House, Lahore

• National Transmission and Power Dispatch Company

• Lahore Electric Supply Company

• Gujranwala Electric Power Company

• Faisalabad Electric Supply Company

• Islamabad Electric Supply Company

• Multan Electric Power Company

• Peshawar Electric Power Company

• Hyderabad Electric Supply Company

• Quetta Electric Supply Company

• Tribal Electric Supply Company