INP-WealthPk

Heat-related power cuts a drag on industrial productivity

July 17, 2024

 Amir Saeed

 

The recent heatwave resulted in a surge in electricity demand, leading to widespread power outages, reducing industrial output and impeding the country’s economic growth.Talking to WealthPK, Saifullah Chattha, former vice-chairman of National Electric Power Regulatory Authority, said that the power outages were triggered by localised failures in the distribution systems. “These problems are caused by extreme heat, putting additional strain on the already overburdened distribution infrastructure. As a result, transformers and other equipment fail, causing power outages that can last for hours or even days.” He pointed out that inadequate investment in maintenance and upgradation resulted in an inefficient and unstable grid, making them prone to faults and failures. “This has led to a significant gap between the demand for electricity and the available supply, causing widespread power blackouts.”Saifullah explained that the distribution system in the country was outdated and ill-maintained, leaving it vulnerable to malfunctions and failures. “The extreme heat has compounded the situation, pushing the distribution infrastructure to its limits.”

He lamented that the frequent power outages were disrupting industrial activities, leading to significant losses and affecting the country’s economic growth. “These power outages are not only affecting industrial activities but also leading to job losses and closure of industries.”“To combat power outages, it is critical to upgrade and maintain the distribution infrastructure, including replacing the outdated and malfunctioning transformers. Energy-saving activities should also be implemented to alleviate the burden on the distribution system during peak summer months,’’ he suggested. Talking to WealthPK, Zulfiqar Ali, Director General of Reforms in the Board of Investment (BOI), said that the implications of power outages were far-reaching, affecting industries, businesses, and individuals alike. “A lack of a reliable power supply stifles economic growth, reduces productivity and causes major economic losses.”He pointed out that malfunctioning transformers, in particular, were a major contributor to power outages because they were unable to meet the rising electricity demand. “Resolving these challenges can help reduce the frequency and duration of power outages, thus providing relief to consumers.”

Zulfiqar explained that in industries where quality control is paramount, such as pharmaceuticals and food processing, power outages can be disastrous. “Temperature control is critical in these industries, and even a brief power outage can compromise the quality of products.”He suggested the government and distribution companies promote energy conservation. “Energy conservation is critical for reducing the electricity demand. Discos and the government must start awareness programmes to encourage energy conservation.” Encouraging people to use energy-efficient appliances, turning off additional lights and fans during peak hours, and lowering overall energy consumption would ease the burden on the distribution system and prevent power disruptions, he underscored.He further suggested that the industries should invest in reliable power infrastructure and backup systems. “This includes installing generators and uninterruptible power supplies as well as doing away with the redundant systems to ensure continuous operations.”

Credit: INP-WealthPk