Pakistan's Electric Power Crisis Worsens

In June 2007, the power cuts in Pakistan lasted no more than 3 or 4 hours a day. Today, in extremely hot weather, Pakistanis have to endure without electricity for 8 to 10 hours a day. Industrial production is suffering, exports are down, jobs are being lost, and the national economy is in a downward spiral. By all indications, the power crisis in Pakistan is getting worse than ever.

Extended Load-shedding:
Extended electricity load shedding in Karachi's five major industrial estates is causing losses in billions of rupees as the production activity has fallen by about 50 per cent. KESC, Karachi's power supply utility, is dealing with with a shortfall of around 700MW against a total demand of 2200MW. Almost all forms of power generation from fossil fuel-fired thermal to hydroelectric to nuclear are down from a year ago. As a result of the daily rolling blackouts, the economy, major exports and overall employment are also down and the daily wage earners are suffering. The KESC and PEPCO owe more than Rs. 10b to the independent power producers (IPPs) and paying them will help bring them into full operation and ease the crisis at least partially.

Electricity Demand:
As discussed in an earlier post, Pakistan's current installed capacity is around 19,845 MW, of which around 20% is hydroelectric. Much of the rest is thermal, fueled primarily by gas and oil. Pakistan Electric Power Company PEPCO blames independent power producers (IPPs) for the electricity crisis, as they have been able to give PEPCO only 3,800 MW on average out of 5,800 MW of confirmed capacity. Most of the IPPs are running fuel stocks below the required minimum of 21 days. IPPs complain that they are not being paid on time by PEPCO.

Per capita energy consumption of the country is estimated at 14 million Btu, which is about the same as India's but only a fraction of other industrializing economies in the region such as Thailand and Malaysia, according to the US Dept of Energy 2006 report. To put it in perspective, the world average per capita energy use is about 65 million BTUs and the average American consumes 352 million BTUs. With 40% of the Pakistani households that have yet to receive electricity, and only 18% of the households that have access to pipeline gas, the energy sector is expected to play a critical role in economic and social development. With this growth comes higher energy consumption and stronger pressures on the country’s energy resources. At present, natural gas and oil supply the bulk (80 percent) of Pakistan’s energy needs. However, the consumption of those energy sources vastly exceeds the supply. For instance, Pakistan currently produces only 18.3 percent of the oil it consumes, fostering a dependency on expensive, imported oil and that places considerable strain on the country’s financial position, creating growing budget deficits. On the other hand, hydro, coal, wind and solar are perhaps underutilized and underdeveloped today, as Pakistan has ample potential to exploit these resources.

The country's creaky and outdated electricity infrastructure loses over 30 percent of generated power in transit, more than seven times the losses of a well-run system, according to the Asian Development Bank and the World Bank; and a lack of spare high-voltage grid capacity limits the transmission of power from hydroelectric plants in the north to make up for shortfalls in the south.

Gilani Government's Response:
Neelum-Jhelum hydroelectric project, first formally announced by former Minister Omar Ayub on June 10, 2007, is finally starting in earnest under the PPP government of Prime Minister Yousaf Raza Gilani. This hydro project is expected to add 963MW power generating capacity at a cost US $2.2 billion, according to Business Wire. Prior to this project, the new Pakistani Prime Minister signed a deal with a Chinese company, Dong Fong, for setting up 525 MW thermal power plant with an investment of $450 million at Chichoki Mallian (Sheikhupura). Both of these projects are expected help partially close the 3000 MW gap that exists today between supply and demand in Pakistan.

Renewable Energy Opportunities:
In response to the warnings of energy crisis in Pakistan, President Musharraf's government recognized the need and the potential for renewable alternatives and, in 2006, created Alternative Energy Development Board to pursue renewable energy. In particular, AEDB is focusing on wind and solar as viable alternatives. AEDB is facilitating setting up of small renewable energy projects in line with government’s policy of promoting the use of renewable energy in the country’s power generation mix, says the board’s chief executive officer Mr Arif Alauddin. AEDB has recently issued Makwind Power Private Ltd (MPPL) a Letter of Intent for the setting up of 50MW wind farm at Nooriabad in Sindh, as part of its efforts to facilitate 700 MW wind energy by 2010.


According to data published by Miriam Katz of Environmental Peace Review, Pakistan is fortunate to have something many other countries do not, which are high wind speeds near major centers. Near Islamabad, the wind speed is anywhere from 6.2 to 7.4 meters per second (between 13.8 and 16.5 miles per hour). Near Karachi, the range is between 6.2 and 6.9 (between 13.8 and 15.4 miles per hour). Pakistan is also fortunate that in neighboring India, the company Suzlon manufactures wind turbines, thus decreasing transportation costs. Working with Suzlon, Pakistan can begin to build its own wind-turbine industry and create thousands of new jobs while solving its energy problems. Suzlon turbines start to turn at a speed of 3 meters per second. Vestas, which is one of the world's largest wind turbine manufacturers, has wind turbines that start turning at a speed of 4 meters per second. In addition to Karachi and Islamabad, there are other areas in Pakistan that receive a significant amount of wind.

In only the Balochistan and Sindh provinces, sufficient wind exists to power every coastal village in the country. There also exists a corridor between Gharo and Keti Bandar that alone could produce between 40,000 and 50,000 megawatts of electricity, says Ms. Katz who has studied and written about alternative energy potential in South Asia. Given this surplus potential, Pakistan has much to offer Asia with regards to wind energy. In recent years, the government has completed several projects to demonstrate that wind energy is viable in the country. In Mirpur Sakro, 85 micro turbines have been installed to power 356 homes. In Kund Malir, 40 turbines have been installed, which power 111 homes. The Alternative Energy Development Board (AEDB) has also acquired 18,000 acres for the installation of more wind turbines.

In addition to high wind speeds near major centers as well as the Gharo and Keti Bandar corridor, Pakistan is also very fortunate to have many rivers and lakes. Wind turbines that are situated in or near water enjoy an uninterrupted flow of wind, which virtually guarantees that power will be available all the time. Within towns and cities, wind speeds can often change quickly due to the presence of buildings and other structures, which can damage wind turbines. In addition, many people do not wish for turbines to be sited near cities because of noise, though these problems are often exaggerated. Wind turbines make less noise than an office and people comfortably carry on conversations while standing near them.

As is painfully evident in summers, Pakistan is an exceptionally sunny country. If 0.25% of Balochistan was covered with solar panels with an efficiency of 20%, enough electricity would be generated to cover all of Pakistani demand. In all provinces the AEDB has created 100 solar homes in order to exploit solar energy.

Solar energy makes much sense for Pakistan for several reasons: firstly, 70% of the population lives in 50,000 villages that are very far away from the national grid, according to a report by the Solar Energy Research Center (SERC). Connecting these villages to the national grid would be very costly, thus giving each house a solar panel would be cost efficient and would empower people both economically and socially.

Coal Power and Hydroelectricity
In addition to high winds and abundant solar potential, Pakistan has the fifth largest coal deposits in the world. The negative environmental effects of coal burning can be be mitigated by making use of the latest clean coal technologies that limit noxious gas exhaust into the atmosphere.

Pakistan also has some deposits of natural gas in the Potwar Plateau region and near the border between Balochistan and Sindh, but these are likely to disappear within 20 years.

Because of the presence of many rivers and lakes, it makes sense for Pakistan to build dams to support water management and electricity generation projects. However, it must be done with care to avoid damage to the environment or loss of farmland.

Financial and Policy Incentives
Despite the fact that Pakistan is so well endowed with wind and solar potential, only a few projects such as those mentioned above have been completed. One of the reasons why this has occurred is that Pakistan does not have major financial incentives available for those who want to install wind turbines or solar panels. Let us look at the case of India, Pakistan's neighbor. Despite having less potential for wind, India now has the world's fourth largest number of wind turbines installed at 7,093 MW, according to India: Renewable Energy Market report. Ahead of India are Germany at 21,283 MW, Spain at 13,400 MW and the US at 12,934 MW. In Germany, Spain and India, those who install wind turbines and solar panels are guaranteed a certain rate per kilowatt hour. In India, this varies according to the technology and the area. The Ministry of New and Renewable Energy, India reports that in most areas, between 2500 and 4800 rupees are guaranteed for solar panels, and for wind turbines, between 250,000 and 300,000 rupees are awarded.
Because of the above incentives, the cost of wind in India is between 2 and 2.5 cents per kilowatt hour while in Pakistan, the cost is 7 cents. In December 2006, President Musharraf announced a national renewable energy policy. This policy means that small projects do not need approval and that any person can put up their own project. However, there are no financial incentives for doing so. At the moment, all renewable energy equipment has no sales or income tax and is free of custom duty, but these incentives are not enough to stimulate major growth in the renewable energy market where ROIs and other financial ratios have a long gestation or breakeven period. In certain situations, such as the textiles and other Karachi industrial units losing production and export opportunities due to power cuts, it may make sense for the owners to join hands and build power generation capacity they can rely on.

Conclusion
In addition to coal and hydro electricity generation, Miriam Katz argues that it is clear that Pakistan is a suitable country for the installation of wind and solar: due to high winds near cities; the presence of rivers and lakes as well as the availability of wind turbines from nearby India. There are also other reasons for installing renewable energy. It is quite normal for extended power outages to happen on a daily basis in the country, but this cannot continue if the Pakistani economy is to grow. In March 2007, President Musharraf stated that renewable energy should be part of the push to increase energy supplies by 10 to 12 percent every year. The government also set a target of 10 percent of energy to come from renewables by 2015. If the new PPP-led government follows through with aggressive renewable energy push, Pakistan could be an Asian leader in renewable energy given its natural resources of wind and solar as its strategic endowments.

Related Links:

Renewable Energy Businesses in Pakistan

Pakistan Council of Renewable Energy Technology

Renewable Energy for Pakistan

Pakistan Policy on Renewable Technology

Sugarcane Ethanol Project in Pakistan

Community Based Renewable Energy Project in Pakistan

Comments

Parveez Syed said…
Pakistan power cuts, another ENRON? by Parveez Syed © 2008
http://FixyaExperts.wordpress.com, http://FixyaExperts.blogspot.com
Riaz Haq said…
Here's fresh news that caught my attention:

"Pakistan, Turkey sign wind energy pact"

Islamabad, Jan 17 (Xinhua) Pakistan Saturday signed a wind energy pact with a Turkish firm.

Pakistan’s water and power minister Raja Pervez Ashraf and chief executive of the Turkish company signed the agreement in Islamabad, the News Network
International news agency reported."

Here's a rather skeptical assessment I received from a person involved in the energy sector in Pakistan:

I reached the conclusion that based on economics,wind energy was best option and even Government Of Pakistan issued 80 letters of intent in this respect .I was trying to sell GE wind Turbines from Germany.But it took so long that when it comes to the stage of final negotiations,we found that all factories in the world are booked for two years and delivery not possible before 3 years.Most American companies found partners in India who capitalized on the situation and started manufacturing under license from foreign companies.We could not even get from India and chapter was closed.Then there was political mess in Pakistan ,not yet get cleared. Only this week Water And Power Ministry announced that it has made an agreement with a Turkish Company to build first Power Plant in Sindh using Wind Turbines.May God save this Turkish Company.
Riaz Haq said…
Here is a report on the cost of wind turbines in 2011:

Wind energy, it appears, has never been so competitive. Prices for wind turbines last year dropped below €1 million ($1.36 million) per megawatt for the first time since 2005, due largely to over-capacity, greater manufacturing efficiency and increased scale, according to the market researcher Bloomberg New Energy Finance.

The group’s most recent Wind Turbine Price Index, based on confidential data provided by 28 major purchasers of wind turbines, shows that prices remain under pressure in most parts of the world. The survey includes more than 150 undisclosed turbine contracts, totaling nearly 7 GW of capacity in 28 markets around the world, with a focus on Europe and the Americas.

While the news is good for wind farm project developers hoping to save money, it’s troubling for manufacturers and component suppliers trying to make money – they have seen their margins shrink over the past couple of years. Global turbine contracts signed in late 2010 for the first six months of this year averaged €980,000 per MW, down 7 percent from €1.06 million per MW in 2009 and a peak of €1.21 million in 2008 and 2007.

All manufacturers covered by the survey showed “aggressive pricing, according to New Energy Finance, which was acquired by Bloomberg in 2009. Low-priced power-purchase-agreements in markets exposed to competitive electricity prices – rather than fixed feed-in tariffs – appear to have put additional pressure on turbine contracts. Average prices in Italy, the United Kingdom and the United States were well below €1 million per MW for contracts signed in 2010 and slated for delivery in the first half of this year.

The cost of electricity generated by wind is now at record low levels, according to the survey. “For the past few years, wind turbine costs went up due to rising demand around the world and the increasing price of steel,” Michael Liebreich, chief executive of Bloomberg New Energy Finance, said in a statement. “Behind the scenes, wind manufacturers were reducing their costs, and now we are seeing just how cheap wind energy can be when overcapacity in the supply chain works its way through to developers.”

Overall, the annual 2010 global wind market shrunk for the first time in two decades, down 7 percent from 38.6 GW in 2009 due mainly to a disappointing year in the U.S. and a slowdown in the Europe, according to figures released earlier this month by the Global Wind Energy Council. The U.S. which is traditionally one of the strongest wind markets, saw its annual installations drop by 50 percent from 10 GW in 2009 to just over 5 GW in 2010, GWEC said in a statement.

“Our industry continues to endure a boom-bust cycle because of the lack of long-term, predictable federal policies, in contrast to the permanent entitlements that fossil fuels have enjoyed for 90 years or more,” Denise Bode, CEO of the American Wind Energy Association, said in the same statement.

GWEC secretary general Steve Sawyer believes 2011 will be better. “Orders picked up again in the second half of 2010 and investments in the sector continue to rise,” he said.

On that note, French manufacturer Alstom won a contract this month from Traianel to build Germany’s 80-turbine Borkum West II wind farm offshore farm. The project is scheduled for completion in March 2012.
Riaz Haq said…
Here's a NY Times story on dysfunction in Gurgaon, India:

Gurgaon, located about 15 miles south of the national capital, New Delhi, would seem to have everything, except consider what it does not have: a functioning citywide sewer or drainage system; reliable electricity or water; and public sidewalks, adequate parking, decent roads or any citywide system of public transportation. Garbage is still regularly tossed in empty lots by the side of the road.

With its shiny buildings and galloping economy, Gurgaon is often portrayed as a symbol of a rising “new” India, yet it also represents a riddle at the heart of India’s rapid growth: how can a new city become an international economic engine without basic public services? How can a huge country flirt with double-digit growth despite widespread corruption, inefficiency and governmental dysfunction?

In Gurgaon and elsewhere in India, the answer is that growth usually occurs despite the government rather than because of it. India and China are often considered to be the world’s rising economic powers, yet if China’s growth has been led by the state, India’s growth is often impeded by the state. China’s authoritarian leaders have built world-class infrastructure; India’s infrastructure and bureaucracy are both considered woefully outdated.

Yet over the past decade, India has emerged as one of the world’s most important new engines of growth, despite itself. Even now, with its economy feeling the pressure from global inflation and higher interest rates, some economists predict that India will become the world’s third largest economy within 15 years and could much sooner supplant China as the fastest-growing major economy.

Moreover, India’s unorthodox path illustrates, on a grand scale, the struggles of many smaller developing countries to deliver growth despite weak, ineffective governments. Many have tried to emulate China’s top-down economic model, but most are stuck with the Indian reality. In India, Gurgaon epitomizes that reality, managing to be both a complete mess and an economic powerhouse, a microcosm of Indian dynamism and dysfunction.

In Gurgaon, economic growth is often the product of a private sector improvising to overcome the inadequacies of the government.

To compensate for electricity blackouts, Gurgaon’s companies and real estate developers operate massive diesel generators capable of powering small towns. No water? Drill private borewells. No public transportation? Companies employ hundreds of private buses and taxis. Worried about crime? Gurgaon has almost four times as many private security guards as police officers.

“You could call it the United States of Gurgaon,” said Sanjay Kaul, an activist critical of the city’s lack of planning who argues that Gurgaon is a patchwork of private islands more than an interconnected city. “You are on your own.”

Gurgaon is an extreme example, but it is not an exception. In Bangalore, outsourcing companies like Infosys and Wipro transport workers with fleets of buses and use their own power generators to compensate for the weak local infrastructure. Many apartment buildings in Mumbai, the nation’s financial hub, rely on private water tankers. And more than half of urban Indian families pay to send their children to private schools rather than the free government schools, where teachers often do not show up for work.


http://www.nytimes.com/2011/06/09/world/asia/09gurgaon.html?_r=1&scp=1&sq=gurgaon&st=cse
Riaz Haq said…
Pakistan planning to purchase two nuclear power plants from China, reports The Express Tribune:

ISLAMABAD:

Pakistan has planned to purchase two nuclear power plants with a combined capacity of 2,000 megawatts from China, which will be utilised for setting up Karachi Nuclear Power Plant-2 (Kanupp-2) and Kanupp-3 and help mitigate the energy crisis.

According to documents available with The Express Tribune, China National Nuclear Corporation (CNNC) and Pakistan Atomic Energy Commission (PAEC) are likely to enter into an agreement to conduct a joint study to finalise design modifications, which would enable Pakistan to acquire two nuclear power plants, each having power generation capacity of 1,000 megawatts.

After completion of this project, a contract for establishing Kanupp-2 and Kanupp-3 will be negotiated.

The Planning Commission has said CNNC may be asked to grant intellectual property rights for the existing 1,000-megawatt plant and suggest steps which could help Pakistan avoid violation of property rights.

China has three state-owned corporations, which can own and operate nuclear power plants, including China National Nuclear Corporation (CNNC), China Guangdong Nuclear Power Holding Company (CGNPC) and China Power Investment Corporation (CPIC).

CGNPC currently operates four nuclear power plants of 3,758 megawatts in China and also involved in 16 other projects having capacity of 25,000 megawatts, which are under construction. The company’s focus has been on three-loop 1,000-megawatt plants.

The Planning Commission also questioned whether PAEC had approached the three nuclear power plant developers in order to ensure fair competition in offering the plants. “Moreover comparison of intellectual property rights of other nuclear power plant vendors may also be brought out,” the commission said.

In an attempt to increase power generation capacity, the government focuses on developing nuclear energy on a relatively bigger scale. Accordingly, the Energy Security Action Plan has envisaged increasing the share of nuclear power by installing 8,800-megawatt nuclear power plants by 2030.

The import of nuclear power plants will lead to electricity generation at cheaper rates compared to the thermal source, contributing to tackling the power crisis. About a month ago, power shortages reached their peak at around 8,000 to 8,500 megawatts, forcing long hours of outages across the country.

The load-shedding has disrupted industrial activity, denting overall economic growth of the country, which stood at 2.4 per cent last fiscal year.


http://tribune.com.pk/story/289908/energy-requirement-pakistan-to-buy-two-nuclear-power-plants-from-china/
Riaz Haq said…
Stored solar? Here's NY Times on storing solar energy for the hours when the sun is not shining:

..That would be solar thermal power, which harnesses heat from the sun and converts it to steam to make electricity as the need arises, especially when the sun has disappeared behind a cloud or dropped below the horizon.

Electricity is unique among major commodities in that it must be produced and consumed simultaneously. It can be stored in a battery, of course, but for now, that technology’s costs are so high that batteries are used mostly to smooth out production from renewable sources, not to save it for later.

The economics of a plant that can store bulk amounts of energy are a bit arcane. At the simplest level, the idea is to gather the sun’s heat when it is available and save it until prices for electricity reach a peak. At the moment, though, prices peak when the sun is high in the sky, because that is when the demand for power, mostly for air-conditioning, is highest. Some experts think it will be years before the power system is so saturated with solar photovoltaics that thermal storage becomes worthwhile.

“As the world exists now, what you’re doing with storage is taking high-priced peak potential generation and moving it to off-peak,” said George Sterzinger, director of the Renewable Energy Policy Project, a nonprofit group in Washington.

But one solar thermal plant with storage is already in service, near Seville, Spain. Built by Torresol Energy, the plant is small, just under 20 megawatts. And four are in construction or on the drawing boards in the American Southwest, as I explained in my article.

Their backers are betting that photovoltaics will get cheap and will drive down the price of electricity in daylight hours. But there are other reasons that energy storage might be a good deal from a financial point of view.

One is that the two biggest forms of renewable energy, wind and solar, have a tendency to gear up and then fall off very quickly, at least by the standards of conventional generators. If the rest of the system has to respond, then a lot of plants running on coal or natural gas would have to increase their output or cut it very quickly.

If the fraction of energy derived from renewable sources is small, that’s not a big problem; if solar makes up, say, 2 percent of production, and if it falls by half in a few minutes, the rest of the system can compensate. But if solar makes up 20 percent, the potential problem gets bigger.

Paul Denholm, a researcher at the National Renewable Energy Laboratory, in Boulder, Colo., recently estimated that 5 percent of annual photovoltaic production might have to be shut off because it came at the wrong time or introduced too much instability into the system. Adding storage, he said, could be worth 0.3 cents per kilowatt-hour. (That sounds small, but it’s an appreciable fraction of the national average retail price of a kilowatt-hour, which is around 11 cents.)

Worth even more is the value of a source that can be counted on to produce when needed, as opposed to when the sun is shining; that’s worth 0.7 cents to 2 cents, he calculated.

There are other ways to store electricity, but all of them incur costs, both for equipment and the energy. The “round-trip efficiency” of a solar thermal system – that is, the ratio of energy recovered compared with the energy invested – is in the range of 95 percent. That’s far higher than the ratio for the biggest conventional form of storage, pumped hydro, which involves pumping water up a hill and letting it turn a turbine to make electricity on the way down later.

Another technique is storing energy by compressing air. But with either of these, the energy being stored might have come from a coal-fired plant, which will not help the environment or help a utility meet its quota for renewable energy.
Riaz Haq said…
Pakistan wants to be leading producer of wind energy, says a story in Express Tribune:

Despite being a late entrant to the wind energy race, Pakistan is soon going to join leading wind energy producers because of growing interest of investors and forward-looking renewable energy policies of the government, says Fauji Fertilizer Company Energy Limited Project Director Brigadier (R) Tariq Izaz.

He was speaking on the sidelines of a briefing arranged for select media at the company site at Jhampir, District Thatta, on Thursday.

“With eight projects of wind energy in progress, the country is all set to take off in this area,” said Izaz. “This will not only reduce electricity shortages, but will also help ease the burden of oil imports that cost over $12 billion annually.”

Fauji Fertilizer Company Energy Limited (FFCEL) will start producing electricity on commercial basis from November this year, which will be the first addition of wind power to the national grid. The company initially plans to produce 50 megawatts and later expand the capacity to 250 megawatts.

Izaz said the future of wind power was extremely bright because of the wind corridors in Sindh. To substantiate his point, he said, the fair category of wind speed in most parts of the world is between 6.2 and 6.9 metres per second (m/s). There are a few places that come under the good category where wind speed is between 7 and 7.3 m/s.

Fortunately, the wind speed in the Sindh corridor is stronger than the above two categories and it stands in the excellent category that is between 7.5 and 7.7 m/s.

FFCEL, a subsidiary of Fauji Fertilizer Company, will start trial energy production from June, which will be provided to the national grid free of charge by the time commercial production starts in November.

According to a USAID report, Pakistan has the potential of producing 150,000 megawatts of wind energy, of which only the Sindh corridor can produce 40,000 megawatts. Jhampir, Gharo and Keti Bander are the three areas where Sindh has a huge potential for wind energy.

Fauji Fertilizer has acquired 1,283 acres of land for the project and invested $135 million since its start in March 2007. At present, the company is in the process of installing 33 wind turbines.

Izaz claimed that the project had achieved 60% completion target. Seventeen sets of wind turbines and blades have already arrived, while remaining 16 turbines and blades are scheduled to reach Karachi in March.

He said seven wind turbines had already been installed and the remaining 25 towers were in different stages of manufacturing at the Karachi Manufacturing Works at Bin Qasim.

Keeping in view the country’s energy demand, the government has decided to increase the share of renewable sources in the overall energy mix. The renewable energy policy was unveiled in December 2006 and the Alternative Energy Development Board (AEDB) has issued 97 letters of interest for wind energy – FFC got 24th for 50 megawatts and 96th for an additional 100 megawatts. AEDB also allotted land to 23 investors – 12 in Gharo and 11 in Jhampir.


http://tribune.com.pk/story/341000/pakistan-to-take-lead-in-wind-energy/
Riaz Haq said…
Here's an AFP report on World Bank loaning over a billion dollars to Pakistan for hydro energy and drip-sprinkler irrigation projects:

The World Bank said Tuesday it would fund two projects totaling $1.09 billion, in energy and irrigation, aimed at supporting Pakistan's growth agenda for reducing poverty.

The World Bank's executive board approved the projects Tuesday, the development lender said in a statement.

The $840 million Tarbela IV Extension Hydropower Project will add power generation capacity of 1,410 megawatts, contributing a crucial source of electricity for the economic growth and development of Pakistan, the World Bank said.

Only 15 percent of Pakistan's vast hydropower potential has been developed, the Bank noted.

The Tarbela IV Extension Hydropower Project will use the existing dam, tunnel, roads and transmission line for generating additional electricity in summer months when demand for electricity and river flows are high, it added.

"The beauty of this project is that it will help Pakistan reduce the gap between supply and demand of electricity by maximizing the benefits of existing infrastructure of Tarbela Dam without requiring any land acquisition or relocation of population," Rachid Benmessaoud, World Bank country director for Pakistan, said in the statement.

"The direct beneficiaries will be millions of energy users, including industry, households and farmers who would get more electricity at a lower cost and suffer fewer blackouts."

The $250 million Punjab Irrigated Agriculture Productivity Improvement Program Project is aimed at getting maximum productivity out of irrigation water by weaning farmers away from the traditional and "wasteful" flood irrigation, the Bank said.

The project will emphasize more modern methods like drip and sprinkler irrigation systems, which in turn will encourage crop diversification, it said.

The hydropower project includes a $400 million, 21-year loan from the Bank's International Bank of Reconstruction and Development that includes a grace period of six years.

The remaining $440 million of the Tarbela project and $250 million for the irrigation project are credits from the International Development Association, the World Bank's concessionary lending arm.

These 25-year loans have a 1.25 percent interest rate and a five-year grace period, the Bank said.


http://www.google.com/hostednews/afp/article/ALeqM5gC8sjJnQh2zAV1dxx-fMAZlKG0FA?docId=CNG.cc5ff6942ce75ef4fd87ae4d1d3fa477.51
Riaz Haq said…
Here's a News story of how the worst-hit Punjab industries are switching to alternate power and gas generation:

The Punjab industries are converting on alternative energy due to uninterrupted power and gas outages of six to eights hours daily, besides improving their efficiency to reduce costs and stay competitive domestically and internationally, analysts said on Tuesday.

“We are unable to compete with similar industries in other provinces that enjoy full gas supplies and lower electricity load-shedding, said Syed Nabeel Hashmi, Chairman Punjab Economic Forum.

The majority of industries are suffering from power and gas load-shedding, but some have managed to reduce the operating cost through improvement in their efficiencies.The manufacturing sector in Punjab is now using biomass (agricultural waste), solid municipal waste, coal gasifiers, liquefied petroleum gas (LPG), used tyres, rejected leather soles as alternative fuels to gas, furnace oil and diesel, he said.



In addition, Punjab industries have upgraded technology and their human resource to improve productivity, said Hashmi.Gohar Ejaz, group leader All Pakistan Textile Mills Association, said, “We would never have realised the quantum of savings that could be made through energy audits.”



German non-government organisation GIZ and Small and Medium Enterprises Authority (SMEDA) have facilitated APTMA member mills by providing free services of highly qualified foreign energy audit and management system experts, he said, adding that only through energy audit and the resultant cost-free changes in the manufacturing system 25 APTMA members gained a cumulative benefit of Rs258 million per annum.



The benefits doubled for those mills that agreed to make some minor investments, he said, adding that savings made through improvement in efficiencies did provide some relief to the mills when they used alternative energy resources.



Lahore Chamber of Commerce and Industry (LCCI) Senior Vice President Kashif Yunus Mehr, who is associated with the steel melting industry, said that larger steel melting units have imported coal gasifiers from China.



The gas produced is use to heat the furnaces, he said.“It costs 20 percent higher than the natural gas as it was the only alternative to keep the industry running as natural gas is mostly unavailable.”

These gasifiers require investment of Rs25 million that mills with small capacities cannot afford, he said, adding that the small steel melting units are using locally-fabricated small gasifiers that are highly inefficient, but serve the purpose of keeping the production intact.



Among the larger corporate sector, Nishat Group has established a 12MW biomass and solid municipal waste-run power plant at its textile processing unit in Lahore, he said.To cut its cost, it is recovering the caustic soda used in its processing mills by installing a recovery plant at its water treatment facility, said Mehr.



At its cement factory in Kalar Kahar, it is using solid municipal waste, used tyres, rubber chappals, rice husk, wheat straw, corn cob, as fuel for heating purposes.“We are not using power supplied by the Pakistan Electric Power Company (PEPCO) in most of the manufacturing facilities of our group,” said Nishat Group Chairman Mian Mohammud Mansha.



Engineering sector entrepreneur Almas Hyder said, “Unfortunately our industrial sector grew initially on protection that gave rise to huge inefficiencies.”By improving efficiencies the increase in cost of production could be absorbed to a large extent, he said.


http://www.thenews.com.pk/Todays-News-3-99810-Punjab-industries-converting-to-alternative-energy
Riaz Haq said…
Here's a Gulf News story on Pakistan's plan to import power from neighbors:

Dubai: Talks with India and Iran on power exports are under way and likely to be settled soon, Pakistan's Minister for Water and Power Syed Naveed Qamar, told Gulf News.

Iran currently provides 72 megawatts to Pakistan which is likely to be increased to 1,100MW.

"It is our desire that the modalities, tariff and terms and conditions may be finalised at the earliest so that the project can be started soon."

He said the transmission line between Pakistan and India is around 100 kilometres compared with the Kyrgyz Republic and Tajikistan transmission lines which are around 1,000km.

"As we look into the future, the power demand is going to be robust coupled with the growth in the economy. The electricity trade with India is beneficial for both countries and it will open new avenues of economic ties," Qamar said.

Pakistan may import up to 500MW which may be supplied with the construction of small transmission lines from both sides.

Wind projects

He said that the major share of power production is through oil which is expensive, and therefore the government is considering running the power plants on coal. Special attention would be given to the power sector and in this regard more funds would be allocated for the power sector during the coming development budget.

The government has plans to produce 1,000MW of cheaper power from wind projects next year, Qamar said.

"Russia, Uzbekistan and Turkmenistan have also offered Pakistan to export their surplus power to Pakistan," A.U. Rahman, acting executive director of Central Asia, South Asia (CASA-1000) project, told Gulf News.

He said Russia is also keen to join the project.

Pakistan has an installed capacity of around 20,000MW, but the production capacity is around 16,000MW. Right now "the shortage of power is around 4,500MW," Rahman said.

He said the current load shedding will be "reduced gradually" with the new projects expected to come online soon.

In certain parts of the country current load shedding continues for more than 12 hours.


http://gulfnews.com/business/economy/pakistan-negotiates-for-indian-and-iranian-power-1.1025096
Riaz Haq said…
Here's a Reuters' report on $3 billion Chinese investment in wind energy in Pakistan:

Chinese oil and gas company United Energy Group Ltd (0467.HK) said on Wednesday it plans to invest $3 billion in a wind farm project in energy-starved Pakistan and is in talks to buy equipment from mainland suppliers.

United Energy, which paid BP (BP.L) $775 million for oil and gas assets in Pakistan in 2010, said it plans to construct the wind farm in several phases. It did not disclose the targeted total capacity for the project or provide a timeframe.

The company said, however, it had already obtained approval from the Pakistan government to construct a wind power project with a capacity of 500 megawatts.

Pakistan, which suffers chronic shortages of electricity, is offering clean energy producers higher rates for renewable power as it seeks to boost production, while diversifying energy supply away from oil and gas.

The major suppliers of wind power equipment in China are Sinovel (601558.SS) and Xinjiang Goldwind Science and Technology (002202.SZ)(2208.HK).


http://www.reuters.com/article/2012/05/30/us-china-pakistan-windfarm-idUSBRE84T0E520120530
Riaz Haq said…
Here's an ET-APP story on renewable energy to overcome Pakistan's energy crisis:

The chief executive of the Alternative Energy Development Board (AEDB), Arif Alauddin has said that a number of projects are in the pipeline to overcome the energy crisis in the country; giving relief to the people.

Giving an interview to the Pakistan Television Corporation (PTV), he said that 500 megawatts (MW) of electricity will be added to the national grid in the next few months. He said that his board is mandated only to attract private sector investment while the public sector was meant only to regulate and facilitate the process.

“Pakistan is relying heavily on fossil fuels to meet its energy requirements and the nation is spending more than $11 billion on import of petroleum products annually,” Alauddin said. The oil import bill will increase to $38 billion by 2015 and Pakistan remains at a strategic risk due its heavy reliance on fuel imports, he added.

He said that after the establishment of the AEDB in 2003, Pakistan has made considerable progress in this field. To a question, he replied that the board recently approved the New Park Energy Phase I – a 400MW wind project near Port Qasim. With help of the China Three Gorges Corporation, a 50MW wind energy plant in Sindh will be completed by next year The chairman said that recently, a memorandum of understanding has been signed at a two-day second Pak-China Joint Energy Group (JEWG) for setting up wind energy projects.

To another question, he said that a number of countries have successfully developed renewable energy sources to minimise dependence on fossil fuels. Realising country’s growing demand of the industrial and agricultural sectors and growing domestic consumption; the government has initiated several renewable energy projects to address the power shortfall, he said.


http://tribune.com.pk/story/430688/alternative-energy-projects-will-eradicate-power-shortfall/
Riaz Haq said…
Here's an ET-APP story on renewable energy to overcome Pakistan's energy crisis:

The chief executive of the Alternative Energy Development Board (AEDB), Arif Alauddin has said that a number of projects are in the pipeline to overcome the energy crisis in the country; giving relief to the people.

Giving an interview to the Pakistan Television Corporation (PTV), he said that 500 megawatts (MW) of electricity will be added to the national grid in the next few months. He said that his board is mandated only to attract private sector investment while the public sector was meant only to regulate and facilitate the process.

“Pakistan is relying heavily on fossil fuels to meet its energy requirements and the nation is spending more than $11 billion on import of petroleum products annually,” Alauddin said. The oil import bill will increase to $38 billion by 2015 and Pakistan remains at a strategic risk due its heavy reliance on fuel imports, he added.

He said that after the establishment of the AEDB in 2003, Pakistan has made considerable progress in this field. To a question, he replied that the board recently approved the New Park Energy Phase I – a 400MW wind project near Port Qasim. With help of the China Three Gorges Corporation, a 50MW wind energy plant in Sindh will be completed by next year The chairman said that recently, a memorandum of understanding has been signed at a two-day second Pak-China Joint Energy Group (JEWG) for setting up wind energy projects.

To another question, he said that a number of countries have successfully developed renewable energy sources to minimise dependence on fossil fuels. Realising country’s growing demand of the industrial and agricultural sectors and growing domestic consumption; the government has initiated several renewable energy projects to address the power shortfall, he said.


http://tribune.com.pk/story/430688/alternative-energy-projects-will-eradicate-power-shortfall/
Riaz Haq said…
Here's a BR report on 35% increase in power generation machinery imports in Pakistan:

Import of power generation machinery witnessed a surge of some 35 percent during the first quarter of fiscal year 2012-13 (FY13) over the same period of last fiscal year owing to power crisis in the country. Importers said that despite all efforts, the government and power generation companies seemed failed to resolve power crisis. Therefore, continuing power shortage forced the general public, industrialists and exporters to acquire their own power generation machinery.

Presently, they said, industrialists are the major buyers of power generation machinery to produce their own electricity as the energy crisis is directly hurting the production and export of industries, resulting in huge losses and unemployment. Industrialists also want to free their industries of the ongoing energy crisis to avoid losses, they added.

Importers said for last many years the government is claiming to end power crisis, however power shortage issue stays unresolved. According to Pakistan Bureau of Statistics (PBS) the import of power generation machinery rose to $254 million in first quarter of FY13 compared to $189 million in the corresponding period of FY12, depicting an increase of 34.50 percent or $65 million in three months.

Month on month basis, the import bill of power generation machinery for September 2012 rose by 33 percent to $80.37 million as compared to $60.52 million in the same period of last fiscal year. Importers said bulk of power generation machines is being imported from China followed by US, Japan, UK, however China is the largest supplier of power generation machinery and contributing over 70 percent share in Pakistan''s generator import.

Chinese generators are available in all specifications and are cheaper than the US, Japan and UK brands, therefore general public prefers Chinese generators. "We are expecting that import of power generation machinery may witness some rise in coming months owing to persistent long power outages across the country," importers said.

Although, the country is facing severer power crisis with hours'' long loadshedding, Punjab is the most affected province, where domestic and commercial consumers are worst hit. Usually, Punjab''s different cities especially Faisalabad is seen in the grip of power riots, they said. The situation in Karachi - the economic hub of the country - is slightly better than Punjab but not satisfactory as people and industry also suffering from loadshedding. Therefore, Punjab is the main market for power generation machinery as compared to Karachi, which generators'' sale is slow. Since 2004-05 the country has been witnessing a massive surge in the demand and import of power generation machinery. It has spent over one billion dollars on the import of power generation machinery during the last fiscal year (2011-12).


http://www.riazhaq.com/2012/05/educational-attainment-in-india.html
Riaz Haq said…
Here's a Daily Times report on planned biogas power plant in Karachi:

ISLAMABAD: IFC, a member of the World Bank Group is advising a Pakistan-based biogas company on the development of a waste-to-energy plant in Landhi, Karachi turning a serious environmental problem into a renewable energy resource.

The plant to be built by Karachi Organic Energy (KOEL) will convert cow manure into electricity while producing organic fertilizer as a byproduct. IFC will provide KOEL-a joint venture between Karachi Electric Supply Company Limited (KESC) and the Amman Foundation with advice on project development and financing.

When completed, it will generate up to 22 megawatts of power from animal waste that was currently being discharged directly into the sea. There is tremendous potential in this biogas project, said Tabish Gauhar, CEO of KESC. Its footprint extends beyond power generation. It will have a positive effect on the community and importantly on the environment. The plant will be the largest biogas project in the country and it is expected to serve as a model for future developments.


http://www.dailytimes.com.pk/default.asp?page=2012\11\13\story_13-11-2012_pg5_3
Riaz Haq said…
Here's a piece on uranium supply constraints for Pakistan:

As construction on a fourth reactor at Pakistan’s weapons-grade plutonium production complex at Khushab continues apace, an important question is where the government plans to get the uranium needed to fuel its growing fleet of reactors.

The answer cannot be ‘Pakistan’ for much longer, at least not without severe difficulties. Pakistan is not a signatory to the Nonproliferation Treaty, which complicates the import of uranium. Pakistan has been able to secure Chinese LEU fuel assemblies for the Chasma Nuclear Power plants and a limited stock of safeguarded natural uranium fuel assemblies for the Karachi Nuclear Power Plant (KANUPP). However, as Canada stopped supplying Pakistan with fuel assemblies for KANUPP in 1976, this stock is most likely gone by now, causing KANUPP to rely on domestic stocks of uranium in recent decades. The weapons program, including military HEU production and fabrication of fuel for the reactors at Khushab, must also rely on domestic production. Pakistan’s Bagalchore mine was reportedly exhausted and closed by 2000, so uranium resources now only come from the Qabul Khel mine (opened in 1992), the Nanganai deposit (1996), and Taunsa deposits (2002), all using in situ leaching. Current domestic production estimates from these sources stand at 40 tons of uranium per year.

A 2009 study by Mian, Nayyar, and Rajaraman estimates that when applied to the fueling of the Khushab fleet of reactors, the 40 tons per year amount alone can only support approximately 150 MWt of total reactor capacity operating at 70 percent efficiency and a low burnup of 1000 MWd/ton. Forty tons would just barely support the first three reactors. Today, there is a fourth.

In my recent paper, Combining Satellite Imagery and 3D Drawing Tools for Nonproliferation Analysis: A Case Study of Pakistan’s Khushab Plutonium Production Reactors, I sought to refine maximum thermal capacity estimates of the reactors based on 3D analysis of each reactor’s cooling towers (snapshot below). Using these estimates, the table here shows how the completed four reactors at Khushab would operate at around a total of 200 MWt at 70 percent efficiency, which translates to a requirement of as much as ~70 tons of uranium per year. The reactor capacity estimates in my paper are upper limits based on cooling capacity. Seventy tons of uranium is therefore also an upper limit. The reactors could be slightly smaller, with overdesigned cooling systems, or Pakistan may plan to operate the reactors at a lower capacity. Still, Pakistan appears likely to run a uranium deficit, perhaps as much as 30 tons, that could exhaust uranium stocks and eventually the deposits themselves.
--------
Along with the fact that phosphoric acid is widely traded for the production of fertilizer, it is also not subject to heavy scrutiny through export controls. Morocco in particular is a major exporter of phosphoric acid as it holds nearly 77% of worldwide phosphate rock reserves. In recent years, Pakistan and Morocco have established a joint venture to ensure “uninterrupted supply” of phosphoric acid to Pakistan on a large scale. Export of phosphoric acid, a legitimate commodity, is not prohibited and there is no evidence that the joint venture is supporting Pakistan’s nuclear weapons program or engaged in any nefarious activities. An important question is how much uranium may be inadvertently transported through the trade of phosphoric acid for DAP production...


http://lewis.armscontrolwonk.com/archive/5928/patton-on-pakistans-u-supply
Riaz Haq said…
Here's a report on Punjab govt's Ujala solar lights scheme:

Punjab Govt Ujala Solar Lamp Kits Scheme For Students Launched by the Chief Minister of Punjab Mian Shahbaz Sharif as under this scheme around 5,000 students of Pakistan government schools in the whole Province Punjab can get solar energy kits and table lamps so this will help then in studying in the day and night during load shedding in Punjab.

In the first session of this table lamps and Solar kits distribution scheme there are 36 districts of Punjab us under consideration. This scheme is given a name of “Ujaala Scheme” as it will bring light in the students life so they are not disturbed by the load shedding even in the load shedding hours at night they can study and this will help in strengthen our country.

After the first phase in the second phase the same number of Lamps and Solar kits will be distributed among those who are new comers and are most junior. So those students who are in 9th class and obtained 50 to 55 percent marks in the annual board exams will be able to get these lamps and solar kits which also has chargers and bulbs in it. These solar system are so much power full that it can provide up to 18 consecutive hours light if there is a sunny weather not rainy or cloudy.

Students will be able to get these lamps an solar kits in the next month that is December the schedule for the distribution of solar kits are not yet announced by the any officials but officials just declared that it would be in December anywhere. These Solar Energy kits have these silent features

Solar PV 30Wp
Battery 12 V, 30 Ah SLA Gel type Battery
Battery charger
LEDs 3×5 W each of 100 lumens
Charge Controller 10 A with LVD (Low voltage disconnect)
Load Limitter
DC Wires with LED Holders
Mobile Phone Charging facility
System Autonomy 3 days
Reverse Polarity protection provision


http://ilm.com.pk/education-news/news/punjab-govt-ujala-solar-lamp-kits-scheme-for-students-launched/
Riaz Haq said…
Here's a Hydroworld report on Korean investment in Pak hydro sector:

LAHORE, Dec. 26 -- To harness water resources for electricity generation, two memoranda of understanding (MOU) have been signed by the government of Khyber Pakhtunkhwa, the Pakistan Water and Power Development Authority (Wapda) and Korean firms. The agreement involves developing two hydropower projects in a public private partnership with a cumulative power generation capacity of 1,161 MW. According to an announcement made here on Monday, this agreement emerged from President Zardari's recent visit to Korea.

The first MoU was signed with Korea Midland Power Company (KOMIPO) for the 496 MW-Lower Spat Gah Hydropower Project and the second with K-Water/Daewoo consortium for the 665 MW-Lower Palas Valley Hydropower Project. The MoU was signed by Wapda Chairman Raghib Shah, KPK Shydo Managing Director Bahadur Shah, KOMIPO Chairman and CEO Choi Rak and K-Water representative in Pakistan, No Hyuk Park.

Korean Ambassador to Pakistan, Choong Joo Choi, was also present. Addressing the ceremony, he termed the signing of the MoU a milestone that would bring the two countries closer.

Shah said that the Korean firms, which were selected through international competitive biddings, will bring in with them an investment of more than two billion dollars for the construction of the two hydropower projects. This shows the confidence that international financial institutions have in Wapda for the implementation of projects in the water and hydropower sectors, he added.

Shah further said that the two projects will contribute more than 4.5 billion units of electricity to the National Grid annually. He said that they are part of the strategy for optimum utilisation of the water resources to help overcome electricity shortages and stabilise power tariff for the consumers. He said that Wapda is implementing more than 20 projects to generate roughly 20,000 MW of electricity and store 12 million acre feet of water.

Lower Spat Gah Hydropower Project is located on a left bank tributary of River Indus with its confluence some eight kilometers downstream of Dasu town in district Kohistan. Moreover, Lower Palas Valley Hydropower Project is located on another left bank tributary of River Indus with its confluence some 12 kilometers upstream of Patan town in Kohistan district


http://www.hydroworld.com/news/2012/12/25/pakistan-mou-signed-for-hydropower-projects.html
Riaz Haq said…
Here's a summary of BMI report on Pak power sector:

Boston, MA -- (SBWIRE) -- 01/03/2013 -- BMI View: In spite of chronic and persistent power shortages, reflecting under-investment and system inefficiencies, Pakistan has a plethora of potentially varied and rich power options from which to choose. There is vast untapped hydro and renewables capacity available, but it remains to be seen if the investment will actually materialise. Thus, this is likely to increases the country's reliance on growing its gas-fired, coal-fuelled capacity, as well as its modest nuclear programme, although controversial import deals with Iran could cause political backlash. While these opportunities exist for the thermal generation, delays in payments by state-owned transmission companies to independent power producers limit the profitability of the sector, and could cap its growth.

View Full Report Details and Table of Contents

The country continues to suffer from a shortfall of electricity of more than 3 gigawatts (GW) daily, and while this has fallen from the highs of 7GW, permanent resolutions and solutions to the situation remain out of sight. While the shortfall is caused by poor performance from existing generating assets, the lack investment in generating capacity, and an inefficient grid, the government also faces difficulty in sustaining subsidies. This, in turn, drains the profitability of power generation companies, forcing them to cut back on much-needed investment in the sector.

The key trends and recent developments in the Pakistani electricity market include:

- The constructions of the various dams have met with increasing environmental concerns and financing issues, which threaten to stall works. In particular, the World Bank and other international aid agencies have withdrawn their support for the Diamer-Basha dam project due to environmental concerns raised by India. Given the growing demand for electricity, a delay in the completion or cancellation of the project could mean ,the electricity shortfall is likely to persist beyond the government's original timeline.
- Progress of talks between India and Pakistan regarding the sale of electricity and petrol remains slow, with Indian officials citing their Pakistani counterparts keeping a cautious stance. While several suggestions have been raised during the talks, including building of a pipeline directly to Lahore, the Pakistan government remains wary of issues such as security and dependability of oil imports from India. However, worsening energy shortage in Pakistan may push Pakistani authorities to push ahead with negotiations, although imports from India are unlikely to exceed supplies from Kuwait.


http://www.sbwire.com/press-releases/recently-released-market-study-pakistan-power-report-q4-2012-191192.htm
Riaz Haq said…
Here's a PakistanToday report on PEW, an economic think tank often critical of PPP-led coalition, welcoming govt steps to revive economy:

ISLAMABAD - The Pakistan Economy Watch (PEW) on Thursday said recent steps taken by the government, including the ratification of the Iran pipeline agreement and handing over the Gawadar Port to a Chinese firm seemed highly promising.
These steps will go a long way in reviving the economy which is in tailspin, said PEW President Dr Murtaza Mughal.
He said that Chinese cooperation in the pipeline project would turn it into a reality in less than the expected time, which would be a great service to the country and the people who have been reeling under the energy crisis. Mughal lauded Tehran’s patience as the project had been delayed for a long time due to US pressure.
Allowing the transfer of concession agreement for Gawadar Port from the Port of Singapore Authority to the China Overseas Port Holding will attract investment, provide opportunities to the people of Balochistan and bring Islamabad and Beijing closer, he said.
He said the announcement of the three-year Strategic Trade Policy Framework, in which an export target of $95 billion had been set, and backed by steps to support the plan, would help improve confidence in the business community. The government should ensure that this trade policy does not meet the fate of the trade policy framework for 2009-12, which had failed due to want of funds, he added.
The ministry of water and power’s plan to generate 3,000MW electricity from sugarcane bagasse on a fast track basis is equally encouraging, he observed. He said all necessary amendments in existing policies should be ensured to attract investment to make this possible.
Lauding US assistance for water and power projects and optimum use of hydropower resources, Mughal said the US should stop opposing the Iran gas pipeline project otherwise an anti-US feeling will run high among the masses.


http://www.pakistantoday.com.pk/2013/02/01/city/islamabad/steps-for-economic-revival-encouraging-pew/
Riaz Haq said…
Here's an APP report on Chinese nuclear plants in Pakistan:

Two nuclear power plants, 340 MW each, are under construction at Chashma and are expected to be commissioned by 2016, with Chinese assistance.
Construction of these power plants became possible after a long-standing agreement, whereas three other nuclear power plants already commissioned in the country are performing well.
According to official sources, a major chunk of the Pakistan Atomic Energy Commission (PAEC) budget has been allocated to the two plants. PAEC envisages production of 8,800 MW by the year 2030 through nuclear power reactors, sources added.
“An amount of Rs 34.6 billion has been set aside for Chashma Nuclear Power Plants, C3 and C4. The total cost of these two projects is Rs 190 billion which will be partially funded by a Rs 136 billion Chinese loan,” said a source.
The government has so far spent Rs 62.4 billion on the mega project having a 660 MW generation capacity. With Rs 34.6 billion additional spending, the government will be able to complete almost half of the work by June 2013, an official said.
According to an official in the Ministry of Science and Technology, the government is harmonising efforts made in the energy sector by different ministries, departments and research centres by creating an Energy Council including heads of relevant organisations.
The council will be entrusted to advice on priority areas for Research and Development (R&D), management of resources and filling existing gaps.
Acquisition of technology for building nuclear power reactors through R&D and transfer of technology agreements is also in consideration, the official said.


http://www.pakistantoday.com.pk/2013/02/22/news/national/two-nuclear-power-plants-to-be-commissioned-by-2016/
Riaz Haq said…
Here's a Dawn report on KESC's plans to invest $500 million in Karachi power infrastructure:

KESC would invest about $500 million for setting up of coal-based power plants, improvement in transmission and distribution systems in Karachi during the next five years, said Tabish Gohar, chairman, KESC board of directors here on Thursday.

A five-member KESC delegation briefed the Minister for Water and Power, Chaudhry Ahmad Mukhtar, on plans to improve power supply situation in Karachi.

Mr Gohar said that the Bin Qasim power plant would be converted on imported and local coal to generate 400MW cheaper electricity with an investment of $300 million.

The conversion plan would take almost 20 months to complete.

The KESC would spend $80 million on conversion of gas-based plants on combined cycle, while $80 million would be spent on smart grid station that would help improvement and transmission system.

The KESC chairman said that due to investment plan, the power system in Karachi would improve, and power thefts and line losses would be checked.

He also briefed the minister on outsourcing of some of its feeders and future plans to meet the electricity requirements.


http://dawn.com/2013/02/22/kesc-to-invest-500m-in-coal-plants/
Riaz Haq said…
Here's Dawn on US energy help for Pakistan:

US Ambassador Richard Olson reiterated on Tuesday the commitment of the United States to extend full help and cooperation in resolving the energy crisis faced by Pakistan.

Addressing a function here at Tarbela Dam project, along with Water and Power Development Authority (Wapda) Chairman Syed Raghib Abbas Shah to recognise the completion of the US funded Tarbela Dam restoration project the US ambassador said, “The United States understands that Pakistan is facing an energy crisis and we are committed to doing our part.”

The restoration of three generators at Tarbela added 128 megawatts of power to the national grid.

He said, “The work completed here at Tarbela contributes enough electricity to supply two million customers, and helps provide relief to those suffering from extensive power shortages.”

Wapda Chairman Syed Raghib Abbas Shah appreciated the support of the United States to the energy sector in Pakistan.

The US Agency for International Development (USAID) provided $16.5 million to the Pakistan Wapda to repair three power generation units and to train Tarbela’s staff to operate the upgraded equipment to increase production of electricity at Tarbela.

Relieving Pakistan’s energy crisis is a top priority for US assistance to Pakistan, said Olson.

In addition to Tarbela, the United States is also funding other high impact projects, such as the rehabilitation of the Mangla dam, and renovation of thermal plants at Jamshoro, Guddu, and Muzaffagarh, which have already added over 650 megawatts since October 2009.

The US government is also co-financing the completion of the Gomal Zam and Satpara dams which will add another 35 megawatts and irrigate more than 200,000 acres.

Finally, the US is helping to replace thousands of highly inefficient agricultural and municipal water pumps throughout the country to save additional megawatts.

These projects are expected to add 900 megawatts to the national power grid by the end of 2013, enough energy to power two million households and businesses.


http://dawn.com/2013/03/05/us-announces-financial-assistance-for-tarbela-dam-restoration/
Riaz Haq said…
Here's a Hydroworld report on hydroelectric projects in Pakistan:

ISLAMABAD, March 20 -- Government would complete the Neelum Jhleum Hydro project, Golen Gol and Dubair Khawar hydro projects within the stipulated time frame and resolve the issues related to any project.

This assurance was given by the Secretary Water and Power, Sikander Ahmed Rai while chairing a meeting with visiting Joint Supervisory Mission (JSM) of lead financers of three hydro power projects here today.

The consortium includes representatives from Islamic Development Bank, Saudi Fund Development, Kuwait Fund Development and Opec. The meeting was also attended by additional Secretary Ministry of Water and Power, Chairman Wapda and senior officials of Neelum Jheluim project, Golen Gol and Dubair Khawar project and ministry of Water and Power.

Secretary water and Power said that the government has also allocated the funds for the projects and financial support of the donors would help to complete the project in time. He said that the progress on three projects being reviewed and monitored regularly. Pakistan is facing energy shortage and timely completion of these projects would help to bridge the gap between demand and supply. He also thanked the delegation for visiting Pakistan to review the progress of the projects.

Earlier, the Chairman Wapda briefed the JSM that KhanKhawar hydro project of 72 MW and Allai Khawar Projects of 122 MW have been completed. While the remaining three projectsw of 1205 MW would be completed as per their schedule. Dubair Khawar project would be completed by June this year. Neelum Jhelum Hydro project of 969 MW by 2016 and Golen Gol project of 106 MW would be completed by 2015. He also informed that the Government has recently approved Rs 24 billionfor for Neelum Jhelum Project. He said that 47 % work on tunnel boring has been completed on Neelum Jhelum project.

The JSM appreciated the progress on three projects and stated that the consortium of financers would continue its support for energy projects. The JSM would also visit the sites of all the three projects to review the progress


http://www.hydroworld.com/news/2013/03/19/pakistan-power-projects-to-be-completed-on-time.html
Riaz Haq said…
Here's a PakistanToday report on new wind energy investment in Pakistan:

The Board of Directors of the Overseas Private Investment Corporation (OPIC) has approved $ 95 million in financing for a wind power project poised to deliver much-needed electricity to Pakistan. The credit facility will help build a 50-megawatt wind power plant in southeastern Pakistan’s Ghoro-Keti Bandar Wind Corridor designed to generate 133 gigawatt hours of emission-free electricity annually.
Using General Electric Wind turbines, the Sapphire Wind Power plant supports a mutual U.S.-Pakistan goal to diversify Pakistan’s power generation beyond reliance on high-priced fuel oil by tapping Pakistan’s vast renewable energy potential, said OPIC, which is the U.S. Government’s development finance institution.
“The provision of clean and reliable electricity is an essential building block of any economy,” said OPIC President and CEO Elizabeth L. Littlefield.
A recent study funded by the National Renewable Energy Laboratory and the U.S. Agency for International Development estimates that Pakistan possesses 132,000 MW of potential installed wind capacity – virtually equal to the world’s entire installed wind capacity for 2010.


http://www.pakistantoday.com.pk/2013/03/23/news/profit/opic-approves-95m-for-wind-power-project-in-pakistan/
Riaz Haq said…
Here's a World Bank news release on mapping Pakistan's renewable energy resources:

Pakistan encapsulates the renewable energy challenge faced by many developing and emerging countries. Despite abundant renewable resources – including solar, wind, hydropower and biomass – very little of this potential has been utilized. At the same time, about a third of the country’s people do not have access to electricity.

Pakistan has ambitious plans for solar and wind projects, and has developed a comprehensive policy framework for renewable energy, but projects on the ground remain few and far between.

What accounts for this gap? “One major reason is a lack of credible resource data,” says Arif Alauddin, the former CEO of Pakistan’s Alternative Energy Development Board, and now Managing Director of the National Energy Conservation Center.

While high-level solar and wind maps are widely available, these do not contain the granular data required by governments to understand the country’s full resource potential and needed by the private sector to identify specific sites for development.

To address this challenge, Pakistan and eight other countries are joining with the World Bank in a new Renewable Energy Mapping Program to carry out mapping of renewable energy resources that will for the first time produce rich, nationwide data for each country. Coordinated and financed by the World Bank’s Energy Sector Management Assistance Program (ESMAP), the initiative will cover mapping of solar, wind, biomass, and small hydropower potential.

“The importance of this resource mapping [for Pakistan] cannot be overstated,” says Arif Alauddin. “The country’s energy shortage is unprecedented, tariffs are going up, and petroleum imports are eating up a large share of export earnings. There is a need to shift to domestic renewable energy resources.”
----------
We expect this initiative to be highly catalytic,” said Oliver Knight, Senior Energy Specialist at ESMAP. “Resource mapping is a crucial step in providing the resource and policy certainty that commercial developers need to scale up investment in renewables. In addition, government authorities will be better informed in negotiations on specific projects, and donors will have a clearer sense of the data and capacity needs, as well as the renewable potential, of clients.”

As well as mapping, the program will support a wide variety of activities, including consolidation and validation of existing datasets, work to standardize resource assessment methodologies, and capacity development of local institutions and experts. An open data repository will be developed to facilitate free and open access to the data, and the geospatial outputs (GIS layers) will be made available via a new web portal. The outputs will also be made available to the Global Atlas for Solar and Wind that has been developed by the International Renewable Energy Agency (IRENA) and the Clean Energy Ministerial.

The program is one of a number of initiatives the World Bank Group is undertaking in support of the global Sustainable Energy for All (SE4ALL) campaign. One goal of the initative is to double to the share of renewable power in the global energy mix from 18 percent to 36 percent by 2030. According to the SE4ALL Global Tracking Framework report produced by a multi-agency team led by the World Bank and released on May 28, renewable energy (excluding biomass) made up only 1.6 percent of total final energy consumption in Sub-Saharan Africa, and 1.8 percent in Southern Asia, as of 2010.

“The resource mapping initiative will open a floodgate of possibilities for both large and smaller investors, as well as for consumers who desperately need new energy options,” Arif Alauddin said.


http://www.worldbank.org/en/news/feature/2013/06/17/mapping-the-energy-revolution
Riaz Haq said…
Here's a report of another Nordex wind turbines deal in Pakistan:

German turbine manufacturer Nordex has gained a firm 50MW follow-up order in Pakistan from the Fauji Foundation and the Malay infrastructure fund Cap Asia.
The order is for 20 of the company’s N100/2500 turbines to be installed at the FWEL I project in the province of Sindh in 2014.

The company had already delivered turbines for two other wind farms in the same province – the FFCEL and FWEL II projects.

Nordex says the close proximity of all three projects – at about 80km from Karachi – will enable it to leverage synergies such as centralising the provision of services under the warranty, and operation and maintenance contracts.


http://www.rechargenews.com/wind/asia_australia/article1335979.ece
Riaz Haq said…
Here's an Express Tribune report on Islamic Development Bank (IDB) funding for energy projects in Pakistan:

The Islamic Development Bank (IDB) ) on Monday announced its commitment for $850 million support for development projects in Pakistan.
According to a release, the support was announced as a five member IDB delegation headed by the institution’s vice president Birama Boubacar Sidibe called on Finance Minister Ishaq Dar in Islamabad on Monday.
Sidibe said that the IDB was prepared to disburse $850 million dollars in addition to the 750 million Euros in support and the $150 million in trade assistance it had approved and started paying in August. The fresh project assistance to Pakistan will be provided over the next three years.
The IDB VP informed Dar that he expects project Pakistan plans to undertake in future would make IDB one of its largest operations. “Your priority is our priority” said Sidibe.
In addition to the financial assistance, Sidibe said that the IDB was also ready to constitute consortiums for financing projects in Pakistan.
The finance minister said that Pakistan looks forward to stronger and better economic relations with IDB in the future.
Sidibe added that Pakistan is an important member country of the IDB. He added that Pakistan’s support of the agency had played some part in helping it secure a AAA ranking from international rating agencies.
Dar briefed the delegation on status of ongoing power projects in Pakistan including the 969 MW Nelum Jhehum Hydropower Project which the IDB is financing. The finance minister hoped that the project, whose cost had tripled due to neglect of the previous government, would be completed by 2016.
Similarly, work on the 425/525 MW Nanidpur Project, which had been delayed for over three years, had been started in full swing.
Additionally, Dar said that the government is working to add 10,000 MW of generation into the national grid and is presently working on the 2117 MW Karachi coastal project and 6600MW coal fired thermal Project in Gadani. He added that the government was also working on the parallel projects of Diamer Basha Dam and the Dasu Project.


http://tribune.com.pk/story/602260/idb-extends-850-million-project-support-to-pakistan/
Riaz Haq said…
Here's an Express Tribune story on biomass energy in Pakistan:

Power generation from biomass gasification could help meet a significant portion of Pakistan’s industrial energy needs, Federal Minister of Information, Senator Pervez Rasheed, said on Friday.
Rasheed was speaking as the chief guest at the inception workshop of a new project for promotion of biomass gasification technology by the United Nations Industrial Development Organisation (Unido).
Biomass gasification is a process to generate cheap energy by burning organic material such as organic waste and wood among other things.
Rasheed said Unido’s efforts at developing a biomass project have immense importance for Pakistan. He said biomass gasification offers the most convincing alternate energy system for industries.
The project is likely to result in improved energy security and economic growth in the country, the minister said.
The four-year “Promoting Sustainable Energy Production and Use from Biomass in Pakistan” project is funded by $1.82 million from the Global Environment Facility – an international institution that provides grants for environment-related projects.
Another $5.3 million will be provided by Unido, Small and Medium Enterprises Development Authority (Smeda), Pakistan Poverty Alleviation Fund (PPAF), Sindh Agriculture and Forestry Workers Coordinating Organisation (SAFWCO), Centre for Energy Systems at the National University of Sciences and Technology (CES-NUST) and other entities from the Pakistani private sector.
The project’s finances will be used to develop three separate “demonstration projects” in Kamoke and Jhelum in Punjab, and Thatta in Sindh, which will generate overall 4.3 Megawatts (MW) from biomass gasification technology, said Muhammad Ahmad, the National Project Manager for the project.
The demonstration projects include a 3 MW rice husk gasification power plant in Kamoke, a 1 MW Wood Residue gasification power plant in Jehlum and a 0.3 MW electricity provision to a village near Gharo in Thatta.
Ahmad said the project aims to promote biomass gasification in Pakistan as a means to decrease the country’s demand and supply gap in the power sector.
“We want to build the capacity of local manufacturers so they could produce gasification technologies for electricity generation,” he said. “The demonstration projects could help us tell investors that power generation through biomass gasification is economically viable and can be replicated.”
Small and medium enterprises (SMEs) and other industries could use biomass gasification to generate their own electricity and this would help industries avoid the negative impact of the power crisis, he said.


http://tribune.com.pk/story/610390/unido-promotes-biomass-gasification-in-pakistan/
Riaz Haq said…
Here's a News story on sugar mills co-generation potentially adding 1500-3000 MW of electricity into Pakistan's national grid:

KARACHI: In order to take advantage of the incentives offered by the government of Pakistan and to integrate the expansion project for future mill operations, two sugar mills in Sindh have propose to implement co-generation power projects, official sources said.

Ranipur Sugar Mill and Chamber Sugar Mill have submitted their applications with the National Electric Power Regulatory Authority (Nepra) for grant of generation licence for cumulative generation of 32MW.

The Economic Coordination Committee (ECC) of the Cabinet in its meeting held on March 6, 2013, had approved the framework for power cogeneration 2013 bagasse and biomass as an addendum to the Renewable Energy Policy 2006. This framework is effective for all high pressure cogeneration projects, utilising bagasse and biomass, the officials said.

Nepra had already approved Rs10.50 per unit as the upfront tariff for power generation through sugar mills by utilising sugarcane bagasse.

According to Nepra spokesman, this upfront tariff has been approved to encourage sugar mills to generate around 1,500 megawatts on fast-track basis.

The applicants said, at present, hydel generation is costing Rs2.50 per unit, generation through natural gas is costing around Rs5 per unit, thermal generation from Rs14 to Rs18 per unit and electricity generated through diesel is costing Rs23 to Rs28 per unit.

The approval of upfront tariff for sugar mills will encourage sugar mills to plan their investment in this new sector for steering the country out of the power crisis. The government plans to generate around 3,000MW of cheaper electricity through sugarcane bagasse on fast-track basis and investors will be facilitated and encouraged, the official said.

Necessary amendments will also be made in the existing co-generation and renewable energy policies to make it simplified and investor-friendly.

Pakistan is the fifth largest producer of sugarcane with the production of 50 million tons of sugarcane annually, yielding over 10 million tons of bagasse.

Power generation from bagasse will not only reduce the furnace oil import but also save Rs33 billion to Rs49 billion worth of foreign exchange per annum.

The country has 87 sugar mills with the capacity to generate 3,000MW from bagasse in winter season.

Currently, seven sugar mills sell their surplus power to government, including Layyah Sugar Mills with an installed capacity of 9.2MW, exports 4MW; Hamza Sugar Mills operates 23.6MW plant, whereas Shakarganj Sugar Mills operates a 20MW co-generation power plant.

Al-Noor Sugar Mills generates 21.8MW and now plans to increase its capacity to 36.8MW. Rahim Yar Khan Sugar Mills generates 18MW and sells 10MW. Likewise, Al-Moiz Sugar Mills generates 27MW and exports 15MW, while JDW Sugar Mills generates 22MW with a surplus of 10MW.


http://www.thenews.com.pk/Todays-News-3-226623-Sugar-mills-opting-for-co-generation-power-projects
Riaz Haq said…
Here's Hydroworld on French help for Pakistani dams:

Financing from the French Development Agency will allow for the construction of a pair of hydroelectric projects that will add a combined 785 MW of power to Pakistan's grid.
The US$141.9 million credit facility agreement will help develop the 740-MW Munda and 35-MW Harpo hydropower plants, located in the Khyber Pakhtunkhwa and Gilgit Baltistan regions, respectively.
Pakistan's Ministry of Water and Power assigned the Munda Dam project to Pakistan's Water and Power Development Authority in 2010 for detailed engineering design and construction. It was decided in 2007 that Munda would be a multi-purpose project, to supply water for irrigation, to mitigate flooding, and to generate power.
The European Union also sought pre-qualification in April 2012 to perform a climate change adaptation study and an impact assessment study of the project, which will be built on Pakistan's Swat River.
Meanwhile, HydroWorld.com reported in January that the German Ministry for Economic Cooperation and Development had agreed to provide Pakistan a $27.3 million loan for the Harpo project via the KfW Development Bank.
Pakistan's Water and Power Development Authority (WAPDA) began sought expressions of interest for engineering design and tender preparation for the plant in May 2009.
Harpo will be located on the Harpo Lungma River, which is a tributary of the Indus River.


http://www.hydroworld.com/articles/2014/04/france-helps-fund-pakistan-s-munda-harpo-hydropower-projects.html
Riaz Haq said…
Benoist Bazin, Head of Section, Delegation of the European Union (EU) to Pakistan on Thursday inaugurated the EU-funded 'High Pressure Cogeneration for sugar sector in Pakistan (HP Cogen-Pak)' under the EU SWITCH ASIA Programme. The programme will support the local sugar sector to upgrade towards high pressure boiler technology and enable them to export electricity to the national grid.

"This programme is focusing on providing support to the sugar sector, financial sector, technology providers and the public sector in popularising High Pressure Cogeneration Technology," said Bazin during his keynote speech at the ceremony. "The programme aims at achieving this by supporting sugar mills through technology standardisation, enabling access to finance, and mobilising relevant public sector authorities.

Given the background of electricity supply constraint that Pakistan is facing these days, Bazin added that promotion of High Pressure Cogeneration would promote not only energy security of Pakistan, but also generate electricity from renewable fuels.

Highlighting the various activities, Omar Malik, Project Director of HP Cogen-Pak project informed the participants that the project was currently working with 35 sugar mills, 14 financial institutions and five technology providers. Seven bankable feasibility studies are already underway. Need assessment of financial sector is in the pipeline while capacity building of Pakistani boiler manufactures is also expected to start in December 2014.

The event was attended by representatives of Ministry of Water and Power, National Electric Power Regulatory Authority, Private Power Infrastructure Board, Alternative Energy Development Board, State Bank of Pakistan, Climate Change Division, Pakistani boiler manufacturers and sugar mill representatives.

http://www.brecorder.com/agriculture-a-allied/183/1238159/
Riaz Haq said…
Global Renewable Energy Mapping Program Gets Underway in Pakistan with First Solar Measurement Station

The first of nine automated solar measuring stations in Pakistan was inaugurated at the Quaid-e-Azam Solar Park in Bahawalpur in October 2014
The nine stations will transmit daily reports on 10 minute average values for solar radiation levels, temperature, air pressure and wind speed, with the data made publicly available
Installation will soon be followed by 15 wind measurement stations in Pakistan, and similar measurement campaigns in eleven other countries

Pakistan has tremendous potential for harnessing wind, solar, biomass and other renewable energy resources to help reduce power cuts and improve access to modern energy services. But the country lacks the high quality resource data at a national scale that is needed to take full advantage of these sources of clean energy.

For the past year, the World Bank and Pakistan’s Alternative Energy Development Board have been working together to map renewable energy resources across the entire country. The project, supported by the World Bank’s Energy Sector Management Assistance Program (ESMAP), will measure Pakistan’s potential for wind, solar and biomass energy by using ground-based data collection, GIS analysis, and geospatial planning. It is part of a broader Renewable Energy Resource Mapping initiative covering 12 countries.

Concluding the first phase of the project, initial maps of solar and wind potential for Pakistan were presented to the government and other stakeholders at an October 15 workshop in Islamabad. The result of months of computer-intensive modeling, these maps represent a significant improvement over previous efforts due to computational advances over the last decade. The maps are based on satellite data and global atmospheric models covering a 10 year period, and can be used to estimate the likely solar or wind potential at any point in the country.

However, to get to the level of confidence required by commercial developers, these modeling results must be compared against actual solar and wind measurements taken from ground-based stations.

A major part of the ESMAP renewable energy mapping initiative is to collect ground-based measurement data for a period of up to two years. This data is then used to improve the models, leading to the production of solar and wind atlases with a margin of error of as low as 5 percent. These in turn can be used by governments to set tariffs and guide the strategic development of renewable energy, and by commercial developers to carry out feasibility studies, leading to development of solar and wind power plants.

http://www.worldbank.org/en/news/feature/2014/11/12/global-wbg-renewable-energy-mapping-program-gets-underway-in-pakistan-with-first-solar-measurement-station
Riaz Haq said…
In a major development, the Board of Executive Directors of the World Bank (WB) has approved five projects pertaining to Pakistan.

These include International Finance Corporation (IFC)’s Investment in Gul Ahmed Wind Power Limited, Tenaga Generasi Limited (wind power) and Gulpur Hydro Project, Sindh Public Sector Reform Project and Acceleration of Tarbela IV Extension Project.

Officials of the Ministry of Finance and Economic Affairs Division told The News that by far this is the largest number of projects approved by the Board in one month for any country.

They said the major thrust was on the reforms in the energy sector, which was in line with the Country Partnership Strategy for Pakistan approved in 2014. The World Bank Country Partnership Strategy is anchored in the government’s framework of 4Es: Energy, Economy, Extremism and Education, the four strategic pillars of Vision 2025.

Officials of the Economic Affairs Division and Water and Power Ministry said that the World Bank’s Energy portfolio in Pakistan was gradually turning into largest in the world. With CASA-1000 (Central Asia-South Asia transmission line project), Tarbela IV, IFC’s investments in subsidiary company of Three Gorges of China (CSAIL) and Tarbela V in the offing, the portfolio aims to augment the present generation capacity by more than 10,000 megawatts over a period of five to six years. A project to augment and upgrade the transmission system is also in the pipeline.

Last year, the officials said that World Bank disbursed more than US $1.6 billion to Pakistan and a Pakistan Day was observed on May 01, 2014. The Bank is aiming to disburse US $1.25 to 1.3 billion to the government by the end of the current fiscal year from its IDA concessional package.

This generous and expeditious funding by the World Bank is viewed by economic managers of the government as a sign of trust in the official economic reform agenda.However many development planners are of the view that the government will have to undertake a radical reform agenda in order to fully benefit from the World Bank assistance. Major touchstone of success of this reform in energy sector will be privatisation of power distribution and generation companies (DISCOs and GENCOs) and other governance reforms in energy sector including radical handling of intractable circular debt. It is said if the government does not speed up its reform agenda, the World Bank may slow down the assistance.

The recent visit of IFC head Jin-Yong Cai, which is private sector investment arm of World Bank, is also seen by experts as a major development vis-a-vis the World Bank’s interest in private sector development in energy sector.

During his visit, the IFC head met Prime Minister Nawaz Sharif and Finance Minister Ishaq Dar and committed to helping Pakistan tackle some of its most pressing challenges from unemployment to energy shortage by catalysing new investment outside the public sector.

He said private businesses, both large and small, are the backbone of Pakistan’s economy, but they are often held back by power outages, excessive red tape, and a shortage of credit. “By tackling these issues, we can help companies unlock their potential and create the economic opportunities that Pakistanis are eager for.”

The IFC is expected to invest about $500 million annually in Pakistan in the next few years as part of a World Bank Group Country Partnership Strategy.Economists say unless Pakistan improves its business environment and addresses serious issues highlighted by the Ease of Doing Business Report of the World Bank, which has ranked Pakistan quite low due to multiple factors discouraging private business and investment, Pakistan would not be able to benefit from such assistance speedily. Almost all these factors pertain to archaic and unhelpful practices and attitudes of bureaucracy and public sector organisations.

http://www.thenews.com.pk/Todays-News-2-299755-WB-approves-five-projects-to-bring-reforms-in-energy-sector
Riaz Haq said…
From India Today:

A Chinese official has confirmed that China is involved in as many as six nuclear power projects in Pakistan and is likely to export more reactors to the country, indicating that the much debated civilian nuclear cooperation between the two countries will go ahead despite concerns voiced that it is in contravention of Nuclear Suppliers' Group (NSG) guidelines.

While China has in the past declined to confirm or share details regarding the extent of its on-going civilian nuclear cooperation with Pakistan, a top official of the National Development and Reform Commission (NDRC), the planning body, was quoted as saying on Saturday that Beijing has been involved in the construction of six reactors in Pakistan.

Wang Xiaotao, vice-minister of the NDRC, was quoted as saying by State media that the NDRC was keen to support further exports to Pakistan and other countries. To this end, the NDRC is drawing up new guidelines to announce supportive financial policies for exports in the nuclear sector. Railways exports would also be supported under the new guidelines, Wang said.

Announcing the guidelines at a Beijing press conference, Wang said that China "has assisted in building six nuclear reactors in Pakistan with a total installed capacity of 3.4 million kilowatts". China was also exporting nuclear technology to Argentina, with the two countries on Wednesday signing a deal for exporting heavy-water reactors.

China's recent projects with Pakistan have come under scrutiny as the NSG does not allow members to supply nuclear technology to countries that have not signed the Nuclear Non-Proliferation Treaty (NPT). India had to seek a waiver from the NSG for its civilian nuclear cooperation with the US, and obtained one only after undertaking a range of commitments.

China only declared the first two reactors it had constructed for Pakistan, Chashma-1 and Chashma-2, at the time of joining the NSG, according to Indian and American officials.

In 2009, the China National Nuclear Corporation signed agreements for two new reactors, Chashma-3 and Chashma-4. The deals became a matter of controversy and were debated at the NSG, with China arguing that the reactors were "grandfathered" as part of its earlier Chashma agreement and were not new projects per se. China also argued that the deals were under International Atomic Energy Agency (IAEA) safeguards and were legitimate.

The two countries last year announced they would undertake a new project in Karachi, with Pakistani media reports saying China would provide $ 6.5 billion to finance two reactors there. At the time, Beijing declined to confirm those reports.

While the Chinese Foreign Ministry has, in the past, argued that China's cooperation with Pakistan "did not violate norms of the NSG", Beijing's main argument was that the Chashma reactors were part of an earlier deal. With China going ahead with building two new reactors in Karachi, it remains to be seen how Beijing will explain the deals' validity under NSG guidelines.



Read more at: http://indiatoday.intoday.in/story/china-pakistan-nuclear-projects-beijing-chashma-atomic-energy/1/417661.html
Riaz Haq said…
The National Transmission and Despatch Company Limited (NTDCL) of Pakistan signed three agreements for the output of 129.5 MW of energy from Jhimpir wind farm.

The plan calls for Tapal Wind Energy to build a 30 MW facility, Master Wind Energy to install a 49.5 MW plant and Gul Ahmed Wind Power construct an additional 50 MW wind park.

The PPAs have received the green light from NTDCL authorities and all three wind power producers will close their financing till 31 March 2015. The farm will start production by the end 2016.

NTDC, incorporated in 1998 operates and maintains twelve 500 KV and twenty nine 220 KV Grid Stations, 5077 km of 500 KV transmission line and 7359 km of 220 KV transmission line in Pakistan.

The main functions of NTDCL are categorized as central power purchasing agency, system operator, transmission network operator, contract registrar and power exchange administrator for the energy portfolio of Pakistan.

As a Central Power Purchasing Agency (CPPA), the utility works on procurement of power from GENCOs, Hydel & IPPs on behalf of Distribution Companies (DISCOS) for delivery through 500 kV, 220 kV and 132kV Network.

Current projects undertaken by NTDCL include D. G Khan 500 kV sub -station and transmission line, New Okara 220 kV Sub-Station Transmission Line and Dispersal of Power from Jarwar IPP Jarwar – Sadiqabad 132 kV Double Circuit Transmission Line.

The Jhimpir Wind Power Plant is a wind farm located at Jhimpir in Thatta District of Sindh province in Pakistan, 120 kilometres North-East of Karachi.

The project has been developed by Zorlu Energy Pakistan at a total cost of $143 million.

Recently, Pakistan Meteorological Department has conducted a detailed Wind Power Potential Survey of Coastal Areas of Pakistan.

This study finds that Sindh coastal areas have greater wind power potential than Balochistan coastal areas. Potential areas cover 9700 sq.km in Sindh.

In Pakistan, first wind power generation plant of 50 MW was inaugurated in December 2012 and started full production in 2013. The wind power potential in Pakistan that has been identified in Sindh and Balochistan is more than 50,000 MW while Punjab has potential of producing almost 1,000 MW.

http://www.greentechlead.com/wind/ntdcl-of-pakistan-signs-3-deals-for-130-mw-wind-energy-purchase-22576
Riaz Haq said…
Half of all new #Energy world-wide last year was Green. #Solar #Wind http://www.juancole.com/2015/04/energy-world-green.html …

Prepared by the Frankfurt School-UNEP Collaborating Centre and Bloomberg New Energy Finance, the report says that a continuing sharp decline in technology costs – particularly in solar but also in wind – means that every dollar invested in renewable energy bought significantly more generating capacity in 2014.
In what was called “a year of eye-catching steps forward for renewable energy”, the report notes that wind, solar, biomass and waste-to-power, geothermal, small hydro and marine power contributed an estimated 9.1 percent of world electricity generation in 2014, up from 8.5 percent in 2013.
This, says the report, means that the world’s electricity systems emitted 1.3 gigatonnes of CO2 – roughly twice the emissions of the world’s airline industry – less than it would have if that 9.1 percent had been produced by the same fossil-dominated mix generating the other 90.9 percent of world power.
“Once again in 2014, renewables made up nearly half of the net power capacity added worldwide,” said Achim Steiner, Executive Director of UNEP. “These climate-friendly energy technologies are now an indispensable component of the global energy mix and their importance will only increase as markets mature, technology prices continue to fall and the need to rein in carbon emissions becomes ever more urgent.”
China saw by far the biggest renewable energy investments last year – a record 83.3 billion dollars, up 39 percent from 2013. The United States was second at 38.3 billion dollars, up seven percent on the year (although below its all-time high reached in 2011). Third came Japan at 35.7 billion dollars, 10 percent higher than in 2013 and its biggest total ever.
According to the report, a prominent feature of 2014 was the rapid expansion of renewables into new markets in developing countries, where investments jumped 36 percent to 131.3 billion dollars. China with 83.3 billion, Brazil (7.6 billion), India (7.4 billion) and South Africa (5.5 billion) were all in the top 10 investing countries, while more than one billion dollars was invested in Indonesia, Chile, Mexico, Kenya and Turkey.
Riaz Haq said…
Pakistan's 1,300-MW Tarbela Dam 5th Extension hydropower project received consent from the government's Central Development Working Party earlier this week, leaving approval by the Executive Committee of National Economic Council as its final hurdle.
The 5th Extension -- an addition to the 3,480-MW Tarbela plant -- is being developed by the Water and Power Development Authority. WAPDA extended its deadline for expressions of interest for project preparation and design of the 5th Extension in August.
The 5th Extension would use an existing irrigation tunnel extending from the original plant. Its predecessor, the 1,410-MW 4th Extension, also uses an irrigation tunnel and is currently under construction. WAPDA chair Zafar Mahmood urged completion of the 4th Extension by 2017 during a briefing session earlier this year.
HydroWorld.com reported in February that WAPDA had awarded a contract to Voith Hydro of Germany and Voith Hydro of Shanghai to supply electro-mechanical works for the 4th Extension.
Tarbela Dam, completed in 1974, was designed to store water from the Indus River for irrigation, flood control and the generation of hydroelectric power.

The 148 meter high, 3,000 meter long dam has two gated spillways and five tunnels that provide irrigation releases and power generation. At the time of construction the dam tunnels 1, 2 and 3 were scheduled for power generation and tunnels 4 and 5 were designed exclusively for irrigation release.
WAPDA is also in the process of repairing and upgrading the original plant.

http://www.hydroworld.com/articles/2015/10/pakistan-s-1-300-mw-tarbela-5th-extension-hydropower-project-receives-next-to-last-approval.html
Riaz Haq said…
GE, Harbin to Provide Large, High-Efficiency Gas Power Plant to Meet Energy Demand in #Pakistan at Bhikki 1.1GW http://www.businesswire.com/news/home/20151014005988/en/GE-Harbin-Provide-Large-High-Efficiency-Gas-Power#.Vh7eahCrS8U … Bhikki Combined-Cycle Power Plant Marks the First HA Order in the Middle East and North Africa Region and the 20th and 21st HA Orders Worldwide
New Project Furthers GE-Harbin Technical Collaboration in Providing Competitive Power Plant Solutions Worldwide
Punjab Government Creating What is Expected to be the Largest, Most Efficient Power Plant in Pakistan, Helping Area Meet Growing Power Demand
The Bhikki plant will be able to generate the equivalent power needed to supply more than six million Pakistani homes, and is likely to be the largest, most efficient power plant in Pakistan. It is expected to enter commercial operation in 2017. This project marks the first HA orders in the Middle East and North Africa region and the 20th and 21st worldwide. GE’s 9HA is the world’s largest, most efficient gas turbine.

“We are committed to meeting the growing demand for power to drive industrial growth and all-round economic progress as well as to promote the welfare of our people,” said Ahad Khan Cheema, CEO, Quid-e-Azam Thermal Power Limited, on behalf of the government of Punjab. “As part of this, we are not only investing in new plants but also strengthening public-private collaboration to ensure that advanced technologies are deployed to meet the growing demand. GE and Harbin are moving forward with an accelerated time frame to add additional power to the grid.”

Joe Mastrangelo, president and CEO, gas power systems at GE Power & Water added, “The Bhikki project is another testament to the long-term commitment of GE to serve as an active partner in helping to meet Pakistan’s development needs. We have established strong partnerships in the power sector, and the introduction of our HA gas turbines, a significant first for the region, underlines our focus on bringing the latest technologies to enhance the operational efficiency and productivity of power plants.”

“The Bhikki combined-cycle plant is a strong example of technical collaboration between GE and Harbin in providing the most advanced combined-cycle power plant solutions,” said Mr. Guo Yu, chairman of HEI. “Deploying GE’s advanced HA technology is a game changer for the industry as it supports the government’s goal to ensure affordable, reliable and efficient power generation to meet growing demand.”

With the Bhikki plant, 21 HA units have been ordered and 68 HA units have been technically selected1 by customers around the world. GE’s H-class technology has been embraced by customers in Korea, Japan, the United Kingdom, Brazil, the United States, France, Russia, Germany, Turkey, Egypt, Pakistan and Argentina.

GE’s HA gas turbines provide a combination of the most output, highest efficiency and best operational flexibility and lead the industry in total life cycle value. The 9HA.01 offers a net combined-cycle efficiency of more than 61 percent and leads the industry with cleaner, reliable and cost-effective conversion of fuel to electricity.

The 9HA gas turbine completed off-grid, full-speed, full-load validation testing in January 2015 at the world’s largest, most thorough gas turbine test stand located at GE’s manufacturing facility in Greenville, South Carolina. This testing facility has attracted industry visitors from around the world.

Among key agreements in the country, GE has signed a memorandum of understanding with the government to develop Pakistan’s energy resources to meet the projected demand of 54,000 megawatts by the year 2020. GE will assist the government in achieving its goals by engaging in Pakistan's energy, transportation and water sectors and will work to identify potential sources of funding and explore potential investment opportunities in those sectors.
Riaz Haq said…
Minister for Finance Senator Ishaq Dar on Sunday said that the government would be able to overcome the energy crisis by early 2018 by adding 10,000 megawatts more electricity to the national grid.

“Currently we are facing a shortfall of about 5,000 MW of electricity whereas energy projects of 24,000 MW are under process and some of them will start generating 10,000MW by the end of year 2017 or early 2018,” he said while addressing a ceremony organized by Old Hailians Association here.

The remaining projects of 14,000MW, he said, would start adding electricity to the system by 2020 which would help boost economic activity and industrialisation in the country.

The minister said two mega hydro power projects, Dasu and Diamir Bhasha dams, were also in progress, which would not only help overcome the energy crisis but also store water for irrigation purpose.

“Diamir Bhasha Dam will have the capacity of 1.3 trillion cubic feet water,” he added. Ishaq Dar said the government was also working on civil nuclear energy projects, which would add 1,000MW electricity to the system in next seven years. He said that before the year 2013, the country was on the verge of becoming a defaulter as the foreign exchange reserves had gone down to below $8billion and no international monetary institution was ready to lend money to it.

However, the Pakistan Muslim League-Nawaz (PML-N) after coming to power, worked hard to bring the country out of the financial crisis, he added.

“Within a short span of two years, the country has made immense progress as the energy crisis has considerably eased, forex reserves have touched $20 billion mark, a record in the country’s history, fiscal deficit has come down from 8.8 percent to 5 percent, and inflation rate has reduced from above 10 percent to record 1.3 percent.”

Moreover, the minister said, the tax to GDP ratio had also increased from 9 percent to 11 percent and revenue growth rate also surged from 3 percent to 15 percent. Now the world renowned fiscal institutions were praising Pakistan for its amazing economic development and had rated its economy as stable, he added.

Dar said if Pakistan continued its journey on the road to progress which it had witnessed during previous two years, it would become the world’s 18th major economy in 17 years.

He said that the PML-N was strictly implementing its manifesto announced during the 2013 general election, in which it had vowed to steer the country out of four crises.

“The country was facing 4 E challenges ( Economy, Energy, Education and Extremism) at the time the PML-N government came into power, which have now been overcome due to its prudent policies,” he added.

http://www.thenews.com.pk/Todays-News-2-345147-10000MW-to-be-added-to-national-grid-by-early-2018-Dar
Riaz Haq said…
#Pakistan to soon switch on 350 MW of #wind #energy farms - report - SeeNews #Renewables https://shar.es/1E1Ir0

The Pakistani province of Sindh is expected to soon become home to 350 MW of operational wind power capacity.

An official of the Alternative Energy Development Board (AEDB) told the Associated Press of Pakistan (APP) on Sunday that seven 50-MW wind parks along the coastline should be completed by next month. The projects include developments by Yunus Energy, Metro Power Company, Gul Wind Energy and Master Energy.

Meanwhile, Sachal Energy Development Pvt Ltd (SEDL) is building another 50-MW wind farm in Jhimpir, Sindh. It is expected to be finalised by mid-2017, the official has added.

All of the projects are financed by the private sector, he said as quoted by the news agency.
Riaz Haq said…
#China to Fund 4,000 MW Power Transmission Line in #Pakistan. #CPEC https://thewire.in/90574/china-power-line-pakistan/ … via @thewire_in

State Grid of China will help build a 4,000 MW power transmission line in Pakistan in a project valued at $1.5 billion, Pakistan said on Friday, the latest in a series of Chinese investments in its South Asian neighbour.

The high-capacity transmission line will be the first of its kind in Pakistan and will link Matiari town in the south, near a new power station, to Lahore city in the east, a key link in transmission infrastructure, the Pakistani government said.

An agreement on the project was signed on Thursday in Beijing between Mohammad Younus Dagha, Pakistan’s secretary of water and power, and Shu Yinbiao, chairman of State Grid Corporation of China, the government said in a statement.

Construction will begin in January, and should take about 20 months, said a spokesman for the Pakistani prime minister’s office.

Pakistan has been plagued by a shortage of electricity for years, with widespread rolling blackouts in both rural and urban areas.

The government has managed to reduce load shedding – scheduled power outages – in some areas, but production gaps and distribution woes remain.

The project is the latest in a series of big Chinese investments, most of which fall under a planned $55 billion worth of projects for a China Pakistan Economic Corridor.

The corridor is a combination of power and infrastructure projects that link western China to Pakistan’s southern port of Gwadar.

Other Chinese investment in Pakistan has included the acquisition of a majority stake by Shanghai Electric of the K-Electric power production and distribution company for $1.8 billion.

Last week, a Chinese-led consortium bought a 40 percent stake of the Pakistan Stock Exchange for an estimated $85 million.

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