Load shedding in Pakistan Reasons & Remedies February 9, 2009 By Muhammad Ziauddin

Organization  Historical Background  Load duration curve  Capacity, capability & availability  Shortage  Reasons  Remedies / Suggestions

Historical Background  Pre 1994 era  Sever load shedding  Post 1994 era  Surplus power in the system  2002 Power Policy  Lengthy procedure –Approval of feasibility –Tariff negotiation & approval – Security packages  High load growth

Current Situation  Supply / Demand Balance  Load duration curve  Capacity, Capability and Availability  Demand  Supply

Power Supply/Demand Balance

Load Duration Curve 18th August 2007

Load Duration Curve 21st August 2008

Load Duration Curve 10th January 2007

Load Duration Curve 23rd January 2008

Reasons  Late finalization of 2002 power policy  Late initiation of new projects  Long processing time  Not soliciting new power plants  Reliance of unsolicited proposal  WAPDA was not allowed to install thermal power plants  Private sector started taking advantages  Availability of machines in the international market

Reasons (contd)  No serious efforts on effeciency improvement and energy conservation  Time of day metering system is not up to its strength  Hydropower not comming up  Small hydro power plants are not being taken up by WAPDA  Closure of some IPP & WAPDA‘s power plants  Not payment of fuel bills to fuel suppliers

Reasons (contd)  International investors are not comming with enthusiasm  International recession  Governace issue  No serious efforts to exploit alternative energy resources  Huge reserve of coal is not being used

Issues  Most of the new thermal power plants are based on fuel oil  Cost of electricity generations  Fuel imports – major implecations on forx reseve  Volatility of crude oil prices  Fuel transporation and import infrastructure  Road / railway network  Port facilities

Issues (contd)  Gas is not available for new power plants  Un efficient energy useage  No incentive from the government to develop alternative energy resources  Rental power plant is sucidal

Remedies / Suggestions  Development of alternative energy  The Regulator should be linient in tariff for wind and solar power plants  Manufacturing facility for wind and solar power plants be encouraged by the government  Coal should be used for power generation including imported Coal  Thermal power plants should be installed by WAPDA in parllel to IPPs  More emphasis should be on energy conservation and efficiency improvement

Remedies / Suggestions (contd)  Time of day tariff should be implemented in all catagories of consumers  A digonostic study should be conducted for oil transporatation infrastructure and port facilities  Captive power plant should brougt on bar  Industrial sector should be encouraged to install their own power plants and surplus should be purchased by WAPDA at a competitive price

Thanks