Daily Times

Pakistan is blessed with a high potential of renewable energy resources, but unfortunately only hydroelectric projects and few wind and solar projects have harnessed this potential. Renewable Energy accounts for 1136 MW presently installed capacity of solar PV, wind and biomass-based power projects

Overall Pakistan is struggling with a large gap between electricity supply and a demand of about 5 GW. Main reasons for low investments in power generation are tariffs below cost recovery levels, power theft, insufficient collection rates, and technical losses of around 23-25%. As a result, power generation companies face serious financial problems, making investments in the sector very difficult. The main factors which are preventing the rollout of rural electrification are the increasingly high distribution costs and the shortage of power generation which results in breakouts as well as load shedding. Furthermore, due to the currently very low electricity consumption/demand in rural areas the expansion of the grid into these areas is merely not economical and hence not feasible. Utilities and distribution companies are reluctant to roll out the grid since the “revenues from tariffs would never be able to provide the returns needed to recover the investment. Due to high costs, the government subsidizes electricity tariffs, in order to make them more affordable for consumers. The main factors which are preventing the rollout of rural electrification are the increasingly high distribution costs and the shortage of power generation which results in breakouts as well as load shedding. Furthermore, due to the currently very low electricity consumption/demand in rural areas the expansion of the grid into these areas is merely not economical and hence not feasible. Utilities and distribution companies are reluctant to roll out the grid since the “revenues from tariffs would never be able to provide the returns needed to recover the investment.

The growth of power generation capacities is slow. The declining availability of natural gas in Pakistan often results that existing power plants operating below capacity. Gas has increasingly to be substituted with oil, which is mainly imported (75%).Nevertheless, the country’s reliance on its internal natural gas resources has even increased in the last years, mainly due to rising international oil prices which in turn has led to increase in cost of businesses, pressure on household budgets, especially of lower middle income groups and burden on national exchequer in terms of subsidies. As a result of the insufficient power supply, the unused capacities, and the power losses, Pakistan is facing serious power blackouts on average 10-12 hours a day. The substantial load shedding affects enterprises, social institutions and even individual households, and thus hampers considerably the economic and social development of the country.

In order to fulfil the objectives of the policy, Energy Security, Economic Benefits, Social Equity and Environmental Protection. Government strategy include to Increase the deployment of renewable energy technologies (RETs) in Pakistan

Policymakers neglect in energy planning and energy policies non-commercial/traditional energy sources which are not even represented in national statistics (only electricity and mining). This means that almost 50 % of the consumers which are mainly rural households are ignored in energy planning and the public investments for supply of power. Moreover, Pakistanis also among the countries with largest number of people using solid fuels for cooking.

It is expected that Pakistan’s population will rise to over 100 million people by 2030, with rising from among the top 10 to being among top 5 countries with the highest proportion of population without access to modern energy. The electricity market of Pakistan in unbundled at the generation and distribution but is bundled at the Transmission point.

Government of Pakistan and provincial governments are aware of the need to improve the energy situation in the country through various policies and projects. In this regard, relevant organizations have been developing and implementing policies from time to time to bring clarity to their future approach towards the energy crisis in the country. The Government of Pakistan only in 2013 mentioned the universal access as a goal in the “Vision 2025”. Before that, rural electrification was not a priority and also renewable energy policies were only introduced in 2006 and did not include biomass regulations until 2013. Power generation policy addresses the hydropower projects and the thermal power projects. Under this policy, the GOP encourages public-private partnership and in scope of this policy, the incentives/concessions available to private power projects will also be available to projects implemented under PPP mode in accordance with the applicable laws.

The main objectives of this policy are to provide sufficient power generation capacity at the least cost; to encourage and ensure exploitation of indigenous resource; to ensure that all stakeholders are looked after in the process; a win-win situation; and to be attuned to safeguarding the environment. Central part of the government’s plan to support the current and future energy needs of the country. With the three-focus points Efficiency, Competition, Sustainability, it outlines incentives to attract more private investments and infrastructure development, and schemes that will allow public-private partnership. Further, it aims to diversify the energy mix, and the role of renewable energy is gaining significance in achieving sustainability and energy security.] Among other major aspects – it gives the directive to “ensure the generation of inexpensive and affordable electricity for domestic, commercial, and industrial use by using indigenous resources” and to “align all the stake holders involved in the energy sector and improve the governance of all related federal and provincial departments as well as regulation.

The elimination of current energy demand-supply gap by 2020 and optimizing the energy mix of oil, gas, hydro, coal, nuclear, solar, wind and biomass are some of the key priorities of the policy. Other technologies such as those based on municipal waste and landfill methane recovery, anaerobic or pyrolytic biomass gasification, co-firing or cogeneration utilizing agricultural crop residues, bio-fuels, wave, tidal, geothermal energy, and fuel cells were not yet dealt with in this policy.

In order to fulfil the objectives of the policy, Energy Security, Economic Benefits, Social Equity and Environmental Protection. Government strategy include to Increase the deployment of renewable energy technologies (RETs) in Pakistan so that RE provides a higher targeted proportion of the national energy supply mix, i.e., a minimum of 9,700 MW by 2030.It will helps ensure universal access to electricity in all regions of the country & provide additional power supplies to help meet increasing national demand. It necessary to introduce investment-friendly incentives and facilitate renewable energy markets to attract private sector interest in RE projects & nurture the nascent industry, and gradually lower RE costs and prices through competition in an increasingly deregulated power sector. It is imperative to devise measures to support the private sector in mobilizing financing and enabling public sector investment in promotional, demonstrative, and trend setting RE projects. Optimize impact of RE deployment in underdeveloped areas by integrating energy solutions with provision of other social infrastructure that is educational and medical facilities, clean water supply and sanitation, roads and telecommunications so as to promote greater social welfare, productivity, trade, and economic wellbeing amongst deprived communities.

In order to achieve the main objectives of universal access to energy to all , doubling the rates of energy efficiency and conservation and doubling the share of renewable energy in the overall energy mix, the key challenges needs to be addressed in Pakistan include improving the regulatory governance structure, focusing on water-based power generation and conservation, promotion of off -grid solutions, capacity building and knowledge sharing, strengthening micro financing in remote areas, building and appliance standardization, investing in Research and Development (R&D) for renewable technologies, energy conservation & efficiency last but not least public sector energy conservation audits.

The energy for all initiative needs real attention with commitment & dedication with long tern planning & effective implementation.

Dr. Shahid Raza is an Entrepreneur , Educationist , Writer & Renowned multi-disciplinary Researcher Email: mianrs@yahoo.com