Electricity is more than just a crisis in Pakistan, one of the key factors is the increasing demand; however, many commercial properties in Islamabad, likewise in other urban cities, have already shifted to alternative solutions.
But with the increasing population and many other factors, there’s a constant surge in electricity consumption.
Pakistan has long grappled with a persistent energy crisis, characterized by electricity shortages, insufficient power generation capacity, rapid population growth, urbanization, industrial expansion, inadequate infrastructure, transmission and distribution losses, load shedding, and a struggle to meet the growing energy demand of its population and industries.
This crisis has significant socio-economic implications, affecting businesses, households, and the overall economic health of the country.
This blog post is about highlighting the complexities of the energy crisis in Pakistan while exploring potential solutions and opportunities to get rid of this life-hampering issue. We will scour through the existing energy infrastructure, the government’s initiatives and policies, and alternative energy sources that can help alleviate the shortages.
We will also explore the importance of energy conservation, technological advancements, and renewable energy options in building a sustainable and resilient energy sector. So, that we can pave the way for a more reliable, affordable, and environmentally friendly energy future for Pakistan.
Pakistan’s Power Crisis and Their Solutions
Electricity Infrastructure of Pakistan
Presently, Pakistan’s electricity sector comprises 11 public-sector distribution companies, alongside the National Transmission and Dispatch Company (NTDC), except for Karachi, which has Karachi Electric (K-Electric) serving the city and its environment.
Notably, around 42 independent power producers (IPPs) play a substantial role in electricity generation across the country. During 2016, the percentage of the population with access to electricity stood at an average of over 80%.
The future consumption of electricity across all economic sectors is expected to increase due to factors such as economic growth, urbanization, population growth, and improving lifestyles.
If current trends continue, domestic electricity demand is projected to surpass 75,000 GWh by 2030, accounting for nearly half of the total electricity consumption.
Additionally, the adoption of electric vehicles in the transportation sector will further increase electricity consumption, reaching over 6,000 GWh by 2030.
Particularly it’s important for countries like Pakistan, where neighboring nations such as India and Bangladesh provide manufacturers with lower electricity prices at USD 0.12 kWh and USD 0.09 kWh respectively, compared to Pakistan’s USD 0.13 kWh.
Consequently, India and Bangladesh have been able to export significantly more than Pakistan.
Power Challenges in Pakistan
Pakistan faces several power challenges that hinder its growing demand for electricity. These challenges include insufficient generation capacity, frequent load shedding, and blackouts, as well as transmission and distribution losses.
The consequences of these power challenges are far-reaching. Businesses and industries in Pakistan face difficulties in operating efficiently and competitively. Power outages disrupt manufacturing processes, leading to production delays, financial losses, and reduced employment opportunities.
Moreover, inadequate access to electricity negatively impacts the quality of life for individuals, limiting access to basic services, such as healthcare, education, and communication.
Let’s examine these challenges…
Load shedding and blackouts
One of the primary power challenges in Pakistan is insufficient generation capacity. The demand for electricity has consistently outpaced the country’s ability to generate enough power to meet the needs of its population and industries.
Pakistan’s electricity generation capacity witnessed significant growth during the period of July-April 2022, with an increase of 11.5 percent.
The total capacity expanded from 37,261 MW in the corresponding period of the previous fiscal year to reach 41,557 MW.
This imbalance leads to a widening gap between supply and demand, resulting in scheduled and unscheduled power outages.
Load shedding not only disrupts daily life but also adversely affects industries, businesses, and overall economic productivity.
Transmission and distribution losses
Another significant issue is transmission and distribution losses. These losses could be technical/non-technical, lack of monitoring, and/or due to distribution network inefficiencies.
- Technical losses refer to energy losses that occur due to inherent characteristics of the transmission and distribution systems. These include resistance in power lines, equipment limitations, aging infrastructure, limited or no maintenance, overloading, voltage fluctuations, inadequate transformers/substations/feeder lines, and improper load management.
- Non-technical/commercial losses occur due to illegal connections, tampering, meter inaccuracies, and under recording electric bills in Pakistan. Such losses not only lead to revenue loss for power distribution companies but also strain the overall energy supply system.
- Limited/Lack of investment in renewable energy projects is also an important factor, which is hampered by challenges like policy inconsistencies, lack of financing options, and regulatory barriers.
- Population growth and urbanization contribute to a surge in electricity demand. However, the power infrastructure is failed to keep pace with the growing requirements, leading to electricity shortages.
- Fuel prices and supply issues are also a struggle that exacerbates the energy crisis for a country that heavily relies on imported fuels for power generation. Fluctuating fuel prices, supply disruptions, and delays in fuel shipments hamper the operation of power plants.
- Circular debt in the form of unpaid bills and dues within the sector, causing financial constraints for power generation companies. This also hampers their ability to invest in new projects, upgrade infrastructure, and maintain existing facilities.
So, the solution is… to increase the power generation capacity and improve the current infrastructure and energy governance.
How to Increase the Power Generation Capacity in Pakistan
Addressing these challenges requires a multi-faceted, followed by comprehensive strategy and sustained efforts. These losses not only waste valuable resources but also put additional strain on the already limited power supply.
From constructing new power plants (hydel, wind, and solar) to energy diversification, privatization of power units, investment in hydrocarbon exploration, and price adjustments… these recommendations can support energy resource development, expedite foreign cooperation in energy production, and also the development of renewable energy projects in Pakistan.
Let’s quickly go through these important areas more closely and secure future generations from power outages.
First thing first…
Renewable Power Generation Policy
The Ministry of Water and Power has now prepared the first-ever Renewable Energy Policy of Pakistan. Pakistan is blessed with an abundance of renewable energy. It has potential but so far this potential has not been harnessed except for large hydroelectric projects. Some of the policies are mentioned below.
- Adequate funds should be made available in the budget.
- The government should encourage the industry to produce more.
- Subsidies and favorable incentives should be given.
- Solar photovoltaic power projects can be executed and encouraged to be implanted in residential areas.
- Duty-free solar power projects at homes should be encouraged.
Privatization of Public Sector Power Units
The privatization of public sector power units refers to the process of transferring ownership and management control of power generation and distribution assets from the public sector to private entities.
Through privatization, the government aims to introduce market competition, improve operational efficiency, and attract private investment. It is often seen as a strategy to address issues such as financial deficits, inefficiencies, and infrastructure development challenges.
Privatization of public sector power units can bring potential benefits, including increased efficiency, access to capital, technology transfer, and improved service quality. However, it also raises concerns related to job security, pricing, and potential monopolistic practices.
The decision to privatize public sector power units is often driven by government policies and considerations specific to each country’s energy sector and economic context.
The aim is to create a more competitive and sustainable power industry that can meet the growing energy demands of the population.
Hydrocarbon Exploration & Production
Pakistan has taken positive measures and formulated encouraging policies to increase the production and distribution of hydrocarbon energy.
Unfortunately, it is hindered because two big firms ODGL and PPL have no expertise and qualification to explore, expand and further increase the production and exploration of the Hydrocarbon energies.
In order to solve this problem, the government should sell of the 26% share of PPL to overseas foreign firms so that they will take measures and steps to enhance the capacity of the Hydrocarbon energy.
Governance on Electricity Theft
Power theft is one of the most pressing issues in Pakistan, especially in the slums and neglected/under-reported vicinities. Now, the major reason is that the electricity has high rates that they could not afford. Almost 20% of theft is done from the total electricity produced.
To avoid communal riots, government officials and local municipalities often ignore issues regarding theft.
However, there are some electric companies that are taking strict regulations like installation of new meters, meters with cameras, and strict monitoring of fraudulent activities.
Introduction of Pipeline Projects
There are 4 major oil pipeline projects in Pakistan.
- Karachi-Mahmoodkot (KMK) Pipeline
- Mahmoodkot- Faisalabad–Machhike (MFM) Pipeline
- White Oil Pipeline
- Korangi-Port Qasim Link (KPLP) Pipeline
Whereas there is a joint venture project for a gas pipeline between Pakistan-Iran but it is still on hold due to the sanctions on Iran. This project is the most promising one for the future of Pakistan, aiming to decrease gas prices and manage around 25% of the country’s demand.
How to Tackle Power Transmission and Distribution Challenges in Pakistan
Pakistan’s electricity sector has been grappling with significant and enduring challenges for a considerable period.
In 1994, the government introduced private sector participation in power generation and unbundled the centralized Wapda to enhance operational efficiency across generation, transmission, and distribution.
Additionally, in 2005, the privatization of electricity provision in Karachi led to the creation of Karachi Electric (KE), a vertically integrated private utility aimed at achieving financial stability.
However, despite these efforts, the desired improvements in efficiency and service delivery were not realized.
Furthermore, the addition of generation capacity under the China-Pakistan Economic Corridor (CPEC) agreements was not accompanied by adequate upgrades to the transmission and distribution infrastructure.
Consequently, the sector continues to face escalating costs and persistent load shedding, undermining the envisioned improvements.
Tackling transmission and distribution challenges in the electricity sector requires a comprehensive approach that addresses various aspects of the infrastructure.
Here are some key strategies and measures to tackle these challenges some ways are mentioned below.
- Infrastructure Upgrades: Investing in upgrading and modernizing the transmission and distribution infrastructure is crucial. This includes replacing outdated equipment, enhancing capacity, improving reliability, and reducing losses. Upgrading substations, transformers, and power lines can help optimize the flow of electricity and minimize transmission and distribution losses.
- Smart Grid Implementation: Implementing smart grid technologies enables real-time monitoring, control, and optimization of electricity distribution. Smart grids facilitate better management of electricity flow, fault detection, and load balancing. This technology enables quick response to outages, reduces downtime, and enhances the overall efficiency of the distribution network.
- Load Management and Demand Response: Implementing load management strategies and demand response programs can help balance electricity supply and demand. By incentivizing consumers to reduce electricity usage during peak hours or shifting it to off-peak hours, the strain on the distribution system can be minimized, leading to a more efficient and reliable supply.
- Grid Expansion and Reinforcement: Identifying areas with insufficient grid coverage and expanding the transmission and distribution network to reach underserved regions is crucial. Reinforcing the grid infrastructure in high-demand areas can alleviate overloading and improve the overall reliability of the system.
- Renewable Energy Integration: Integrating renewable energy sources into the grid requires a robust transmission and distribution infrastructure. Upgrading the system to accommodate distributed generation and establishing grid connection protocols for renewable energy installations helps optimize the utilization of renewable resources and supports a more sustainable and decentralized power system.
- Collaborative Approach: Collaboration between stakeholders, including government entities, utility companies, regulators, and consumers, is essential for effectively tackling transmission and distribution challenges. Joint efforts can facilitate the development and implementation of comprehensive plans, policies, and regulations to improve the efficiency and reliability of the electricity distribution system.
- Capacity Building and Training: Enhancing the technical expertise of professionals involved in transmission and distribution operations through training and capacity-building programs ensures a skilled workforce capable of managing and maintaining the infrastructure effectively.
Wrapping Up
In the end, Pakistan faces significant power challenges, including insufficient generation capacity, frequent load shedding, and blackouts, as well as transmission and distribution losses.
These challenges have a detrimental impact on the economy, industries, and the daily lives of the population.
Implementing comprehensive strategies to enhance generation capacity, upgrade infrastructure, and reduce losses will be crucial in overcoming these challenges and ensuring a reliable and accessible power supply for the country.
The government of Pakistan has implemented a range of initiatives and policies to address power challenges, increase generation capacity, and promote renewable energy sources.
Power sector reforms, efforts to enhance generation capacity, and the establishment of renewable energy targets and incentives are key pillars of these initiatives.
By fostering a conducive environment for investment, promoting renewable energy, and strengthening the power sector, the government aims to ensure a reliable, affordable, and sustainable power supply for the country.
