Challenges and Way Forward in Pakistan’s Power
Author : alida-meadow | Published Date : 2025-05-10
Description: Challenges and Way Forward in Pakistans Power Sector Khalid Saeed Head Energy Research Centre COMSATS Institute of Information Technology Lahore Campus Introduction Existing Structure of Energy Sector 2 Major Challenges Demand and Supply
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Transcript:Challenges and Way Forward in Pakistan’s Power:
Challenges and Way Forward in Pakistan’s Power Sector Khalid Saeed Head Energy Research Centre COMSATS Institute of Information Technology, Lahore Campus Introduction Existing Structure of Energy Sector 2 Major Challenges Demand and Supply Gap: 6000-7000MW (1/3rd of total demand) 3 4 Sources: Overseas Investors Chamber of Commerce & Investments (OICCI) Pakistan, Energy Sub Committee, NEPRA’s State of Industry Report 2013 Major Challenges High cost fuel mix for power generation Major Challenges 5 High cost fuel mix for power generation – Low hydel share; decrease in gas allocation for power sector Major Challenges Fall in share of investments in Energy Sector: While in mid 90’s, 26% of total and 51% of public sector investments, the share of energy (including power) dropped to 4% and 26% by 2009-10. Trust Deficit – a reason for inability to undertake large hydel projects over last 25 years (except Ghazi- Barotha) 6 Major Challenges 7 High T & D losses and poor recoveries by DISCOs 8 System Losses and Revenue Recoveries DISCO Distribution Losses Recovery (2011-12) (2011-12) PESCO 35% 68% HESCO 28% 69% SEPCO 49% 53% QESCO 21% 36% IESCO, JEPCO, FESCO, LESCO (average) 9.5%-13.5% 95%-98% Source: NEPRA: State of Industry Report: 2012 The table below indicates the level of losses and percentage of dues being recovered by various DISCOS. 9 DISTRIBUTION LOSSES IN DIFFERENT COUNTRIES Country %age of output Transmission &Distribution Losses Australia 7% USA 6% Canada 8% Germany 4% France 6% UK 7% S. Korea 4% Malaysia 4% Iran 17% China 5% Egypt 11% India 24% Pakistan 20% Source: World Development Indicators Report: 2012 Major Challenges Unsustainable tariff regime 10 Major Challenges 2% loss to GDP – Impact on employment/ exports/budget deficits and circular debt 11 Major Challenges Degeneration/ Derating of Public Sector Gencos Uniform national tariff – No incentive for efficiency/ better recovery/ cutting theft and losses Circular Debt/ Inability to fully operate all available generation capacity due to shortage of funds to get fuel. 12 Road Ahead: Way Forward Diversity – More reliance on renewable energy (hydel/solar/wind) More gas allocation – Add coal based power generation Improve efficiency of public sector Gencos – Also introduce efficiency for industrial machinery, transport and household appliances Manage demand through conservation measures 13 Road Ahead: Way Forward (Cont.) 5.Rationalize tariff regime 6. More investments – Public and Private sector to upgrade Power sector T & D infrastructure 7. Timely payments to avoid circular debts 8. Develop
