Pakistan needs $150b to meet future power demandStaff Report
ISLAMABAD: Pakistan will need a huge amount of $150 billion to meet the additional power generation requirement for 143,310 mw during the next 25 years, a senior government official at the planning and development division told Daily Times.
With these calculations, the government will require to spend a hefty amount of $6 billion per year to meet the additional requirement for electricity. The average government investment per year is planned at $ 2 billion while the deficit the government will have to face is of $ 4 billion a year, the official said.
However, the official said that balance requirement for $ 4 billion per year would be met through involvement of the private sector. The option of introducing the modes of private-public partnership in power generation has also been approved by the government in order to fill the gap.
“The government cannot allocate such a huge amount exclusively for power generation under the budgeted Public Sector Development Programme (PSDP),” the official said. Under the PSDP 2005-06, the allocation for the water sector is Rs 43.6 billion while the allocation for the power sector is Rs 37 billion against the allocation of Rs 21.4 billion for water and Rs 14.2 billion for power in the current financial year.
The official said that according to estimates of the government, energy demand over the next fives years was expected to grow at the rate of 7.4 percent per year. The growth in energy demand during 2010-30 was expected to be around 9 to 10 percent, the official added.
For power generation, at total of 23 hydel projects are planned to be initiated in the next five years. With the completion of these projects, the hydel-thermal mix is shifted towards hydel power generation.
The official said that with the addition of 1,450 mw during 2001-05 through the Ghazi Barotha Hydropower Project, the installed capacity of the system had increased from 17,710 mw to 20,289 mw.
With the commissioning of the Ghazi Barotha project, hydel/thermal mix has changed from 28:72 in 2001 to 33:67 in 2005, according to the official. The extensive private sector participation has been envisaged in building additional power generation capacity of 7,100 mw by 2010 based on the existing power generation policy, including a package of incentives.
The government is also considering looking into possibilities of importing power from Tajikistan and Kyrgyzstan. The need for importing power from the Central Asian region on transmission line through the Silk route will be stressed. There is also a proposal to expand linkages with Iran for importing more power, especially for remote areas of Balochistan.
Under the long-term planning, the government is planning to maximize power generation through indigenous coal to increase its share to at least 18 percent from the present 160 mw generation to 20,000 mw in 2030. According to the official, there will be a special emphasis on power generation through nuclear technology to increase its generation from current 400 mw to 8,800 mw by 2030.
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