Power resources and Economic Development

Power resources play a very important

role in the economic development of a
country. Power or energy resources
included coal, oil, gas, electric, biogas
and solar energy etc. It is required for
Agriculture sector, Industrial sector
and means of Transportation.
 Agriculture Sector
 Agriculture sector in Pakistan is underdeveloped
 Modern means of production is necessary. like
tractors, tube wells, harvesters etc
 Diesel, oil & electric power energy is required.
 Under developed Agri culture power causes food
shortage & out flow of foreign exchange in the shape
of imports & vice versa the national income & per
capita will increase.
Development of Industrial Sector
 Our industrial sector also depends on power
resources.
 Developed industrial sector causes increase in
employment rate & national income.
 High standard of living is also an important factor.
 Our means of transport also depends on theses
energy sources.
 The share of industry in Pakistan stands as high as
40.47 per cent compared to over 37 per cent by other
South Asian countries.
 WAPDA (Water & Power Development Authority)
 It has been dominating the national economic
scene of Pakistan for over 50 years.
 It comes into limelight almost daily in the
media or otherwise, both its achievement as
well as for some of its drawbacks and handicaps.
 The country's demand for power increases by
an estimated 8% annually.
 Statistics reveal that electricity is available to
only 40% of the population and that the per
capita consumption per annum is 300 Kwh/year.
 WAPDA (Water & Power Development Authority)

WAPDA ordinance issued in February 1958.

Its author Mr. Ghulam Ishaq Khan (Who was then
Secretary, Irrigation & Power in West Pakistan
Government). Tennessee Valley Authority of USA as
the model in his mind.
 WAPDA (Water & Power Development Authority)

WAPDA was given the following charter of duties;

1. Generation, transmission & distribution of power
2. Power of water logging & reclamation of
waterlogged & Saline lands
3. Flood control
4. Inland navigation
 WAPDA (Water & Power Development Authority)
What have been WAPDA’s major achievements in the last
50 years, the following four areas distinctly stand out
in our mind;
 United development of water & power resources, thus
enforcing the national integration of the four provinces
 Rapid power development
 Execution of Indus Basin projects
 War against water logging & Salinity
 WAPDA (Water & Power Development Authority)
Unified Development
WAPDA was assigned only an economic role in unified
development of water and power resources of the
Pakistan
Utilization of water or power resources & distribution of
its benefits among the four provinces are being done
without any consideration of “who produces & who
uses these”
 WAPDA (Water & Power Development Authority)
For Example;
Tarbela generates the power, which is in NWFP but
Punjab, Sindh & Baluchistan mostly utilized the
power generated at Tarbela, besides the NWFP.
Similarly Tarbela, Mangla and Chashma release the
irrigation supplies which are utilized not only by
Punjab also by Sind.
 WAPDA (Water & Power Development Authority)
Same like Sui gas is produced in Baluchistan, but is
used to generate power at Guddu in Sindh, at
Multan and Faislaabad in the Punjab, besides at
Quetta.
Conclusion of all the examples without the natural
Gas of Baluchistan and Sindh, without the
generation power at Tarbela, Mangla, Guddu,
Multan & Faislaabad. Warsak without the
system of link canals and Barrages which run
through the heart of Punjab & Sindh. None of
the four provinces can have independent and
viable economic base.
WAPDA (Water & Power Development Authority)

W APDA
is playing an important role to all the four
provinces inter-dependent on one another and
equal beneficiaries of all the natural resources of
each province. Economic survival of each
province lies in Pakistan being in one compact
unit.
 WAPDA (Water & Power Development Authority)
Power Development

2nd biggest achievement of WAPDA is the

rapid development of the power sector.
State of affairs of the power sector in 1959;
3, 50,000 consumers & total generated
capacity was about 119 MW.
In 1947 the total installed generation capacity
stood at meagre 31 MW.
It has raised to 119 MW, which now come to
nearly 19500 MW.
 WAPDA (Water & Power Development Authority)
Power Development

Today total generation capacity exceeds 19500 MW (all big cities,

towns, and a large number of big villages) the number of consumers has
gone up to over 17.7 millions. (If multiply by the 6 members
of the family then it means that over 10, 64, 01,180 persons are
benefiting. 60% of the population of Pakistan and only 5%
receiving power in 1959.

Considering the increase in the rate of population, a minimum

additional requirement of 5000 MW by the year 2018, is
needed in order to prevent load shedding.
 WAPDA (Water & Power Development Authority)
Transmission of Power
How has this rapid increase been possible?
It is all WAPDA planning to generate new schemes in
the mountains, on canal falls, in load centers like
Faisalabad and in desert like Guddu, and taking it
across through hundreds & thousands of miles of
new transmission lines in every corner of the
country.
 WAPDA (Water & Power Development Authority)
Transmission of Power

In 1959 the total length of HT & LT transmission

lines was about 7000 kms while the number of
Grid Stations 59 with the total capacity 2810
MVA.
Today these figures have been improved with 447349
kms, 601 Grid Stations and 12,745 MVA.
WAPDA (Water & Power Development Authority)

Village Electrification
WAPDA has electrified over
125468 villages by now
including those located in
FATA, the number of
electrified villages stood at 609
in 1959.
WAPDA (Water & Power Development Authority)

After the completion of all these projects the

installed capacity is expected to be around 42000
MW by the end of year 2016. Pakistan can only
store 13% water of the annual flow of its rivers.
The field of water and power is the major source of
prosperity in Pakistan.
 Cause of Load Shading

Pakistan is facing a huge electric power crisis now a day.

At present total power production capacity is our country is
about 19500 MW,
out of which Hydel power is only 6500 MW,
balance of 13000 MW is thermal either using Natural Gas or
Furnace Oil.
Small Capacity of 450 MW is nuclear and only 150 MW is
through coal.
 Cause of Load Shading

Gas is to be provided for 5800 MW to various thermal

plants, much gas is not available to generate
electricity.
Deficiency is filled through furnace oil, in recent past
only furnace oil was used as fuel for about 9000
MW generation.
 Cause of Load Shading

Current price of furnace oil is about Rs. 49000 per

ton, which amount is upto Rs. 49/- per kg. one
kg furnace produces 3.8 kWh of electricity.
As per agreement between WAPDA & (Independent
Power Producers) IPPs, that the private power
producers will charge WAPDA the actual fuel
cost which they direct contract with Pakistan
State Oil (PSO).
 Cause of Load Shading

The production of furnace oil electricity cost is Rs. 16

per unit.
Adding transmission, distribution cost the total per
unit cost is Rs. 22/-
25 billion units consumed by the country annually
through furnace oil.
Total deficit is Rs. 425 billion.
 Cause of Load Shading

WAPDA has to show 425 billion as subsidy to balance its

books.
We can reduce this deficit if we produce electricity
through hydel energy.
A deficit of Rs 300 to 350 billion can not be sustained &
Govt does not have sources to pay such a huge
subsidy.
 Cause of Load Shading

So WAPDA is delaying payments to IPPs & also to the oil

companies.
The result is that IPPs are now producing much less
electricity than their capacity.
Therefore the power crisis is greater and Nation is facing
a horrible problem like load shading.
 Cause of Load Shading
STEPS BY THE GOVT
To allow WAPDA to implement all the hydropower
projects, in pipelines as well as proposed.
Developing hydropower projects sector will increase
electricity generation, improve ever increasing
trade deficit and reduce out flow of foreign
exchange in term of profit/ dividend by the IPPs.
During seven months of current fiscal year 2007-
08 the IPPs thermal power plants have gained US$
102 million as profit which is a record.
Cause of Load Shading
STEPS BY THE GOVT
Country cannot afford electricity produced
through oil, fuels like coal, gas, atomic will
have to be developed and developed quickly.
The final solution however lies in depending
on the hydroelectric energy, but unfortunately
the narrow minded bickering on construction of
dams has persuaded the planners to find an easy
solution.
 Cause of Load Shading
STEPS BY THE GOVT
The situation calls for concerted
short-term, medium term and
long term actions to overcome
the problem of energy shortage.
 Electricity in Pakistan
WORLD WIDE NUCLEAR POWER PRODUCTION
Country Production % of total No of No of No of under
billion production operative proposed construction
KWH 2006 reactors reactors reactors
USA 787 19 104 25 0
France 428 78 59 01 01
Japan 292 30 55 01 02
Germany 162 31 19 - -
Russia 144 16 31 20 07
South Korea 141 39 20 - 03
Britain 69 18 19 - -
Canada 92 16 18 02 02
Belgium 44 58 07 - -
South Africa 10 4 02 24 -
China 52 2 11 86 05
India 17 4 14 09 06
Pakistan 2.6 2.7 02 13 01

Various Sources
 Energy in Pakistan (MW)
Year Demand supply GAP

2003 13071 14336 1265

2004 13831 15046 1215

2005 14642 15082 440

2006 15483 15072 -411

2007 16548 15091 -1457

2008 17689 15055 -2634

2009 19080 15055 -4025

2010 20584 15055 -5529

Estimated by Private power & Infrastructure Board (PPIB)

 Electricity production in Pakistan during 2008

Source World wide Pakistan (%)

(%)

Coal 40 6.5

Gas 19 45

Nuclear 16 2.5

Hydro 16 33

Oil 07 16

World Bank
Installed Capacity (MW) of Electricity as on 30th June, 2000

Type
1995 1996 1997 1998 1999 2000

Thermal (WAPDA) 5399 6268 5102 5082 5131 5131

Thermal (KESC) 1738 1738 1738 1735 1690 1756

Thermal IPP's . . 3015 3879 3879 5549

Total 7137 8006 9855 10696 10700 12436

Source: Pakistan Energy Yearbook, 2000

 WAPDA (Water & Power Development Authority)
Vision 2025
WAPDA has formulated a comprehensive National
Water Resource & Hydropower Development
Programme Vision 2025.
Five Mega Hydropower projects have been
announced by president of Pakistan which are to
be completed by 2016 with generation capacity
9,500 MW.
Two projects are ready for construction work and
three are in feasibility process.
 WAPDA (Water & Power Development Authority)
Neelum- Jehlum Hydroelectric Project
Consultants M/S China Gzehouba Group Company, M/S MWH of USA,
Norplan of Norway, NESPAK, etc.

Estimated cost 2.16 Billion US$

Project Location Muzaffarabad in Azad Jammu Kashmir
177 Km from Islamabad
Height 47 Meters
Spillway Gated & free overflow (4 gates
12m*8m)
Installed capacity 969 MW
Annual Energy output 5150 GWh
Completion year 2016
 WAPDA (Water & Power Development Authority)
Diamer Basha Dam Project
Estimated cost 8.5 Billion US$
Project Location 40 km downstream of Chilas
Height 272 Meters
Installed capacity 4500 MW
Annual Energy output 18000 GWh
Completion year 2016
 o u
k Y
a n
T h