Pakistan

Power Sector
Compiled by:

Consulate General of Switzerland Pakistan

Karachi, 9th October 2009

1. General:

Pakistan having about 30% standby electricity few years back in 2003-04, has been facing a severe power
crisis for the last three years. The present crisis is considered to be the worst of four such crises that Pakistan
has been facing since 1974.

Due to a fast growing demand, high system losses and seasonal reduction in the availability of hydropower, the
gap between the demand and supply of electricity is resulting in routine load shedding. Inadequate power
generation capacity is just one of the factors affecting power supply. The average short fall in the supply
demand gap is between 3500-4000 MW.

The continuing shortage of electric power in the country is adversely affecting the national economy. Industrial
productivity has gone down and the situation threatens badly the export performance and the ensuing balance
of payments besides creating social as well as law and order problems in the country.

2. History of Power Development in Pakistan:

At the time of independence in 1947, Pakistan inherited 60MW of power generation capability for a population
of 31.5 million, yielding 4.5 units per capita consumption. The Government of Pakistan in 1952 by acquiring
majority shareholding took control of the Karachi Electric Supply Company (KESC) engaged in generation,
transmission and distribution of electric energy to the industrial, commercial, agricultural and residential
consumers of the metropolitan city of Karachi and its suburbs.

In 1958, Water and Power Development Authority (WAPDA) was created as a semi-autonomous body for the
purpose of coordinating and giving a unified direction to the development of schemes in water and power
sectors, which were previously being dealt with by the respective electricity and irrigation department of the
provinces.

In 1959, the generation capacity had increased to 119 MW and by that time the country had entered the phase
of development, which required a dependable and solid infrastructure, electricity being its most significant part.
The task of power development was undertaken by WAPDA for executing a number of hydel and thermal
generation projects, a transmission network and a distribution system, which could sustain the load of the
rapidly increasing demand of electricity.

After the first five years of its operation by 1964-65, the electricity generation capability rose to 636 MW from
119 MW in 1959, and power generation to about 2,500 MKWH from 781 MKWH. At the inception of WAPDA,
the number of electrified villages in the country was 609 which were increased to 1882 villages (688,000
consumers) by the year 1965. The rapid progress witnessed a new life to the social, technical and economic

Download from: www.osec.ch

structures of the country. Mechanized agriculture started, industrialization picked up and general living
standards improved.

The task of accelerating the pace of power development picked up speed and by the year 1970, the generating
capability rose from 636 MW to 1331 MW with installation of a number of thermal and hydel power units. In the
year 1980 the system capacity touched 3,000 MW which rapidly rose to over 7,000 MW in 1990-91.

However, electricity consumption in Pakistan has been growing at a higher pace compared to economic growth
due to the increasing urbanization, industrialization and rural electrification. From 1970 to the early 1990s, the
supply of electricity was unable to keep pace with demand that was growing consistently at 9-10% per annum.
In the early 1990s, the peak demand exceeded supply capability by about 15-25%, necessitating load shedding
of about 1,500 - 2,000 MW. On the demand side, there was a weak link between the electricity price and
demand, which failed to manage the demand. On the supply side, the main reason behind this capacity
shortage was the inability of the public budget to meet the high investment requirement of the power sector,
despite the allocation of a high share to this sector. During the 1990s, the economic growth rate of Pakistan
declined to a level of 4-5% per annum from a level of 6% per annum in the 1980s.

In order to eliminate power shortage/load shedding in the minimum possible time, the Government constituted
an Energy Task Force in 1993 to devise a consolidated and comprehensive policy for revamping the energy
sector. On the recommendations of the Energy Task Force, the Government announced a “Policy Framework
and Package of Incentives for Private Sector Power Generation Projects” in March 1994 for a large scale
induction of private sector in power development. The said policy offered a fix levelized tariff of USD 5.57/kWh
to the prospective investors (USD 6.1/kWh average for 1-10 years) and a number of other incentives to attract
foreign investment in the power sector.

The Power Policy 1994 helped in overcoming load shedding in the country. Rather, it resulted in surplus power
as the actual load growth was much less than that projected and the projects were contracted beyond
requirement. Moreover the Policy attracted only thermal projects resulting in reversal of the hydel/thermal
generation mix.

In the year 2000, the vertical disintegration of WAPDA started as part of the country’s new electricity market
restructuring and liberalisation program. Since then WAPDA has been broken down into fourteen separate
units: four thermal power generating companies, nine distribution companies and a transmission and
distribution company.

In November 2005, the Government of Pakistan privatised (74.35%) the Karachi Electric supply Company
(KESC). At present, KESC and WAPDA operate their own networks and are interconnected through 220 KV
double circuit transmission lines and can supply power to each other.

On June 30’ 2008, the total generation capacity from WAPDA’s own hydel and thermal sources plus generation
from two nuclear power plants, KESC and Independent Power Procedures (IPPs) stood at 19,420 MW.

3. Main Electric Power Producers in Pakistan:

The main electric power producers in Pakistan are Water and Power Development Authority (WAPDA), Karachi
Electricity Supply Company (KESC) and Pakistan Atomic Energy Commission (PAEC, the operator of the two
nuclear power plants). Besides these three main power producers, a number of independent power producers
(IPPs) established since 1994 are also contributing significantly to the electricity sector of the country.

a. Water and Power Development Authority (WAPDA): WAPDA www.wapda.gov.pk the Pakistan Water
and Power Development Authority, was created in 1958 as a semi-autonomous body for the purpose of
coordinating and giving a unified direction to the development of schemes in water and power sectors,
which were previously being dealt with, by the respective electricity and irrigation department of the
provinces.

Download from: www.osec.ch 2

 Since October 2007, WAPDA has been bifurcated into two distinct entities i.e. WAPDA and Pakistan
Electric Power Company (PEPCO) www.pepco.gov.pk . WAPDA is responsible for water and hydropower
development whereas PEPCO is responsible for the management of all the affairs of WAPDA’s fourteen
public limited companies in the areas of thermal power generation, transmission, distribution and billing.
These fourteen (14) corporate entities are:

ƒ Four (4) Thermal Power Generation Companies (GENCOs)

1. Southern Generation Power Company Limited (GENCO-1) head quarter at Jamshoro district Dadu
near Hyderabad Sindh.
2. Central Power Generation Company Limited (GENCO-2) head quarter at Guddu district Jacobabad
Sindh.
3. Northern Power Generation Company Limited (GENCO-3) head quarters at TPS Muzaffargarh
district Muzaffargarh Punjab.
4. Lakhra Power Generation Company Limited (GENCO-4) Headquarter at WAPDA House Lahore.

ƒ One (1) National Transmission & Power Dispatch Company (NTDC)

ƒ Nine (9) Distribution Companies (DISCOs) as under:

1. Lahore Electric Supply Company (LESCO)

2. Gujranwala Electric Power Company (GEPCO)
3. Faisalabad Electric Supply Company (FESCO)
4. Islamabad Electric Supply Company (IESCO)
5. Multan Electric Power Company (MEPCO)
6. Peshawar Electric Power Company (PESCO)
7. Hyderabad Electric Supply Company (HESCO)
8. Quetta Electric Supply Company (QESCO)
9. Tribal Electric Supply Company (TESCO)

b. Karachi Electric Supply Company (KESC): The Karachi Electric Supply Company Limited
www.kesc.com.pk was incorporated on 13th September 1913 under the Indian Companies Act, 1882 as
amended to date vide the Companies Ordinance 1984. The company is listed on Karachi, Lahore and
Islamabad stock exchanges. The Government of Pakistan took control of the company by acquiring
majority shareholding in 1952. The Ministry of Water and Power looks after the affairs of the company at
federal level.

The company has been privatized in November 2005 with the transfer of 73% shares of the Government of
Pakistan along with Management Control to the new owner viz M/s KES Power & others.
KESC is principally engaged in generation, transmission and distribution of electric energy to industrial,
commercial, agricultural and residential consumers under the Electricity Act, 1910 as amended to date &
NEPRA Act 1997, to its licensed areas. The licensed area of KESC is spread over entire Karachi and its
suburbs up to Dhabeji and Gharo in Sindh and over Hub, Uthal, Vindhar and Bela in Baluchistan. The total
area covered is around 6000 square kilometers and a population of 12–14 million. The company owns
1,756 MW of generation capacity (oil- and gas-fired), of which 1,534 MW is operational.

The approximate demand for power in the city is at least 2300 MW. To meet the supply-demand gap,
KESC purchases power from WAPDA, Independent Power Producers (IPPs) and KANUPP. Whenever any
of these outside entities fail to provide power or there is a breakdown in KESC’s own installed generation
base, the company has to restore the load shedding.

The new management has employed Siemens Pakistan Engineering Limited as the Operations and
Management (O&M) contractor for the operation and management of the company. Siemens is in the
process of updating and modernizing the infrastructure and operations of the company.

Download from: www.osec.ch 3

 c. Pakistan Atomic Energy Commission (PAEC):

PAEC ( www.paec.gov.pk ) is the operator of the existing two nuclear power plants in Pakistan. Karachi
Nuclear Power Plant (KANUPP), the first nuclear power plant of the country was commissioned in 1971 in
Karachi through a turn-key agreement with Canadian General Electric Company. The second Chashma
Nuclear Power Plant-1 (CHASNUPP-I), was commissioned in the year 2000 also through a turn key
agreement with China National Nuclear Corporation.

After successful experience of KANUPP and CHASNUPP-I, the Government of Pakistan has entered into
another contract with China for construction of the second unit CHASNUPP-II. The construction of the unit
is in progress and it is expected that the unit will be commissioned by the year 2011.

The total installed capacity of the two nuclear power plants in the country is 462 MW.

Karachi Nuclear Power Plant (KANUPP): KANUPP, Karachi is a single unit CANDU PHWR with a
total gross capacity of 137 Mega Watts. It is located at Paradise Point on the arid Arabian Sea Coast,
about 15 miles to the west of Karachi. It has been in commercial operation since 1972. KANUPP is part
of Karachi Nuclear Power Complex (KNPC) and is owned and operated by Pakistan Atomic Energy
Commission (PAEC).

Chashma Nuclear Power Plant-1 (CHASNUPP-1): The Chashma Nuclear Power Plant Unit-1
(CHASNUPP-1) has been in commercial operation since September 2000. The construction of
Chashma Nuclear Power Project Unit-2 (CHASNUPP-2) has just started in 2005.

CHASNUPP-1 is a two-loop PWR plant with gross output of 325 MWe & net output of 300 MWe and
life span of 40 years.

The Plant is located in the province of Punjab near Chashma Barrage on the left bank of River Indus,
32 kms south of Mianwali City, 280 kms south-west of Islamabad and 1160 kms North-East of Karachi.

d. Independent Power Producers (IPPs):

At present following IPPs are operating in Pakistan while a number of projects are under construction. The
gross power generation capacity of the IPPs is 5,822 MW. KAPCO and HUBCO are the two largest
companies among IPPs with a production of 1,466 MW and 1,292 MW respectively.

S.no. Project name Gross capacity in MW

1 Uch Power Limited 586.00

2 TNB Liberty Power Project 235.00
3 Tapal Energy Limited 126.00
4 Southern Electric Power Company Limited 117.00
5 Saba Power Company Limited 134.00
6 Rousch (Pakistan) Power Limited 450.00
7 Kohinoor Energy Limited 131.00
8 Kot Addu Power Company Limited (KAPCO) 1466.00
9 Japan Power Generation (Pvt) Limited 136.00
10 Hub Power Company HUBCO 1292.00
11 Habibullah Coastal Power (Pvt) Co. 129.00
12 Gul Ahmed Energy Ltd. (GAEL) 136.00
13 Fauji Kabirwala Power Company 157.17
14 Altern Energy Limited (29 MW, plant shut-down) -
15 AES Pak Gen. (Pvt) Limited 365.00
16 AES Lalpir Limited 362.00
Total 5822.00
Source: Pakistan Energy Book 2008 (HDIP)

Download from: www.osec.ch 4

4. Electricity Generation:

The electricity generation sector in Pakistan is a mixed industry of hydro, thermal and nuclear power plants.
About 33.3 percent power is generated through hydel system, 64.13 percent through thermal system and the
rest 2.57 percent is generated through nuclear and renewable power generation systems.

The country meets its energy requirement around 41% by indigenous gas, 19% by oil, and 37% by hydro
electricity. Coal and nuclear contribution to energy supply is limited to 0.16% and 2.84% respectively with a
vast potential for growth.

Installed electricity generation capacity

(as on June 30’ 2008)
TYPE MW %
Hydel - WAPDA 6480 33.30
Thermal - WAPDA 4900 25.20
Thermal KESC 1,756 9.02
Thermal IPPs 5,822 29.91
Nuclear 462 2.37
Others (renewable) - 0.20
Total 19,420 100.00
Source: Pakistan Energy Book 2008 (HDIP)

Electricity generation, import and supply in GWh

(as on June 30’ 2008)
Total electricity generation 95,661
Import 199
Total electricity supply 95,860
Source: Pakistan Energy Book 2008 (HDIP)

4.1. Hydel Generation:

As a consequence of partition of the Indo-Pakistan Sub-Continent in 1947, India and Pakistan became two
independent sovereign states. Hydel generation capacity of only 10.7 MW (9.6 MW - Malakand Power
Station & 1.1 MW - Renala Power Station) existed in the territory of Pakistan. With the passage of time,
new hydel power projects of small and medium capacities were commissioned including the first water
storage dam and power house at Warsak due to which country's hydel capability rose to about 267 MW up
till 1963.

In the year 1967 & 1977, Mangla Dam on Jhelum River and Tarbela Dam on Indus River having the
provision of power generation were commissioned respectively. However, their capacities were
subsequently extended in different phases.

Download from: www.osec.ch 5

 Hydel Generation Capacity: The total capacity of existing 13 hydel stations as of today is 6,480 MW
including 36 MW hydel generation of AJKHEB. During the year 2007-2008, aggregate energy sharing
of the hydel power plants was 33.30%.

June 30’ 2008

Power stations MW
1. HYDEL - WAPDA
Tarbela 3,478
Ghazi Barotha 1,450
Mangla 1,000
Warsak 243
Chashma 184
Malakand (Decommissioned due to fire incident in November 2006) -
Dargai 20
Rasul 22
Shadiwal 14
Chichoki Mallian 13
Nandipur 14
Kurram Garhi 4
Renala 1
Chitral 1
2. HYDEL – Azad Jammu & Kashmir Hydro Electric Board (AJKHEB)
Jagran 30
Leepa -
Others 6
Total of 1 & 2 6,480
Source: Pakistan Energy Book 2008 (HDIP)

Seasonal variations of Hydel Generation: The seasonal variations of reservoir levels and
consequent reduction in Power outputs of storage type hydel projects in Pakistan are very pronounced.
Tarbela with maximum head of 450 feet experiences variation of 230 feet while Mangla has 162 feet
variation against the maximum head of 360 feet.

The lean flow period of Tarbela reservoir is from November to June when the Capability reduces to as
low as about 1,350 MW against the maximum of 3,692 MW during high head period i.e. August to
September (15% permissible overloading on Units 1~10).

Lean flow period of Mangla reservoir is observed from October to March when the minimum generating
capability is 500 MW. The capability rises to as high as 1,150 MW during 'high head' period (15%
permissible overloading).

In all, WAPDA's hydel generating capability varies between the two extremities of 2,414 MW and
6,746.0 MW over the cycle of a year.

Future plans: WAPDA is carrying out feasibility studies and engineering designs for various
hydropower projects with accumulative generation capacity of more than 25,000 MW. Most of these
studies are at an advance stage of completion. After the completion of these projects the installed
capacity would rise to around 42,000 MW by the end of the year 2020.

Pakistan has been blessed with ample water resources but could store only 13% of the annual flow of
its rivers. The statistics warrant construction of number of reservoirs to enhance availability of water
which stands at 1,070 cubic meters per capita.

Download from: www.osec.ch 6

 The hydropower potential in Pakistan is over 100,000 MW with identified sites of 55,000 MW.
Currently, studies under way include Diamer Basha (4,500 MW), Bunji (5,400 MW) and Kohala (1,100
MW) amongst many others.

4.2. Thermal Generation:

Bulk of Pakistan’s power generation is based on thermal resources mainly furnace oil and natural gas as
fuel; coal is almost non-existent. The total installed capacity of thermal power plants in the country as on
June 30’ 2008 was 12,478 MW.

As per Energy Yearbook 2008, share of thermal power generation during 2007-08 was recorded at 64.13
percent.

Break-up of thermal generation capacity (MW)

Power stations June 30’ 2008
1, WAPDA
Gas Turbine Power Station (GTPS) Shahdra 59
Steam Power Station (SPS) Faisalabad 132
Gas Turbine Power Station (GTPS) Faisalabad 244
Natural Gas Power Station (NGPS) Multan 195
Thermal Power Station (TPS) Muzaffar Garh 1,350
Thermal Power Station (TPS) Guddu 1,655
Gas Turbine Power Station (GTPS) Kotri 174
Thermal Power Station (TPS) Jamshoro 850
FBC Lakhra 150
Thermal Power Station (TPS) Quetta 35
Gas Turbine Power Station (GTPS) Panjgur 39
Thermal Power Station (TPS) Pasni 17
2, KESC
Thermal Power Station (TPS) Korangi 316
Gas Turbine Power Station (GTPS) Korangi town 80
Gas Turbine Power Station (GTPS) Site 100
Thermal Power Station (TPS) Bin Qasim 1,260
3, IPPs 5,822
Total MW (1, 2 & 3) 12,478
Source: Pakistan Energy Book 2008 (HDIP)

Future plans: It is learnt through the sources of Pakistan Electric Power Company (PEPCO) that an
investment of around US$ 2 billion is expected in power sector through Rental Power Projects
(RPPs) and an additional electricity of 1,675 MW will be added in the system by December 2009 when
nine rental power projects will start generation.

Download from: www.osec.ch 7

 4.3. Nuclear Power Generation:

The share of nuclear power in the total power generation capacity of Pakistan is just 2.37 percent. At
present, only two nuclear power plants are established in Pakistan with a total generation capacity of 462
MW. The third nuclear power plant is under construction.

Break-up of nuclear generation capacity (MW)

Power stations June 30’ 2008

Karachi Nuclear Power Plant (KANUPP) 137

Chashma Nuclear Power Plant-I (CHASNUPP-I) 325
Total MW 462
Source: Pakistan Energy Book 2008 (HDIP)

4.4. Alternative / Renewable Energy:

Pakistan has abundant available and inexhaustible renewable energy (RE) resources, which if tapped
effectively can play a considerable role in contributing towards energy security and energy independence
of the country.

In May 2003, Alternative Energy Development Board – AEDB ( www.aedb.org ) was established to act as a
central agency for development, promotion and facilitation of renewable energy technologies, formulation
of plans, policies and development of technological base for manufacturing of renewable energy equipment
in Pakistan.

The Government of Pakistan has tasked the AEDB to ensure 5% of total national power generation
capacity to be generated through renewable energy technologies by the year 2030. In addition, under the
remote village electrification program, AEDB has been directed to electrify 7,874 remote villages in Sindh
and Balochistan provinces through renewable energy technologies.

At present, total Renewable Energy produced in the country accounts at 40MW which is about 0.21% of
total installed generation capacity of all sorts.

The investment potential for the renewable energy sector of the country from short to medium term is over
USD 16 billion dollars.

Renewable energy potential in Pakistan

Wind 0. 346 Million MW
Solar 2.9 Million MW
Bagasse Cogeneration 1,800 MW
Waste to Power 500 MW
Mini & Small Hydel 2,000 MW
Source: Alternative Energy Development Board (AEDB)

Download from: www.osec.ch 8

5. Import of Electricity:

Since October 2002, Pakistan is importing electricity from Iran at three points of the province of Balochistan;
Mand interconnection 35 MW on 132 KV and 2 MW each at Tuftan and Mashkhel through 20 KV.

Further, Pakistan has planned to import 1,100 MW of electricity from Iran for supply to Gwadar and other
coastal areas of Balochistan.

6. Electricity Transmission & Distribution:

6.1. Transmission: In Pakistan, two companies are engaged in the business of electric power
transmission namely, National Transmission and Dispatch Company (NTDC) and the Karachi Electric
Supply Company Limited (KESC). NTDC is the national grid company of Pakistan and is exclusively,
responsible for electric power transmission in the whole of country except the area covered by KESC.

a. National Transmission and dispatch Company (NTDC): NTDC is a public sector company and
came into existence as a result of restructuring of WAPDA in 1998 and obtained a transmission licence
from National Electric Power Regulatory Authority (NEPRA) in 2002 to engage in the exclusive
transmission business for a term of thirty (30) years. NTDC is responsible for overall reliability, planning
and coordination of the electricity transmission in Pakistan except the area under KESC.

At present, NTDC operates and maintains nine 500 kV and twenty three 220 kV Grid Stations, 4,160
km of 500 kV transmission line and 4,000 km of 220 kV transmission line in Pakistan.

b. Karachi Electric Supply Company Limited (KESC): The second company engaged in electric
power transmission business in Pakistan is KESC. It has two separate licences; electric generation and
distribution while its application for transmission licence is under process with NEPRA. The
transmission network of KESC is connected to the national grid of the country by 220kV and 132 kV
links at two points. One is the Jamshoro-Bin Qasim link in East of Karachi and other in HUBCO-KESC
link in West of Karachi.

6.2. Distribution: As a result of restructuring and unbundling of the power wing of Water and Power
Development Authority (WAPDA), following eight distribution companies are responsible for channelling
electricity from the transmission substations below 220 kV to the consumers at different distribution
voltages. The end users are classified as residential, commercial, industrial, agriculture and street lights
etc.

Distribution companies
1, Peshawar Electric Power Company Limited (PESCO)
2, Tribal Area Electric Supply Company Limited (TESCO)*
3, Islamabad Electric Supply Company Limited (IESCO)
4, Gujranwala Electric Supply Company Limited (GEPCO)
5, Lahore Electric Supply Company Limited (LESC)
6, Faisalabad Electric Supply Company Limited (FESCO)
7, Multan Electric Power Company Limited (MEPCO)
8, Hyderabad Electric Supply Company Limited (HESCO)
9, Quetta Electric Supply Company Limited (QESCO)
*Has no distribution licence, working under PESCO

Download from: www.osec.ch 9

 The distribution network is composed of lines and grid stations of 132kV and lower voltage capacities, and
each distribution company is responsible for constructing, operating and maintaining the power distribution
facilities within each dedicated geographic area. Overall, the distribution system, especially in urban area is
overstressed and needs to be upgraded, augmented and expanded.

Besides these eight distribution companies, Karachi Electric Supply Company (KESC) is a private limited
company and is engaged in distribution of electric power in the area of Karachi.

In addition to one private sector and eight public sector distribution companies, National Power Regulatory
Authority (NEPRA) has so far granted seven distribution licences to small power producers (SPPs) for
supply of electric power to designated bulk power consumers.

6.3. Losses in the transmission and distribution: One of the major problems in Pakistan is the unsafe
and unreliable transmission and distribution of electricity. Due to weak grid infrastructure and significant
theft of electricity, losses from the transmission and distribution network during the year 2007-08 accounted
at about 22.3% for WAPDA and 33.5% for KESC.

7. Demand and supply of electricity:

According to the Ministry of Water and Power, the deficit of power for the years 2008-09 and 2009-10 is 4,025
MW and 5,529 MW respectively.

Projection for demand and supply of electricity (2008-2010)

Firm Supply Peak Demand Surplus/(Deficit)
S. No. Year (MW) (MW) (MW)
1 2008-2009 15,055 19,080 (4,025)
2 2009-2010 15,055 20,584 (5,529)
Source: Ministry of Water and Power

7.1. Load pattern and peak load hours: The electrical load pattern in the country varies from season to
season; during summer season there is an increase in the inductive load while in the winter season
increase in resistive load has been observed. The peak hours of the country also vary from season to
season depending the time of sunset. As an average, peak hours are generally taken as between 06:00
PM to 10:00 PM. A short span of peak, about one hour, also occurs in the morning but this being about 20
percent less in magnitude than evening peak and is not very important for generation planning but it is
significant for system operation and planning.

7.2. Maximum load: Maximum on the different power plants during the year 2007-08 is given in below
table:

Power generation capacity and maximum load on power plants (in MW) 2007-08
Power stations Installed generation capacity Maximum load
WAPDA + AJKHEB Hydel 6,480.0 6,793.8
WAPDA Thermal 4,900.0 3,861.0
KESC 1,756.0 1,378.0
IPPs 5,833.0 5,736.4
Total MW 18,969.0 17,768.8
Source: Pakistan Energy Book 2008 (HDIP)

Download from: www.osec.ch 10

 7.3. WAPDA - Supply and demand estimates: Electricity consumption in the country is growing steadily.
The projected committed power generation and peak demand in the areas of WAPDA for the year 2009-10
and 2010-11 is given as under.

2009-10

Description Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
A. Committed Generation Capability (MW)
(i) Hydel 5657 6026 5979 5036 5545 4183 2829 3761 3463 4031 4960 5202
(ii) GENCOs 4788 4788 4792 4796 4861 4916 4916 4916 4916 4916 4876 4876
(iii) IPPs 6618 7205 7570 7763 7750 8402 8411 8497 8935 9251 9258 9446
Total (A) 17063 18019 18341 17595 18156 17501 16156 17174 17314 18198 19094 19524
B. Forced Outages 972 1007 1029 1041 1048 1094 1095 1100 1126 1145 1141 1152
C. Maintenance Reserves 18 105 210 1178 3364 2431 0 2042 1274 808 522 118
Firm Generation Capability
D. 16073 16907 17102 15376 13744 13976 15061 14032 14914 16245 17431 18254
(A-B-C)
E. Peak Demand 17898 17936 18110 16453 14777 14931 15277 14988 15875 17185 18379 19266
F. Surplus/Deficit Generation (+/-) -1825 -1029 -1008 -1077 -1033 -955 -216 -956 -961 -940 -948 -1012
Source: Private Power & Infrastructure Board (PPIB)

2010-11

Description Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
A. Committed Generation Capability (MW)
(i) Hydel 5824 6193 6194 5369 5858 4467 3097 3999 3713 4281 5211 5453
(ii) GENCOs 4876 4876 4876 4876 4916 5326 5326 5326 5831 6556 6516 6516
(iii) IPPs 9449 9449 9436 9479 9466 10334 10343 10340 10563 10579 10586 10774
Total (A) 20149 20518 20506 19724 20240 20127 18766 19665 20107 21416 22313 22743
B. Forced Outages 1152 1152 1151 1154 1158 1259 1260 1260 1334 1421 1417 1428
C. Maintenance Reserves 9 9 9 818 3140 2768 1077 2244 1706 1513 1087 549
Firm Generation Capability
D. 18988 19357 19346 17752 15942 16100 16429 16161 17067 18482 19809 20766
(A-B-C)
E. Peak Demand 19256 19297 19484 17701 15898 16064 16437 16126 17079 18489 19774 20728
F. Surplus/Deficit Generation (+/-) -268 60 -138 51 44 36 -8 35 -12 -7 35 38
Source: Private Power & Infrastructure Board (PPIB)

Download from: www.osec.ch 11

 7.4. Consumers:

Having consumption of 45.9 percent of electricity, domestic sector is the major consumer of electricity in
Pakistan, followed by industrial sector 28.2 percent, agricultural 11.5% and commercial sector 7.6 percent.

Electricity consumption by sectors 2007-08 (Percentage of Total 73,400 GWh)

Sector %

Domestic 45.9
Industrial 28.2
Agriculture 11.5
Commercial 7.6
Bulk supplies 5.9
Street lights, traction & others 0.9
Total 100.0
Source: Pakistan Energy Book 2008
(HDIP)

The sector-wise and province-wise consumption of electricity is given in the following charts:

Electricity consumption by sector (GWh)

Sector 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 ACGR*

Domestic 23,624 25,846 27,601 30,720 33,335 33,704 7.4%

Commercial 3,218 3,689 4,080 4,730 5,363 5,572 11.6%
Industrial 16,181 17,266 18,591 19,803 21,066 20,729 5.1%
Agriculture 6,016 6,669 6,988 7,949 8,176 8,472 7.1%
Street light 244 262 305 353 387 415 11.2%
Traction 10 9 12 13 12 8 -4.6%
Bulk supplies 3,318 3,603 3,700 3,985 4,246 4,342 5.5%
Other/Government 45 46 50 51 127 158 28.8%
Total (GWh) 52,655 57,491 61,328 67,603 72,712 73,400 6.9%
Annual growth rate 4.02% 9.18% 6.67% 10.23% 7.56% 0.95%
Source: Pakistan Energy Book 2008 (HDIP)
*ACGR: Annual Compound Growth Rate
Data for KESC is estimated as not available

Download from: www.osec.ch 12

 Sectoral electricity consumption by Province 2007-08 (GWh)

Sector Punjab Sindh N.W.F.P. Balochistan AJK Total

Domestic 20,376.5 6,627.7 5,361.0 431.3 907.8 33,704.3

Commercial 3,469.8 1362.2 462.4 108.1 169.5 5,572.0
Industrial 14,383.0 4,527.7 1,536.4 153.4 128.6 20,729.1
Agriculture 4,035.7 786.7 345.2 3,304.3 8,472.9
Street light 221.5 170.9 18.0 4.5 415.9
Traction 8.0 8.0
Bulk supplies 2,515.0 1,244.2 495.6 87.2 4,342.0
Other/Government 31.1 6.8 4.0 0.3 116.1 158.3
Total (GWh) 45,040.2 14,726.2 8,222.6 4,089.1 1.322.0 73,402.5
Source: Pakistan Energy Book 2008 (HDIP)
Data for KESC is estimated as not available

8. Regulatory framework:

The Ministry of Water and Power, is responsible for all policy matters relating to the development of water and
power resources. Besides that it performs certain specific functions, such as carrying out strategic and financial
planning for the long term master plans in public and private sector. The long term power sector projects
submitted by WAPDA and its allied corporations are being scrutinized in the Ministry through its attached
departments keeping in view the technical and financial viability of such projects.

The Ministry of Water and Power also monitors activities in the fields of power generation, transmission and
distribution and performs supervisory and advisory role for smooth operation of power sector. It also
coordinates inter-provincial water sharing issues and activities related to irrigation, drainage, water logging and
to the monitoring of the operation of Indus Water Treaty of 1960 between Pakistan and India.

8.1. Restructuring of power sector:

Due to the electricity shortage in the 1980s and early 1990s, a strategy plan geared to restructuring of
Pakistan’s power sector was adopted in 1992. Under the plan, deregulation, privatization and
transformation of its two major power utilities – Water and Power Development Authority (WAPDA) and
Karachi Electric Supply Corporation (KESC) took place. WAPDA established in 1958 was unbundled in
December 1998 while KESC was privatized in February 2005.

Keeping in view the electricity demand patterns and lack of funds in the public sector, the Government of
Pakistan decided to mobilise private sector resources by inducting it into power generation. In November
1985, the Government of Pakistan announced measures to encourage private sector participation in the
power sector. The 1,292 MW Hub Power Project (HUBCO) was initiated at the same time, which was the
first private sector power project of its size and kind in the entire world. It took almost 12 years for HUBCO
to reach its completion, when in March 1997 it was fully commissioned.

In 1994, the Government formulated a power policy that allows the private sector to invest in the power
sector to ensure sufficient generation capacity. The policy also allowed full flexibility to independent power
producers (IPPs) to bring capacity on line as quickly as possible at predetermined power purchase prices.
The Government guaranteed implementation, fuel supply, and power purchase.

Download from: www.osec.ch 13

 8.2. Creation of Private Power and Infrastructure Board (PPIB):

The Private Power and Infrastructure Board (PPIB) was created in 1994 to facilitate private sector in the
participation of power generation in Pakistan. PPIB provides a “One-Window” facility to private sector
investors in matters concerning establishing power projects and related infrastructure. These matters
include negotiation of the Implementation Agreement (IA).

PPIB also provides support to the power purchaser and fuel supplier while negotiating the Power Purchase
Agreement (PPA), Fuel Supply Agreement (FSA)/Gas Supply Agreement (GSA), other related agreements,
and liaison with the concerned local and international agencies for facilitating and expediting progress of
private sector power projects.

PPIB is working to attract and facilitate Foreign Direct Investment (FDI) in Pakistan’s power sector. A
number of foreign investors and world-renowned independent power producers e.g. AES,
International Power, El Paso and Tenaska etc. are already present in the market, while many
have expressed interest in setting up power generation projects that would exploit the indigenous
resources including hydel, wind, natural gas, and coal. Their proposals have been evaluated and the
prospective investors are facilitated and encouraged to come up with power projects focusing on maximum
utilization of available local resources.

8.3. The Power Policy:

After the first successful policy being the 1994 Power Policy, came the 1995 Hydel Policy, the 1995
Transmission Line Policy, the 1998 Power Policy, and finally the Power Policy 2002 which is currently in
vogue in the country.

The salient features of the Power Policy 2002 are:

ƒ Scope of the Policy covers private, public-private and public sector projects;
ƒ Invitation of bids on tariff through International Competitive Bidding (ICB);
ƒ Encourage exploitation of indigenous resources including hydel, coal, gas and renewable resources
through active involvement of the local engineering, design and manufacturing capabilities.
ƒ Customs duty at the rate of 5% on the import of plant and equipment not manufactured locally.
ƒ To enhance share of renewable energy sources, hydel and fuels other then oil-based fuels, full levy of
income tax on oil-fired power projects.
ƒ For projects above 50 MW One-Window support to be provided at the federal level. For projects below
and up to 50 MW One-Window support to be provided at the respective provincial/AJK level.
ƒ Ministry of Water and Power (through PPIB) to remain the focal point at federal level.
ƒ To develop raw sites whose feasibility studies are not available, unsolicited bids would be welcomed.
The sponsors of feasibility studies on raw sites will have first right of refusal.
ƒ Two-part tariff structure consisting of fixed capacity and variable energy component is recommended
with the proviso that fixed capacity payment for hydel projects would fall between 60% to 66% of the
total tariff;
ƒ Hydrological risk to be borne by power purchaser (WAPDA/NTDC/KESC).

Details of the power policies can be obtained from the website of Private Power and Infrastructure Board
(PPIB) www.ppib.gov.pk .

Download from: www.osec.ch 14

 8.3. Creation of National Power Regulatory Authority (NEPRA):

The December 16, 1997, issue of the Gazette of Pakistan proclaimed the enactment of the Regulation of
Generation, Transmission and Distribution of Electric Power Act, 1997, which had become effective on 13
December 1997.

Thus, NEPRA has been created to introduce transparent and judicious economic regulation, based on
sound commercial principals, to the electric power sector of Pakistan. NEPRA reflects the country's resolve
to enter the new era as a nation committed to free enterprise and to meet its social objectives with the aim
of improving the quality of life for its people and to offer them opportunities for growth and development.

NEPRA's main responsibilities include:

ƒ Issue licences for generation, transmission and distribution of electric power;

ƒ Establish and enforce standards to ensure quality and safety of operation and supply of electric power
to consumers;
ƒ Approve investment and power acquisition programs of the utility companies; and
ƒ Determine tariffs for generation, transmission and distribution of electric power.

9. Suppliers of power plants, machinery & equipments used by power producers in Pakistan:

Following are some leading local and foreign engineering companies engaged in the power sector of Pakistan
are:

a. ABB (Switzerland)
b. Alstom (France)
c. Areva (France)
d. Descon (Pakistan)
e. General Electric Company – GE (USA)
f. Harbin Power equipment company Ltd. (China)
g. Siemens (Germany)
h. Pak Elektron Limited – PEL (Pakistan)

10. Important addresses:

Ministry of Water and Power

Government of Pakistan
A - Block, Pak Sectt. Islamabad.
Tel.: 92 (051) 9212442
Fax: 92 (051) 9224825
Email: fminister@mowp.gov.pk

Board of Investment (BOI)

Government of Pakistan
Ataturk Avenue, G-5/1,
Islamabad.
Tel.: 92 (051) 922 4103 / 922 4101 / 920 4339
Fax: 92 (051) 921 5554 / 921 8325
E-mail: mail@pakboi.gov.pk

Download from: www.osec.ch 15

 Water and Power Development Authority (WAPDA)
WAPDA House,
Sharah-e-Quaid-e-Azam,
Lahore
Tel.: 92 (042) 9202211
Fax: 92 (042) 9202454
E-mail: chairman@wapda.gov.pk

Pakistan Electric Power Company (Pvt.) Ltd. (PEPCO)

725-WAPDA House,
Lahore
Tel.: 92 (042) 9202140
Fax: 92 (042) 9202402
E-mail: webinfo@pepco.gov.pk

National Electric Power Regulatory Authority (NEPRA)

PIA Building, 2nd Floor,
Fazl-e-Haq Road, Blue Area,
Islamabad
Tel.: 92 (051) 9217673
Fax: 92 (051) 9217651
www.nepra.gov.pk

Private Power and Infrastructure Board (PPIB)

50, Nazimuddin Road, F7/4,
Islamabad
Tel.: 92 (051) 920 5421 / 920 5422
Fax: 92 (051) 921 5723 / 921 7735
E-mail: ppib@ppib.gov.pk

National Transmission & Dispatch Company (NTDC) Limited

221- WAPDA House,
Lahore
Tel.: 92 (042) 9201020 / 9202211
Fax: 92 (042) 9210894
E-mail: itdir@ntdc.com.pk

Pakistan Engineering Council (PEC)

Pakistan Engineering Council,
Attaturk Avenue (East) G-5/2,
Islamabad
Tel.: 92 (051) 9206974, 9219500, 2829348
Fax: 92 (051) 2276224
www.pec.org.pk

Alternative Energy Development Board (AEDB)

Government of Pakistan
House # 3, Street # 8, F-8/3,
Islamabad
Tel.: 92 (051) 9262947-50
E-mail: support@aedb.org

Download from: www.osec.ch 16

 The National Energy Conservation Centre (ENERCON)
Ministry of Environment - Government of Pakistan
ENERCON Building,
G-5/2, Islamabad
Tel.: 92 (051) 9209022
Fax: 92 (051) 9202657
Email: mdenercon@gmail.com
www.enercon.gov.pk

11. Trade Journals/Magazines:

At present “Energy Update” (monthly) is the only trade magazine on energy sector in Pakistan.

ENERGY UPDATE
#309, 3rd floor, Al-Sehat Centre, Hotel Regent Plaza
Shahrah-e-Faisal, Karachi – Pakistan
Tel.: +92 (021) 5653676, +92-21-5213853
Fax: +92-21-5651797
E-mail: energyupdate@gmail.com
Web: www.energyupdate.com.pk

12. Trade Shows/Exhibition:

a, Pakistan Oil, Gas & Energy Exhibition and Conference (POGEE):

POGEE (www.pogeepakistan.com) is an annual event of international repute in Pakistan which caters to
the demand for the products and services in the oil, gas and energy sector. It is an important platform for
local and international players to discuss and secure business deals, as well as to keep themselves
abreast with the latest developments in the industry.

Organizer:
Pegasus Consultancy (Pvt) Ltd.
2nd Floor Business Centre,
Mumtaz Hassan Road,
Karachi - 74000,
Tel.: 92 (21) 111 734 266
Fax: 92 (21) 3241 0723
Email: info@pegasusconsultancy.com

b, Power & Alternative Energy Asia ( www.powerasia.com.pk ) is an annual exhibition held in conjunction
with “International Trade & Industry Fair - ITIF Asia”. The Exhibition welcomes leading manufacturers and
suppliers’ of equipment and services for the sectors: electric, hydroelectric, thermal, natural gas, fuels,
nuclear & solar power supply systems, electricity transmission networks, manufacturers of energy saving
equipment and technologies, safety, construction, repair & maintenance organizations etc.

Organizer:
Ecommerce Gateway Pakistan (Pvt.) Ltd.
C-17, KDA Scheme-1, off Karsaz Road,
Karachi-75350
Tel: (92-21) 34536321, 111-222-444
Fax: (92-21) 3453 6330
Website: info@ecgateway.net

Download from: www.osec.ch 17

13. Conclusion:

Pakistan being in the process of industrialization and still about 35 percent of its households without electricity,
needs investments in all segments; generation, transmission and distribution of electricity besides improving
the efficiency of its existing system to meet the present and forthcoming demand.

Thus, numerous investment opportunities are available in the form of establishing new power plants (hydel,
thermal, solar and wind etc.), supply of power plants, machinery & equipments related to generation,
transmission and distribution of electricity as well as energy conservation.

The Government of Pakistan is urgently seeking the investments in the form of Fast Track Rental Power
Projects to encounter the immediate power requirements.

Further, vast opportunities are also available for the companies specialized in the construction of dams as the
Government has announced several hydro power projects of which the feasibility studies have been
completed.

Manufacturers of power plants, machinery & equipments related to the power sector having no customer and
representative in Pakistan can participate in the above mentioned exhibitions to establish contact with potential
clients.

Moreover, companies are encouraged to contact the Consulate General of Switzerland in Karachi for their
personalized enquiries.

Compiled by:

Aslam Pervez
Commercial Officer
Consulate General of Switzerland
98, Clifton, Block - V,
Karachi – 75600
Pakistan
aslam.pervez@eda.admin.ch

Main Sources:

- Ministry of Water and Power

- Water And Power Development Authority (WAPDA)
- Pakistan Electric Power Company (PEPCO)
- National Electric Power Regulatory Authority (NEPRA)
- Pakistan Power and Infrastructure Board (PPIB)
- National Transmission & Dispatch Company Limited (NEPRA)
- Alternative Energy Development Board (AEDB)
- Pakistan Energy Book 2008 (Published by: Hydrocarbon Development Institute of Pakistan -
HDIP)
- Private sector representatives.

Download from: www.osec.ch 18