Chapter 3 - Islamic Banking Products and Services.pptx
Energy crises in pakistan butt presentation
1. Group Members:
Shoaib Butt
Ashfaq Ahmad
Malik Safdar
Arif Naseer
2. What Is Energy Crises?
An energy crisis is any great shortfall (or price rise) in
the supply of energy resources to an economy. It
usually refers to the shortage of oil and additionally to
electricity or other natural resources.
3. Introduction
Electricity Crisis in Pakistan is one of the severe
challenges the country is facing today. Electricity is
essential part of our daily life and its shortage has
severely affected the economy and overall living of
ours. Pakistan is currently facing up to 18 hours of
electricity outage a day, is expected to face more if not
dealt with in time.
4. Current Energy Crises
Current Energy Annual Shortfall goes even up to 5,000
MW
Annual Increase in Energy Demand: 8-12%
Peak Demand: 13,000 – 18,000 MW
Today’s Energy Shortfall: 3,059 MW
5.
6. Conventional options for power
generation
Hydropower
Coal
Oil (conventional/diesel) & Gas (indigenous/import)
Nuclear
These options are relevant, but face major
development hurdles!
7. Hydropower Energy
Present demand of electricity in country in actual is
above 17,000 MW and will be 30,000 MW by year 2017
Energy deficit was 3,000 to 5,000 MW .
Hydropower Potential - 100,000 MW
70 % of hydro potential lies in KPK
10. Nuclear Energy
Pakistan has around 30 thousand metric tons of
uranium (308).
Pakistan has two nuclear reactors of 425 MW power.
It is only 2.4 % of the electricity production.
11. Coal Energy
Pakistan produces only 0.2 % of its power through
coal.
The current coal production in Pakistan is only 3.5
million tons per year.
In Pakistan, there are plans to build only two 300 MW
coal-fired plants at Thar.
12.
13. Causes of energy crises
Crises in hydropower energy
Crises in coal
Crises in oil & gas
Crises in nuclear
Poor governance
Circular debt
Corruption
Electricity theft
14. Hydropower
Environmental impact
Provincial disputes
Geological
Long development and construction phase
Financing
Silting in reservoirs
Snow melt unpredictability (climate change?)
15. Coal
Mining challenges (deep mining technology and lack
of expertise)
Quality of coal
Water requirement
Long development and construction phase
Financing
Environmental impact
16. Oil & Gas
Indigenous resources depleting (oil & gas reserves)
Imported oil based energy expensive and price volatile
Iran pipeline - International politics
Burden of energy “insecurity”
17. Nuclear
Obstacles due to international concerns
Financing
Long lead time
Project execution delays and cost overruns
Cost of waste management
Cost of decommissioning
18. Poor policy making:
The months of January to May have very low
hydropower available since reservoirs are empty and
snow melt will not, start till June. The Tarbela reservoir
receives about 95 percent of its water through snow
melt. The natural gas is in short supply and is available
only to produce 29 percent MW of electricity. As over
50 percent of current generation is dependent on
furnace oil, it is not viable for the government to
purchase and provide oil at such high price. Therefore,
many plants are either shut or producing much below
their capacity.
19. POOR PLICY MAIKNG:
In any case, renewable resources of energy like solar energy
and wind energy should be explored.
Neighboring China is rapidly moving towards alternative
energy.
Lack of transparency is the biggest hurdle in development
of alternative energy.
In one report, Nepra did not allow setting up of wind mills
in Sind as the power companies demanded 8 cents per unit
and Nepra was adamant to pay Rs 7.5. This was back in
2007. Now in 2011, Nepra is willing to pay 16 cents per unit,
to the same companies, how ironical?
20. High prices of furnace oil:
The price of furnace oil was about Rs 2000 per
ton in the nineties. It started increasing in 1999
and went up to Rs 10,000 per ton in 2001. It rose
sharply in 2006 to Rs 20,000 per ton, and in
2008 it touched Rs 30,000 per ton. There was a
short duration drop in 2009, but then onwards
it kept on rising very sharply. In 2010, it went up
to Rs 40,000 per ton and at present its price is
almost Rs 70,000 per ton. The price of furnace
oil has thus risen 30 times since 1990 and seven
times since 2005
21.
22. •Rental power plants are set up to meet short-term
•RPP are typically commissioned within 4-6 months based
on available technology.
•Rental periods are normally installed for 5-7 years
depending on a country’s requirements.
• Rental power plants have been set up in the US, UK, India,
Bangladesh, Kuwait, Sri Lanka, Turkey, UAE, Saudi Arabia,
Iraq and Palestine,
The concept was introduced in Pakistan in 2007 when two
projects were awarded to GE and PPR, both from the US,
for 150MW and 136MW each.
23. CORRUPTION IN RPP:
the auditor General’s report has revealed corruption
worth Rs 50 billion in the rental power projects
ADB disapproved of this projects stating that this
will result in an increase of 31-45% of electricity
charges and will be burdensome to foreign exchange
reserves
In the report later ADB pointed towards the
negligence of government because the contracts
were made on very complex condition and in haste.
24. COST OF ELECRCITY BY RPP
It is an admitted position that after spending billions
of rupees in the shape of 7% to 14% down payment and
exemption from payment of customs duty as well as
6% withholding tax,
against average cost of Rs.24/- per unit kWh
[Karkey: Rs.35/- to Rs.50/-;
Gulf: Rs.18/- to Rs.19/-
Naudero-I: Rs.12/- to Rs.19/-],
120 MW electricity is being generated by the RPPs and
its cost is on a very high side and is not in accordance
25. Circular debt:
The power sector circular debt increased to Rs396.7
billion by March 15, 2012, which is Rs326 billion or
465.7% higher than the debt in March 2008
27. 1.Effects on industry:
That factory has losses from shutting
down its equipment and idling its
workers.
• According to an estimate, there are
10,000 factories in Lahore, among which
approximately 30-40 percent factories
have been closed because of load
shedding. These factories were utilizing
electricity and Sui gas in a huge amount.
28. Unemployment:
According to the labor department sources,
approximately 800,000 laborers have been
dispelled from their jobs. While, 400,000 to
800,000 laborers were receiving less wage.
31. Agriculture:
India stopped Pakistan's water at River Chenab to fill the
controversial Baglihar dam.
load shedding is destroying the
agriculture sector because there
are 200,000 electric tube wells in
the country to irrigate the land,
which could not be run due to
electricity shortage decrease
in agriculture production and food
shortage in the country
34. SOLAR ENERGY
• Solar power (photovoltaic or thermal) is another
alternative energy source option that is generally
considered feasible for tropical and equatorial
countries.• Even though the accepted standard is 1,000
W/m² of peak power at sea level, an average solar
panel (or photovoltaic — PV — panel), delivers an
average of only 19-56W/m².• Solar plants are generally
used in cases where smaller amounts of power are
required at remote locations. PV is also the most
expensive of all options making it less attractive.
35.
36. BIOGAS
• Pakistan is meeting 1.50% of its energy requirements from
biomass, whose consumption is increasing average at the
rate of over 5% per annum
.• About 62% of biomass users living in rural areas collect
biomass for their use and only 24% buy wood. In urban
areas 14% of biomass consumers buy, only 12% of these
collect wood for their living and 66% use natural gas.
• At present almost 1,200 plants has been installed and out
of the 98% are functional.• In addition, the next five year
target is 10,000 number of plants. After that program, 27%
of the total potentiality will recover.
37. Energy Planning
• Pakistan needs to aggressively pursue ways to
increase its power-generating capacity. The best
options available today are Nuclear and Coal, followed
by Wind and Solar. Hydroelectricity can only be
pursued after all environmental, ecological and
geopolitical issues are settled with a consensus among
all four provinces.• Pakistan needs to set up at least a
Dozen Nuclear Power Plants, large coal fired plants,
wind farms and solar plants in the next 10 years to
generate about 20,000 MW of electricity.
