This document analyzes the economic impact of increasing electricity generation from renewables in Pakistan. It outlines that fossil fuels currently make up 62% of Pakistan's electricity mix but have the second highest per unit cost at Rs. 30. Renewables like solar and wind only make up 1-2% of the mix but have the lowest per unit costs of Rs. 6.6 and Rs. 9.6 respectively. The document models replacing 50% of fossil fuel generation with 33% wind and 17% solar. This results in an estimated annual savings of $5 billion and a reduction in average per unit cost from Rs. 23.9 to Rs. 16.9. Therefore, replacing fossil fuels with more renewables could significantly reduce electricity

1. Economic Impact of Increasing
Electricity Generation from
Renewables
Muhammad Fasih Iqbal
2021-ME-052

2. Outlines
 Importance of Electricity Production
 Electricity Price hike in Pakistan
 Aims and Objectives
 Electricity mix of Pakistan
 Capacity of Electricity in Pakistan
 Electricity Generation in Pakistan
 Trend of Electricity Generation during past decade
 Cost of Electricity Generation for the year 2021 for Pakistan
 Economic Effect of Generating Energy from renewables

3. Importance of Electricity Production
Electricity is considered to be one of the most important
sectors that has a large impact on the economy especially
in developing countries like Pakistan.
Almost all the economic activities directly or indirectly
depend on energy production and consumption in a country.
A country’s GDP highly depends on its electricity production
There is a need to maintain balance between demand and
supply of energy.

4. Electricity Price
hike in Pakistan
The prices of electricity are
increasing every year in
Pakistan mainly due to two
reasons
 Import of Fossil Fuels
 Currency Exchange rate

5. Aims and Objectives
 To determine electricity mix of Pakistan according to
the statistics of 2021
 To discuss the trend of electricity generation over
last decade
 To find the cost of electricity generated from each
source
 Economic impact of replacing non-renewable
sources of energy with renewables such as solar
and wind energy

6. Electricity mix of
Pakistan
The electricity in Pakistan is
generated from five main
sources of energy.
1. Fossil Fuels
2. Hydro Power
3. Solar Energy
4. Wind Energy
5. Nuclear Energy
27%
2%
1%
62%
8%
Hydropower
Wind energy
Solar energy
Fossil fuels
Nuclear

7. Capacity of Electricity in Pakistan
Capacity of a power station means that maximum how much
electricity it can generate. The combined capacity of all the
power stations in Pakistan for the five major sources for the
year 2021 is illustrated by the bar chart.
0
5000
10000
15000
20000
25000
30000
Hydro power Wind energy Solar energy Fossil Fuels Nuclear Energy
Capacity(MWh)
Energy Sorces

8. Electricity Generation in Pakistan
The demand for the electricity is increasing every year as the
population rises. Pakistan has several power stations for the
generation of electricity. Some of them are Chasnupp,
Kanupp, KNPC, JWPP, Hub etc.
0
10
20
30
40
50
60
70
80
90
100
Hydropower Wind energy Solar energy Fossil fuels Nuclear
Energ
Generation(TWh)
Energy Sources

9. Trend of Electricity Generation during past
decade
0
10
20
30
40
50
60
70
80
90
100
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Power
Generation(TWh)
Years
Hydropower
Wind energy
Solar energy
Fossil fuels
Nuclear

10. Cost of Electricity Generation for the year
2021 for Pakistan
 Per unit cost of electricity  Overall cost of electricity
0
5
10
15
20
25
30
35
Hydropower Wind energy Solar energy Fossil fuels Nuclear
Rs/kWh
Energy Sources
0
2000000000
4000000000
6000000000
8000000000
10000000000
12000000000
14000000000
Hydropower Wind
energy
Solar energy Fossil fuels Nuclear
USD
Energy Sources

11. Economic Effect of Generating Energy
from renewables
As an experiment we reduce the production of electricity by fossil fuels
by 50 percent and increase the electricity production by wind energy by
33% and solar energy by 17%. Following are the results obtained.
Energy Source
Overall Cost in
2021($) New Cost ($) Difference($)
Hydropower 1862400000 1862400000 0
Wind energy 95667000 1061359530 -753754500
Solar energy 34128000 599488200 -585268200
Fossil fuels 13301550000 757732320 6650775000
Nuclear 13301550000 1684850000 0
Total annual cost 16978595000 12017116850 4961478150
Per unit Average cost
(Rs) 23.9 16.9 7

12. New Costs
1862400000
1061359530
757732320
6650775000
1684850000
0
1000000000
2000000000
3000000000
4000000000
5000000000
6000000000
7000000000
Hydropower Wind energy Solar energy Fossil fuels Nuclear
New
Cost
New Cost
New Cost

13. Discussion
• Fossil Fuels : 2nd highest per unit cost, Rs. 30.
• Renewables : Lowest per unit costs, Rs. 6.6 and Rs. 9.6.
• Overall savings in case of replacement ≈ 5 billion $.
• Total per unit savings ≈ Rs. 7
0
2000000000
4000000000
6000000000
8000000000
10000000000
12000000000
14000000000
16000000000
18000000000
Hydropower Wind energy Solar energy Fossil fuels Nuclear Total annual cost
USD
Cost in 2021 New Cost

14. Conclusion
 Production From Main sources
 Trend Over last Decade
 Fossil Fuels:
 Largest source, 62%
 Highest Expenditure ≈ 13 billion $
 2nd Highest Per Unit Price, Rs. 30
 Renewables:
 Smallest Source
 Lowest Expenditure ≈ 120 million $
 Lowest Per Unit Price, Rs. 6.6 and 9.6.
 Replacement:
 Overall Savings ≈ 5 billion $.
 Total per unit savings ≈ Rs. 7

15. THANK
YOU