Essay Topic: Energy Crisis in Pakistan: Consequences and Recommendations

Outline

1. Introduction
   1.1 Energy as lifeline in modern countries
   1.2 Brief review of international research on Pakistan’ energy crisis
2. Pakistan’s Energy Scenario
   2.1 Energy Supply (94.65 kwh)
   2.2 Energy consumption (70.1 kwh) (per capita 357.34 kwh)
3. Sources of energy Procurement in Pakistan
   3.1 Non-Renewable Energy Sources and Current Projects
   3.2 Renewable Energy Sources
   3.3 Alternative energy Sources
4. Issues Faced by Energy Sector
   4.1 Policy Issues
   a) Adhoc policies and decisions (not goal oriented)
   b) Inadequate Institutional arrangement/Absence of single institution to monitor supply companies
   c) Shift towards expensive and unstable Thermal Energy
   d) Oil used for power generation
   e) Independent Power Plants (IPPs) and Rental Power Plants
   f) Provision of subsidiesed electricity to WAPDA & agricultural tube wells
   g) Lesser utilization of Thar coal and hydel power generation
   4.2 Governance and Management Issues
   a) Poor governance by public and private sectors
   b) Power theft (line losses)
   c) Default in revenue recovery by public and private sectors
   d) Weak Regulatory body: NEPRA
   e) Politicization of mega projects: Kalabagh Dam
   4.3 Technical Issues
   a) Inadequate maintenance and repair of power plants

b) Dilapidated Transmission and distribution systems
c) Imbalanced and imported resources based energy mix
4.4 Cost Issues
a) Unaffordable and unsustainable energy

5. Consequences of Energy Crisis
5.1 Economic Factors
a) Closure of industries
b) Flight of capital to overseas domains
c) Shrinking Foreign Direct Investment (FDI)
5.2 Agricultural sector
5.3 Industrial sector
5.4 Social Factors
a) Poverty and unemployment
b) Destabilized health sector
c) Chaos in society and political uncertainty
d) Public trust erosion

6. Recommendations
6.1 Short Term Measures (Within 6 months to 1 year)
a) Resolution of circular debt
b) Prompt implementation of NEPRA determined Tariffs
c) Ensuring recovery of revenues from public sector
d) Crackdown on energy/electricity theft
e) Judicious energy usage and use of electricity saving devices
f) Energy conservation campaigns and demand management
g) Fostering niche markets for early commercialization of technologies
6.2 Medium Term Measures (within the next 5 years)
a) Development of an integrated energy policy
b) Allotment of funds to GENCOs for the refurbishment of plants and transmission systems
c) Promotion of renewable energy at a household level and in off-grid remote areas
d) Move to decentralized and distributed energy generation
f) Utilization of copper transmission wires for rectifying line losses

6.3. Long Term Measures (within the next 10 years & beyond)
a) Correction of the energy mix imbalance
b) Improvement in governance and elimination of corruption
c) Import of energy from Tajikistan through TAPI pipeline
d) Establishment of alternative energy and power research development and testing facilities
e) Development of global alliances to secure dependable supply chain relationships
f) Adoption of environmentally suitable energy policies
g) Enhance market potential and viability for international investors
h) Tactful utilization of Pakistan’s geostrategic location by serving as an energy corridor
i) Population control to decrease growing demand

• Wilson Institute and Michael Kugelman’s reports on Energy Crisis in Pakistan
  j) Construction of hydel dams at strategic locations

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