Electricity generation capacity increases by 11.5%



Pakistan’s power generation capacity increased by 11.5% and reached 41,557 megawatts in July-April 2021-22, compared to 37,261 MW in the same period of the previous financial year, revealed the Economic Survey of Pakistan 2021-22.

hydel energy’s share of total installed capacity fell slightly to 24.7% year-on-year in the first 10 months of FY22.

The contribution of regasified liquefied natural gas (LNG) to total electricity production rose from 19.7% last year to 23.8%.

The share of coal remained the same, although installed capacity increased from 4,770 MW in July-April FY21 to 5,332 MW in July-April FY22. The contribution of natural gas increased from 12.1% in FY21 to 8.5% in FY22.

“There is an increase in the percentage share of renewables, which is a good sign for the economy as well as the environment,” the report said.

The contribution of nuclear power increased to 8.8% in the first 10 months of FY22, compared to 6.7% in the corresponding period of FY21. The share of wind power increased from 3.31% to 4.8% while the share of solar energy increased slightly from 1.07% to 1.4%.

“There is a slight change in the percentage share of different sources in electricity generation,” the report said.

“Thermal still holds the largest share of power generation, although its percentage contribution fell from 62.5% in July-April FY21 to 60.9% in July-April FY22.”

Similarly, the contribution of hydel energy in power generation increased from 27.8% in July-April FY21 to 23.7% in July-April FY22.

However, the share of nuclear energy has increased from 7.2% last year to 12.3% this year. The contribution of renewable energies increased from 2.4% to 3.02%.

The first 10 months of the current fiscal year did not see any major change in the electricity consumption pattern.

The share of household electricity consumption fell slightly from 49.1% in FY21 to 47% in FY22, while consumption in the commercial sector fell to 7 % versus 7.4%.

However, industry’s share of electricity consumption increased from 26.3% in July-April FY21 to 28% in July-April FY22.

Electricity use in the agricultural sector edged up to 9% from 8.9% while consumption in other sectors including public lighting, general services and other government tractions declined to 8% versus 8.3%.

Energy Sector Scenario

According to the Economic Survey, Pakistan’s economic growth is limited by bottlenecks in the energy sector. The country’s energy needs are increasing and the demand for energy in the coming decades will increase significantly.

Energy demand on this scale will put increasing pressure on energy resources and distribution networks, according to the report.

“It’s not sustainable without a fundamental transformation of the energy system. Reliance on dominant fossil energy resources, especially oil, is risky,” he said.

“Energy security is essential because the type of disruptions we have seen are a potential threat to our economic well-being. Exploring the most indigenous and renewable resources is the key to energy security.

According to the report, the government has been working to make transformational changes to the electricity system by exploring alternative energy sources.

CPEC energy projects

A total of 13 power projects of 11,648MW are being facilitated by the Private Power and Infrastructure Board (PPIB) under the China-Pakistan Economic Corridor (CPEC).

These include four 3,428 MW hydropower projects, five 3,960 MW Thar coal projects, four 4,260 MW imported coal projects and one power transmission line project. high voltage direct current (HVDC) of 660 kilovolts.

Among them, three 3,960MW imported coal-based power projects and one 660MW Thar coal-based power project have been commissioned, while the HVDC transmission line of ±660 kV Matiari-Lahore also started operating on a commercial basis from 1 September. 2021.

“This is not only the first transmission line project developed by the private sector, but also the first-ever HVDC transmission line in Pakistan.”

In addition, nine other 7,028MW Independent Power Plants (IPPs) including four 3,428MW hydel IPPs, four 3,300MW Thar coal IPPs and one 300MW imported coal IPP are in various stages of processing. .

Gas sector

Local natural gas supply decreased by about 5% and its contribution stood at 33.1% to the country’s total primary energy supply.

Statistics available for July-March FY22 indicate that Pakistan has an extensive gas network of over 13,513 km of transmission, 155,679 km of distribution and 41,231 km of service pipelines to meet the needs of millions of consumers.

The number of consumers increased from 10.3 million to more than 10.7 million across the country. “Government policies to enhance indigenous gas production to meet growing energy demand have proven effective,” the report said.

Currently, the capacity of two floating storage and regasification units (FSRUs) for RLNG is 1,200 million cubic feet per day (mmcfd). RLNG is imported to bridge the growing gap between gas demand and supply in the country.

Average natural gas consumption increased from 3,723 mmcfd to approximately 3,565 mmcfd in FY22 July to March.

Gas is expected to be supplied to approximately 736,060 new consumers (target subject to Ogra approval) in FY23.

The gas utilities have planned to invest 27,669 million rupees in transmission projects, 77,484 million rupees in distribution projects and 8,746 million rupees in other projects, bringing the total investment to 113 899 million rupees in the financial year 2022-23.

Oil sector

Pakistan generates electricity from an energy mix that includes oil, natural gas, LNG, coal and renewable sources including solar, wind, hydro, nuclear and biomass.

According to the report, the energy sector is highly dependent on imported fuels, especially oil and LNG, and will continue to rely on its imports due to low domestic capacity.

Rising oil prices on the world market and the massive depreciation of the Pakistani rupee are making oil imports more expensive, triggering pressures on the external sector and widening the trade deficit. The increase in oil import bill is attributed to the increase in value as well as the increase in quantity demanded. The oil import bill rose 95.9% to $17.03 billion in July-April FY22 from $8.69 billion in the corresponding period last year.

A further breakdown showed that imports of petroleum products increased by 121.15% in value and 24.18% in quantity. During July-April FY22, imports of petroleum products increased to $8.55 billion from $3.87 billion during July-April FY21. Crude oil imports increased by 75.1% in value and 1.4% in quantity during the period under review.

Crude Oil reached $4.22 billion in July-April FY22 from $2.41 billion in the same period of FY21. In FY22 from July to March, total imported crude processed amounted to one million tons while local crude processed was recorded at 2.31 million tons.­­

Published in L’Express Tribune, June 10e2022.

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