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E NERGY C RISIS IN P AKISTAN EDITOR DR NOOR
UL
H A Q
A S S I S T A N T E D I T O R K HALID HUSSAIN
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CONTENTS Preface
1. Pakistan: Power Crisis Feared by 2007 2. Major Energy Crisis Feared 3. Pakistan’s Quest for Energy Security 4.
Waste to Energy is Needed in Pakistan
5.
Type of Energy
6. Thermal Energy 7. Hydel Energy 8. Wind Energy 9. Rising Oil Prices 10. Pakistan Coal Reserves be Explored 11. Pakistan Iran Agree on Gas Pipeline Project 12. ECNEC Approves Energy Projects 13. Energy Crisis in Pakistan-I 14. Energy Crisis in Pakistan-II 15. Pakistan's Energy Crisis to Worsen in Next Two Year 16. Wind Power: Solution to Energy Crisis 17. Energy Crisis may go from Bad to Worse 18. Asian Development Bank Considering Loan for Small Hydro Projects 19. US Advise Pakistan to Purchase Electricity from Central Asia 20. Energy Strategy 21. Pakistan Urged to Import 4,000MW from CARs 22. Fuel Shortage may Worsen Power Situation Sign up to vote on this title
23. Energy Crisis: Crisis: Serious and Worsening Useful Not useful 24. Energy Crisis in Pakistan is Growing Rapidly 25. Efficient Household Appliances to Mitigate Energy Crisis
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33. Entangled in Energy Web 34. Meeting Held to Discuss Pakistan's Energy Crisis 35. Government Taking Steps to Overcome Energy Crisis 36. Energy Conservation Plan to Combat Shortage 37. Demand-Supply Gap Increases Dramatically 38. Pakistan Facing Acute Power Shortage 39. Renewable Resources Must to Counter Energy Crisis 40. Load Shedding: Part of Conspiracy 41. Coal Power Plants to Help Overcome Energy Crisis 42 Government to Ensure Indiscriminate Load Shedding: PM 43. Pakistan Puts Clocks Forward, Hopes to Save Electricity 44. The Option for Solar Power 45. Advancing of Clocks Creates Confusion 46. Iran can Help Pakistan in Energy Sector 47. SAARC Members Asked to Sign Energy Treaty 48. Subsidy on Use of Up to 200 Power Units Stays 49. Load Shedding becomes a Nightmare for Karachiites 50. Severe Fuel Crisis Hits Frontier 51. Shortage of Fuel at Petrol Pumps Causing Concern 52. Shortage of Petrol Products Tormenting Consumers 53. No End to Electricity Meter Shortage 54. Peshawar Transporters Threaten to Besiege Oil Depots 55. Diesel Shortage Affecting Operation of Tube-wells, Tractors 56. Load Shedding Increases as KANUPP Trips Again 57. Fuel Stations Run Short of Diesel 58. Frequent Power Shutdowns Bringing Grades Down Sign up to vote on this title Useful 60. Power Plants Top Gas Supply Priority List
59. New Energy Order
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PREFACE
Pakistan is presently facing a serious energy crisis. Despite strong econom growth during the past decade and consequent rising demand for energy,
worthwhile steps have been taken to install new capacity for generation of t
required energy sources. Now, the demand exceeds supply and hence “loa
shedding” is a common phenomenon through frequent power shutdow
Pakistan needs about 14000-15000MW electricity per day, and the demand
likely to rise to approximately 20,000 MW per day by 2010. Presently, it c
produce about 11, 500 MW per day and thus there is a shortfall of about 300
4000MW per day. This shortage is badly affecting industry, commerce a daily life of people.
All possible measures need to be adopted, i.e., to conserve energy
all levels, and use all available sources to enhance production of energy.
seems that the government is considering importing energy from Iran a
Central Asian Republics and using indigenous sources, such as, hydel, co
waste, wind, and solar power, as well as other alternate and renewable ener
sources, besides nuclear power plants for production of energy. Needless
say that if the country wishes to continue its economic development a
improve the quality of life of its people, it has to make serious efforts towar framing a coherent energy policy.
The Factfile includes selected articles and news items on the subje up to July vote on this title appearing in the media from 2nd July 2004 Sign till 10th 2008. Useful Not useful
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P A K I S T A N : P OWER C R I S I S F E A R E D
BY
2007
The country may plunge into energy crisis by the year 2007 due to risin electricity demand which enters into double digit figure following increasin sale of electrical and electronic appliances on lease finance, it is reliably learn Thursday. “The country may face energy crisis by the year 2007 followin healthy growth of 13 per cent in electricity demand during the last quarte which will erode surplus production in absence of commissioning of any new power generation project during this financial year,” informed sources tol The Nation. As per Pakistan Economic Survey 2003-04, electricity consumptio has increased by 8.6 per cent during first three-quarter of last fiscal yea However, a top level WAPDA official maintained that electricity deman surged up to 13 per cent during last quarter. The survey said household sector has been the largest consumer o electricity accounting for 44.2 per cent of total electricity consumptio followed by industries 31.1 per cent, agriculture 14.3 per cent, othe government sector 7.4 per cent, commercial 5.5 per cent and street light 0. per cent. Keeping in view the past trend and the future developmen WAPDA has also revised its load forecast to eight per cent per annum a against previous estimates of five per cent on average. Even the revised loa forecast has also failed all assessments due to which Authority has left n other option but to start load management this year, which may convert int scheduled load shedding over a period of two year, sources maintained. The country needs a quantum jump in electricity generation medium-term scenario to revert the possibilities of load shedding in futur due to shrinking gap between demand and supply of electricity at peak hours According to an official report, the gap between firm supply an Sign up to vote on this title peak hours demand has already been shrunk to three digit (440 MW) durin Useful Not useful this fiscal and will slip into negative columns next year (-441 MW) an further intensify to (-1,457 MW) during the financial year 2006-07.
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They said the power generation projects, which are due commission in coming years are of low capacity and will not be able t exceed the surging demand of the electricity. They say no power generation project will commission during th fiscal year and the total installed capacity of electricity generation will remai 19,478 MW to meet 15,082 MW firm supply and 14,642 MW peak demand. Giving details of projects, the sources said Malakand-lll (81MW Pehur (18MW) and combined cycle power plant at Faisalabad (450MW) ar planned to be commissioned during the year 2007. Mangla Dam raisin project would also add 150 MW capacity to the national grid by June 2007. Besides this, Khan Khwar (72MW), Allai Khwar (121MW), Dube Khwar (130MW) and Kayal Khwar (130MW) are expected to be complete in 2008 along with Golan Gol (106MW) and Jinnah (96MW). Moreove Matiltan (84MW), New Bong Escape (79MW) and Rajdhani (132MW) ar expected by 2009 while Taunsa (120MW) is likely to be completed by 2010 Sources say WAPDA has also planned to install a high efficiency combine cycle power plant at Baloki (450MW), which is expected to be completed b 2010. In addition of these, power plant 1 & 2 of 300 MW each at Thar Coa with the assistance of China are also planned for commissioning in 200 sources said. Moreover, efforts are also under way with China Nationa Nuclear Corporation for the construction of a third nuclear power plant wit a gross capacity of 325 MW at Chashma, they added. When contacted, a WAPDA official said there is no power shortag in the country at present as the Authority still has over 1,000 MW surplu electricity. However, he admitted that the shortage may occur in the yea 2007 and onward and said the Authority will utilise all options includin running of IPPs plant at full capacity to avert any possible crisis. About the system augmentation to bring down line losses, th official said the Authority would spend Rs 3.5 billion on augmentation o distribution lines this fiscal while another Rs 5 billion will be consumed o Sign up toRs vote9onbillion this titleloan with transmission lines. “We have been negotiating Useful useful transmissio consortium of local banks to upgrade andaugment theNot power system,” he disclosed. The official further said that five new transmissio lines of 220-KV would be installed by the end of 2004, that would ensur
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M A J O R E N E R G Y C R I S I S F E A R E D
Pakistan is most likely to face a major energy crisis in natural gas, power a oil in the next three to four years that could choke the economic growth f many years to come, official estimates and energy experts suggest. Pakistan’s total energy requirement would increase by about 48 p cent to 80 million tons of oil equivalent (MTOE) in 2010 from about MTOE currently, but major initiatives of meeting this gap are far from turni into reality, said a former petroleum minister on condition of anonymity f the simple reason that he had also served the present government. Major shortfall is expected in the natural gas supplies, he sa According to official energy demand forecast, he added, the demand natural gas, having about 50 per cent share in the country’s ener consumption, would increase by 44 per cent to 39 MTOE from 27 MTO currently. Partly contributed by gas shortfalls, the power shortage is expected be little over 5,250MW by 2010, he said, adding that the oil demand wou also increase by over 23 per cent to about 21 million tons in 2010 from t current demand of 16.8 million tons. This would leave a total deficit of about nine million tons of die and furnace oil imports, he said. Since the gas shortfalls were expected to much higher, the country would need to enhance its dependence on import oil, thus increasing pressure on foreign exchange situation, he added. Last year’s oil import bill amounted to about $6.5 billion compar with about $3.5 billion in 2004-05, mainly because of higher international prices - a burden expected to be even higher in future as a result of growi Middle East crisis. Current year’s oil import bill has again been projected by t government at about $6.5 billion on last year’s average prices, which ha Sign up to vote on this title started to rise in the recent days. Useful Not useful the According to the former minister, government had planned f major initiatives to meet these energy requirements. They included three g
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However, the gas-based power expansion of about 4,860MW wou remain in doubt since these estimates were based on gas import options f completion in 2010, 2015 and 2020, said the sources. The fifth initiative of LNG import was on schedule and would st delivering about 0.3 billion cubic feet of gas (BCFD) by 2009 and another 0 BCFD by 2015, said the sources. Petroleum ministry officials are not ready to speak on record abo gas import options and resultant overall energy shortfalls because of rece political developments on Iran-Pakistan-India pipeline project and secur situation in Afghanistan and non-certification of gas reserves in Turkmenista According to World Bank estimates, a demand gap (supply shorta of about four per cent of the total demand, is expected in 2010. Even thou this gap would be met by LNG imports, it would again increase to 20 per ce of the total demand. The bank said the indigenous gas supply would fall fro 32.6 MTOE in 2010 to 20.7 MTOE in 2025 while the ‘gas supply-demand g would rapidly increase as demand is expected to grow continuou quadrupling in 2025. As per the World Bank estimates, the gas imports will repres almost 67 per cent of natural gas supply in 2025. One can, therefore, gauge t quantum of shortage in case import pipelines are not materialised. Pakistan’s gas reserves are 32.8 TCF at present, with reserv production ratio in the order of 27 years, considering that domestic producti does not grow substantially. Power sector demand represents 41 per cent total gas consumption, general industries 24 per cent, fertiliser 7.8 per cent a domestic-commercial 22.8 per cent, cement 1.5 per cent and CNG 2.8 p cent. Demand growth has been up to 8.5 per cent in recent years and expected to be seven per cent with power industries and domes consumption accounting for 82 per cent. Gas demand already displa seasonal pattern with national demand growing in winter beyond transmissi up toindustries vote on this and title power plan capacity. Therefore, supplies to large users Sign mainly Useful useful commerc supplies are curtailed during winter months to ensure toNot domestic, and small industries. Annual production at present is about 1.16 TCF.
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consumption of natural gas is projected to increase by nearly 70 perce between 2002 and 2025, with the most vigorous growth in demand expect among the emerging economies. Consumption of natural gas worldw increases in the forecast by an average of 2.3 percent annually from 2002 2025, compared with projected annual growth rates of 1.9 percent for consumption and 2.0 percent for coal consumption. The electric power sec accounts for almost one-half of the total incremental growth in worldwi natural gas demand over the forecast period. South Asia is important to world energy markets because it conta 1.3 billion people and is experiencing rapid energy demand growth. Af India, Pakistan and Bangladesh are the next largest South Asian countries these categories. Economic and population growth in South Asia have result in rapid increases in energy consumption in recent years. The major ener issues facing South Asian nations today are keeping up with rapidly risi energy demand. Agency for energy consumption has projected that by the y 2010 South Asian countries shall be consuming more than double the curre levels of primary commercial energy. Pakistan’s largest energy source is natural gas, with demand a imports growing rapidly. Currently, natural gas supplies 49 percent of Pakistan’s energy nee According to the Oil and Gas Journal (OGJ), as of January 1, 2005, Pakist had 26.83 trillion cubic feet (Tcf) of proven natural gas reserves. Pakistan looking to increase its gas production to support increasing consumpti through Pipelines from Iran and Turkmenistan. Currently, Pakistan ranks th in the world for use of natural gas as a motor fuel, behind Brazil a Argentina. In addition, Pakistan hopes to make gas the fuel of choice future electric power generation projects. Pakistan ambitiously seeks increase oil production through new alliances with foreign compani Pakistan’s net oil imports are projected to rise substantially in coming years demand growth outpaces increases in production. Sign2007 up to vote on this title are taken Pakistan will see power shortages by unless actions Useful Not useful increase generation and reduce transmission losses. Pakistan has 18 gigawa (GW) of electric generating capacity. Thermal plants using oil, natural gas, a coal account for about 70 percent of this capacity, with hydroelectric
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however, seemingly getting out of its hand due to the yawning gap betwe supply and demand of electricity. Coal currently plays a minor role in Pakistan’s energy mix. Howev Pakistan contains an estimated 3,362 million tons, sixth largest in the wor President Musharraf has stated that coal should make up more than t current 1 percent of electric power generation in Pakistan. The Pakist Ministry of Industries and Production has granted a Chinese company to bu two coal-fired power-generation plants to supply 600 MW of electricity. Asi from power plants generated by coal, Pakistan is also working to expand t use of wind turbines. For instance, the Pakistan Alternative Ener Development Board (AEDB) recently approved New Park Energy Phase I 400-MW wind project near Port Qasim. Energy cooperation is the key to regional development. Pakista government is working on plans to build an Iran-Pakistan-India (IPI) pipel that spans from Iran’s massive reserves to Indian markets across Pakista territory. Russia’s biggest gas producer, Gazprom, has recently shown inter in the $7.4 billion pipeline project and has indicated its desire to invest in While Iran and Pakistan have made agreements to move forward, India s remains reluctant due to its recent nuclear deal with USA. Iran has offered cover 60 percent of the construction costs of the pipeline and Pakist officials have stressed their ability to safeguard the pipeline. Iran will lay t pipeline from Pars to Pakistani border. Islamabad will build the pipeline fro the Iranian border to its Central Pakistani city of Bhong in District Raha Yar Khan. Both countries have discussed the gas pricing formula, proj structure, its feasibility, gas off-take volumes and the gas sales and purcha agreement. In spite of US pressure for not building IPI pipeline, Pakis remains determined for the pipeline. In fact, in the face of the US pressu against IPI, now two pipelines from Iran are under "active consideration" one for Pakistan and the other for India, through Pakistan. If India participa in IPI project, Pakistan will be entitled to transit fee. But, if Pakistanbuilds t Sign upthen to vote thisalso title be entitled pipeline from the Iranian to the Indian border, it on will Useful Not useful transportation charges. This is the great vision of President Pervez Musharraf and Pri Minister Shaukat Aziz according to which Pakistan is going to become
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the gas availability issues. "The plan to import gas from Qatar is not, howev shelved," maintained by Jahangir Khan, spokesman for Ministry of Petroleu & Natural Resources. With the development of Gawadar Port, Pakistan can provide trade and energy corridor for the whole region especially to China. In t perspective president has rightly remarked so, “When Karakoram Highw was built, the world called it the eighth wonder, and we can create the nin and tenth wonders by establishing energy pipelines and railway linkag between the two fast growing economies.” economies.” China and Pakistan agreed widen KKH for larger vehicles with heavier freight. The rebuilding of KK will enable China to ship its energy supplies from the Middle East fr Gwader Port in Balochistan through the land route of KKH to western Chin which is its development hub. This alternative energy supply route will redu Beijing’s dependence on the Malacca Straits. Pakistan also wants to set up “crude transit route” through Gwader Port for Beijing’s energy shipme from Iran and Africa. For this reason, Pakistan is building oil refineries, natu gas terminals, oil and gas equipment, and transit facilities in Balochistan. Chi has agreed to help Pakistan with its plans for the development of its oil a gas industry. With this planned elaborate energy infrastructure, KKH h assumed an added significance as an alternative land link between China a its energy sources, of which Iran is at the top. The recent Pak-China ener forum in Islamabad was a major step in formulating future strategy to ensu energy security of both countries.
Muhammad Munir, Pakistan Observer , 20 May 20
W ASTE
TO
ENERGY
IS
NEEDED
IN
P A K I S T A N
Growing urbanisation and changes in the pattern of life, give rise to generati of increasing quantities of wastes and it’s now becoming another threat to o already degraded environment. However,Sign in uprecent years, waste-to-ener to vote on this title technologies have been developed to produce useful through t Useful clean Notenergy combustion of municipal solid waste in specially designed power plan equipped with the most modern pollution control equipment to cle
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recharge area. While in developed countries, landfills are now bracketed ‘obsolete’ and ‘mines of the future’ after observing several problems l pollution and contamination of groundwater by leachate and residual s contamination after landfill closure and simple nuisance problems. This is t very reason why in the United States sanitary landfill techniques have stead decreased from 8,000 in 1988 to 1,767 in 2002. Extensively focusing turning waste to energy, municipal authorities in USA have realised t contribution of waste to an increasing electricity shortage. Today in America, 2500 MW are solely generated by the wasteenergy plants. Many other countries in the world, Sweden, Japan includ have applied this technology since the last 20 years. In the sub continent, In installed three projects to produce electricity from waste with a total capac of 17.6 MW. Although these ‘made in India’ power plants are generati electricity by direct incineration, causing pollution and must be upgraded sophisticated monitoring systems to check pollution. These examples a enough to establish that CDA’s ignorance of modern technologies is sur not simply a lack of ‘access to information’, but questions the profession capabilities of the planners within its corridors. The site selected for the landfill project is at Kuri, an ancient city Potwar and its aerial distance is hardly five kilometres from sector G-5, know as the nucleus of Islamabad. Though, in July 2003, the same site w considered for a landfill project but UNDP out rightly rejected and warn that environmental cost would be considerable, besides air pollutio contamination of groundwater if Kuri was selected as a landfill project. JIC in 1988 also compiled a detail investigation report, which established that t area is the recharge zone of the aquifer catering for more than 50 per cent the twin cities’ drinking demand. Based on these serious environmen constraints, as its location is up a slope and within the flood plain of Gumr River, the recharge-basin of the twin cities aquifer, the site was reject Recent floods substantiated the finding of all the reports, as the site Sign up to vote on thiswould title definitely within the flood plains of the Gumrah River and need to Useful Notisuseful protected on a priority basis, especially as water shortages now a permane problem of the twin cities. Whoever selected and approved the site for the ‘disaster of the futur
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waves of leaking gases towards the G-5 Sector, farther adding to the preval health hazards of the capital. ‘Access to clean water’ has been given the ‘top priority’ flag by t president. Selecting a site along the Gumrah River, known to recharge t groundwater along its winding course through Chak Shehzad and Kan shows the warped priorities of the planning commission that approv projects, the ministry of interior responsible for CDA affairs and the CD itself. Had CDA only followed the minutest details provided in the Fede Capital Commission Reports of 1960 by the earlier planners of the capital ci Islamabad today would have been a model for the rest of Pakistan. The CDA ignored the most recent seismic zoning report of the regi too. According to EPA US regulations, duly adopted by Pakistan’s EPA, the should be no significant seismic risk within identified landfill sites. Kuri within a highly sensitive earthquake zone, according to new seismic zon maps prepared after the earthquake 2005. An earthquake having a magnitu of 4.2 was recorded on July 7, 1989 and its epicentre was at a distance of kilometres from Kuri. Had the spread of this infectious disease the ‘vacuum of informatio been contained in time, CDA would surely have been able to diagnose that t estimated cost of two billion rupees for the landfill site, would have suffic for setting up an ‘energy-to-waste’ plant in the city. With load-shedding permanent crisis in Pakistan, adding some extra megawatts through wasteenergy could have solved many ills in the rapidly growing energy needs. A vacuum of information has not allowed the CDA to communic either with the alternate energy development board, established by the fede government in 2003. This board was given the mandate to solve the ener crisis that is facing this country through renewable technologies. Althou advertisements in the printed media asked for feasibility studies of ‘wasteenergy’ units for ten cities of the country, the twin cities were ignored. H mutual interactions been part of the government systems, the funds availa Signand up tothe votetechnical on this title know-how to the CDA for the ill-fated sanitary landfill, Useful Not useful alternate energy development board (AEDB), Islamabad could have prid itself of being the first ever waste-to-energy unit in the country today. The decision to construct a landfill project at extremely sensitive ar
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10
TYPES
OF
ENERGY
Energy can be differentiated as 1. Kinetic energy 2. Potential energy Kinetic Energy 1. Sound 2. Wind 3. Mechanical for example moving piston in a cylinder 4. Electrical energy. Electricity, lightning 5. Thermal Energy, Heat, hot water, steam 6. Light , microwaves, x-rays , solar, ultra violet rays
Potential energy 1. Gravitational energy. Hydro power, ball above ground 2. Spring . stretched rubber band 3. Magnetic planetary poles 4. Nuclear , fission, fusion, heavy water uranium 5. Chemical , gasoline, batteries, oil natural gas, gun powder, coal, woo
http://www.energy.com.pk/e http://www.energy.com.pk/energytypes.h nergytypes.h
THERMAL ENERGY
Thermal Energy is the oldest type of energy. With all known history availab Wood was always used for heating and cooking. In 2nd world war fossil fu entered in the form of coal to get the energy, until liquid fuels were discover Sign up to vote on this titleover as ma and because of their convenience of transportation they took Useful Not useful contributors of the energy source. Once the steam engines were invented then the coal or liquid fuel w
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For converting thermal energy to electrical energy alternators are us to drive on constant RPM. The choice of gensets strictly depends on the requirement of client, before ordering a power plant following points to be considered 1. Expected demand of the power. 2. Type of fuel required 3. Space available for the power plant 4. Avilability of genset 5. Avilability of local service back up and stock of parts 6. Price is paramount importance and hidden expenses should be look carefully The major manufacturers and suppliers of Gensets based on inter combustion engines are given below 1. MAN 2. Wartsila 3. Caterpillar 4. Jen Bacher 5. Waukesha 6. Mitsubishi 7. Detroit Diesel 8. Rolls Royce Internal combustion engine can obtain 30-50% thermal efficiency. means that around 50% energy is wasted in the form of exhaust gases , cooli systems and radiation. Therefore for larger plants heat recovery systems a utilized. In Pakistan due to attractive gas prices this is a general trend that operated power plants are preferred if gas connections are available. The gas gensets are available from less than 1 MW sizes to 6 M configuration. Normally they are V type and 12,16 18 and 20 cylind configuration. Sign up vote on thistechnology title In addition some models are available ontoduel fuel wh Useful oil. Not useful can be operated simultaneously on gas and furnace The price of a 3 MW gas genset can be expected around 1 Million However low RPM engines will be more costly Unit cost of fuel on gas gen
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Total Rs. 3.40 The engines which are running the fuel cost is only variable and can calculated by multiplying fuel cost by a factor of 225. (225 grams / KWHR an average net fuel consumption expected.)
http://www.energy.com.pk/THERMAL_%20ENERGY.ht
H YDEL E N E R G Y
Water flowing in the rivers has kinetic energy. Once they are used to drive t turbine and produce electricity the power generated as Hydel Energy. Power produced by the turbines depends on quantity of wa flowing/minute and the head of water available. Mostly river flows by melting glaciers on high mountains. Once t water start flowing in the valleys it changes its head very rapidly. This ene can be converted into electrical energy. Two method are normally used:1. Dams 2. Run of River projects. In case of Dams the water flow is restricted by making a huge stora device and the head of water is increased, the water then is allowed to flow means of gates and pass through the turbines, the head of reservoir level maintained to provide uniform power, and the water stored in peak seas additionally is used for irrigation purposes in dry seasons. In run of river projects the water is diverted through the tunnels a once it gains the head allowed to fall and pass through the turbines and ba to river. the water in these projects is continuously flowing and not bei stored. Geographical situation is paramount importance in choosing mon suitable site for the hydro project and it evolves very time and Sign upa to voteserious on this title consuming study. Useful Not useful Once a site is located further detailed feasibility study is requir before proceeding any serious effort to start the work.
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9. Wild life and fish study 10. Identification of stake holders of the area 11. Coring and getting samples of the soil at 50-200 meters depth 12. Laboratory testing of the cores samples 13. Tectonic study to evaluate earth quake dangers
http://www.energy.com.pk/hydel.h
WIND ENERGY
Pakistan is facing acute shortage of energy. with 7% increase of its econom this short fall soon to slow down its economic growth and will shatter dream to become one day a developed country. Most of its energy demand is being met with either Hydro power thermal units. Pakistan is spending a very large amount of foreign exchange purchase the furnace. The gas reserves already start depleting and oil mark are sky rocketing. To overcome this shortage Government take a initiative investigate Alternate energy resources in Pakistan developed Alternate Ener Board AEDB. The Board is headed by Retd Air Marshal Shahid Ham identified 50,000 MW energy potential from wind resource Pakistan is blessed with a large resource of wind corridor. Althou Pakistan meteorological Department was gathering wind data for quite lo time But recently United States provided wind energy map for Pakistan whi confirms a strong wind corridor in Sind coastal area. AEDB issued about 80 LOI to the investors List of LOI holders develop 50 MW wind farms. Out of which 15 are already issued the land a feasibility reports and financial closings are in progress. The following is a brief road map for developing a wind form 1. submission of proposal by sponsor 2. Review of proposal by AEDB Sign up to vote on this title 3. Posting of Bank Guarantee Useful Not useful 4. issuance of letter of intent ( LOI ) Feasibility study
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The first requirement of conducting feasibility study is to insta wind mast. The three major manufacturers of wind data are listed below. T document explains the method for installing weather station. 1. www.wilmers.com 2. www.ammonit.de 3. www.environdata.com.au
Geological, seismic, tectonic and environmental studies will required along with Digital mapping and topography of the site for preparin bankable feasibility study. A confirm EPC cost will also be needed calculation of tariffs. Some large manufacturers of wind turbines are given below 1. 2. 3. 4. 5. 6. 7. 8. 9. 1
Denmark (27.9%) GE Wind, US (17.7%) Enercon,Germany (13.2%) Gamesa, Spain (12.9%) Suzlon, India (6.1%) Siemens, Denmark (5.5%) Repower, Germany (3.1%) Nordex, Germany (2.6%) Ecotecnia, Spain (2.1%) Mitsubishi, Japan (2.0%)
WIND ENERGY BASICS Power developed by a wind turbine can be mathematically shown in followi formulae 1/2xdensity of air x effective area of rotor blade x cube of speed wind Sign up to vote on this title
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The lay out and designing of the wind form can be done by wind ene planning and project software available in market in a reasonable price . O such software is Wind Pro which is a very convenient tool for proje management. Environmental Protection agency require a detailed environmental imp study of the project. The following issues should be discussed detail 1. Birds collision or alteration of their migration routes 2. Noise impact 3. flickering
http://www.energy.com.pk/W http://www.ener gy.com.pk/Wind%20Ener gy.h Sign up to vote on thisind%20Energy.h title
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RISING OIL PRICES
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significant effect. for the time being the prices were dipped but risen again much higher values. The winter is just arriving and nobody knows that these prices w settle at what level. Rising tension between US and Iran is one reason. Some sources a predicting the attack on Iran is imminent. If the condition continues like t who is going to be benefited. Emerging economies and developing will suffer most. Their econom is dependent on energy resources. how can survive and how can they their production commitments. In recent months oil surged from 70$ to 92$ and still rising. Tho industries which consumes more energy will suffer with maximum. It will le to rise of inflation shutting down in efficient industries and rising employment in third world countries. When come to individual the poor will suffer most .High inco group will survive and it will not effect on their livings. But the strains comi on poor in third world countries will transform to social unrest and hence w cause instability in the region. Pakistan economy is already under intense pressure. On one hand has the competitors like China and India giving cut throat fight. Another end has continuous problem on its western borders draining its resources a causing political chaos. The election is just three months away and the resu expected are the change of government to Pakistan Peoples Party. Pakistan exports and its all economic activities are dependent uninterrupted energy supplies for its energy requirement maximum share s of furnace which is imported from Middle East countries. Rising prices w bring a wave of inflation. Already many textile mills closed down due to higher production co which make it un economical. further increase in oil prices will definitely bri more strain on existing working units. In election environmentsit will Sign up Shaukat to vote on Aziz this title definitely a difficult decision for Prime Minister to authorize Useful Not useful fuel prices in Pakistan. But he has no other option. How far the Government continues absorb the fuel bills eventually it has to increase the prices. And again who w
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So the solution is not so simple. Renewable yes. The hurdles shou be identified and removed on priority. One area which we want to emphasize is the conservation of energy. We ha to persuade all concerned that all possible measures to be taken to save ener so it can be used for future. Energy efficient plants and machines are the recipe for our survival.
http://www.energy.com.pk/r http://www.energy.com.pk/risingoilprices.h isingoilprices.h
P A K I S T A N C O A L R ESERVES S H O U L D
BE
EXPLORED
The energy shortage is increasing day by day and the resources of Pakistan limited and this year we are witnessing increasing of imported fuel bill. This time that Pakistan should explore all its available resources. We see a limited progress in alternate energy sector. But so far li efforts are being made to explore and use the coal reserves in Sind. This is claimed that coal quality is inferior and having low BTU. Th is a challenging task. Today technology and boilers are available that can bu any kind of coal. Therefore all possible measures should be adopted to util existing resources. The smaller size power plants near the coal mines which can get dire feed and connect to National Grid will be an ideal configuration.
http://www.energy.com.pk/news%20and%20views.ht
P A K I S T A N I R A N A G R E E
ON
G A S P I P E L I N E P R O J E C T
This week very good news coming in energy sector that Iran and Pakis finally agreed to go ahead with the project. Sign up to vote on this title The gas project which was initiated by Iran India and Pakistan w Useful Not useful having many constraints and was continuously under pressure from US. In was asking more time to make the decision and therefore the project w
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The gas is prime energy source for domestic usage as well as fertiliz and power generation companies. This is expected that the average price when fixed for local consum will take care for common users as well as industrial users
Iran wants quick decision for Gas Pipe
Iran asking India to make the decision of joining Gas Pipe Line proje soonest, otherwise the project will be started with Pakistan. Reluctance of India to make a firm decision is understandable due to Ge Political Scenario. However this project is vitally important and profitable Indian sustainable economic growth. Therefore a positive outcome is expect soon.
http://www.energy.com.pk/pakiran.h
ECNEC A P P R O V E S E N E R G Y P R O J E C T S
The Executive Committee of the National Economic Council ECN approved 23 projects worth 116.5 Billion Rs. The meeting was the last on t chairman ship of Prime Minister Mr. Shaukat Aziz whose term is expiring three weeks. Energy sector was given prime consideration and the development nuclear power projects approved. Pakistan facing acute shortage of energy a this is a wise decision to focus on nuclear energy which is renewable, che and environment free. with furnace reaching reaching 100$ Large Hydel projects having so concerns ,wind turbines not available in market, and gas reserves deplet nuclear becomes most attractive option.
http://www.energy.com.pk/ecnec.h Sign up to vote on this title
ENERGY CRISIS
IN
Useful Not useful P A K I S T A N - I
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maximum time of the day. The situation was worsened because Sui Gas Company alre stopped the supply of industrial units and was going through a system of lo shedding it self. Therefore captive units were shut off due to non avilability the gas. The IPP who were operating on furnace could not get the regu supply of furnace and they did not bother to keep enough stock f contingency therefore stop shutting. And then naturally the blame game started, starting from the wa shortage in Dams to furnace oil transportation problem, violence in Sind a maintenance activity in some independent power producers. Now it is officially declared that in last 10 years not a singles MW w added. We have seen hundreds of seminars, conferences and events on ener issues in Pakistan. The money wasted there if utilized then at least we can a few hundred MW of Power. The fact is that Pakistan is sustaining an acute shortage of Power. demand is increasing and production is declining due to aging of the plants. And no solution is in sight. The projects which are in pipe line w not come in line before 2009. And even the magnitude is such that it will n be able to fulfill the demand of today. WAPDA is in favor of large dams and thinks that the delay construction of large dams was the basic reason for the shortage of pow The issue is very controversial subject and it is not expected to resolve soo Moreover the construction of the dam will take at least 10 years and if situation persist our economy will then come to a stage where it will need a power any more. The situation demand an urgent decision. A decision which is vital f the safety, stability and survival of Pakistan. Energy is a key factor for the stability and prosperity of Pakistan. our production units keep on shutting then un employment will rise and hen street violence will rise. Sign up to vote policy. on this title This is the time to restructure our energy In our opin useful Useful Not instead of many agencies one central ministry should look after the ener issues in Pakistan. This is utmost important that an environment should be crea
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The strategy should be to explore indigenous local resources. example furnace oil plants are best suited in Karachi where the port a refinery facilities are available. Gas plants to be installed in Baluchistan, Si and N.W.F.P near to existing gas fields. N.W.F.P should explore mediu small and micro size hydro projects. Sind must use its Coal reserves. Wi turbines to be installed in coastal belt, and Punjab must explore bio-gas a city waste plants. From US and Europe we should borrow and purchase the technolo to manufacture various power plants in Pakistan. For example if we st building 1-3 KW micro hydro, wind or solar power plants in Pakist sufficient to provide energy to one home we can sell to individual famil direct at low installments. The cost will be recovered in utility b compensation. For the furnace IPP and captive power plants should be allowed import furnace oil duty free. Then existing laid up power plants will aga become operational. All efforts to be made that Iran Pakistan gas pipeline projec implemented soonest. Moreover one additional pipe line for crude oil to installed to reduce our dependence on sea route. Pakistan is in need of energy very badly and urgently. Pakistan shou look for nuclear energy possibilities. Pakistan is one of seven countries in world who has an indigenous capability to operate the nuclear power plant last forty years. Pakistan should look all alternatives to increase its electrical ene production by 10,000 MW in two years. This is a very challenging and diffic task. But if it fails its target then all other indicators will go negative leavi behind a disastrous situation. A dedicated campaign of energy conservation is needed to spread awareness of energy conservation programs. This is also believed that general major energy consumers have little or no awareness of energy savi Sign to vote this title is given procedures. The machinery when purchased a up very littleonemphasis Not result useful is that o Useful electrical or mechanical efficiency of the plant. The production units are consuming much more energy than their competito resulting their product cost high and it is not competitive in internatio
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ENERGY CRISIS
IN
P A K I S T A N - I I
A very common question asked in Pakistan is about the most burning issue Pakistan? The answer you will get may be a list of hundreds of issues whi start from Kashmir and will end on terrorism or militancy etc etc. Recently Mr. Mansha in an interview in CNN replied same questi by giving a simple answer that water and energy are two most valid proble in Pakistan. Energy is a most problematic issue in the world. Whereas oil pric are steadily rising and no stability is seen in near future. Demands of ener from the emerging markets like China and India are growing day by d Pakistan with official figurers of growth rate of 8% will have a definite rise demand of energy for minimum 3% In USA the Gulf of Mexico is famous for oil producing and refini facilities. The prosperity of Houston is only due to oil industry bei flourished. However the weather is not so kind on this area and hurricanes a tornadoes commonly hit the southern part of USA and Caribbean. Such is the volatility of fuel market now that just news of o hurricane developing in Caribbean shoots the oil prices in the world. A f years before oil was being traded on 20$ and no body ever thought that t weather conditions in the gulf can effect the oil market. Politically the Iran situation is deteriorating day by day where as Ir condition is not stabilizing. Oil today is being traded around 65 $/, and t most vital question now is what will happen if the prices rises to 75 $ or ev one hundred $/barrel. Pakistan with small manufacturing market, surrounded by ma emerging economies like China, India, Malaysia, Indonesia, Philippines a Bangladesh will be worst effected with the rise of energy prices. As a rule of thumb modern day manufacturing industries utilize least 33% production cost in terms of energy prices. An increaseof ener Sign up to vote on this title cost will effect their production cost and will force the manufacturers th Useful Not useful either to reduce the labor cost or to remain competitive in market improving the quality standards.
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This is the time that Pakistan now asses very carefully that in case oil prices rising to 75 $ what actions it should take to conserve energy and find the alternate source of energy. A volunteer option for all energy users is to conserve energy. To ma the plants more efficient and to see that each drop of petrol is saved .If make serious study on this subject then we may achieve up to 20% saving energy ,hence saving in our production cost and making our products mo attractive in international market. Of course the energy conservation programs cost money. Howev the investment will be rewarding and will be beneficial in long terms. Pakistan’s thermal units are day by day become aging, reducing th output power. With the rise of demand very soon we will see an acute shorta of energy and hence load shedding and shutting of the industrial units. T will seriously affect our competitiveness in the international market. A liberal and progressive policy with less bureaucratic appro towards energy producing units will help and bring attractive investment Power sector. This is the responsibility of government to look for the altern options for finding the energy resources. This investment can only be made the federal government. This is the time of survival. Only the countries which are prepared f the worst will have a prosperous future.
http://www.energy.com.pk/en http://www.energy.com.pk/energycrisis.h ergycrisis.h
P A K I S T A N ' S E N E R G Y C R I S I S T O W O R S E N YEARS
IN
NEXT TWO
The Pakistani government is anticipating the energy crisis to worsen in coming two years due to a 50% increase Sign in the up todemand vote on thisand title a rather slo improvement in the supply, the leading Pakistani DAWN report Usefulnewspaper Not useful Monday. The power shortage, estimated to be 1000 to 2000 MW during
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Another official, quoted by the report, said that the development water resources would resolve the problem in the long run but in the sh term, there was a limit to constructing costly thermal power projects giv their high economic costs. A major shortfall is expected in natural gas supplies, as an offi energy demand forecast indicates that the demand for natural gas, whi makes up about 50% of Pakistan's energy consumption, would increase 44% to 39 MTOE from 27 MTOE currently, DAWN reported. The government had planned five major initiatives, including three g import pipelines, the Gwadar port as energy hub and the LNG import to m these energy requirements. But four of these measures, namely the three import pipeline projec are uncertain at present, while concentration on energy facilities in Gwad would chiefly depend on security situation, besides oil and gas imp pipelines, said the report.
Xinhua English Newswire, January 9, 20 http://tdworld.com/news/pakist http://tdworld.com/news/pakistan-energyan-energy-
W I N D P OWER : A S O L U T I O N
TO
ENERGY CRISIS
TO encourage private investment in power sector, the government formulated power generation policy (2002). However, progress in commissioning of new power plants has been slow. In the four years since the revised policy was implemented, only one 225 MW gas-fired power plant has achieved financial close. Sign up to vote on this title The extended time lag is not entirely unusualasNot power useful projects bas Useful on natural gas and furnace-oil involve prolonged negotiations to secu contracts guaranteeing uninterrupted supply of fuel over the life of the proje
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As Pakistan’s energy needs are immediate , thermal and large hyd electric plants may not be the solution because such projects may take betwe 4-12 years to become operational. In order to meet the energy requiremen the best option is exploiting wind energy because wind power projects c start generating electricity within two years. This is why wind energy is the fastest-growing source of power in t world and its globally-installed capacity has risen from 20,000MW in 2001 70,000MW in 2006. USA alone is installing 4,500MW per annum and Chi plans to install 20,000MW by the year 2020. India offers a good example of a country that has embraced wi energy and has added substantial electricity generation capacity within a sh period of time! It’s cumulative wind power generation capacity is 6,018MW, which 4,500MW was installed in last five years! If Pakistan can realise half t growth that India has achieved, it can add 2,250MW to its electricity supply the next five years, much more than possible by pursuing thermal pow projects. In fact, wind energy can go a long way in meeting our acute ener shortage. It has also the following additional benefits. First, thermal electricity production ignores certain “negat externalities”. Externalities are implied costs which are not reflected in t price of a service. For example, a power plant running on natural gas w divert its limited supply from domestic consumption as well as vital industr use. The total supply of natural gas is fixed and so its usage for pow generation could result in a shortfall in other sectors of the economy. A example being the recent shut-down of 11 cement and two fertilizer plants d to gas-supply shortage. The economic loss resulting from deficiency of natu gas due to excessive reliance on gas-fired power generation is a negat externality. Similarly, in event of war or terrorism, supply routes of oil-tanker gas-pipelines will require extensive military protection. This extra cost security is also a negative externality of thermal power plants. The exclusion to vote on thispower title negative externalities understates the true Sign costupof thermal generati useful Not to and makes it appear cheaper than it is. Useful Compared thermal pow generation, wind power provides a secure and independent source externality-free energy.
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Third,, thermal power tariff is vulnerable to spikes in oil prices simi to the one in early 2006 when the crude-oil prices jumped to $78. As the tar regime compensates the IPPs for the cost of fuel, any sustained increase in prices will feed into the tariff calculation and result in higher cost of electrici Exploiting wind energy makes economic sense since wind is free and it w make cost of electricity generation less vulnerable to temporary or permane increases in oil prices. Lastly, wind power plants will be able to claim carbon-cred (certified emission reductions or CERs) for producing clean energy. CERs already trading on European commodities exchanges and a global tradi mechanism is being developed. Recently, an investment bank (Morgan Stanl invested more than $3 billion in CERs. Therefore, CER prices are expected to rise as they continue to attr interest. Under the renewable energy policy, the CERs will be shared betwe the IPP and the government. This will have the effect of reducing the net-co of wind power since revenues generated from sale of government-own CERs will off-set a portion of the tariff paid to the IPP. Exploiting wind power offers the best route for attaining sufficien in electricity production and reducing reliance on gas and imported furnace o Though wind power requires greater investment per mega-watt produc however, unlike thermal power generation wind power avoids negat externalities such as additional cost of protecting fuel supply routes. Wind energy will help reduce the country’s oil-import bill and the co of power generation less vulnerable to fluctuations in oil prices. In addition all these benefits, windfall from sale of carbon credits will make wind pow an economically attractive proposition for meeting our electricity demand at accelerated pace. Pakistan has a huge potential to develop wind power. The “wi corridor” in the coastal area of Sindh alone has the capacity to gener 50,000MW and AEDB has put in place a `renewable energy policy that is o Sign up to vote thisworld. title of the most comprehensive and investor-friendly in onthe Howev Not useful by a sev progress towards first wind power plant hasUseful been handicapped shortage in supply of wind turbines. The experience of other countries is th once the first project is executed, subsequent additions to capacity take pla
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E N E R G Y C R I S I S M A Y G O
FROM
B AD
TO
WORSE
The country may witness an aggravated energy crisis in the years to come the proposed thermal power house at Chichuki Maliyan with a capacity generate 500 megawatt electricity is in the doldrums, as the project has be withdrawn from Wapda in a strange development, The News has learnt. Right now power consumers are facing a massive power shortfall about 2,000 megawatt and this crisis will persist in the years to come as t Chichuki Maliyan power project will get delayed. Earlier the government had decided that the Chichuki Maliyan pow project would be initiated in the public sector and Wapda had been assign the task. Wapda conducted the international competitive bidding (ICB) a received the lowest bid from the Japan-based Marubeni Company. Under t agreement, the Marubeni Company was also to invest in the project and to t effect it had arranged a loan from the Japan Bank for Internation Cooperation (JBIC). Wapda was to complete the thermal plant at Chichuki Maliyan w 340 megawatt production in August 2008 and another 160 megawatt by D 2008, and it was strong perception that this project would give a massive rel to the common man and wriggle the country out of load-shedding and pow crisis. Confirming the shocking development, a senior Wapda official fro Lahore said that the top decision makers in the country have taken a U-tu and decided that the private sector would complete this project of paramou importance. “But under the new decision, the project would be inordinat delayed,” he feared. The price of the project has also increased by Rs 1 million because of the delay, and this a very shocking decision. “The earl cost of the project was Rs 2.6 billion.” In the wake of the decision, Wapda had to stop all the spadework Sign up to vote on this title initiate the project. “The government has taken the new decision as the Qa Useful Not useful Investment Authority (QIA) will initiate this project,” the official said. The Board of Investment (BoI) has managed to bring the Qa
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Asked about the status of the project after the government decided withdraw it from Wapda, he said that Wapda was about to start the proj and the Japanese company had been short-listed and its terms and conditio were also evaluated. But after the new decision, all the activities have be stopped. Replying to a question, he said that in case the QIA failed to come with financial close within the stipulated time, the project would be furt delayed, escalating the project cost further, and worsening the power crisis.
Khalid Mustafa, The News , June 13, 20 http://www.thenews.com.pk/t http://www.thenews.com.pk/top_story_detai op_story_detail.asp?Id=84 l.asp?Id=84
A S I A N D E V E L O P M E N T B ANK C O N S I D E R I N G 2 5 0 M I L L I O N L O A N F O R S M A L L H YDRO P R O J E C T S I N P A K I S T A N
Indeed a very positive development if the terms of this loan finalizes soo Pakistan is heading for acute shortage of energy and therefore all measu which can enhance the country's ability to produce clean energy will welcomed by all quarters. The important question which should be looked is that how this lo will be distributed. We suggest that small packaged turbines of 10-50 KW be assembled or manufactured in Pakistan and these turbines distributed Local residents on easy loans. Since the turbines will be providing electric for small group of houses therefore transmission expanses will be cut. This addition of power will not affect the existing shortage electricity. Because beneficiaries will be mostly those people who does n have an electrical connection. But a lager saving will be in the form of for wood which is now used for heating and cooking.
September 9, 20 http://www.energy.com.pk/news%20and%20views.ht Sign up to vote on this title
Not useful U S A DVISE P A K I S T A N T O P U R CH AUseful S E E LE C TRICITY FRO C E N T R A L A S I A
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Pakistan should have a fair treatment to explore all possible ener resources including nuclear energy for its growing energy demand.
September 9, 20 http://www.energy.com.pk/news%20and%20views.ht
ENERGY STRATEGY Updated 9th November 2007
Few weeks before when oil started rising we predicted that no need for pan and the oil will maintain a position between 70-76$/barrel. We were proved be wrong. But not us. Just last months there was not much anxiety all around t world. But now, what it looks, the world is again heading towards an ene crisis similar to 1970. So far the surge in markets always pointed to OPEC which w blamed for throttling the production valves to regulate the market. Short te crisis were related to speculations of war and political disturbances in shipp lanes transporting the fuel. Now the situation is different. OPEC is helpful more than ever to pump maximum oil it can deliv but the demand is growing steadily. One reason is the change in life st which came with the increase of net income in Asian countries due economic growth tempting them to spend on luxury transportation a electronic goods. But, the major source is the rising economic growth of Ch and India as well as other emerging markets which need more fossil fuels keep their industries running. The future outlook, therefore, is the worst than expected. There panic all over the world to explore renewable energy resources but due to hi demand of machinery the delivery time is quite long. Pakistan is caught up between a crisis. On one hand it wants to cat the growth rate at par with the region andSign on up other hand it title has already be to vote on this facing the acute shortage of energy. Useful Not useful There are many reasons for slow growth in energy sector. But o simple reason is that many departments are responsible for ener
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have to go for lengthy processes. The government should invest substant amount for wind and solar energy and once the projects are matured then c privatise.
Updated on 3rd November 2007
ECC on Wednesday approved 5.89 cents as an upfront tariff for Hy projects. This is a revolutionary step taken by Pakistan Government promote and encourage the investors in Hydel sector. In fact, this is the mo logical and wise step adopted by the government for energy sector. This w encourage investors to come forward in Hydel sector. Pakistan is blessed with high mountains covered by glaciers and t rivers flowing across the country. PPIB, so far, processed 19 Hydel pow projects to produce 4900 MW energy. Now we request honorable Minister to further persuade government agencies to facilitate that these projects can be commission earlier than scheduled time. For this purpose, all red tapes are to be remov as far as possible. We learnt from reliable sources that Asrit-Kedam 209 M power project is moving with record speed and the sponsors, Yunus Brothe are highly committed to complete the project by 2011 instead of schedu time 2014. RSWI, the consultants, are confident that the project is ve promising and can be completed ahead of schedule. October was a month to be remembered when world oil prices sh up at record level and at the end of the month it was staying at 94$ level. was almost certain that OGRA will allow the price hike for petrol and die from 1st November. However a cabinet meeting in the chairmanship of Prim Minister Shaukat Aziz overruled this decision and kept the prices same. However, furnace prices were raised all time high by Rs 4210 /ton f domestic market. The price now stands on 34000 Rs./ton. This price hike can be justified in the light of rising crude oil pri but for domestic market the fuel tariffs now are not so realistic. Signstanding up to vote on title same level The diesel and furnace prices are now at this almost Useful Not useful little intelligent power house manager can start using diesel instead of furna which is cleaner and easier to burn or even can mix the diesel with furn
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Meantime power shortage in whole country remained forcing t utility companies for load shedding. Mr. Liaqut Jatoi, Minister for water a power, called a press conference and expressed his views. He acknowledged the shortage of 1500 MW which will continue next summer also. He told reporters that 13 memorandum of understandin have been signed to overcome the shortfall of 1500 MW power with forei investors and an investment of 200 billion $ will be made in power sector. H also told that government is allocated 140 billion Rupees for the developme of power sector including Bhasha Dam. He also told that 100 MW electric will be imported from Iran. Presently we have three different critical problems in energy secto which all need immediate attention:1. Current shortfall in production and availability of no stand power to meet any emergency. 2. Long term increase of shortfall with increased energy demands. 3. Rising fuel prices making the production cost high. The projects in pipeline will start commissioning from 20 All planning of Hydro and alternate energy is for next five years. So the bigg question now is what to do for the current situation. This is itself promising news that in spite of political uncertai honorable Minister finds an opportunity to address the energy sector. In o opinion, situation now is so critical that it needs a diversified approach. W have to look for all options of existing as well as alternate energy resources. As earlier been written our existing machines are less efficient. T end users should be persuaded to replace with more efficient machines. have to discourage use of larger cars and should develop mass transit syste in mega cities to avoid use of one car/person.
November 9, 20 http://www.energy.com.pk/strategy.h
P A K I S T A N U R G E D
up to vote onFthis 4,000MW T O I M P O R T Sign R Otitle M CA RS Useful Not useful The World Bank has advised Pakistan to start working on import of 4,000M of cheap electricity from Central Asian states, besides working on domes
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The country that had a comfortable supply position during the several years has already started experiencing shortages during peak perio and “it is anticipated that if no new capacity is added, firm power shorta would amount to 5,500MW by fiscal year 2010.” The World Bank understanding that besides improving sup efficiency, demand management, addition of new hydro and thermal pow stations, Pakistan should expedite importing 1,000MW from Tajikistan a Kyrgyz Republic in the first phase and then increase such imports to 4,000M in the second phase. These imports, the World Bank believes, have two major advantag First, the cost of supply from Sangtuda, Rogun, Talimardjan and Kambar power stations in the CARs would range between 2.26 cents to 3.75 cents p unit compared with existing average generation cost in Pakistan at 5.6 cen per unit. Pakistan is now entering into contracts with independent pow producers (IPPs) for thermal power generation at a tariff as high as 14 ce per unit. Second, the attractive feature of the imports form CARs is th Pakistan’s peak demand occurs in summer, when the Central Asian pow systems have large surpluses from their hydroelectric generation stations. The WB says that international financial institutions like As Development Bank, Islamic Development Bank and USAID and priv sector companies like AES Corporation of USA and RAO UES of Russia ha already indicated to be part of the project once feasibility studies curren underway are completed. According to the government of Pakistan estimates, the country most likely to face a major energy crisis in natural gas, power and oil in t next three to four years that could choke the economic growth for many ye to come. Pakistan’s total energy requirement would increase by about 48 p up to vote this title cent to 80 million tons of oil equivalent Sign (MTOE) inon2010 from about Notare useful Usefulthisgap MTOE currently, but major initiatives of meeting far from turni into reality. Major shortfall is expected in the natural gas supplies, the sourc said.
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Since the gas shortfalls were expected to be much higher, the coun would need to enhance its dependence on imported oil, thus increas pressure on foreign exchange situation, more so as international mark continues to go up. Planning Commission sources said the government had planned add an overall power generation capacity of about 7,880MW by 2010. Of th about 4,860MW is to be based on natural gas, accounting for 61 per cent capacity expansion. However, the gas-based power expansion of about 4,860MW wou remain in doubt since these estimates were based on gas import options f completion in 2010, 2015 and 2020. None of these projects could achie these deadlines. According to World Bank estimates, the indigenous gas supply wou fall from 32.6 MTOE in 2010 to 20.7 MTOE in 2025 while the gas supp demand gap would rapidly increase as demand is expected to gro continuously, quadrupling in 2025.
Khaleeq Kiani, Dawn, November 17, 20 http://www.dawn.com/2007/11/17/ebr4.ht
F U E L S H O R T A G E M A Y W O R S E N P OWER S I T U A T I O N
The electricity shortage that currently fluctuates between 1,000 and 3, megawatts is likely to worsen in a few days because of problems transporting furnace oil and diesel through the railway system and oth means. Petroleum Ministry sources told Dawn that Pakistan State Oil (PSO has sought federal government’s permission to invoke force majeure clauses its fuel supply agreements (FSAs) with independent power producers (IPP because of its inability to meet fuel requirements because damage caused believ railway tracks and fuel-carrying bogies was much Sign upmore to votethan on thisoriginally title Force majeure clauses in FSAs and agreements allo Useful purchase power Not useful suppliers to announce in advance that they would not meet contract obligations because of natural calamities or conditions beyond their control.
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sources said that the PSO supplied more than 40,000 tons of fuel to pow companies every fortnight through train but problems were also being faced the pipeline system. The problem was compounded by non-availability tanker lorries, the PSO sources said, adding the force majeure notices wou avoid imposition of financial penalties. The sources said that the PSO had written to the government that t railway authorities had informed them that they would not be in a position repair the damaged infrastructure in less than 20 days, hence it would not possible for the PSO to meet its contractual obligations. The sources, however, said the secretary petroleum was working coordination with the ministry of defence to make alternate arrangemen including engaging the National Logistics Cell and even the private sect because of the limited capacity of NLC. The sources said prolonged disruption in the movement of fuel could also lead to shortage of other products because of 20-25 per ce reduction in capacity utilisation of refineries. Since the uplift of fuel oil and diesel stocks and their transportati emerged as the real problem, the storage capacity of refineries was filled to t brim. As a result, they had reduced their refining capacity that could eventua lead to shortages of products in the market. Munawar A. Baseer, managing director of Pakistan Electric Pow Company (Pepco) which looks after corporate generation and distributi companies formerly run by the Wapda, told Dawn that fuel shortage was concern but not a crisis. He said that public sector generation companies had enough fuel f about 20 days.
Khaleeq Kiani, Dawn, January 01, 20 http://www.dawn.com/2008/01/01/top11.ht
N Dto W Oon RS EN ING E N E R G Y C R I S I S : S E R I O U SSignA up vote this title
Useful Not useful Serious energy shortage, massive load-shedding and lowest ever strategic reserves are emerging as major risk to the economy.
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were practically blocked from developing their plants at this tariff rate a offered a much lower rate of 3.3 cents per unit in 1999. Same happened with development of coal resources. A Chinese fi that had agreed to set up a 600MW project at Thar for 5.79 cents per unit w forced to quit when the authorities refused to offer a tariff of more than 5. cents per unit. As a result, no power project could be set up in the last eig years. The regime never tired of criticising political governments for signi costly energy contracts (at the average rate of 5.7 cents per unit). But it allow signing of contracts for thermal power project at a much higher tariff of up 15 cents per unit, although none of these projects would be available to t economy in the next 6-12 months. Likewise, the recent revelation of the country’s strategic oil reserves a precarious level clearly exposed the government’s lack of vigilance a failure of energy companies to meet their contractual obligations. The strate oil reserves for defence had also been consumed to meet shortage and thus t country’s security has been exposed to great risks. Under the fuel supply and power purchase agreements, the marketing firms and power generation companies - whether in the public or the private sector – are required to maintain a minimum of 21 days of th fuel requirements. Non-compliance of such contractual obligations is subj to heavy penalties under the law. The government, too, is required under t standard operating procedures defined in the official Blue Book to ensure th it has oil stocks for at least 21 days of consumption to meet any eventual either a natural calamity or war or any such event. The imperative of maintaining stocks for 21 days was highlighted the blocking of communication routes during the violent protests followi the tragic killing of former Prime Minister Benazir Bhutto. The entire episo led to disruption of fuel supply chain that included railway, pipeline and ro transport. In varying degrees, it came to light that neither the independe power producers, nor the oil marketing companies including those in t Signas uprequired to vote onunder this titlethe law. public sector had maintained sufficient stocks Useful useful The result would be more loadshedding inNot the days ahead. T export growth that is already stagnating would be hit if enough energy – g and electricity – is not ensured to the industrial sector.
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major initiatives, originally planned for meeting this demand, are uncertain present or significantly behind schedule, the shortage estimate could anybody’s guess. Even the closure of business after sunset and reduction in str lightening did not get the desired results, leading to a massive load shedding almost daily four hours across the country. Most of the industrial a commercial sector has also been deprived of the natural gas since the adve of winter. Energy shortage is severe and widespread in almost all areas, wh different sectors contribute to each other’s problems. “Natural gas, power, a oil shortages were all posing risks to the economic growth in medium to lon term period,” a government official said. A major shortfall is expected in natural gas supplies. According to official energy demand forecast, the demand for natural gas, having about per cent share in the country’s energy consumption, would increase by 44 p cent to 39MTOE from 27MTOE currently. The government had planned add an overall power generation capacity of about 7,880MW by 2010. Of th about 4,860MW was to be based on natural gas, accounting for 61 per cent the capacity expansion. However, the gas-based power expansion of abo 4,860MW would remain in doubt since these estimates are based on three g import options for completion in 2010, 2015 and 2020. A major part of about 4,860 gas-based plants may not be available a the difference may be met through other costly options. Even if the physi work is started today, it will take at least seven years to complete a pipel project and it was not clear if construction of Iran to Pakistan pipeline proj could be taken in hand in the near future. Partly contributed by gas shortfalls, the power shortage is expected be little over 5,500MW by 2010, said a Planning Commission official, addi that the oil demand would also increase by over 23 per cent to about million tons in 2010 from the current curre nt 16.8 million tons. This would leave a total deficit of about nine million tons of die Sign up expected to vote on this and furnace oil imports. Since gas shortfalls are to title be much high Not useful oil, increasi Useful on imported the country would need to enhance its dependence pressure on foreign exchange balances.
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country and we are second to none”. But unless Pakistan can light th building, President claims will look silly. Robust economic growth-rates over the past several ye have encouraged Pakistan to ignore fundamental weaknesses in the economy Yes, Pakistan’s economy is growing; that’s the good news. The b news is that with this growth comes higher energy consumption and grea pressure on the country’s energy resources. Unless Pakistanis — t government, but individual citizens as well — act now, the country’s futu will indeed be dark, in more ways than one. At present, demand for energy exceeds supply. Power outa and planned power cuts (euphemistically termed “load-shedding”) are, f many, an everyday occurrence. In addition to their economic costs, ener shortages foster political instability. Last summer angry public protests Karachi and riots in Liaquatabad demonstrated how close many Pakistanis a to reaching the limits of their patience. A widespread power outage affecti much of the country last September triggered panicky rumours of a coup. Earlier this year, the opposition and the ruling parties staged nea simultaneous protest walkouts from the Senate following a disagreement ov high domestic oil prices. This unrest may be only a foretaste of things to com Absent drastic action, Pakistan’s energy situation is expected to get far wo in the years ahead. According to the government’s own figures, by 2015, e short years from now, energy demand in Pakistan will be nearly 22 perce greater than projected supply. By 2030, this energy shortfall will be 64 percen What do these figures mean for Pakistanis? H prices, fewer jobs in a slowed economy, reduced opportunities, less comfo heightened political turmoil. A Pakistan with serious energy shortages will not be a pleas Pakistan. Today, oil and natural gas supply nearly 80 percent ofPakista to vote on this titlesources vas energy needs. However, the consumptionSignofup those energy Not useful produces l Useful currently exceeds the indigenous supply. For instance, Pakistan than 20 percent of the oil it consumes. This fosters a dependency on import oil that places considerable strain on the country’s finances. While the prese
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mix from 7 to 18 percent by 2018 — a course that may make sense from energy standpoint, but which carries troubling environmental implications. Meanwhile, provincial rivalries and widespread pub opposition have significantly slowed the government’s plans to build dam capable of generating electricity. Many Pakistanis argue that lar hydroelectric projects should be a last resort, after low-cost ener conservation measures have been fully utilised. Nuclear power at this point accounts for barely one perce of Pakistan’s energy consumption. The government has announced plans develop a generating capability of 8,800 megawatts (MW) of nuclear energy 2020, compared to the country’s current output of less than 450 MW. But t goal is unlikely to be reached unless Islamabad is able to persuade the Unit States and other western countries to help it develop civilian nucle technology, an idea certain to meet with resistance in the West. Pakistan’s renewable energy potential — hydro, wind, and solar — substantial, although presently this potential remains largely untapped. Escalating petroleum prices in recent years have given Pakistan additional incentive to invest in renewable energy technologies. In 2003, t government ambitiously declared that by 2015, 10 percent of the countr total energy supply would come from renewable energy sources, a established the Alternative Energy Development Board to coordin renewable energy promotion. Modest steps in the direction of greater relian on renewable energy have already been taken. Nonetheless, renewable energy labours under severe handica in competing with conventional energy — hidden subsidies that allow f lower conventional energy generation costs, for example, and policies th permit conventional energy to disregard the costs of the pollution it crea when pricing power. Unless renewable energy is given a level playing field major expansion of renewable energy generation is unlikely, and t government’s goal of 10 percent by 2015 will not be met. Sign up to vote this title and Nep Rural areas across India, Bangladesh, Srion Lanka, Useful Not useful have all implemented successful clean and renewable energy initiativ Bangladesh, for instance, has experienced considerable success with so home systems financed through micro-financing. Pakistan’s neighbours ha
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policies and insufficient public-sector investment that [has] contributed what appears to be an inexorable march towards another crisis”. Pakis cannot afford a repetition of this sorry history. The good news is that Pakistanis are not being asked to f a cure for cancer, or to discover entirely new methods or technologies in ord to meet their energy needs down the road. There already exists widespre agreement on at least the broad outlines of an energy strategy for Pakist Pakistan’s energy managers know what needs to be done. But solemn promises and soaring rhetoric will not do t job. Preparing for Pakistan’s energy needs over the next quarter century w require long-term vision, a national commitment widely shared among t country’s political and business leaders, inspired leadership sustained fro one government to the next, and most of all, political will to make and ca out difficult choices. Pakistan — the country, not just the government of the day — nee to decide that muddling through is not enough. Pakist as a country, has to get serious about creating an energy strategy, and then and this is the hard part — about implementing it. Pakistan will not find itself alone in this task. Islamaba friends around the world believe that it is in their own national interests f Pakistan to succeed — which means, among other things, that Pakist succeed in its quest for energy security. At the end of the day, Pakista themselves must solve the problem of energy insecurity, but the outside wo — both the private and the public sectors — can and will help. Energy matters for Pakistan. If Pakistan is to succeed in its ambitio plans for economic development, if it is to raise the grossly inadequate livi standards of its people, if it is to achieve the economic growth necessary ensure political stability, if it is to begin to address the many environmen problems that up to now have been largely ignored, and which have a hug adverse impact on the daily lives of Pakistani citizens, if it is to live in pea Sign up to vote on this title by Pakist with its neighbours, several of whom are directly impacted Not useful Usefulis to move decision-making in the energy sector, if Pakistan towards all the goals, Pakistanis must get serious about energy.
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sector industries to enhance the efficiencies of different energy consumi household products being produced in the country. As per the government’s initiatives to overcome the energy crisis the country, the EDB held separate meetings on Saturday with leading lo manufacturers of fans and pumps and finalised a strategy which would h enhance the efficiency of these domestic products. The increased efficien will result not only in reducing consumption of energy and help conse energy. The discussions focused on different aspects of the prod including general design, quality of input material and the releva benchmarks. EDB General Manager Zahid Yaqub, who chaired the meetin informed the private sector representatives about the initiatives being taken the government to overcome the energy crisis. One of the strategies adopted to enhance the efficiency of different energy consuming household products The meeting was informed that the electricity consumption dur 2005-06 was 67,603GWh, out of which 45.4 per cent was consumed by t domestic sector. It was estimated that every household in Pakistan has minimum of two to three fans and based on this figure, the total strength fans was over 30 million. The President of Fan Manufacturers Association (FMA) called reducing the rate of sales tax on various components of fans. Currently, t country has four leading manufacturers of fans as compared to nearly 2 small units manufacturing fans in different parts of the country. The FMA president alleged that the small units were u substandard components in order to keep the price low and ignoring ener conservation. According to the FMA statistics, the industry was manufacturing f million fans every year, out of which one million fans were exported fetchi $30 million. The FMA also called for banning export of copper, the ma component used in fan manufacturing. Sign up enhancement to vote on this title The meeting on pumps was told that the of efficiency Useful sectors Not useful motors used in domestic industrial and agricultural can save 3 to 5 p cent of the total electricity consumption. It was felt that quality of copper w and silicon steel being used and manufacturing of motors and pumps shou
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The decision to this effect was taken at a meeting chaired by ED General Manager Zahid J. Yaqub and attended by leading manufacturers geysers, representatives of government agencies and senior officials SNGPL. The meeting was informed that the energy efficiency of local geys was much lower than the world standards. Therefore, research development (R&D) was necessary to achieve global standard. The industry emphasised the need of duty-free import of vario components of instant water heaters in order to introduce quality products the market. Some manufacturers showed their willingness to produce hi quality products, if investment on R&D was made by the government. ENERCON Managing Director Fareed Ullah Khan informed t meeting that the government was ready to accept any practical proposal fro private sector for energy conservation. Addressing the meeting, the EDB general manager said that government was undertaking initiative to minimise the magnitude of t energy crisis. One of the strategies adopted is to enhance the efficiencies of t different energy consuming household products. He added that the cri should be converted into an opportunity to introduce high quality product the market. Another area, which needs to be looked into, is the phasing out inefficient incandescent bulbs in favour of more energy-efficient comp fluorescent lamps (CFLs) that reduce greenhouse gas emissions and c household energy costs. While CFLs are more expensive to buy than incandescent bulbs, th pay for themselves in lower power bills within a year. The switch to CFLs w result in household lighting costs falling by as much as 80 per cent, and t country’s annual greenhouse gas (GHG) emissions falling 2 million met tons starting in 2010. Additionally, national electricity demand is expected to fall by 2,0 Sign up to vote on this title plants. megawatts, or the equivalent of electricity generated by six power Useful Not useful
Amin Ahmed, Dawn, February 10, 20 http://www.dawn.com/2008/02/10/ebr11.ht
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all-time-highs, shooting 40% in the past year. The undeniable reality that that this global spike will somehow have to be accommodated energy prices in Pakistan. There is no quick solution to electricity shortage and the trend surging prices is irreversible. There is very little the new government c do on this in the immediate term. At best, the problem can be prevent from aggravating until a sustainable solution is struck. Tough decisio will have to be made, and executed with commitment. The starting point of any remedial efforts should be acknowledgement of the fact that the crisis is a self-inflicted one. cannot be denied that something has been wrong down the line th caused this crisis. The country has nearly gone energy bankrupt while total disaster appears to be round the corner unless pragmatism is show It is also important that lessons be learnt from the past mistakes on pa of relevant circles. The crisis is still addressable as long as there is d vision and devotion. The golden age for energy in Pakistan has been 1960s and most the 1970s, that is when Tarbela and Mangla dams were put into operati and other dams, including Kalabagh, were actively pursued. In subseque years, action in the field of energy has been utterly recklessness. T prevalent crisis is a consequence of imprudent energy policies over the la three decades. One of the major limitations that have hindered energy prosper in the country is short-sightedness. There has not been a meaningful a coherent energy policy in place over this period. The approach has be "project-oriented," rather than "goal-oriented." Almost every regime h dealt with energy on an ad hoc basis. Long-term and sustainable planni of energy have been an alien concept. The reason is fairly simple; ener projects usually require huge investments and commitment, making the undesirable to any regime. The attitude of delaying new projects, as far up is to vote on thisthe titlerecipe of t possible, has been the common practiceSign and in fact Not useful Useful present crises. In doing so, when things start getting out of contr haphazard and quick-fix measures are sought. A typical example is t Independent Power Producers (IPPs) saga of the 1990s. In an attempt
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The last few years provide a perfect example of failure to make timely response to the growing energy needs. A threefold increase energy demand over the last two decades has been responded to with ill-proportioned increment at the supply end. Consequently, with t advent of 2008 the gap between demand and supply grew to 4,500M indicating a 40% deficit of electricity. The prevalent energy crisis has n appeared overnight -- the omens were evident for a number of years b the authorities failed to react in time. Senior WAPDA officials claim th in 2002 the government was officially warned about the approachi electricity crisis and was asked to take immediate measures to enhan generation capacity. The timely warning failed to receive any appreciatio The attitude of the relevant authorities has thus indirectly contributed the growth of the dire crisis. Another example worth quoting here is th of the 969MW Neelam-Jehlum hydroelectric project. It was to constructed in 2003 at a cost of $1.5 billion. It got abandoned until t present power crises intensified towards the end of 2007. The revis estimate is around $2.25 billion. The delay is costing the country a fortu – an extra $750 million in terms of project cost, apart from enormo monetary dents inflicted by the five-year delay. It is also noteworthy th WAPDA has traditionally pursued the major projects of national inter but failed to get the due positive response from the policy- and decisio makers. Interestingly, WAPDA plays the role of a scapegoat, because t common man blames WAPDA for his sufferings. It is also important to plant relevant and qualified people at t key policy and decision making positions. Quite often, these positions a offered to utterly irrelevant, ill-qualified and incompetent people. T track record suggests that energy offices are amongst the most covet ones in any regime, simply because they are considered to be the mo lucrative ones. There are examples when undergraduate and utte irrelevant people have been appointed to run energy offices. There a Signbeen up to vote thisincentives title also cases when the crucial positions have usedonas duri Useful towards Not useful political bargaining. The unhealthy attitude sensitive ener positions is enough to explain how the field of energy has be traditionally toyed with.
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board, rather in processions. It has to be realised that the delay in proje has not only made the country suffer but also people that come from provinces. In order to tackle the existing crisis and ensure a prospero energy future, the backbone of the future energy policies would have to reliance on domestic resources (hydropower, coal and solar and wi energy) and energy conservation. Decisions on energy projects shou revolve around national interest rather than naïve political and perso gains. Energy offices should be run by qualified, committed and deservi people equipped with due mandate. Relevant ministries and departmen should also be overhauled.
The News, April 17, 20 http://www.thenews.com.pk/daily_detail.asp?id=1072
I R A N I A N , PA K I S T A N I
PRESIDENTS RESOLVE PIPLINE ISSUES
Iranian President Mahmoud Ahmadinejad and his Pakistani counterp Pervez Musharraf on Monday cleared all hurdles over a gas pipeline to In and agreed to sign a deal soon, state media said. Ahmadinejad discussed t 7.5-billion-dollar project to transport Iranian gas across the subcontinent wh making a short stopover in Islamabad on the first leg of a whirlwind tour South Asia. “The two leaders expressed satisfaction over the resolution of issues that had delayed a final agreement,” Foreign Minister Shah Mahmo Qureshi was quoted as saying by the official Associated Press of Pakist Qureshi added that the Iranian and Pakistani presidents had tasked th foreign ministers to agree on a “mutually convenient date for signing t agreement” after their hour-long talks in Islamabad. Iran also agreed provide 1100 MW of electricity to Pakistan to help it overcome a recent pow shortage, particularly in areas adjoining Iran, the news agency said. Mushar and Ahmadinejad also discussed the situation Sign upinto neighbouring vote on this title Afghanist which is battling a Taliban insurgency, and peace and stabi Useful that Not useful “stressed was vital for the region”, APP reported. Ahmadinejad later held talks with n prime minister Yousaf Raza Gilani, his first meeting with an official from
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44
TIES
WITH IRA N
The decision reached in Islamabad on Monday between the visiting Iran President Mahmoud Ahmadinejad and President Musharraf to sign the acco on Iran-Pakistan-India (IPI) gas pipeline augurs well for all concerned. T longstanding project delayed by reservations expressed by India and dispu over tariff and transit fees can now finally take off the ground. Pakistan’s risi energy needs face a shortage, and in addition to future gas supply, Iran’s of to wire in 1,100 MW of electricity is godsend. At Pakistan’s initiative, anoth trilateral deal envisaging the supply of gas to China through this country is a a good omen for regional cooperation that will work to everyone’s benefit. O the political front, the pumping of Iranian gas into Pakistan, India and Ch at a time when the US opposes such dealings with Iran’s Islamic regime significant. It is an assertion of independence in international relations on t part of the countries concerned and their refusal to be dictated to Washington, because it arguably works against their own economic diplomatic interests. The accord reached with Iran also dispels the impressi that Pakistan’s earlier signing of another gas supply deal with Turkmenistan Afghanistan was an alternative to the IPI deal. All this has profound implications for Pakistan and South Asia. Iran an important neighbour with which the people of the subcontinent ha enjoyed historical relations. It is a major regional player in the borderi Middle East commanding a naval presence in the strategic Strait of Horm from where the bulk of the world’s oil passes. On the other side of the fen even the US, despite all its opposition to Tehran’s Islamic regime and nuclear programme, cannot deny the importance of engaging Iran if it wa to cool off tensions in Iraq. It is a measure of the failure of American fore policy that Russia and China should continue to carry out their dealings w Iran, including in the controversial nuclear energy sector as far as Moscow concerned, and India should snub Washington’s suggestion, as it recently d Sign up to vote on this title to ask Iran to roll back its nuclear programme. Tehran has insisted all alo Useful Not useful that its programme is for peaceful purposes. President Musharraf’s reiterati of support on the subject to his Iranian counterpart is reassuring.
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P OWER C R I S I S & A L T E R N A T E E N E R G Y T E C H N O L O G Y
The Energy Minister’s statement that country will have to face the curr energy crisis for next three years shows that he is unable to alleviate the mise of average Pakistani family and expects them to conduct daily routine cho in extreme summer heat without eight to sixteen hours of electricity. It brin us to : 1) Energy Minister has failed to come up with a solution to end ener crisis including nationalization of energy sector and adoption of altern energy. 2) Which law permits country’s rulers to enjoy uninterrupted supply electricity while the public who they serve suffers due to load shedding for fault of their own? Can PM justify uninterrupted supply of electricity in VIP pock across the country while average Pakistanis face unending power rationin Similarly, will the rulers clarify for the ordinary people which law allo backup generators for hundreds and thousands of such VIPs nationwi whose number is growing by the hour? Shouldn’t the country’s law lords taking suo moto notices to end generator culture by unveiling number generators being used for the VIPs, how much they cost to the natio exchequer annually and which law authorizes the procurement, maintenan and fueling. There is no provision in country’s laws that authorize spendi and regularization of billions of tax-rupees being wasted on the procureme running and maintenance of these illegal generators. It is hoped concerned including Public Accounts Committee, citiz watch groups, legal fraternity will help country’s courts and PM to end wasta of tax dollars amidst reports that current 522 billion fiscal deficit will climb 957 billion by the end of fiscal year 2007/8 and an another impending f prices increase before June 30. Thereby rendering immediate borrowing some three billion US dollar loan to sustain country’s (failing) economy. Th figures, energy minister’s statement of requiring three-year gestation period permanently ending long hours of load shedding and instead calling Sign up to vote on this title adoption of energy conservation measures mandate PMs intervention to e Useful Not useful the misery of an average Pakistani who has been forced to face summer h and humidity for no fault of his own and pay for national policy failure a
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law. Otherwise, also lawmakers and govt. employees as public servants cann have free gas and electricity paid by tax money, which is not extended to t masses. 4) The energy consumption of country’s domestic sector is less th total consumption of free electricity given to govt. sector. Therefore, P should direct energy minister to save 500 MW by withdrawing free electric from VIPs instead of forcing load shedding at grassroots. In fact the natio leadership to set a personal example should share equal hours of load sheddi if not more. Energy Minister in his statement on the floor of the house said th 50/100 MW of electricity will be generated from wind turbines. The amou reflects PPPP’s flawed energy policy stressing on long and midterm pla thereby failing to provide immediate relief to masses. PM should iss immediate directions to incorporate feasible alternate energy technology bas on alternate energy mapping for following reasons: 1) it can provide quick a sustainable solution for domestic sector that consumes less than 13% of to generated electricity. 2) In- step with international policy replace 20-25 perce of fossil fuel based current energy generation with alternate energy. 3) C fossil fuel imports to reduce foreign currency expenditure. 4) the ‘plug a play’ and main grid compatibility of these alternate energy options can allevi misery of masses suffering the heat at grassroots due to 8/16 hour protract load shedding schedules. Therefore, it is need of the hour to permanently shift count domestic and agriculture sectors to alternate energy to permanently end lo shedding, reduce electricity bills and cut costs on import of ever increasing f prices. In this regard, state of the art affordable wind turbines, solar pane photovoltaic panels can play an important role to help realize the objectives: The ‘plug and play’ and ‘grid ready’ alternate energy technology can br immediate relief at grassroots and end three year waiting period. 2) The alternate energy solutions are cheaper because: (a) Due to their proximity consumers it reduces line losses, which in turn reduces energycost. F Sign up to voteinternationally on this title example, the alternate energy helps cut line losses accept useful Useful Not standards of 5-7% against Pakistan’s reported line losses exceeding 45 perce of total production, (independent observers put at 65%), which in turn forc per unit electricity prices increase to recover cost of lines losses and thefts.
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http://pakobserver.net/200804/17/Articles03.asp is a cheaper and w 50,000 MW growth potential is the sustainable way forward to end lo shedding, provide relief at grassroots and meet international standards ‘greener earth’ as part of cleaner global environment. However, it is t mindset than actual challenges in energy field that needs to be addressed highlighted in my article ‘energy crisis and corruption nexus’ dated 7 J http://www.pakobserver.net/200801/07/Articles04.asp. PM need to help e corruption and stakes blocking adoption of alternate energy to provide re to masses, uplift agri-sector and facilitate country’s economic progre In this regard Nawaz Sharif can play an important role by promoting adopti of alternate energy in Punjab. The model in turn can be copied by the rest the country to provide relief to masses, sustain and generate growth and jo in country’s agri-sector. In short 4200 MW can be generated by 1600 wi turbines with each generating of 3 MWs. The shift to alternate energy can he Pakistan save 300 billion rupees (4.6 billion dollars) being paid in ann subsidies to energy companies at the rate of 25 billion rupees per month. T purchase of 1600 wind turbines should cost around 0.192 billion dollars (16 x $1,20,000 per piece) which is not only fraction of 4.6 billion dollars bei currently paid under subsidy head but will also cut expenditure on import costly furnace oil and ease pressure on foreign reserves etc. Logically, t adoption of alternate energy technology should reduce per unit cost with ev passing year. All this makes sense in wake of growing oil prices. Finally, it is need of the hour to provide relief at grassroots incorporating available alternate energy technologies in national energy poli It will help agri-sector and the industrial sector can be facilitated to ado alternate energy technology. It will help reduce expenditure on fuel impo and foreign reserve. The nationalization of energy sector and adoption of alternat energy technology can go hand in hand with already approved long a medium term policies and projects based on traditional resourcesof ener Sign up to vote on this title generation. Useful Pakistan useful Ghani, Not Observer, Rizwan May 3, 20
http://pakobserver.net/200805/03/Articles04.as
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Authority (WAPDA) and Pakistan Electric Power Company (PEPC officials would also attend the meeting. IPPs are still generating around 4,000MW to 4,500MW per day again 5,728MW power per day as agreed with government. During last year, t power generation by IPPs stood at 5,500MW per day that has dropped duri the current season. The country is said to face a power shortfall of over 3000MW per d as the demand of electricity had shot up to 15,000MW per day. T Independent Power Producers (IPPs) are generating 4,500MW power per d and hydel generation stands at 3,500MW per day whereas the total pow generation stands at 11,500MW per day. Sources said that with the passage of time, the power generati capacity of the IPPs is declining, the major reason of power shortfall. Sourc said that IPPs would be asked to generate power as per agreement with t government and also to extent their operations to overcome the pow shortages. Sources said that the IPPs defaults have piled up to Rs 25.3 billi and they have demanded the Federal Government to intervene for payi immediately. Sources said that Independent Power Producers (IPPs) ha threatened PEPCO for suspending power generation. Sources said that t meeting would review the payment of dues to IPPs. Due to circular debt among different stakeholders including Pakist State Oil (PSO), PEPCO, KESC and Federally Administered Tribal Are (FATA) have become the main reason for low generation of power in t country, sources said. Hub Power Company (HUBCO), the major pow generation and supply company has threatened PEPCO to pay its arrears the account of purchasing power otherwise it would suspend the pow supply. HUBCO is to pay Rs 2 billion dues to PSO for the provision furnace oil to HUBCO. PSO had resumed the fuel supply to HUBCO af to vote on this title On the oth obtaining the letter of comfort from WaterSign andupPower Ministry. Not usefuldues from t Useful rupees side, HUBCO claims that it has to receive billion of PEPCO for provision of power, sources added.
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AES Corporation of US and Japanese Mitsui Group were short-list in December 2006 to prepare two separate feasibility reports for Pakista first such power plant. “Negotiations for power tariff will get underway in a couple weeks,” said the official, who works for Private Power Infrastructure Bo (PPIB). “I cannot specify how much that is going to be, but it will be arou NEPRA’s tariff for indigenous coal-fired power plants.” Pakistan is facing an electricity shortfall of 3000MW per day, a spends billions of rupees annually to import fuel oil to run its thermal pow plants. The decision to generate power using imported coal was based assumptions that not only will it help in meeting demand, the cost of coal w always be lower than oil’s. National Electric Power Regulatory Authority (NEPRA) has given upfront tariff of US7.8 cents per kilowatt hour (kWh) for Thar coal-fir power plants. However, this tariff differs greatly from what the investors w want for a power plant based on imported coal. Landed cost of imported coal has surged to $130 per tonne from $ a year ago. Any tariff based on this coal will reflect the price fluctuation, unl the upfront tariff offered by NEPRA. NEPRA’s tariff has been calculated on the basis of a report prepar by a German firm RWE in 2004. RWE has recommended a leveled tariff 7.1 cents per kWh for 40 years. Abdul Basit Mehta, a local representative of RWE, said the tariff w calculated after taking into consideration the costs associated with mining a generation. There is no variable component in the tariff, he added. NEPRA’s tariff seems lucrative from RWE’s point of view, b Hassan Associate, which has proposed the mining of Thar coal and using it a 1000MW power plant, sees it unfeasible. “Cost of machinery and equipment has increased manifoldsin the l Sign up to vote on this titlecents will few years,” a company official said. “Anything below 10.5 Useful Not useful unacceptable.” The company had initially demanded 11.1 cents, but had to rev down the tariff after the government’s refusal.
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50
GOVT
Energy Crisis in Pakistan
TO INVITE
B U S I N E S S M E N T O D ISCUSS P O W E R C R I S I S
Federal Minister for Kashmir Affairs, Northern and Information Technolo Qamar uz Zaman Qaira has said the government has decided to convene special Cabinet meeting to cope with ongoing energy crisis. “All the relevant experts and chambers would also be invited f suggestions over the issue which now has started taking its toll,” he express these views while speaking at Lahore Chamber of Commerce and Indus (LCCI) on Saturday. Minister said the present government was taking all possible measu to bridge the gap between demand and supply of electricity. Due to acu shortage of power, not only the industry, the common man was also sufferin He said all the issues had been discussed threadbare in all the fo Cabinet meetings held so far. He said to develop IT infrastructure, the government has divided t country into 14 regions and aggressive investments would be made to equ 1400 cities and villages with Information Technology that do not have acce to IT. He said the government has introduced scholarships for t promotion of Information Technology. On the issue of Kashmir, the Federal Minister said that sometim informal diplomacy can do the miracles and business community should u its good offices for a breakthrough in this regard. Federal Minister said steps were on way to promote trade betwe Indian occupied Kashmir and Azad Jammu Kashmir that would definitely h bring the people of two sides further closer. He said special attention was also being given towards vocatio training and skill development, as the industry was heavily suffering because the shortage of skilled labour. Referring to atta prices, he said there was an anomaly in theprovisi Sign up to vote on this title of subsidy. Equal subsidy was being given on atta used by the rich and t Useful Not useful poor. Things are being sorted out to ensure benefit to the poor alone. LCCI president, Mohammad Ali Mian stressed the need for ea
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ENT AN GLE D
IN
ENERGY WEB
Commendable developments have materialized lately on various avenu of energy sector in Asia with countries fostering forward th collaborations for fulfilling their energy requirements. The dream making Asian gas grid could transform the quest for energy by Asi economies into a cooperative, not conflictive enterprise. Regional acto entangled subjectively in energy web of interdependence, could genera far-reaching effect on the security, stability and development of t region. Hence, locking their positions by working together in a manner complex correlation. The outcome of this interconnectedness would determine future course of economics, politics, inter-state relationships, econom cooperation and security status of the region as a whole. With growing prices skyrocketing, Asian country's thrust for cheaper imported gas h acquired a greater urgency than ever before. In order to fulfill ener requirements, countries like Pakistan, India, Iran and China have lean their thrust even to develop civilian nuclear technology to meet the nee of ever expanding economies. Nowadays, we are totally dependent on abundant and uninterrupted supply of energy for living and working. It a key ingredient in all sectors of modern economies. It is high time th we must secure our future in the growing state of depleting ene resources. As the new energy world order dawned with momentum in As several key benchmarks have been achieved on aspired projects of I (India-Pakistan-Iran) and TAPI (Turkmenistan-Afghanistan-Pakista India) gas pipelines. These pipelines can be more appropriately called "life lines" to the industry and economies of Asian subcontinent a beyond. Countries involved in both either IPI or TAPI had serio reservations involved, which had descended them to remain reluctant Sign up to vote on this title pursuing the projects. We are still in the state of wilderness as yet t Useful Not useful projects, which have actually set foot in early 90s or later failed materialize as yet. Both projects got badly snagged in international a
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IPRI Factfi
demands. With rocketing prices and limited supply of oil, signifies t option of gas which is cheaper, cleaner and plentiful, and in increasingly environmentally conscious world, developed countries s this as an attractive alternative to oil and mineral fuels. Hence, o producing states of Persian Gulf are striving to develop their gas suppl to supplement their dwindling oil reserves. While the landlocked Dorados of Central Asia offer the energy hungry burgeoning economies invest and evolve effective methods to transfer the resources. These sta have abundance of proven and unproven gas and oil reserves anticipati to be explored. It is quite mandatory for the states to develop the nation strategies for robust exploration of not only indigenous resources b require enhancing by trans-national energy options to meet t constraints. TAPI gas pipeline project, would begin from the Dauletabad g field (Turkmenistan), and runs through Herat, Kandhar (Afghanista Quetta, Multan (Pakistan) and the final destination of the pipeline will the Indian town of Fazilka, near the border between India and Pakista The total length of the pipeline would be 1,680 kilometer will be built a operated by a consortium of national oil companies from the fo countries, furthermore the cost of the project was just over 3$billion 2003; today it is $7.6billion. The pipeline is to begin its operations in 201 if all the contending issues are to be resolved. The pipeline will transpo 33 billion standard cubic meter (scm) gas from the Dauletabad gas fie There will be six compressor stations along the entire length of pipeline and it will have to be guarded by the states they pass throug apart from the pipeline. The largest stretch will fall to the share Pakistan, between Quetta and Multan and the Indian border. AD provided the financial assistance of 1.0$ million for the feasibility study the project. Several major risks were proving as impediments in materializi Sign is up the to vote on thisimportant title the TAPI project. Security of the pipeline most in th useful Useful regard, as it passes through the tumultuous regionofNotAfghanistan, whe the security situation is far more satisfactory. Turkmenistan requested U to adopt a new convention guaranteeing pipeline security. The propo
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Pakistan's constrained relations with Afghanistan are proving as hindran on the way. The rival IPI (Iran-Pakistan-India) pipeline, conceptualized 1989, have the potential to link Persian Gulf with roaring economies Far East. The proposed pipeline would deliver gas from Assalouyeh southern Iran through Balochistan and Sindh provinces of Pakistan a then to India. This pipeline was smudged and hampered by conflicti issues ranging from security to pricing and finalizing the framewo Length of pipeline runs 1700 miles with 3.2 billion cubic feet per day Iranian gas to Pakistan and 2.1 billion cubic per day to India by 20 moreover the cost of the project is nearly 7-8 $billion. To settle the ma issues apropos of pricing, Iran demands that clause to revise the gas pr every three years to be incorporated into the agreement, which both Ind and Pakistan disagreed. If substantiate effectively, then IPI pipeline would also assert a depict independent foreign policies adopted by Pakistan and India issues of high priority related to energy with certainly wanting to bre from the pressure to abort the plan. With sever warning to India again joining the project by the US because of Iran, still it demonstrated sign thrust to move forward for the project. Even US lured India to have t much-aspired civilian nuclear deal to meet its growing energy demand However later early this year, when India shows reluctance in the project, Pakistan declared that China would become part of the proje and convert into (IPC). This proclamation sent quaver to India. Wh depending on the feasibility of the project, China illustrated keen inter in making this a reality with having necessary expertise and resourc With growing demand at domestic markets soaring, and involvement China led India to participate with revised sense of urgency. For India and Pakistan, it is difficult to show the same level consent on the IPI because of the divergent foreign policies andpriorit up to vote on this title involved. Pakistan has deep rooted andSign closer relations with Iran a useful energy gr aNot support on various issues either nuclear or Useful forming regional Pakistan clearly realized that Iran sees the IPI as both a source of valuab foreign exchange as well as warding off the mounting US and oth
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54
been put on hold because of security and sensitive areas on the way. B the fact remains that nearly all roads which provides energy security Asia lead from Tehran. Iran's ability to act as an energy corridor for t sub-continent and salient importance of Iran is indisputable. In the rapid intensifying international energy competition, Iran holds the master key the most staggering political and economic roadblock that impedes t economic growth. The problems wont be solved while isolating Iran b close and competitive environment leads to prosperity of t Conclusively, the fact remained which must be kept in mind is that TA and IPI would be operational in domains of disorder lying betwe economically upward regions. Afghanistan as reluctantly been controll but still has the seeds of insurgency expected to be blossoming th summer as illustrated by the attack on President Hamid Karzai with lo and clear message of " strike any where in the world". On the other ha Pakistan present shaky coalition government has been involved in settli the domestic political instability with paying merge attention to resolve t economic issues. Therefore it can be concluded TAPI and IPI could n become good devices of leverage unless and until Pakistan is to set house in order and become a normal, democratic and stable sta
Farhat Akram, The Nation , May 12, 20 http://www.nation.com.pk/pakista http://www.nation.com.pk/pakistan-news-news n-news-newspaper-dailypaper-daily-englis englis online/Business/12-May-2008/Entangled-in-energy-web/
M EETING H E L D
TO
D I S C U S S P A K I S T A N ' S E N E R G Y C R I S I S
Pakistan's federal cabinet yesterday convened a special meeting here to discu the worsening energy situation and decided that all commercial markets will closed at 9 pm while clocks will be set one hour ahead from June 1 till the e of August. The objective of the whole exercise is to save energy in the pe Sign up to vote on this title summer season. The move of setting the clock an hour ahead that had fail Useful Not useful twice first during the term of prime minister Banazir Bhutto and then in last government headed by President Pervez Musharraf is now being tr
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these three months. The government will also import 10 million energy savi bulbs to promote the culture of energy conservation. This summer (June-August), Pakistan is facing 4000MW of electr shortages worse than the last year after a 50 per cent (2500MW) drop in hy generation due to less water in rivers and slower melting down of snows the mountains, Water Minister Raja Pervez Ashraf said while briefing t newspersons on the cabinet meeting. He said from July international bids w be invited for production of 1200 MW on fast track basis. These bids will be offered at the existing rates (considered cheaper) the National Electric Power Regulatory Authority (NEPRA) in order to attr investment. However, this offer will be closed as soon as the government achiev the generation target of 1200 MW. The water minister said the power generation tendering production process took three years or more, but the government has decid to accomplish it within a year-and-a-half.
Khaleej Time , May 16, 20 http://www.khaleejtimes.com/Displa http://www.khaleejtimes.com/DisplayArticleNew yArticleNew.asp?section=bus .asp?section=business&xfile= iness&xfile= business/2008/may/business_may business/2008/may/business_may560.x 560.x
G O V T T AKING S T E P S
TO
OVERCOME ENERGY CRISIS
The government is taking all necessary steps to overcome the ongoing ene crisis, as it is well aware of the sufferings of masses and the difficulties bei faced by the industry, said Raja Riaz, a senior Punjab Minister. At closing ceremony of two-day LCCI SME Fair 2008, he said, a cra energy conservation plan had already been rolled-out by the fede government to bridge demand-supply gap. He squarely blamed the previo government for the energy shortage, “Had a go-ahead been granted to smal wou power projects around 600 MW electricity Sign in yester years, thetitle situation up to vote on this have been far better.” Look at India, it had built scores dams during useful Useful Not of these years, he added. He said LCCI SME Fair and the seminar would help furth
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He said Federal government should immediately start construction big water reservoir including Kalabagh Dam.
Daily Times , May 17, 20 http://www.dailytimes.com.pk/default.asp?page=2008%5C05%5C17%5Cstory_17-5 2008_pg5_
ENERGY CONSERVATION PL A N T O CO M B A T SHORTAGE MINISTER
Senior Punjab Minister Raja Riaz has said the government is well aware of t sufferings of masses and the difficulties being faced by the industry. In th regard, he said, a crash energy conservation plan had already been announc by the federal government to bridge the demand-supply gap. The minister was speaking at the closing ceremony of a two-day SM Fair-2008, organised by the Lahore Chamber of Commerce and Industry, the LCCI late on Thursday night. The minister squarely blamed the previous government for the ener shortage, saying in 1994 a plan was chalked out to produce 600 megawatts electricity by building small power projects on canals but the plan could n get go ahead due to unknown reasons. “Had a go-ahead been granted to these smaller power projects yesteryears, the situation would have been far better.” Look at India, it h built scores of dams during all these years, he added. Speaking on the small and medium enterprises, the minister prais the Lahore Chamber for supplementing government’s efforts for bringing economic turnaround. The LCCI SME Fair and the seminar would he further consolidate businesses in Pakistan, he added. In his address, LCCI President Mohammad Ali Mian urged the sen minister to evolve all future business policies after consultation with t Sign up to vote on this title stakeholders as in the past that practice was hardly seen anywhere. He said Useful Not useful number of good policies in the past could not give desired results for want due attention to their implementation.
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expedite up gradation of infrastructure that would not only encourage lo investors but would also help attract foreign investment. The LCCI president also suggested to the minister to widen the sco of Businessmen-Police Liaison Committee by including all the industrial are in it as an improved law and order situation was a prerequisite to investment
The News, May 17, 20 http://www.thenews.com.pk/daily http://www.thenews.com.pk/daily_detail.asp?id=11 _detail.asp?id=11
D E M A N D - S U P P L Y G A P I N C R E A S E S D R A M A T I C A L L Y 415MW
TO
The electricity demand-supply gap in the city increased phenomenally to 4 Megawatts (MW) on Tuesday, after Karachi lost electricity from its nucle power plant at KANUPP, officials concerned told The News. This shortfall is probably the highest recorded here during the curre season. The total demand of power in Karachi during the last 24 hours w 2,228MW. A KANUPP spokesman said that the plant, which supplies 80MW the Karachi Electric Supply Company (KESC) tripped at around 10:20 a. Tuesday due to the loss of KESC transmission lines. Meanwhile, KESC officials said that Unit no. 6 of the Bin Qas Thermal Power Plant has also been non-functional for the past couple of da but would be online soon after the requisite repairs and maintenance. The ever-widening demand-supply gap means that almost ev residential and commercial part of Karachi has been coming under prolong and multiple spells of power load-shedding lasting over two-and-a-half hou each. These continue toll late into the night. Moreover, several areas of the city have experienced prolonged a recurring spells of power breakdown since Monday evening because syste Sign up to votemechanisms on this title overload has caused the transmission and distribution for elect Useful Not useful supply in those areas to go haywire. Probably the worst electric supply situation during the last 24 hours the city was in Federal B. Area Block-20 near the Edhi Centre. Residents
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Tuesday evening due to serious faults in the systems and installations of pow transmission and distribution. In addition to this, several sprawling residential areas of the ci especially in the suburban parts, have been running dry for past couple of da because the prolonged spells of power breakdown and load-shedding ha equally affected the water supply installations of the Karachi Water Sewerage Board (KWSB).
The News, May 21, 20 http://www.thenews.com.pk/daily http://www.thenews.com.pk/daily_detail.asp?id=11 _detail.asp?id=11
P A K I S T A N F ACING A C U T E P O W E R S H O R T A G E
Pakistan is facing an acute power shortage that is hurting the economy, t minister of water and power warned, noting the need for conservation. Raja Pervaiz Ashraf said the shortage comes with the onset of sev summer, the state-run Associated Press of Pakistan reported Wednesday. Because of the shortage, electricity supply to homes is cut for seve hours a day, further raising the people's misery index. Some estimates say t shortage may be as much as 4,000 megawatts, at a time when Pakistan is a gripped by soaring food prices. Ashraf, a member of Pakistan's new ruling coalition that took over March after months of violence and political instability, said the government determined to resolve the issue. Under an energy management plan to conserve power use, commercial centers and markets are to be closed by 9 p.m. Ajmal Baloch, president of a trade union, told APP that during summer, shoppers prefer to come to markets at night and a 9 p.m. closi time would greatly inconvenience them. He said people do not come to markets on official holidays, and t wou government's decision to close them on Fridays ontitleSundays Sign upinstead to vote onof this further hurt business activities. Useful Not useful Despite attractive investment opportunities in a country of 1 million whose political climate is improving, rating agencies seem reluctant
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offer to supply 1,100 MW of electricity to help meet Pakistan's energy nee especially at the Gwadar port in Balochistan province and neighboring areas Iran currently provides 35 MW of electricity along the Pakistan-Ir border. IRNA said Pakistan's conservation measures are designed to save 5 MW. It said Pakistani industrial units are being told to stagger their week holidays.
May 21, 20 http://www.upi.com/Energy_Resources/2008/05/21/Pakistan_facing_acute_powe _shortage/UPI-42941211408928
R E N E W A B L E R ESOURCES M U S T CRISIS
TO
COUNTER ENERGY
Tapping of renewable energy resources of wind, solar and bio-fuels necessary to resolve the prevailing energy crisis and reduce the growi trade deficit. Environment Protection Department Additional Secretary D Zafar Abdullah stated this while speaking at a seminar on 'Clean Ener for Safe Environment and Sustainable Development' here at a local ho on Wednesday. EPD Director General Dr Shagufta Shahjehan chaired t seminar. Dr Zafar said that renewable energy resources were cost efficie and environment friendly. He said that only technology was needed to t these resources available in abundance. Former NESPAK General Manager Sabir Ali Bhatti said th power shortage was resulting in economic loss of 3 billion dollars p annum. The country was facing power shortage of over 4,000 MW whereas it could generate 10,000 MW from coal alone. China w vote on thisbut title Pakistan w generating 80 per cent of power requiredSign by up it to from coal yet to acquire the technology. Useful Not useful He said that Pakistan was not utilising its hydel power potent also. Water flowing from Tarbela Dam can be easily stored by building
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power generation equipment from the developed countries. Pakistan h the third largest coal reserves in the world and could use the same f generating power like Iran, India and China by acquiring the technology. Pakistan Council of Renewable Energy Technologies Depu Director Irfan Yousaf said that a 700 MW wind power generation proje had been launched at Gharo in coastal area of Sindh. Solar energy proje were being launched in Northern Punjab and Sindh. India was generat 9,000 MNWs from wind whereas Pakistan had a potential to genera 50,000 MW from its 1046 kilometre coastline. NCA Professor Dr Sohail Qureshi said that historical buildin were energy efficient and environment friendly because of utilisation indigenous materials and technology. The old building tradition ha however, made synonymous with backwardness and replaced by the n one causing maximum energy wastage. Sustainable architecture w required to be energy efficient.
The Nation , May 22, 20 http://www.nation.com.pk/pakistan-news-newspaper-daily-engli online/Regional/Lahore/22-May-200 online/Regional/Lahore/22-May-2008/Renewable-reso 8/Renewable-resources-must-to-count urces-must-to-count energy-cri
L O A D S H E D D I N G : P ART
OF
CONSPIRACY
Pakistan is facing multivariate problems nowadays; price-hike, wheat crisis a unending load shedding are among the top most problems. Load shedding i serious issue as it not only hampers the domestic, business and industr activities but also spoils one’s mood, even one’s behavior. Pakistan experienc serious power-shortage resulting in serious power deficit that hampers n only the development process but also poses serious threat to national grow Heavy load shedding of power across Pakistan creates major proble especially for all categories of users. The most affected user of electricity und Sign up to vote on this title this crisis is the households followed by industrial users. In the p Useful Not useful development plans focusing on electrification of villages, power connection new industrial units and to agricultural producers were put on hold till pow
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energy from them, but it will take political will on part of our government well as politicians to invest in for the country’s better future. We have therm power base electricity. Though Pakistan is well endowed with water resourc yet hardly any development projects have been visualized. Apart from lack development, the province also suffers from manipulations. The prese energy crisis in the country is because we have failed to build large dam Water is rapidly becoming one of the defining crises of the 21st century. W have two conspiracies related to water shortage in the country. One is natio conspiracy and the other is international one. National conspiracy is that our provinces blamed each other for wa related crisis for example Sindh attributing the scarcity to theft and waste use by Punjab. After that Sindh traditionally has had two complaints agai Punjab – one that in the dry season, when Sindh needs water, Punjab does n release enough downstream; and during floods, when Sindh does not ne water, Punjab flushes out surplus water downstream. The Kalabagh Dam also under this controversial approach. The other is international conspira related to Pakistan’s water resources that United States and India spoili Pakistan’s water resources they don’t won’t Pakistan to have much resourc to combating its energy crisis. They create hurdles for Pakistan in this regard. United state indulg Pakistan to its security related problems in Tribal Areas and diverti Pakistan’s attention towards major issues related to energy and In committing itself to theft Pakistan’s water resources which comes to In here is the example of Baglihar Dam. Recently Government of Pakistan pa attention to that crisis and takes different measures to tackle that cris Government made an agreement of “Nelam power project” of about 1 millions. This agreement is between Pakistan, America and Norway. O Pakistani side this is on WAPDA and NEEPAK. This would be completed with the help of China. It generates 9 megawatt of electricity. 15-18 thousands of thermal electricity would Sign up tomakes vote on this titlethat the wo produced in upcoming five years. Government sure Usefulwould Not would be started on Kalabagh Dam. Thework be useful started on Bhas Dam next year which generate four and a half thousand megawatt electrici On short term basis government also take different actions like Markets a
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So on long term basis we need the national strategy to address t crises focuses to make use of all options to meet the current and future pow requirements. This included hydro, thermal and nuclear sources. Seve thermal powers were installed which resulted in two problems: import of fu to meet power generation requirements, and resultant significant rise in pow generation cost and cost to user shot up manifolds. Hydropower generati was strongly advocated to not only supplement power generation but also a much lower cost. For thermal power we need to have more water resourc like Dams and rivers etc. Over the years we have neglected other sources. Take coal f example, Pakistan has the 7th largest coal reserve in the world (in Thar ar and we only produce 0.2% of electricity from it! Coal is one of the cheap ways to produce electricity, that’s why countries like Australia produce 77% their electricity from coal. And please don’t give me the crap about pollutio because work is being done to make it as pollution free as possible. We are one of the few declared nuclear States of the world, yet produce a fraction of power from nuclear as other countries do. We can u our nuclear power in peaceful means or purposes mainly in generati electricity. Then after that there is solar (and every part of Pakistan h abundant sunlight throughout the year), the Government can encoura people to install solar water heating and solar photovoltaic on their roofto And we must also not forget wind, out neighbour India is the world’s largest wind power producer in the world!!! Shocking, it’s it, but alas, none our governments has seriously looked into it, therefore Pakistani people being blessed with the gift of load shedding with the advent of New Year! S where does a GDP of 8% stand? So our government’s paramount objective must be to provi adequate facilities for the generation, transmission, and distribution electrical energy keeping in view the future power requirements for t industrial, agricultural and economic development of the country. Sign up to vote on this title
Fozia Shahnaz, Pak Observer, May 23, 20 Useful Not useful http://pakobserver.net/200805/23/Articles04.as
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He appreciated the World Bank's assistance program, particula in education, water, health and power sectors. He said that Shaheed Quaid Mohtarma Benazir Bhutto h initiated a eight billion dollars power project for Sindh to generate 50 MW of electricity, but the same, in later governments was left unattend with the result that not only the countty but Sindh province speci suffered where industrial sector was badly affected. Chief Minis spotlighted the importance of Thar Coal reserves and stressed that w coal based power plants, the power crisis in the country will be solved. H said the project will also help overcome un-employment and bri prosperity and development in the area. The WB Vice President for South Asia Region, said that Wor Bank will fully assist in projects for of furtherance of educatio strengthening and improving Irrigation system in Sindh and also suppo other sectors like health etc. He said that previously, project under Sindh Development Foru was launched in the year 2001 and now a similar programme will revived so as to achieve the targets of development in Sindh. Sen Minister Education Pir Mazharul Haq informed that Sindh province la behind in the education & health sectors, specially in rural areas. Chief Secretary Fazal-ur-Rehman emphasized the need for payi attention on social sector together with special attention towards pow generation. World Bank team stressed the need for ensuring progress community as other schemes are also implemented on matching gran with community/Government of Sindh to bear 50% expenses of projects. The meeting was attended by Additional Chief Secretary Na Hussain Maher, Secretary Finance Ghulam Ali Pasha, Secretary Hea Shafique Ahmed Khoso, Secretary Education Rizwan Memon,Secreta Sign up to(Services) vote on this title Irrigation & Power Shuja Junejo, Secretary Iqbal Durra Useful Not useful Secretry Mines & Mineral Younis Dhaga and other senior officials.
The Nation, May 26, 20
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of representatives belonging to different walks of life, he said it would ensured that load shedding is shared equitably and fairly by different parts the country. He called upon the people to observe conservation measures a support government’s 100-day programme which focuses on bet management of existing resources to overcome energy shortage in t country. The Prime Minister said that the government is fully aware of hardships being faced by the people. Despite unenviable economic conditions, the government has tak several measures to improve the lot of the common man and rid them of t wheat and electricity shortages, he added. …
APP , May 30, 20 http://www.app.com.pk/en_/index http://www.app.com.pk/en_/index.php?option=com .php?option=com_content&ta _content&task=view&id sk=view&id=39 =39 6&Itemid=
P A K I S T A N P U T S C L O C K S F O R W A R D , H OPES ELECTRICITY
TO
S AVE
Pakistan put its clocks forward an hour on Sunday while shops have be ordered to close early as the country struggles with an acute electric shortage. Setting clocks forward by an hour, to six hours ahead of GMT, shou enable the country to take advantage of an extra hour of daylight in t evenings and save power. Shopping centers have also been ordered to close at 9 p.m. (15 GMT) from Sunday while government offices have been told not to turn the air conditioning for the first three hours of the working day. Pakistan tried moving to daylight saving time in 2002, but abandon up to vote this title it as many people, particularly in rural areas,Sign ignored theon switch. Not useful Some people doubted the time change would work this time. Useful "It's bound to fail. Half the people aren't aware of it and the other h don't care," said Adnan Hadi, a television producer in the southeastern city
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He did not elaborate on how the extra power would be generated b officials have said Pakistan hoped to import second-hand generat equipment. Power cuts, as well as food shortages and inflation, have fuelled ang and contributed to a landslide opposition victory in a February gene election. Early this year, the government shut steel melting units across t country for two weeks and ordered hundreds of textile mills to redu operations to cope with the power shortage. In April, textile workers staged violent protests against power cu that have crippled their mills. Pakistan's installed capacity is about 19,845 MW, of which about on third is produced by hydro-electric plants. Much of the rest is generated thermal stations, fuelled primarily by gas and oil. But no new capacity has been installed for the past decade desp strong growth and rising demand for power.
China Post, June 2, 20 http://www.chinapost.com.tw/asia/p http://www.chinapost.com.tw/asia/pakistan/200 akistan/2008/06/02 8/06/02/15915 /159152/Pakistan-p 2/Pakistan-puts.h uts.h
THE OPTION
FOR
SO L A R POWER
For Pakistan, 2008 will prove to be a long and hot summer. In April, some the major cities were being put through six hours of load shedding every d In May, power interruptions had increased to seven hours a day. Another ho may be added in June. Some relief may come in July as the reservoirs begin be filled up by the monsoon rains but once the dry season arrives, the durati of load shedding will begin to increase again. The government estimates the supply-demand gap at 4000 MW. T is not likely to be cut down since no new generation capacity is in the wor of for at least another one to two years. InSignthe meantime, the price up to vote on this title continues to increase. New records are being set almost useful day. This w Useful Notevery increase the cost of generating electricity since a significant amount of powe generated by oil-fired stations. How to deal with this problem?
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demand gap. In other words, the policymakers have turned to the sector energy only when opportunities have arisen as a result of other developmen or when there is a serious crisis. There is a crisis at this time. How w Islamabad react? This may be a good time to develop a comprehensive appro towards the sector, factoring in policies aimed at affecting demand, supply a environmental concerns. In looking at supply, the country should seriou examine alternative sources for generating electricity than those that have be tried in the past. In this context is solar energy a serious option for Pakista Have the recent technological advances achieved by the industrial world ma the sun a viable source of energy for a sun-drenched country such as Pakista If the technology that converts solar energy into electric power still mo expensive than other sources of energy could subsidies be provided to attr private investment into this sector? Some recent developments in converting solar power into electric have begun to provide some answers to these questions. Surprisingly t answers come from the work being done in Germany. It is useful to look the German experience to draw some lessons for Pakistan. Although Germa is wreathed in clouds and is therefore an unlikely candidate for becoming pioneer in this field, it has become a leader because of the design of pub policy to encourage the use of the sun as a source for generating electricity. In 2007, Q-Cells, a German company surpassed Sharp, a Japane company, to become the world’s largest manufacturer of photovoltaic so cells. Thanks to the work done by Q-Cells, Germany has by far the larg market for photovoltaic systems which convert sunlight into electricity. It h about one-half of the world’s total installations. It is the third-largest produ of solar cells and modules, after China and Japan. Once the United States a Japan were the rising solar stars where the private sector was taking advanta of government subsidies. But these became less enticing as the governmen interest in developing the industry waned. Signfor up to voteNew on thisYork title Times, “ According to Mark Landler writing The Not useful debate over solar subsidies is a test of how an Useful environmentally minded coun can move from nurturing a promising alternative energy sector to creating mass-market industry that can compete with conventional energy sources
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by alternative systems, not only solar but also wind and ocean waves at a fix above-market price for 20 years. This has proved to be powerful incentive investors including those working with solar panels. The Act locked in t customer base for the electricity produced by alternative systems. They c earn reliable returns on their investment. The amount of electricity generat by these systems rose 60 per cent in 2007 compared with 2006. Most of t increase has come from wind systems, which now provide 6.4 per cent for t total electricity produced in Germany. The share of solar energy is still very small – only 0.6 percent of total. The small share of solar is understandable. The country gets only 1,5 hours of sunshine a year, less than a third of the total daylight hours. Lond has about the same exposure to the sun, but it has one third fewer sunshi hours than in the cities in Europe along the Mediterranean and one-half of t cities in western United States. Most cities in Pakistan receive between 2,2 and 2,500 hours of sun, 60 to 70 per cent more than that of Germany. Germany is a good example of how public policy can overcom natural disadvantages. The Renewable Energy Sources Act has contributed the country’s far lower dependence on hydrocarbons for generating electric In 2007, it derived 14.2 per cent of its electricity from renewable sourc ahead of the 12.5 percentage adopted by the European Union as a target. The German Act, while mandating the utilities to buy the electric generated by alternative systems, allows them to pass on the additional cost the consumers. There is no limit on how much electricity can (or should) purchased by the utilities from the alternative systems. This has caused uti bills to increase but for the time being by modest amounts for an avera domestic consumer. The additional cost was only $1.70 a month in 2007. Th will double by 2014. By that time the solar industry will scale up to $185 billi in terms of public support. This is about the same amount being provided the superannuated coal industry. The debate about the cost of solar and other renewable sources Sign up to on this energy has created pressures on the government tovote make thetitle current law l useful Useful Not generous. There are proposals to cut down the period over which subsid would be provided, from the current 20 to 15 years. There is also as effort sharply reduce the above-market price allowed to the producers. Fears th
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equipment for developing generating electricity from renewable sources. T technologies are still in their infancy and there is an opportunity f newcomers in the area to create niches for themselves. Some work is going replace silicon in photovoltaic cells with plastics. At this time, the efficiency of plastic photovoltaic cells is only five p cent while that of conventional silicon cells is 15 to 18 per cent. Ev countries such as Pakistan could invest in the industries needed to devel alternative sources for generating electric power. Three, it may be appropriate time to fix some targets for encouraging the use of renewab sources for generating power. The EU is working on a target of 12.5 per ce In the United States, the two candidates for the Democratic ticket wa renewable energy to generate 25 per cent of electricity by 2030. This is the time for action by the government and it should look at possible avenues for solving the current crisis.
Shahid Javed Burki, Dawn, June 2, 20 http://www.dawn.com/2008/06/02/ebr8.ht
A D V A N C I N G
OF
CL O C K S CREATES CONFUSION
First of June was perhaps a very confusing day in the lives of the people everything went almost haywire after the smaller hand of clock was forward one hour. On June 1, the clocks jumped an hour ahead to save the day light tim and extract the maximum possible work potential but it brought a lot confusion and inconvenience for the people of the country in general and citizens of the Provincial Metropolis in particular. The list of confusions is considerably long since the people are not tuned up to the required level to except such ‘innovative & noble’ ideas as ye It needs a most of prior practice and a complete step-by-ste campaign to get the people acclimatized with idea, Signany up tonew vote on this but title as usual, th ‘brilliant’ figment of a very scientific mind was shoved the throat of t Useful Not useful down people without assessing the ground realities in a land where the literacy rate still under 23% even after six decades of independence.
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The most frequent questions asked by the kids were” What happen to their school time tables? Will the van driver who picks and dro them also know about this change of time? Thousands of students appearing in the Lahore Board’s Second School Examination were utterly confused whether they would go for exa according to which time table since the board officials never bothered to se a public service message to this effect in the media. The parents had to face confusion when they were mak preparations for sending their children to school. Many Lahorites were of the view that the government should ha taken initiatives to overcome the prevalent power crisis instead of forcing t whole nation to change the small hand of their watches an hour ahead. Th argued that the people would have to change their daily schedules in a bid maximum utilization of the sunlight energy. They urged the government kick-start energy-related projects without any procrastination. The mindless load shedding in the city, a permanent irritant in lives of the people of Pakistan now, made this otherwise a productive a positive initiative on the part of the government, a miserable addition in t lives of the people. No sooner the clock struck midnight, the lights in vario parts of the city went out due to the on-going load shedding. This w something not accounted for by the already anticipating public which h overlooked this ‘peace time blackout’. Many household were found groping the dark for a candle since they had ignored this ‘after effect’ of modern completely. The other pinching aspect of the time change was the devastat effect of the load shedding the scorching heat since the clocks had go forward which also ‘saved the heat of the sun’ and the sizzling day seem quite long on 1st June to the poor folks. The people habitual to say their five times prayers in mosques w also found confused. The patients who had appointments with the docto to vote on this title also faced difficulties to get adjusted to the Sign newup ‘timings’. Not useful that All said and done, the people were ofUseful the view every good thing not necessarily ‘good’ for every society since a society has to be brought to certain level of awareness before being introduced to an innovative id
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IRAN
CAN
HEL P PAK ISTAN
IN
ENERGY SECTOR
Iranian Ambassador to Pakistan Mashallah Shakri has said his resource r country can help Pakistan address its energy crisis in the long run. Talking to this correspondent here, he said Tehran can init ventures with Pakistan other than the IPI (Iran-Pakistan-India) gas project help Islamabad overcome its power crisis. He said there were many fields of mutual interest especially in t culture, energy, shipping and trade sectors in which both the countries c expand relations. He said Pakistan had good manpower for shipping indus while Iran possessed good fleet and if the two countries formed a jo shipping company it would help enhance trading in the shipping sector. He said by expanding rail network, Pakistan could export its fru especially orange and mangoes, to Turkey via Iraq. He said Pakistan produced two million tons of good quality kinn that could be exported through rail network to Iran and Turkey. Responding a question, he said both Pakistan and Iran were bound in centuries-old relations due to similarities in their cultural, religious and soc traditions. He said with expansion of economic, trade and tourists activities the relations could be further expanded and strengthened.
Dawn, June 3, 20 http://www.dawn.com/2008/06/03/nat2.ht
S A A R C M E M B E R S A S K E D
TO
SIGN ENERGY TREATY
Energy experts from Japan and member states of the South Asian Associati for Regional Cooperation (Saarc) Wednesday proposed the signing of ‘Energy Charter Treaty’ to promote regional cooperation in energy sector. up to vote on In their recommendations on the Sign conclusion of this thetitle two-day Japa Not useful Useful the participants SAARC Symposium on Energy and Connectivity, said Jap and Saarc member states should expedite energy cooperation in the regio
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According to the experts, Japan and Saarc members should contin the dialogue for possible means and cooperation to improve regio connectivity in energy sector. They said efforts should be made for fostering private and pub partnership, Research and Development; and cooperation with academics, c society and the media. They were of the view that priority areas of energy cooperation in t Saarc region included energy infrastructure development, regional trade energy, sharing of hydroelectric resources and demand-side management. They stressed that the parties engaged in the current projects constructions of gas pipelines connecting one or more Saarc countries external energy sources in the region urgently address outstanding issues. The participants said Japan and Saarc member should make efforts promote public awareness of the need for regional energy cooperation, add that programmes and activities of Saarc Energy Centre should be stron supported through provision of human, financial, infrastructural, technical a material resources. They said Saarc member states should consider establishing an int governmental framework for implementing the agreed programme of action energy cooperation. The symposium was jointly organised by the Institute of Strate Studies, Islamabad, and the Government of Japan, and was attended by t energy experts and some government officials from Bangladesh, India, t Maldives, Nepal, Pakistan, Sri Lanka, Japan and the Saarc Energy Centre, well as audiences invited from various sectors in Islamabad. Speaking at the concluding session of the symposium, Ismail Qures secretary Water and Power, said that energy sources in Saarc region and neighbours were huge, unevenly distributed and undeveloped. Cross-bord investments in energy and promotion of regional energy trade are essential achieving economic growth of the Saarc countries. The factors curtailing su Sign poor up to vote on this title regional cooperation are political tension, infrastructure and po Useful Not useful operational efficiency, he added.
Dawn, June 12, 20
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segment will be given subsidy. He said the country is facing severe power cri and the government was taking short, medium and long-term measures combat the menace of load-shedding. He said load-shedding hours would be reduced within a few days 1,500MW additional power has been added to the system due to sinc efforts of the government to overcome the situation. The minister added additional power generation has been achiev through system optimisation. Pervaiz Ashraf said that Prime Minister Sy Yousuf Raza Gilani has approved an amount to bear expenditures on supply to thermal power plants for smooth functioning. He said a major chunk of the export-oriented industry has be exempted from load-shedding while power supply is also being increased other sectors. He added in order to give boost to the agriculture sector hours continuous power supply is being provided at night to get maximu production while the textile industry is also being provided 100 per cent sup of power. He said power-looms are also being provided continuous spells power to increase productivity, as this export-oriented industry is a ma contributor to foreign exchange reserves. The minister said sufficient amou has been allocated in the budget for the water and power sector keeping view the increasing demand in these sectors. He said due to the energy conservation plan additional power is bei received while the government is also planning to get electricity fro alternative and renewable energy resources. Earlier, in an open kutchery t minister received applications from applicants and issued orders to t concerned officials on the spot. Addressing the party workers and applicants, the minister Pakistan Peoples Party’s government is committed to resolving the problem of country’s people. He said government would change the life of comm man by giving basic amenities of life. Sign up to vote on this title
The News, June 17, 20
useful Useful Not_detail.asp?id=11 http://www.thenews.com.pk/daily http://www.thenews.com.pk/daily_detail.asp?id=11
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protested against KESC and burnt tyres on the roads. The Lyariites we suffering with 12 to 15 hours long power outage due to some technical cab faults in the area. The residents of FB Area, Shah Faisal Colony, Ma Liaquatabad, PECHS, Gulshan-e-Iqbal, FC Area, Akhtar Colon Mehmoodabad, Punjab Colony, DHA, and Gulistan-e-Johar also claimed suffering 10 to 12 hours hours long load shedding. Life has become a nightma said Hassan Gul from Golden Town. "The frequent load shedding has n only made our lives gloomy but has also disturbed the routine life. The wo affected are children, especially toddlers. Even students are suffering as th can't study for their ongoing examinations," he said. The situation was synonymous with the conditions in Manse Colony and Landhi. Khurram Amman, a resident, said that the entire locali comprising of over 50,000 residents, was facing three hours load shedding more than three times a day. "The entire locality belonged to middle cla people, living in small houses. Most of the houses have no proper ventilati system thus load shedding brings severe problems for them," he said. "KE should pay more attention to the slums as people living in the City's afflue areas can afford generators." Furthermore, the power breakdowns didn't affect residents alone, b also affected the workers of different industrial zones. "Most of the industr units were forced to leave workers early due to power disturbance. B workers have been asked to come in on Sunday and thus they are paying t price for KESC's bungles," Iqbal Khan, an electrician at a cloth mill in S Industrial Area said. The total demand of electricity has reached to 2500MW in the city d to the increasing temperature and KESC was lagging behind with 400 500MW. KESC had earlier announced five hours load shedding b committing 8 to 9 hours load shedding in various localities. KESC could n overcome the technical faults across the city and compelled the inhabitants come on roads in protest against power outage. Sign up to vote on this title Meanwhile, two units of Bin Qasim power plant remained close d Not useful Useful of to some technical faults and as far as restoration supply from the units concerned it would take three to four more days while the supply fro KANNUP also couldn't be restored.
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S EVERE F U E L C R I S I S
HITS
FRONTIER
Severe fuel crisis has hit the NWFP, as around 90 per cent of the filli stations have been closed down due to the acute shortage of diesel. The diesel shortage continued in the province for several days, forc most of the transporters to park their vehicles in their homes. Long queues vehicles were seen outside petrol pumps Wednesday to get a few litres diesel. A few filling stations where the commodity was available in a limit quantity, sold it at Rs60 per litre against its official price of Rs52.Transp owners opined that the main cause of petroleum products shortage in t province was massive smuggling of the POL product to Afghanistan whe minimum price of diesel is Rs75 per litre. The filling station owners have a expressed serious concern over the shortage of POL, saying that it h seriously affected their business. The Sarhad Petroleum Cartage and Dealers Association Wednesd voiced concern over petroleum products’ growing smuggling to Afghanist saying 90 per cent of the filling stations have been closed down due to no availability of the petroleum products. “The government pays huge amount to make the petroleum produ available on subsidised rates to compensate the poverty-stricken citizens b the facility is not being availed by them after huge smuggling of subsidis petroleum to Afghanistan,” SPCDA chairman Mansoor Sharif told a pr conference here. He said the filling stations of Pakistan State Oil (PSO), Shell a Caltex companies across the province have 2.5 million litres per-d requirement. However, the growing smuggling to Afghanistan reduced rece of petroleum products to the oil companies to about 0.7 million litres. He held the Khyber Agency political administration responsible f the continued smuggling of petroleum products to Afghanistan, which, Sign up to vote on border. this title said, allowed the smugglers to take the product across the Useful Not useful Mansoor also said the previous government had issued marketi licences to ‘ghost companies’ which had no storage depot and proper offic
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SHORTAGE
OF
FUEL
AT
P E T R O L P U M P S C AUSING C O N C E R
There was a shortage of petrol and diesel at various petrol pumps in the c on Thursday. Petrol pump officials said the reason for the shortage was th they were not receiving any supplies. A Cavalry Grounds petrol pum employee said that a shortage was persisting and therefore supplies to e users were not materialising. The petrol pumps in Cavalry Grounds, Gard Town, Model Town and other areas closed operations temporarily. Pun Petroleum Dealers Association President Majeed Malik said that oil compan had reduced supplies to dealers and it was causing problems. He said that t government owed billions of rupees to the oil companies and this had creat problems for the end users. “The oil companies have reduced supplies by percent, as they claim that they have not been paid for their product,” added. Majeed said that the government should come to the aid of us otherwise the shortage could cause huge problems for the people.
Daily Time, June 20, 20 http://www.dailytimes.com.pk/default.asp?page=2008%5C06%5C20%5Cstory_20-6 2008_pg13
SHORTAGE
OF
PETROL PRODUCTS TORMENTING CONSUMERS
Several petrol pumps, affiliated with different Oil Marketing Compan (OMCs), have stopped selling oil products in the city due to the shortage supply since the last couple of days. The shortages of oil products at petrol pumps have caused consum to suffer, particularly in those areas where the petrol pumps are in limit numbers. Besides Karachi, the supply shortage has been reported in oth cities of Sindh and NWFP. Sign up to vote on this title Many petroleum dealers said that they have not been receiving Useful Not useful products from OMCs since last week thatcreated petroleum shortage at t pumps. They were reluctant to provide any details on this issue and pass
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Normally, petrol pumps have a storage capacity of 20 to 25 days the oil tanks. However, the shortage has been predicated to continue in the comi days because OMCs, particularly Pakistan State Oil (PSO), claimed that th have been facing diesel supply constraints from refineries. PSO said that private run-pump owners or dealers affiliated w other OMCs have been demanding oil products to the state-run OMC th caused supply shortage even on its own petrol pumps. It said the share of PS has increased to 71 percent of the total market share in June as compared last month's share recorded at 59 percent. The supply from refineries has been reduced in the past few days th caused interruption in supply chain and would take time to come back track, an official said on condition of anonymity. Spokesman of Shell Pakistan Limited (SPL) Abid Syed Ibrahim sa the OMCs continue constant supply to its affiliated dealers throughout t country and it has stopped products' supply to those dealers who did not cle their advance payments to OMCs.
Muhammad Yasir, Daily Times, June 22, 20 http://www.dailytimes.com.pk/default.asp?page=2008%5C06%5C22%5Cstory_22-6 2008_pg5
NO END
TO
E L E C T R I C I T Y M ETER S H O R T A G E
Shortage of domestic electricity metres continued in the provincial capital the management of Lahore Electric Supply Company (LESCO) failed procure the most necessary item on time. ti me. Sources in the company claimed that more than 30,000 applicatio for the issuance of new electricity metres were pending with the compan Sources said the shortage was a direct result of lack of vision and futu planning of the management especially the high-ups. Sign up to vote on this title Sources said that the shortage of domestic cable a useful Useful metres, Notelectricity transformers started some five months back and since then the company w failed to procure these most necessary items. Shortage of these items clea
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of the company was not purchasing metres and transformers because th have not gotten a ‘good deal’ from the manufacturers. Most of the applicants urged the National Electric Power Regulato Authority (NEPRA), Pakistan Electric Power Company (PEPCO) and Fede Minister for Water and Power to hold an inquiry into the issue. Whoever is responsible for this should be punished, said Khurram resident of Faisal Town. He said he applied for a new connection some thr months back but still he was going to the sub division every day to get a met He said many others were also running pillar to post to get new metres in t same sub division. Following the shortage, the LESCO field staff is openly exploiting t applicants and minting money from them for getting them metres early. senior LESCO official, on the condition of anonymity, said that every su division needed average 500 electricity metres per month but presently t company was providing them with four to five metres per week.Wh contacted, the call on the mobile phone of LESCO Chief Executive Akra Arain was not attended. The company’s PRO admitted that the shortage w going on. He said it would be overcome within weeks.
The News , June 23, 20 http://www.thenews.com.pk/daily http://www.thenews.com.pk/daily_detail.asp?id=11 _detail.asp?id=11
PESHAWAR TRANSPORTERS THREATEN DEPOTS
TO
B ESIEGE OI
Transporters claim pumps are selling the commodity at R s65/liter Local transporters Monday threatened to besiege oil depots and filling statio in Peshawar if the authorities failed to take prompt and effective measures overcome the prolonged “artificial” diesel crisis in the province. Expressing his concern over the continued diesel shortage in t Sign up to vote on this title province, president of public transport owners association (legal) H Useful Not useful owners Ihsanullah said 50% of the transport-vehicle have parked their vehic in their homes due to prevailing shortage. He added the petrol pump own
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lamented the increase in the price of CNG, saying despite the fact that CN was produced in the country, its price was showing upward trend. He demanded of the authorities to take effective measures to cont smuggling, otherwise, they would be compelled to besiege the petrol pum and oil depots and the authorities would be responsible for consequences. It merits a mention here that Frontier was faced with acute shorta of diesel for the past two weeks. The vehicle owners had to struggle hard get some liters of the commodity on higher price. Abdur Rasheed, a private car owner, said he visited more than pumps to get some diesel, where he was told that it was not available. At last one of the pumps, the owner agreed to give limited quantity at Rs 60/li while its official price was Rs 50. Due to diesel crisis and unofficial increase its price, the long route transporters have also increased fares, adding to t miseries of the commuters.
The News, June 24, 20 http://www.thenews.com.pk/daily http://www.thenews.com.pk/daily_detail.asp?id=12 _detail.asp?id=12
D IESEL S H O R T A G E A F F E C T I N G O P E R A T I O N W E L L S , T R A C T O R S : F ARMERS
OF
TUB E-
The farmers are facing problems in running tube wells and tractors due to t shortage of diesel, Daily Times learnt Thursday. The shortage of diesel mainly persists in Punjab province as the companies have stopped the supply of diesel to the petrol pumps, while t shortage would have a negative impact on the sowing of rice and cotton cro the agriculture sector stakeholders said. The sowing of rice is round the corner while cotton sowing is alrea going on in a number of districts. An extreme shortage of diesel was al witnessed in cotton growing areas of Southern Punjab in the last couple days. Sign up to of votePakistan on this title (FAP), Idr A spokesman of Farmers Association Useful Not useful Khokhar said the hoarders have done an artificial shortage of diesel to for the government to increase the prices of petroleum products and a summ
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Chairman Agri Forum, Ibrahim Mughal said if the government fail to solve shortage of diesel issue, the farmers would fail to sow the rice in t coming sowing season. It is sowing season of cotton in the southern Punjab areas and the two things are the backbone of agriculture farming and if these are n available then one can easily imagine what would be the future of crops. The senior vice president of Punjab Petroleum Dealers Associati Chaudhry Muhammad Sadiq said the oil companies have stopped the supp of diesel to the petrol pumps. He said the companies have strictly asked the owners of petrol pum and dealers not to give diesel in drums and gallons, while the companies ha also supply the diesel against the demand of the pump owners.
Hasan Ali, Daily Time, June 27, 20 http://www.dailytimes.com.pk/default.asp?page=2008%5C06%5C27%5Cstory_27-6 2008_pg5
L OA D SHEDDING INCREASES
AS
KANUPP T R I P S A G A I N
The duration of load shedding suddenly increased from Wednesday night af the Karachi Nuclear Power Plant (KANUPP) suddenly tripped. Flaws in the Karachi Electric Supply Company (KESC) transmissi cables connected to KANUPP through the national grid caused the 80M shortage. There was an additional shortage of 300 MW to 350 MW the sam day. The Pakistan Electric Power Company (PEPCO) is also experienci some technical problems in its generation system, causing a shortage, a KES general manager (GM) told Daily Times. “The PEPCO administrati approached KESC with a request to accept a shortage of 100 MW for the tim because of technical problems but the KESC management declined to acce this excuse.” Sign up to vote on this title The supply from PEPCO continued MW without Not useful Useful at500 disruption till 11:00 a.m. Wednesday, until a shortage of 100 MW at arou 1:00 p.m. However, KANUPP resumed its supply of 70 MW to KE
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80
turbine leak. These reports are, however, incorrect as all six BQTPS a operating and generating around 1,050 1, 050 MW, the KESC GM added.
Daily Times, June 27, 20 http://www.dailytimes.com.pk/default.asp?page=2008%5C06%5C27%5Cstory_27-6 2008_pg7_
FUEL STATIONS RUN SHORT
OF
DIESEL
Fuel stations have run short of diesel, putting motorists in a fix. A f stations, which have this commodity, are selling it only if a consumer agrees buy mobile oil with it. “Diesel is available only at 15-20 percent fuel stations but their own are compelling motorists to buy mobile oil or any other commodity if th have to get diesel,” Hanif Gujjar, a public transport driver, told Daily Tim on Friday. There are around 24 fuel stations in Islamabad and over 50 Rawalpindi, where diesel is sold. “It is really difficult to get diesel these days so I have minimised use fuel in my car. Diesel shortage has been prevailing since revision of oil pric by OGRA last time,” a motorist said. Akbar Mian, manager of a fuel station in F-8 Markaz, said die supply at his station had come down from 14,000 litre to 7,000 litre a day. “Diesel supply has been cut by half at Sihala and Chaklala for the l two weeks by oil marketing companies,” he said. Ghulam Abbas, a worker a petrol pump in Sector F-7, said diesel supply had been delayed for long. Requesting not to be named, some fuel station operators said t government wanted to buy diesel from oil marketing companies at old ra while fuel prices have gone up in the international market. They said the government had delayed payment of billions of rupe to oil companies. Signin upthe to vote onof thisload title shedding b “We want to install a diesel generator face Usefula citizen. said Not useful we cannot run it because of diesel shortage,” Sale of petroleum products in open containers has been banned the government to counter terrorism.
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* Computer labs at GCU and LCWU closed down during load shedding * Students not expecting good results owing to poor preparation
The hours-long load shedding in the city is giving a tough time to studen especially schoolchildren, during the ongoing examinations. Students said that massive load shedding in the last few months h adversely affected their studies. They said that they could not study properly the dim light and under hot and humid weather, as it gave them a headac and had affected their eyesight. Some students also said that th schools/colleges had power backup systems, but the systems were not bei used. They said that they had been compelled to take classes and sit examinations with no electricity in the rooms. Students enrolled in semester system courses, especially tho studying computers and other sciences, said that they had an extra burden studies owing to the semester system. They said that they had to ma presentations and submit term reports and assignments, which was impossi with no electricity in town. Teachers also said that they had problems giv lectures during load shedding. The students of intermediate, preparing for their practicals, and oth for the Pakistan Military Academy (PMA) and Central Superior Services (CS examinations have also denounced the Water and Power Developme Authority (WAPDA) and the government for not complying with students’ demand of uninterrupted supply of electricity. A number of institutions in the city did not give summer holidays their students, as they had switched to the semester systems and we conducting examinations. Institutes like the Lahore College for Wom University (LCWU), Government College University (GCU), Form Christian College University (FCCU), and the Punjab University (PU) are s open and holding exams. Moreover, the students of Kinnaird Colle Beaconhouse National University and FAST National University ofCompu up to vote this title and Emerging Sciences are still due at the Sign institutes forontheir assignments a Useful Not useful research works. Zara, a student of BS (Honours) at the LCWU, said that semes examinations were ongoing at different departments of the university, a
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shedding hours. “The situation gets worse when the hostels run out of wat as we are not allowed to go out in the nighttime,” she said. Adeel Anjum, a Ravian studying computer sciences, said that stude in his department did most of their work on computers, but the administrati of the GCU had issued orders to close the computer labs at the time of lo shedding. “We have to prepare our assignments and need the Internet for th but now the computer labs are often closed due to the load shedding and have to suffer,” he said, adding that late submission of assignments was a affecting their grades. Tayyab Bhatti, preparing for his CSS exams, said that students taki the exams usually went to libraries for preparations, but now it had becom difficult for them to focus on their studies due to frequent power failure they could not sit in libraries for long hours without electricity and cooli system. Facilitating students: BNU Communication Adviser Arfa Sarfraz sa “Although we have closed the university for summer holidays, students w have not submitted their research work are still coming,” she said, adding th every second student had the excuse that he/she could not complete t research work due to load shedding. “I personally believe that students a suffering the most due to the energy crises.” Khansa Nazim, an LCWU faculty member, said, “The administrati knows that students are disturbed due to load shedding. We have kept t thing in mind before setting up question papers,” she said. She said t teachers had also been suffering for the last many months because they usua used projectors to deliver lectures, which they could not do properly at t time of load shedding. Another teacher at the university said that the authorities there t had directed the computers and science departments to shut down compu labs and laboratories during load shedding out of fear of getting equipme damaged. Sign to vote on this title Expectations not high: Asim Khan, a up GCU student, said that pow useful Useful Not failure had always been a problem for students, and that thousands of studen in the city had taken their matriculation, intermediate, and bache examinations during load-shedding hours. He said that students could n
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on their studies due to hot and humid weather conditions,” he said. He sa that the school administration was trying to remove the parents’ concern installing UPS systems and generators at various branches of LACAS.
Adnan Lodhi, Daily Times, June 28, 20 http://www.dailytimes.com.pk/default.asp?page=2008%5C06%5C28%5Cstory_28-6 2008_pg13
N E W E N E R G Y O RDER
BY bringing together the world’s major oil producers and consumers Jeddah, Saudi Arabia marked a turning point in the negotiations for a n global energy order that is emerging under the weight of soaring oil pric which are driven by factors other than supply and demand. “It could be asked whether the 140 dollars per barrel price can negotiated between Opec (Organisation of Petroleum Exporting Countrie the new actor, which is global capital, and the governments of the Group Eight (industrial powers),” Víctor Poleo, a Venezuelan professor of gradu studies in the oil economy, commented to IPS. On Thursday, crude oil prices broke through the 140-dollar a bar barrier for the first time. The price of oil “can no longer be dictated by Op because a significant portion of the price would seem to obey market laws th are not its own,” said Poleo. Saudi Arabia perceives “the beginning of a transition stage to a n power order in the world energy system,” he added. In Poleo’s view, “t global energy system is witnessing the emergence of a new order. In the o one, under Opec, the level of prices hovered around 70 dollars a barrel; in t new system, the increase is of the same magnitude,” and the decisions taken Saudi Arabia “form part of the new talks.” The informal June 22 meeting of representatives of governments a the major oil companies in the Saudi Arabian city of Jeddah calledfor mo Sign up to vote on this title investment in crude production, as well as greater transparency in oil marke Useful Not useful where futures trading is helping to drive prices up. Producer and consum nations and companies will meet again in Madrid next week, at the 19th Wo
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Alfonzo, proposed half a century ago the creation of an organisation producers and consumers that would regulate the world oil market. The corporations that controlled the oil business, known back then the “seven sisters”, scorned the proposal, and Saudi Arabia, Iran, Iraq, Kuw and Venezuela went on to found Opec in 1960 in Baghdad. At the time, Venezuela was the world’s leading oil exporter, a positi that was taken over and has been held for decades by Saudi Arabia, which se from Jeddah a message to its fellow Opec members that it will not favou rise in prices, as indicated by its unilateral decision to boost output from 9.5 9.7 million barrels a day as of July. Meanwhile, Shokri Ghanem, the head of Libya’s National O Corporation, said his country was studying the possibility of cutting output protest a bill under debate in the US Congress that would empower the Just Department to sue Opec members for limiting oil supplies. Libya is also fighting a US law that allows the families of victims state-sponsored terrorism to go to court and seek the seizure, as punit damages and compensation, of any asset owned by the terrorist-sponsori country, or of money from those governments that is held by US compan doing business with them. These remarks pushed prices up to a record hi above 142 dollars a barrel by Friday. Opec Secretary General Abdalla Salem el-Badri said the organisati planned to invest 160 billion dollars over the next five years to ra production by five million barrels a day. The members presently pump million barrels a day, while global g lobal demand amounts to 86 million barrels. US economist Joseph Stiglitz, winner of the 2001 Nobel Prize f economics, wrote earlier this month that “Only new patterns of consumpti and production — a new economic model — can address that mo fundamental resource problem. “Two factors set off today’s crisis: the Ir war contributed to the run up in oil prices, while biofuels have meant t food and energy markets are increasingly integrated,” he added. Sign up to vote on thisin title The big oil companies, in the meantime, are raking tens of billio usefulis financing Useful Not of dollars each. With these profits, said Poleo, global capital positioning with regard to the shifts occurring in the global energy scenario.
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P OWER P L A N T S T O P G A S S U P P L Y P R I O R I T Y L I S T
The government has decided to give priority to the power sector in allocat of fresh gas supplies in view of the continuous rise in the oil import bill a the resultant increase in power tariffs. Sources told Dawn that the decision was taken recently by t Economic Coordination Committee of the cabinet because of the increasi dependence on imported furnace oil for power generation and little progr made in the development of water and coal-based projects. Pakistan had to pay about $13 billion on account of oil imports duri the last financial year, and it is estimated to keep rising because of record prices in the international market. The government understands that if fre gas arrivals are not dedicated to the power sector the oil import bill cou touch $20 billion this financial year. As a result, fresh gas supplies from new fields will not be available f domestic and commercial consumers. Under the existing petroleum poli domestic and commercial consumers get the first priority, followed by fertili plants. Next on the priority list are gas supplies for independent pow producers and gas utilities which have historic agreements for firm suppli followed by the general industrial sector and compressed natural gas (CN stations. Wapda, KESC and captive power plants, which did not have firm g supply commitments, used to be on the fifth position and the cement sec was the last on the list. The first priority now will be the power sector whenever gas suppl are available from new fields. Likewise, gas from new fields which are not linked to the nation transmission system is supplied to the fertiliser sector as a priority, followed power companies having firm gas sale agreements. In this case too, the fi priority will now be given to power plants. Sign up to vote on this title At present, the power sector is the largest user of gas, accounting fo Useful Not useful 33.5 per cent share, followed by the industrial sector with 23.8 per ce households 18 per cent, fertiliser 15.6 per cent, transport 5.4 per cent a
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Now the government is trying to put the CNG in the back seat alo with the domestic sector to make sure that maximum supplies are m available for po0wer generation.
Khaleeq Kiani, Dawn, July 10, 20
http://www.dawn.com/2008/07/10/top4.ht
R E S O L V I N G P O W E R C RISIS
A
PRIORITY
The coalition government has undertaken a series of initiatives to steer country out of the debilitating power crisis and the country will overcom electricity shortage within a couple of years. In his first interaction with the ethnic media at the High Commissi on Tuesday, the newly-appointed Pakistan High Commissioner Wajid Sham Hasan said the government was attaching top priority to resolving the pow crisis. He recalled that during the last government of Benazir Bhutto, t PPP government had invested $5 billion in the power sector, leading to t addition of 4,000 megawatts to the national grid. Mr Hasan said since then not a single megawatt had been added to t grid which, according to him, had led to the present crisis. He blamed former senator Saif-ur-Rehman for hounding out t foreign investors who were willing to invest further in the power sector Pakistan. On the exploration of Thar coal, he said during the rule of the l government, a Chinese company had written some 60 letters to the petroleu ministry but when no response was received, receiv ed, it withdrew from the country.
Dawn, July 10, 20 http://www.dawn.com/2008/07/10/nat13.ht
A U T H O R I T Y S E T U P
F O R TSign H Aup R toCvote O Aon L this N I N G M Ititle Useful Not useful The federal government has set up a provincial coal authority by abolish two federal and provincial agencies to expedite mining and development
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The authority came into being after the abolition of the Sindh C Authority (SCA), a provincial agency, and Thar Coal Mining Company, a jo venture of federal and Sindh governments. The authority will function as one-stop organisation on behalf of ministries, departments and agencies of the federal and provinc governments for mining, development, leasing and sub-leasing of Thar co area. It will also be responsible for development of clean coal technologi research and development and gasification. The authority will also be required to attract investment for c mining and gasification in Thar and other areas in province for pow generation. A senior government official told Dawn that the federal governm had “handed over” the development of Thar coal project to the Sin government, mainly to expedite the setting up of a 1000MW coal-fired pow plant. He said hurdle delaying the project had been removed with the cen agreeing to a “supporting role” for itself in the $1.5 billion project and letti the Sindh administration “spearhead” and sort out all issues relating to t project. He said the mining of Thar coal would cost $400 million and t power plant $1.1 billion. It will be an integrated power plant which w generate its first megawatt in six years. He regretted that the project could n be set up by the RWE company of Germany, Shenhua of China and Has Associated of Pakistan because they were demanding a tariff which kept increasing from 5 cents to 9 cents for the development of each megawatt a that too without having any back-up data relating to the project.
Ihtasham ul Haque, July 10, http://www.dawn.com/2008/07/10/nat11.ht
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