Energy distribution in Pakistan

1. Energy Distribution in Pakistan
Uzma Sarfraz

2. Energy Sector
• The energy sector is a category of stocks that
relate to producing or supplying energy.
• Companies involved in the exploration and
development reserves, drilling, and refining.
• The energy industry also includes integrated
power utility companies such as renewable
energy and non-renewable.
• Predicted energy resources of Pakistan,
includes 44.2 GJtonnes of crude oil,950
GJmillion cubic feet of natural gas, 10,550
GJGWH resources of hydropower and same
for wind power generation.
• Installed generation capacity is increased from
23,000 MW in 2014 to 33,744 MW by 2019.

3. Distribution of energy in Pakistan
Energy Distribution
• Technology is the collection of human-made systems that transport energy, including
the primary energy material like coal or crude oil or energy currencies for end use like
gasoline or electricity.
• They are essential for the energy sector, as they allow these to be transported globally
to drive the economy.
• When energy is produced in the form of electricity, gasoline, liquefied natural gas, or any
other, it requires transportation to where it can be made useful.
• Electricity distribution is handled by 11 distribution companies (DISCO’s)
• National Electricity Power Regulatory Authority (NEPRA)
• Alternative Energy Development Board (AEDB)
• Water and power Development Authority (WAPDA)
• National Energy Efficiency & Conservation Authority (NEECA)

4. Energy Setup
Generation system
Transmission
system
Distribution
system
Consumer (load)

5. PROBLEMS IN ENRGY SECTOR DISTRIBUTION
• Fragmented Energy planning across the energy value chain
• Power generation companies facing serious financial
problems, making investments in the sector very difficult.
• The distribution losses and transformation are a part of
circular debt which is 1.6 trillion Pakistani rupee rate, in June
2019.
• Fossils fuels highest average rate ranges with technical losses.
• Rise in the subsidies of the country foreign exchange
• Due to poor distribution networks, households in rural areas
using LPG as fuel pay up to 10 times more than urban
households
• Lack of investment in energy production units
• Tariff which is under recovery values,
• Poor rates of collection theft of power,
• Losses due to technology (23-25%)
• Fossils fuels highest average rate ranges with technical losses.
• Rise in the subsidies of the country foreign exchange

6. PROBLEMS
• High distribution costs and the shortage of power generation
• Low electricity consumption/demand in rural areas
• Utilities and distribution companies are reluctant to roll out the
grid since the “revenues from tariffs would never be able to
provide the returns needed to recover the investment.
• Industries and private households, have resorted to installing
diesel generators as back-up
• Supply and a demand large gap, of about 5 GW.
• 27% of Pakistanis live without electricity, and 20% of villages
(32,889) are still not connected to the national grid system.
• 144 million people don’t have a consistent supply of electricity.
• In rural areas where 50% percent of people used biomass for
cooking purposes, results in deforestation, reduction of 2% of
forest every year along with the deaths caused by indoor
pollution.

7. Transmission and Distribution Loses
• Transmission and distribution losses are directly connected to Leakage Current Losses,
Dielectric Losses, open circuit Losses and theft of electricity.
• Pakistan is facing 20 to 25% transmission and distribution losses. The tariff is increased due to
increase of transmission/distribution losses.
• Distribution losses are a bit higher than transmission losses which are 70%.
• These T&D losses are playing main role in increasing circular debt and that is because
distribution companies failed to cover these losses. The recovered collection of revenue was
not enough to pay back to producers.

8. Overloading in DISCOs System (Province-Wise)
Power delivery through DISCOs’ networks mainly depends on the adequacy of three major
components including 11 kV feeders, power transformers (mostly 132/11 kV transformers)
and finally the distribution transformers.
Province-wise statistics of overloading position for Fiscal Year 2018-19 is shown in the
following table:

9. Transmission and Distribution Losses of DISCOs:
A comparison of DISCOs’ performance in the area of Distribution losses below 11 kV over a
period of 2017 to 2019 years.

10. RESOURCES GENERATION TARIFF
Hydropower Tariff was determined for successful bidders, through competitive bidding, of two medium
sized Hydropower projects of 100 MW each to be constructed in Khyber Pakhtunkhwa.
Generation Tariff was also determined for 640 MW Mahl hydropower project.
Coal based Tariff was determined for 300 MW Coal-fired Power Plant at Gwadar.
Wind Power Was determined for 16 companies based on wind power. In addition decisions regarding
Review Motion filed by three companies were also issued
Solar Power was determined for two companies based on solar power and decisions regarding Review
Motion filed by three solar power companies were also issued
Nuclear Power Decision in the matter of tariff modification of Chashma Nuclear Power Plant2 (C-2) regarding
reference capacity charge due to Initial Dependable Capacity (IDC) Test was issued. Tariff was
also determined for 340 MW Chashma Nuclear Power Plant Unit-4.

11. Recent Initiatives
• In June 2020 budget, where the deficit is maximum than the
previous all budgets, total estimates for economic affairs is
116,287 million rupees, whereas for environmental protection
5000 million rupees are estimated.
• Energy goal (2020), to take the Energy Transition Index to
score up to 46%, ,of report 2 Indicative Generation Capacity
Expansion Plant (IGCEEP) 2047.
• Ministry of Energy, Power Division (MoE) shared draft reports
on future Renewable Energy (RE) i.e. 20% RE generation by
capacity by the year 2025 and 30% RE generation by the year
2030.
• Disruptive demand of 30% Electric Vehicles (EV) on roads by
2030 and five million houses by the year 2023 under the
Prime Minister’s initiative of Naya Pakistan Housing Scheme.

12. IGCEP 2040 Main Features
 Balancing the overall basket price with aggressively
increased share of hydro power projects (29 to 40%);
 Massive utilization of indigenous coal (2 to 25%);
 Less reliance on imported fuel i.e. Coal, Re-gasified
Liquefied Natural Gas RLNG and Residual Furnace Oil-
RFO (48 to 13%);
 Renewables accounts for the overall share of 16% of
the installed capacity (4 to 16%);
 By the year 2040, a capacity of around 9,000 MW is
meant to be retired.
 Reducing the transmission and distribution losses
from 23-25 % to 16%.

13. Demand VS Sources Wise Supply 2018-40

14. Annual Generation Capacity Audition 2018-2040

15. Generation Licenses
During 2018-19, 12 Generation Licenses, with a
cumulative installed capacity of 652.54 MW.
Distributed Generation/Net-Metering Licenses
During the period under consideration 1143 distributed
generation licenses, with total installed capacity of 19.55
MW, were issued under the net metering regime.
Modification in Existing Licenses
Modification in the already granted generation licenses
were issued to five licensees for different reasons
including addition/deletion of
1. Basic Process Control System(BPCs),
2. Extension of term of license,
3. Change of fuel,
4. Change of technology,
5. Enhancement of capacity,
6. Exclusion of units,
7. Enhancement of useful life and
8. Supplying power to BPCs through wheeling.
Generation Licenses

16. Energy Mix
• Based on the USA government statics, Pakistan energy mix comprises of 9%
renewable resources along with nuclear resources, 27% of hydropower, and 64%
percent of fossil fuels.
• Pakistan used liquid petroleum gas, liquid nitrogen gas and coal mostly .
Whereas, almost 1.9 percent power is coming from the nuclear power plants.
Likewise, hydropower provides 13 % while solar and wind based generation
houses only provides a little source of energy as compared to the fossils fuels.
YEAR TECHNOLOGY PROVINCES CAPACITY (MWs) GENERATION(
WhYear)
2016-17 Solar Energy
(Photovoltaic)
All over Pakistan 0.2 438
Biomass (biogas) All over Pakistan 0.011 43.8
Micro Hydel KPK & Gilgit
Baltistan
9.7 42,486
Wind Energy Sindh ,Baluchistan 150 540
2017-18 Solar All over Pakistan 430 768000
Wind Sindh, Baluchistan 1006 2101000
bagasses Punjab ,Sindh &KPK 201 988000

17. WIND POWER
• The Baluchistan and southern coastal areas
of Sindh have huge potential for the
generation of wind energy.
• The wind power potential is high, where
wind speed is 5-7 ms
• While at Kati Bender, the wind speed is
maximum, 7-8 ms
• 122.6 GWs energy can be produced which
will be twice than the current generation
power of the country
• The Gharo wind farm is operated

18. SOLAR POWER
• Pakistan’s can generate more than 100,000
MWs with solar energy.
• The project like solar village electrification can
provide energy to more than 40,000 villages
• As natural gas is not accessible to the most
population, the utilization and formation of
geothermal heat pumps with solar heaters
• The solar water heater can efficiently have
utilized in agriculture replacing the tube wells
which requires 25000 MWs.
• The street lights in Pakistan utilized 400 MW’s
can be replaced by solar lightning .

19. BIOMASS
• 50,000 tonnes of solid waste, 225,000 tonnes of
crop residue and over 1 million tonnes of animal
manure is produced daily.
• The potential production of biogas from livestock
residues is 8.8 to 17.2 billion meters3 of gas per
year.
• Large sugar industry in Pakistan already
generates electricity from biomass energy for
utilization in sugar mills.
• Annual electricity production from bagasse is
estimated 5,700 GWh – about 6% of Pakistan’s
current power generation level.

20. HYDROPOWER
• Micro Hydropower are considered as another
promising option for off-grid generation of
electricity.
• Provincial governments mainly handled the
small hydropower sector: 128 MW has been
operational in the country
• 877 MW is under installation and around
1500 MW is available for further
development.
• The potential for micro hydro (up to 100 kW)
is estimated at 350 MW in Punjab and 300
MW in northern Pakistan.
• Most of the plants are community-based and
situated in the Northern Areas and Chitral

21. CONCLUSION
• Long-term energy planning, based on the availability, consumer
suited approaches to lessen the load on limited resources and
cost-efficiency.
• Foreign investor for development of renewable resources (off
grid and on grid)
• Regulation process which is stakeholder friendly
• Reduction in the subsidies
• Formation of competitive, sustainable, transparent, and long-
term open market
• Development of distribution infrastructure
• Good governance
• The better technical staff and system
• Environment-friendly operations
• Adopt and transfer technologies
• Equal distribution of distribution sources to each province
equally, as per need without biasness and corruption.
• Diversity in the energy mix
• Energy auditing of industries, smart meters, energy-efficient
machinery, time-based tube wells, reliance on the native
resources.
SWOT
Weakness
Inefficient utilization of domestic
resources
Performance of state own institutions
Transformation network and T &D
losses
Opportunities
Disturbed
generation (using
solar and biomass)
Smart grid
Threat
Excessive reliance on thermal
generation
High per unit generation cost
Strength
Potential of renewable
energy generation(solar
,biomass, wind, hydro)
fossil fuel (sizeable domestic
coal reserves and
opportunities of building gas
infrastructure)