INP-WealthPk

Local Energy Sources to Help Pakistan in Controlling Electricity Shortfall

May 30, 2022

By Muhammad Mudassar ISLAMABAD, May 30, INP-WealthPK: Pakistan is facing a huge shortfall of electricity owing to fuel shortage and technical faults that can be controlled by exploring local sources of energy, WealthPK reports. According to the National Power Control Centre (NPCC), the current shortfall of electricity in the country is around 5,000 megawatts. The government has, however, started power load shedding of 10 to 15 hours in rural areas and six to eight hours in urban areas since an officially confirmed shortfall of 5,000 megawatts is over and above the constraints of the National Transmission and Dispatch Company, the distribution companies and local faults. The major sources of electricity are furnace oil, coal, liquefied natural gas (LNG) and hydel besides renewable energy sources including wind and solar. According to Arif Habib Limited, coal contributed 24 percent to electricity generation, RLNG 19 percent, hydel 16 percent, nuclear 15 percent, furnace oil 11 percent, gas 10 percent, wind three percent, bagasse one percent and solar one percent. A large amount of energy fuel is imported from different countries. Oil, coal, and LNG are imported at an exorbitant rate. The major reason for a huge share of energy products in import bills is the rise in the energy fuel prices in the international market, which is bearing the brunt of the conflict between Russia and Ukraine. The graph shows the LNG and crude oil prices in the international market. Pakistan’s total imports grew by 46.41 percent during the first 10 months of the current fiscal and reached $65.47 billion as compared to $44.73 billion in the same period last year. The total oil import bill grew by 96 percent and reached $17.03 billion during the first 10 months of the current fiscal as compared to last year. The oil imports accounted for 26 percent of the total import bill. Besides increasing the price of electricity, the higher rate of energy fuels also burdened the national exchequer. However, Pakistan can reduce its import bill by exploring its local energy sources. It will also help minimise the energy input cost for the industry sector. Pakistan has tremendous potential for renewable energy sources. Three billion tonnes of coal reserves have been discovered at coalfield Block-1 in Thar region that are equivalent to five billion barrels of crude oil. It will change Pakistan’s fortune because after hydel, coal is the biggest contributor to electricity generation in the country. The government should evolve comprehensive programmes for the development of the renewable energy industry and markets, based on research and development, supportive infrastructure, financing mechanisms and use of market-based instruments such as renewable portfolio standards, green pricing, feed-in tariffs, net metering and tradable renewable energy certificates. The government should promote the use of greener sources of energy in the countryside by convincing people to install biogas and solar-powered units. Biogas can also be a good source of energy. A large portion of the population is associated with the rural sector and has the potential to produce biogas. The government can promote biogas technology by changing the mode of investment to alleviate poverty. Sources told WealthPK that instead of giving money to people under Benazir Income Support Programme, the government should spend the amount for the promotion of biogas technology in rural areas to alleviate poverty in a sustainable manner besides controlling the shortfall of electricity.