INP-WealthPk

Integrated Policy Framework Needed for Cheaper Electricity in Pakistan

June 14, 2022

By Ayesha Saba ISLAMABAD, June 14 (INP-WealthPK): Pakistan is in dire need of completing the low-cost hydropower projects launched by the Water and Power Development Authority (WAPDA) to meet the increasing demand for energy and water by the household, commercial and industrial sectors. The Authority currently owns and operates 22 hydel power stations with an installed generation capacity of 9,406MW. On average, these stations add 37 billion units of power per annum to the grid. Of these power stations, Mangla Hydel Power Station contributes 920MW, Ghazi Barotha 1,450MW and Neelum-Jhelum 850MW, while the other stations collectively added 708MW to the national grid. A number of hydroelectric projects are also under construction and projected to be completed by 2028-29. Work on Tarbela 5th Extension is going on at full pelt and its completion by 2014 will add 1,530MW to the national grid. With completion of the project, the installed generation capacity [at Tarbela] will increase from 4,888MW to 6,418MW. On average, the project will feed 1.347 billion units of low-cost and green energy to the national grid annually. The annual benefits of the project envisaged in PC-I have been estimated at Rs15 billion. Talking to WealthPK, official spokesperson for the Ministry of Water Resources said, “Sustainable and affordable electricity supply in Pakistan can be ensured by maximizing hydropower penetration and relying more on indigenous fuels. For better utilization of renewable energy resources, it is imperative to assess the exact costs and benefits attached to those resources. Developed countries have utilized advanced planning and modelling tools to ensure sustainable development of the sector.” “In the recent past, electricity generation planning has tilted towards expensive and imported fossil fuels. This dependence on imported fuels and sudden increase in the price of oil in the international market has crippled the energy economy in Pakistan,” the spokesman said. “In such circumstances, Pakistan needs an integrated policy framework at the federal and provincial level to produce cheaper electricity and build additional dams immediately in order to improve water management. The project will not only help meet the energy demands in a sustainable manner and ensure generation of affordable electricity, but also enable Pakistan to deal with major challenges in the region like renewable energy production and rural development in a crisis zone,” said the spokesman. During a recent visit to the project site of Tarbela 5th Extension, Federal Minister of Water Resources Syed Khursheed Shah emphasized the need for timely completion of WAPDA projects for additional water, hydel power, and construction activities on various components of the project including the main dam and diversion spillway tunnels. The ministry will regularly monitor the development of under-construction projects and assist the Water and Power Development Authority (WAPDA) in finishing them on time by reducing bottlenecks, he added.