.:: INDUSTRY OVERVIEW - POWER ::.
Pakistan has an installed electricity generation capacity of 21,813 MW, which has produced 91,960 GWh of electricity in the last fiscal year. Due to growing population and rapid industrialization the country is facing short fall of about 5000 MW; therefore, to fulfill the increasing energy demand of the country a budget of US$ 1.4 billion has been allocated for the development of power generation and upgradation of Transmission and distribution network.
The hydro potential is estimated at 59,773 MW while the existing hydro generation installed capacity stands at 6444 MW. Currently, 26 IPPs are operating in the country with the combined installed generation capacity of 7584 MW; while in the public sector the thermal and nuclear generation capacities stands at 6831 MW and 462MW respectively. To overcome the energy crises the Government is aiming to add 2110 MW by 2012.
With increasing number of power projects, the demand of power generation machinery has also increased and approximately US$ 1.3 billion worth of power generation machinery as well as US$ 805 million worth of electrical machinery and equipment has been imported in 2010 – 11. In addition, the Power sector has attracted foreign direct investment of US$159 million in the last year.
The Government has allocated US$ 221 million for the building and reconstruction of dams. Alternative Energy Development Board (AEDB) is actively working to install 103 small hydro power plants, whereas its total potential is 3,100 MW.
Pakistan has one of the largest coal reserves in the world which are estimated at over 185 billion tones. An investment of US$ 94 million was made for the development of Thar Coal infrastructure during last year. Thar Coal Project has immense potential to cater to the increasing national energy requirement for decades with a relatively low unit cost.
RENEWABLE ENERGY – THE ULTIMATE STRATEGIC SOLUTION
To further diversify its energy portfolio, Pakistan is also considering alternative energy solutions such as Wind, Solar, Bio-fuels and Waste to energy. Due to its sustainability, affordability and environment friendliness the Government is encouraging alternative energy through its Rural Development Program and plans to electrify 7874 off-grid villages of Sindh and Baluchistan by providing solar and wind energy solutions over next few years.
Pakistan has a huge wind potential which can be effectively and efficiently utilized for the economical generation of Power. Currently, 21 wind energy projects having combined generation capacity of 1050 MW, are at different stages of development.
Pakistan receives high level of solar radiation which is available at a rate of 1,000 watt per square meter. The Alternative Energy Development Board has electrified 49 villages by installing 3000 Solar Home System (HSH) and plans to install SHS in 400 off-grid villages in the next few years.
Biodiesel is set to become a popular fuel option in the agriculture, transportation and industrial sectors. The Government aims to replace 5% of total annual petroleum diesel consumption with Biodiesel by 2015. Pakistan’s first ever commercial biodiesel production facility with capacity of producing 18,000 tonnes of biodiesel/annum has been setup in Karachi by private sector.
Bio-mass / Waste to Energy
Pakistan’s large agricultural and livestock sector produces abundant amount of biomass in the form of crop residues and animal waste, such as biogas, rice husk and dung. In addition, municipal solid waste produced by a large urban population, can be disposed off in proper landfills or incinerated to produce useable methane gas or electricity.
Sugar mills in the country use bagasse for cogeneration purposes and have recently been allowed to sell surplus power to the grid up to a combined limit of 700 MW. Currently around 83 sugar mills operating in the country can produce total of 3000 MW electricity through cogeneration.