Country energy information

Pakistan
September 2006

SIXTH FRAMEWORK PROGRAMME PRIORITY 3

Underpinning the economic potential and cohesion of a larger and more integrated
EU

SPECIFIC SUPPORT ACTION

Project Acronym: RECIPES

Project full title: Renewable Energy in emerging and developing countries: Current
situation, market Potential and recommendations for a win-win-win for EU industry,
the Environment and local Socio-economic development
Contract number: 513733
Start date of contract: 1st January 2005

Introduction

The information in this report was gathered from publicly available sources (the
source list is available at www.energyrecipes.org), like surveys, statistical data from
the internet and books and other publications. The information consists of:

1. indicators and indices;

2. descriptions of the relevant energy items/subjects /themes.

Due to differences in availability of data per country the level of detail of these
reports will differ.

For all the 114 developing and emerging countries of the INCO list a report like this
is available. (see also www.energyrecipes.org for the countries) Except for the
following 15 countries, where more detailled reports are available.

Argentina China Cameroon

Brazil India Ghana
Colombia Indonesia Niger
Pacific South-
Mexico
Islands Africa
Peru Thailand Uganda

The RECIPES project

The RECIPES project aims to contribute to the implementation of renewable energy

in emerging and developing countries. The RECIPES project is financed under the
6th Framework Programme for Research and Technological Development of the
European Commission.
The main objective of the RECIPES project is to provide the European Commission
and other stakeholders with pragmatic information and recommendations facilitating
appropriate action to further the implementation of renewable energy in emerging
and developing countries, taking into account:

l The effects on the local socio-economic situation.

l The competitive position of European renewable energy industry.
l The impacts on the local and global environment.

Data collection on the situation and potential of renewable energy in emerging and
developing countries is the core of the RECIPES project.

An identification of the RE market potential is carried out for 15 developing and

emerging countries. Local experts gathered data for all of these countries. The
results of these in-depth studies are extrapolated to 99 other developing and
emerging countries for which data is gathered through desk research.

See the RECIPES website (www.energyrecipes.org) for relevant data collected and
reports produced.

Environmental problems

Water pollution from raw sewage, industrial wastes, and agricultural runoff; limited
natural fresh water resources; a majority of the population does not have access to
potable water; deforestation; soil erosion; desertification

Environment - international agreements

Party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol,

Desertification, Endangered Species, Environmental Modification, Hazardous
Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution,
Wetlands
signed, but not ratified: Marine Life Conservation

Energy situation

Pakistan produces natural gas and some crude oil and coals. Natural gas is used by
the electricity and industry sector. Some crude oil and petroleum is imported to meet
domestic demands, which are mainly in the transportation and electricity sector.
About 40% of total energy use consists of traditional biomass, mainly wood.

Pakistan has 18 gigawatts (GW) of electric generating capacity. Thermal plants

using oil, natural gas, and coal account for about 70% of this capacity, with
hydroelectricity making up 28% and nuclear plants 2.5%. Pakistan\'s total power
generating capacity has increased rapidly in recent years, due largely to foreign
investment, leading to a partial alleviation of the power shortages Pakistan often
faces in peak seasons. Rotating blackouts ("load shedding") are, however, still
necessary in some areas. Transmission losses are about 30%, due to poor quality
infrastructure and a significant amount of power theft. Periodic droughts affect the
availability of hydropower. With much of the Pakistan\'s rural areas yet to receive
electric power, and less than half of the population connected to the national grid,
significant power demand growth is expected in the long term, though in the short
term, Pakistan has some excess generation capacity.2

Growth in power generation in recent years has come primarily from new
independent power producers (IPP\'s), some of which have been funded by foreign
investors, and a few hydroelectric dam projects by the Water and Power
Development Authority (WADPA).
The two largest private power plants in Pakistan are the Hub Power Company
(HUBCO) and the Kot Addu power company (KAPCO). HUBCO is owned by a
consortium of International Power (UK), Xenal (Saudi Arabia), and Mitsui
Corporation, and has a 1,300-MW capacity. The Kot Addu plant, with a 1,600-MW
capacity, was privatized in 1996 (from WAPDA). Both of these plants, as well as a
few other small private operators, sell power to the national grid currently run by
WAPDA.2

Plans are underway to expand Pakistan\'s hydro capacity -- the government

approved the construction of 4 new hydro plants to be built in the North West
Frontier Province by 2005/2006 that would generate several hundred megawatts of
additional power. If the $5.5 billion Kalabagh project is approved -- currently it is
being held up because of environmental impact and downstream economic impact
concerns -- the new hydro plant could supply 2,400-3,600 MW of generation
capacity. The Ghazi Barotha hydro plant came online in 2003 at a cost of $2 billion
and a generation capacity of 1,450 MW.2

There are nine small hydro plants in operation, with a total capacity of 108 MW.
Another two under construction (10 MW) and 18 are planned (180 MW).14

Energy sector organisation

The electric power sector in Pakistan is still primarily state-owned, but a privatization
program is reportedly underway. The main state-owned utilities are the Water and
Power Development Authority (WAPDA), and the Karachi Electricity Supply
Corporation (KESC), which serves only Karachi and surrounding areas. Together,
WAPDA and KESC transmit and distribute all power in Pakistan -- over half to
household consumers, about one third to industrial consumers and the rest to
commercial and government consumers. Rates are determined by the National
Electric Power Regulatory Authority (Nepra) and disputes over adjustments to rates
are common within the industry.2

Renewable energy potential

The gross theoretical hydropower potential of Pakistan was estimated in 1982-1984

to be equivalent to about 30 GW of capacity (263 TWh/year), and the technically
feasible potential as estimated to be about 24 GW.14

Although Pakistan is an ideal physical environment for solar energy, many past
projects have failed because systems needed maintenance after expert personnel
had left. Studies are underway on how future solar projects can be sustained at a
local level by Pakistani villages.2

Pakistan’s geothermal potential remains unexplored, although promising sites exist.

Wave and tidal power, although still in the technology development phase, could
also eventually find applications along the country’s 1,046 km-long coastline.42

Commercially exploitable wind resources also exist in many parts, especially in

southern Sindh and coastal Balochistan. Detailed wind mapping could also reveal
suitable sites in the interior parts of the country and in the mountainous regions. To
date, limited-scale wind data collection has been undertaken in the southern regions
of the country. However, no commercial wind farms currently exist in Pakistan, and
only a few micro turbines have been set up at the community level for demonstration
purposes.42

Renewable energy

The Pakistani government\'s current focus is on economic development and poverty

allieviation, not on environmental protection. Like many developing countries,
Pakistan has limited resources for addressing its environmental problems.
Pakistan\'s previous environmental record is poor, and the country has not yet been
able to back up its commitment to environmental protection with action.2

Pakistan Unit
General
Population (2005) 162419946
Country area 880254 km²
Total density of population (people/km2) 185.000 capita/km²
Growth of people % /year 2.030 %
Land use arable (%) 27.870 %
Land use perm crops (%) 0.870 %
Percentage of total people living in cities 33.700 %
HDI (2002) 0.497

Social
Illiteracy 45.700 %
Year of estimation 2003
Corruption (CPI 2003) 0=high 10=low 2.500
GDP in ppp mostly $ 2004 est 347.3 billion

Economic
Income /capita $ mostly 2004 2200
Variability of income/capita GINI index (2004) 33.000
Population below poverty line 32.000 %
Year of estimation FY00/01
Total External Debt in % GDP (2004 est.) 71.400 %
Inflation rate (consumer prices) (%) 4.800 %
Year of estimation FY03/04
Growth of economy 6.100 %
Year of estimation 2004
EDI energy development index 0.387

Energy development
Percentage of people connected to the grid (electricity) 53.000 %
Traditional fuel consumption (% of total energy requirements
2002) . Estimated consumption of fuel wood, charcoal, bagasse 26.600
(sugar cane waste) and animal and vegetable wastes.
Oil consumption 365000.000 bbl/day

Fossil fuel consumption

Year of estimation 2004
millions short
Coal consumption (Million Short Tons) 5.440
tonnes/year
Natural gas consumption, year 2001 if not mentioned others 23.4 billion cu m
Nuclear power production (Billion Kilowatthours) 2003 1.810 billion kWh/year
Hydro electricity capacity (2003) 5.046 million kilowatts

Renewable energy situation

Geothermal, Solar, Wind, Wood and Waste Electricity Installed
0.000 million kilowatts
capacity (2003)
RE biomass production of primary energy from combustible
1030213.000
Renewables and Wast TJ/Year 2002
RE energy electricity consumption (2003) 0.000 billion kWh/year
Total Primary Energy Supply 2000 744.360 billion kWh/year
Share of total renewables in % of TPES 2000 39.900 %
Share of renewables excluding combustible renewables and waste
2.300 %
in % of TPES 2000
TPES 2003 806.000 billion kWh/year
Share of Renewables in TPES % (2003) 40.600 %
Hydro (2003) 8.200 %
Geothermal, Solar, Wind, Tide (2003) 0.000 %
Combustible Renewables and Waste (2003) 91.800 %
Total kWh per capita 4469.000

Energy consumption for various sectors

Industry 27.000 %
Transportation 17.000 %
Agriculture 1.000 %
Commercial and public services 2.000 %
Residential 52.000 %
Other purposes 0.000 %
Total oil production 61000.000 bbl/day

Energy production
millions short
Total coal production (Million Short Tons) 3.650
tonnes/year
Total natural gas production 23.4 billion cu m
Total Electricity Production GWh 75704.000 GWh

Electricity
Electricity production from coal % 0.000 %
Electricity production from oil % 32.000 %
Electricity production from gas % 36.000 %
Electricity production from biomass % 0.000 %
Electricity production from waste % 0.000 %
Electricity production from nuclear % 2.000 %
Electricity production from hydro % 30.000 %
Electricity production from geothermal % 0.000 %
Electricity production from solar thermal and PV % 0.000 %
Electricity production from other sources % 0.000 %
Electricity consumption GWh (2003) 71537.000 GWh
Total final electricity consumption GWh (2002) 52656.000 GWh
Electricity used by Industry % (2002) 31.000 %
Electricity used by Transport % (2002) 0.000 %
Electricity used by Agriculture % (2002) 11.000 %
Electricity used by Commerce and Public Services % (2002) 13.000 %
Electricity used by Residential % (2002) 45.000 %
Electricity used by Other Non-Specified % (2002) 0.000 %
Electricity used by Non-Energy Use % (2002) 0.000 %