IMPACT OF COAL ON ENERGY PRODUCTION OF PAKISTAN

MUSRRAT ALLAH BUKSH, SADAF BANO AND ZARMEENA

 Objective of study: There is serious energy crisis in Pakistan which is moving towards critical situation just because of increase in prices of energy resources and other renewable power projects depend up on seasons such as solar, wind etc. So the single solution of this problem is to use coal called BLACK GOLD in energy generation as it is cheapest source and present in huge amount in Pakistan.

 Importance of study:
By studying the research papers of different researchers we came to know that they are in favor of using coal in energy generation for solving energy crisis problem as well as bringing economic development. We are also in favor of using coal in energy generation as it is the cheapest source as well as its huge reserves are present in Pakistan specially in Thar coal area of Sind. We want to prove that coal is the cheapest source of energy production, having low cost and high level of output. And to prove that country will become independent and move on the path of development. By using coal, the energy production will increases along lowest cost of production it will leads to increase production of industrial and Agricultural sector banking sector due to investment as loan is taken by investors from banks, this will leads to increase in job opportunities so per capita income will increases and GDP increases and due to increase in production exports will increases and imports will decreases, this will leads to improve balance of payment that is in deficit. Finally development in all the sectors takes place and it will leads to economic growth in country.

 What is energy? Energy means power to work or something that brings change of any type. It is different such as heat energy, light energy, mechanical, electrical, chemical and nuclear energy. Source of energy: The sources of energy are as follow: Conventional sources: There are many sources of energy such as non renewable energy sources like fossil, oil, natural gas, petroleum and coal fuels are formed by the action of heat and pressure of rock on dead plants and animal. Another source is water also. Non-conventional sources: These sources include Bio-Gas, Solar energy, Tidal energy, Wind energy, geothermal energy, Nuclear energy, Biomass energy.

 Energy sources of Pakistan:

Coal, Petroleum, Natural gas, Electricity. Solar energy and nuclear.

Uses of energy in Pakistan:

The percentage of energy used by sectors in Pakistan is as follow:
Industrial Transportation House hold Electricity generation Government institutions Agriculture Trading institutions Others 33%, 18%, 17%, 17%, 6%, 5%, 3%, 1%.

Institution The ministry of petroleum and natural resources works for provision of oil, gas, and other minerals.

The Ministry of water and power. Electricity sector is under ministering of water and power. WAPDA (water and power development authority) It came into being in 1958.It has two parts formed in 2007. 1. WAPDA hydro (Water and hydro power development) 2. PEPCO [Pakistan electric power company]

Energy supply: Electricity In 2011-installed capacity of electricity 23 GW, including. Thermal 69 percent Hydro 28 percent Nuclear 3 percent Thermal power plant is GUDDU (PEPCO operates it is) 1300MW KAPCO 1600MW (WAPDA is hydro electricity production operator)

Companies WAPDA KESC PAEC KAPCO HUBCO Uch Rouch Liberty Other IPPs

Electricity generation % 48.7 8.3 3.6 6.2 9.1 4.5 3.2 1.4 15

Sources Electricity generation % nuclear Gas Oil Hydel Coal Imported 3.6 27.3 35.1 33.6 0.1 0.3

Demand and Supply of energy: Pakistans energy consumption in 2010-11 includes oil 38.8 million tones gas 43.2 %( including oil 29.0%). The use of gas has increased by 4% during 2010-11 in comparison with 2005-06. The oil demand is decreased by 3.0% due to increase in use of cheaper sources of energy and high prices of oil. The demand of petroleum products has decreased since 2001-02 but there was positive change of 1.1% (aver. of last 10 yrs.) occurred because of positive change during 2004-05, 2007-08, and 2009-10. The high prices of oil are decreasing demand of petroleum products and increasing demand of gas, electricity and coal by 5.1%, 4.8% 7 .7% per year on average.

Energy supply in Pakistan has increased in 2011. The energy supplied to per capita in 2011 was 0.372 TOE that has increased at the rate of 0.16% from 0.371 TOE in 2010. Energy supply and demand was set in relation to population growth by 2%. The final energy supply includes the components as follow: coal, gas, electricity, petroleum and crude oil has increased at an average rate 7.5%,5.7%,3.4%,2.1%, and 0.4% respectively.

 Energy crisis in Pakistan: Current energy situation in Pakistan: From independence till 1980s and 1990s demand of energy was met by using countrys own resources. In2000s energy demand was increased due to increase in growth. In 2011-12 the shortage of electricity and gas has affected the industrial production specially energy intensive industries like iron, steel etc. The estimated cost of energy crisis is Rs. 300 billion per year that is 2.5% (Rs.1100 billion) of GDP in 2008-2012. In 2015 Pakistan energy requirement will cross 120 MTOE. In2030 this requirement will increase by 7 times of current requirement and will reach 361 MTOE. Pakistan fulfill its more than 8% energy requirements from imports of energy resources.

 What is Coal? It is formed by action of heat and pressure on dead plants and animal over a long period of time. Coal was first discovered in Pakistan and South Asia in 1880s.At that time British-owned companies were use this. Pakistan utilized this coal from independence when Sui gas was discovered in 1952 in Baluchistan and oil field in 1964. Coal plays an important role in energy production. Thar coal reserves of sindh are about 175 billion tons. From 2010 it is the most important fossil fuel for elasticity generations or energy production.

 Pakistan Coal Mines and Reserves: In Pakistan largest coal reserve are discovered.
Area Sind: Punjab: Balochistan: KPk AJK Total Coal (billion tones) 184.623 0.235 0.25 0.091 0.009 185.175

Proposed coal projects: Thar coal project: It is called project of National security. Estimated cost of this project is $115million. Thar coal reserves are sufficient for 500 years. 100 million barrel diesel and gas can be produced from it. The goal of this project is to generate 10,000MW till 2020. Thar coal underground gasification project: Dr Samar Mubarak had invested Rs. 2.5 million through Ministry of Petroleum and Natural Resources. Its cost is Rs. 126.649 million but in June 2011 funds was only of Rs. 20 million. The object of this project is installation of plant on deposits for gas production. On 4th November 2011, 50MW of gasified project was completed. Block-v is taken by planning commission of Pakistan for 50MW project using (UCG)

Data and Variables: Name of variables included: Energy, Gas, Petroleum products, Crude oil and Coal. Dependant variable: Energy production Independent variable: Gas, Crude oil, petroleum and Coal. Source of data: we are using secondary data taken from statistical bureau of Pakistan (Economic survey report 2011-12). Scale of Measurement: Energy: Million TOE (Million tons of oil equivalents) Coal: Million tons Gas: Billion cubic feet (bcf.) Crude oil: Million barrels Petroleum: Million tons (Mln.T) .

Table 1: is showing energy supply in million TOE and coal in million tons from 2001-02 to 2010-11
Energy supply( Million TOE) Years
2001-02 2002-03 45.07 47.06

Coal(Million tones)
4.4 4.9

2003-04
2004-05 2005-06 2006-07

50.85
55.58 58.06 60.62

6
7.9 7.7 7.9

2007-08
2008-09 2009-10 2010-11

62.92
62.55 63.09 64.52

10.1
8.4 8.2 7.7

Estimation and results: The results are as follow: The use of coal in energy production is showing increase in energy production at an increasing rate and lowest cost. As use of small quantity of coal is producing high level of energy. Coal is showing positive impact on energy production and increasing energy more as compare to energy produced by other sources (gas, crude oil, petroleum). A small amount of coal is producing larger and larger amount of energy that is more than needs of country. There is positive relation between energy production and sources of energy but production of energy is only greater with lowest cost of production in case of using coal as a source as compare to other sources of energy.

Conclusions and policy Measures/ (Recommendations): Finally we came to conclusion that to remove energy crisis from Pakistan and bring it on the path of development and self dependency energy production is necessary which is possible only by using 185.175 billion tons of coal reserves as a source of energy. As it is not only the cheapest source but also produce energy more than requirement as compare to other sources of energy such as gas, crude oil, petroleum products etc. Electricity and oil produced from coal reserves of Thar area can fulfill countries requirements as well as can be use for exports.

Thank You