Pakistan's Public-Sector Power Program to Add 10,000 Megawatts by 2015

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Researched by Industrial Info Resources (Sugar Land, Texas)--Ravaged by a power crisis and a declining economy, Pakistan is getting ready to augment its domestic electricity-generating capacity. Recently, the government announced an ambitious five-year enhancement program to increase power-generating capacity by 10,000 megawatts (MW) in 2015. Making the announcement, Tahir Basharat Cheema, the managing director of Pakistan Electric Power Company (PEPCO) (Lahore, Pakistan), indicated that plans would be finalized shortly. PEPCO has submitted a proposal to the government and will proceed with implementation after receiving necessary approvals.

Pakistan is facing severe power outages that have had an adverse impact on businesses and industrial establishments. Households and industries face daily power cuts for durations ranging from four to 14 hours. Trading, business and industrial associations have raised concerns about the impact of the electricity shortage on the country's economy. In May, for a peak demand of 15,316 MW, the country's power utilities generated only 10,306 MW. To ensure that Pakistan is "load-shedding free" by 2012, Cheema said that the Pakistan government is focusing on several medium- and large-scale power projects.

Elaborating on some of the projects undertaken by PEPCO, Cheema said that the proposed $600 million, 600-kilometer transmission line to import 1,000 MW of power from Iran would be completed in four years. The transmission line will connect Quetta in Pakistan to Zehadan in Iran. Feasibility studies for the project have been completed. Steps have been taken to overcome power outages, especially in Balochistan. By June 2011, the 220-kilovolt (kV) double-circuit line, which links Dadu and Khuzdar, is expected to be completed. Talks are under way to construct coal-fired power plants at Sibi and Khuzdar as joint ventures. The setting up of a 220-kV line connecting Lora Lai and Ghazi Khan is also in progress.

PEPCO soon will be embarking on a three-year power development plan that will include augmentation and refurbishment of existing thermal and hydropower plants. The company plans to generate 520 MW and 300 MW from hydroelectric and thermal power plant upgrades, respectively. Cheema was optimistic that public-sector power projects, including Cheecho Ki Maliyan and Nandipur, which will begin operations by 2011, will add 1,050 MW to the national grid. During this period, new hydropower plants and independent power projects are expected to add about 3,976 MW to the nation's power-generating capacity. Pakistan also plans to generate 1,550 MW cumulatively from 13 rental power plants.

In a related development, the U.S. has assured Pakistan that it will provide technical and financial assistance to develop Pakistan's electricity sector. The announcement was made during the working group meeting held as part of the U.S.-Pakistan strategic dialogue. The U.S. has promised assistance to increase the country's total electricity-generating capacity by 20,000 MW by 2020. As part of this program, Pakistan proposes to add 5,000 MW of gas-powered plants; 6,000 MW each of coal-fired and hydropower plants; 2,000 MW from alternate energy-generating facilities; and 1,000 MW from naphtha sources.

Power ministry sources said that in 2010-2011, the government plans to complete 13 power projects with a combined generating capacity of 2,119 MW. With this addition, Pakistan's total power-generating capability is likely to increase to 24,295 MW in 2010-11. The capacity addition will include 298 MW in hydropower, 420 MW from rental projects, 1,241 MW from independent power producers, 44 MW from wind power and 115.9 MW from the Karachi Electricity Supply Company (Karachi, Pakistan). In 2010-2011, the following projects are expected to be completed:

• Bhikki, 209 MW, expected to be completed in September 2010
• Liberty Power, 195 MW, expected to be completed in September 2010
• Satiana Road, 200 MW, expected to be completed in August 2010
• Jinnah hydro, 96 MW, expected to be completed in June 2011
• Hubco Narowal, 214 MW, expected to be completed in September 2010
• Tapal Rental, 70 MW, expected to be completed in September 2010
• Khan Khawar, 72 MW, expected to be completed in August 2010
• Duber Khawar Hydro, 130 MW, expected to be completed in January 2011
• Zorlu windfarm I, 44 MW, expected to be completed in January 2011
• Guddu Rehabilitation-I, 198 MW, expected to be completed in January 2011
• Bin Qasim-II, 115.9 MW, expected to be completed in January 2011
• Nandipur CCPP, 425 MW, expected to be completed in April 2011

Also in 2010-2011, construction of the 4,500-MW Daimer Bhasha Dam, which is on the Indus River, will be accelerated.

In a recent development, Raja Pervez Ashraf, the minister for Power and Water, indicated that the government was open to private-sector participation in electricity distribution. Addressing members of the Lahore Chamber of Commerce and Industry (LCCI) (Lahore, Pakistan), Ashraf invited LCCI to receive delivery of bulk power and deliver it to industrial consumers.

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