Pakistan’s energy crisis: short and long-term solutions

Pakistan is in the grip of a serious energy crisis that is affecting all sectors of the economy and the various segments of the society. As the situation stands to-day, there are hardly any immediate solutions to resolve the issue. A change of attitude and a change of life style is needed at the national level which should be triggered by the ruling elite and followed by all segments of the society that have access to electricity. At best there could be some short and long-term solutions to the crisis but they need immediate planning and execution with an enormous investment. None of the previous rulers of the country solved the issue due to which the energy crisis kept on increasing regularly.

State of energy resources

Pakistan has a deficit of fossils or hydrocarbons sources of energy and to cover up the deficit, it depends upon importing crude oil at an enormous cost from its meager forex reserves. The need of crude oil is on an increase because of an improved life style which has necessitated the use of vehicles and cars for transportation. Import of oil at around $110 per barrel, increases the trade deficit and the current account deficit. It makes fiscal management a difficult task which affects the government as well as the people.

Contrary to the deficit of fossils or hydrocarbon resources, Pakistan is rich in hydro resources of energy. According to an estimate the country has enough resources to generate approximately 40000 mw of hydro-electricity. However, presently it only generates 8000 mw of electricity against an installed capacity of 11327 mw. In addition the country can generate electricity with the help of wind and solar energy which has not yet been exploited to meet the energy deficit. Nuclear energy is yet another source of energy and at present PAEC produces 472 mw. It is far less than what PAEC should have been producing to meet the energy deficit.

Three major electricity generation agencies presently operate in the country. They have a total installed capacity of around 19522 mw. Their installed capacities are as follows: WAPADA: 11327 mw; KESC: 1756 mw and Independent Power Producers (IPPs), 5977 mw. PAEC produces 472 mw as stated earlier. Thermal power accounts for 64 per cent of the total installed capacity, hydro-electricity accounts for 33 per cent and nuclear power plants account for 3 per cent. Thermal power is mostly produced by burning either natural gas or imported oil. The country is yet to switch over to coal from the indigenous source of energy that is estimated to be the third largest in the world with a reserve of 33.0 trillion tons.

The Energy market has been changing according to the demands of power consumption. The Prices of energy raw materials also kept changing. According to an analysis, in the fiscal year 1990-91 hydropower accounted for 45 per cent of all electricity produced in the country but it was reduced to 26 per cent with a 10-year period. The share of thermally generated electricity increased from 54 per cent to 71 per cent during the same period. Needs of most of the commercially used oil are met by imports whose prices have skyrocketed during past five years and as such the cost of power generation through oil has increased.