Abstracts
Panel: Energy Governance in South Asia
Renewable Energy Sources in Pakistan
Electricity governance in Pakistan
Renewable Energy Sources in Pakistan
Arshad H Abbasi*
Javeriya Hasan**
Pakistan is facing a severe and an unprecedented energy crisis, whereby the daily shortfall is almost 30 per cent giving rise to the debate on the introduction of Renewable Energy (RE). This is attributed mainly to the fact that 61 per cent of electricity generation depends upon gas and oil. The dilemma of Pakistan’s power sector has been that it has failed to make additions to the country’s hydropower generation capacity. It is noteworthy that hydroelectricity is also the cheapest source of electricity. Thus, heavy dependence on fossil fuels especially on oil, has not only resulted in an increase of the electricity tariff by 70 per cent but has also raised the circular debt, which was Rs. 216 Billion as on June 30, 2009. In this scenario, the government of Pakistan is pursuing to opt for and explore RE sources to meet the growing demand for energy. In Pakistan, there is an enormous potential for the exploitation of wind and solar energy, however, the RE plants were set up in areas, which were inaccessible to the national energy grid. These have failed to achieve the benefits that accrued from generating electricity from these sources. One does wonder however, whether RE can be a panacea to the energy crisis in Pakistan. This will be elaborated in detail in the paper with references made to specific case studies.
The renewable energy policy with particular emphasis on cost analysis and the associated impact on economic growth would also be highlighted. Further, one case study of a solar energy project in FATA will be discussedin detail. Similarly, the policy of decision makers to add a powerhouse component to different small dam projects would be analysed. A special case study on the addition of the hydropower component in the Raghagan Dam Project in Bajuar Agency is also included highlighting the cost effectiveness and potential benefits of the project. The Waste-to-Energy (WOE) option and its potential is another source of RE. The associated cost-benefits of potential WOE projects in Pakistan will further be deliberated upon in detail.
In addition, the role of multinational companies that manufacture RE technologies would be discussed and it will be debated whether these companies set up plants around the country because they are actually needed or whether they are doing so purely to profit from them in monetary terms irrespective of the relevance of the technology in the areas where the plants are set up.
* Mr. Abbasi graduated in Water and Renewable Energy from Engineering University Lahore and has a Masters in Engineering Management. Currently he is working as a consultant for various national and international organizations.
** Javeriya Hasan is a Research Assistant with SDPI and has career interests in green building. She has a Masters in Structural Steel Design and Sustainable Development from Imperial College, London.
Electricity governance in Pakistan
Arshad H Abbasi*
Javeriya Hasan**
Pakistan is facing an electricity shortage, a hike in electricity prices and social unrest in some of its urban and rural areas. This has had a negative impact on industrial productivity and has caused a commensurate decline in economic growth. There have been severe monetary repercussions owing to electricity shortage in the industrial and export sectors, which according to estimates by the Ministry of Water and Power (MOWP), have experienced losses at Rs 219 billion and Rs 75 billion respectively.
Furthermore, in terms of governance, an absence of transparency and incompetence of managers are problems endemic to the system that regulates the provision of electricity in the country. The supply-demand gap has been widened by 35 per cent due to seasonal availability in hydropower and in 2009-10, the overall electricity consumption declined by 1.7 per cent. The industrial sector has been particularly hard hit by the electricity shortage and there has been a substantial reduction in industrial productivity, which has had daunting impacts on the country’s exports and eventually leads to the deterioration of balance of payments.
In order to strengthen electricity regulatory processes in Pakistan, a paper has been developed by SDPI. It has emerged at a time, when power outages together with high electricity costs, have arguably become a greater socio-economic menace than terrorism for Pakistan. The focus is on the National Electric Power Regulation Authority (NEPRA), which is responsible for regulating power in Pakistan. It is envisaged that there will be a comprehensive in-depth analysis carried out and recommendations made for an effective intervention into saving Pakistan’s comatose electricity sector.
*Mr. Abbasi graduated in Water and Renewable Energy from Engineering University Lahore and has a Masters in Engineering Management. Currently he is working as a consultant for various national and international organizations.
** Javeriya Hasan is a Research Assistant with SDPI and has career interests in green building. She has a Masters in Structural Steel Design and Sustainable Development from Imperial College, London.
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