SYNERGY FOR ENERGY

By Aurangzeb Soharwardi 2009

Many modern and scientific concepts have emerged in the business world to create a scenario of maximum productivity and efficiency, SYNERGY is one of those. For better performance in the energy sector ,many vibrant measures are being taken to develop a pragmatic frame work to meet the energy requirements in Pakistan. Electricity as an energy component,has become the most vital life line of the contemporary world. It has engulfed all the domestic, industrial ,commercial and agricultural activities of our life. In Pakistan PEPCO has the responsibility to provide electricity to over 18 million consumers ,for which it is maintaining a vast and sophisticated net work consisting of its field offices comprising 925 sub divisions and 192 divisions ,in the jurisdictions of its 8 distribution companies along with three generation companies and one transmission and dispatch company. Government of Pakistan has established a sophisticated net work of all related and concerned organizations to be compatible with the modern days requirements. . Innovation and creativity based research, blended with the global trends and practices is being conducted in various distribution companies of PEPCO on the instructions of its MD to make the best use of technological advancements in the power sector and ameliorate the power distribution system and improve its related services. In Pakistan, the over all electricity consumption is for Domestic 44%, Commercial 6%, Industrial 24 %, Agriculture 12 %, Bulk supply 14 % . The peak electricity demand has been recorded up to about 17000 MW in the recent days in the country. The major cause of this abrupt rise in demand has been the increasing temperature and induction of about 60 million home appliances to the distribution system proliferating the electricity demand to almost 3000 MW, out of which the maximum electricity is consumed by the air conditioners and micro wave ovens. PEPCO is acquiring electricity through hydel and all other possible alternate sources of energy and is supplying this electricity through an infra structure consisting of 262674 km HT lines, 197514 km LT lines and 493696 installed transformers ,connected to feeders and grid stations. This distribution system is supplied with electricity through main 220 kv and 550 kv grid stations and lines which are installed and maintained by one of the subsidiaries of PEPCO namely NTDC (National transmission and despatch company) and 120 kv and 66kv lines are maintained by respective distribution companies . Electricity now not only is the most important ingredient of social structure but also has direct impact on GDP and the over all economy of our country. Pakistan’s total energy consumption in 2006-07 was 60.2 million tons oil equivalent (mn TOE) consisting of 29.5 mn TOE natural gas (49%), 18.3 mn TOE oil products (30%), 7.6 mn TOE hydel (13%), 4.4 mn TOE coal (7%) and 0.5 mn TOE nuclear power (1%) Pakistan’s energy demand over the next 15 years is expected to grow at a rate of between 4.4 to 6.1% per annum based on projected economic growth and is likely to be in the range of 115 to 148 million TOE’s by 2021-22. The total capacity of 13 No. Hydel Stations as of today is 6443.56 ~ 6444 MW which is 37.10% of total installed generation capacity of WAPDA. During 2007~2008, aggregate energy sharing during the year was 33.32%.For ensuring smooth power supply to all categories of consumers, PEPCO is working on the concept of creating a synergic effect through collaboration with all related organizations and departments. Synergy (from the Greek syn-ergos, meaning working together) is the term used to describe a situation where different entities cooperate advantageously for a final outcome. Simply defined, it means that the whole is greater than the sum of the individual parts. If used in a business application it means that teamwork will produce an overall better result than if each person was working toward the same goal individually. Based on this concept, PEPCO has established a pragmatic and swift liaison system with Ministry of water & power, WAPDA , PSO,NEPRA,NESPAK, KESC, Ministry of petroleum, Provincial governments, DISCOS, NPCC ,AEDB, PPIB, Financial institutions and ENERCON. ENERCON is investing its efforts for energy management and conservation and government has prepared a draft legislation titled ‘Pakistan energy conservation bill 2009’. ENERCON has identified energy conservation potential of up to 25 % in various sectors of Pakistan economy. Coordination with all the IPPs, SPPs and other Rentals power plants have been completed to provide power supply to the PEPCO’s system for meeting the growing electricity demand. Currently, 15 IPPs operate in Pakistan under a Build-Own-Operate (BOO) basis. Government of Pakistan is working on a three year plan to tackle energy crises and is striving to add 13,500 MW of electricity up till 2012. More than 300 MW additional electricity would be generated by rehabilitating GENCOs and around 502 MW could be generated from the up gradation of hydro power plants in the public sector. Public sector thermal plants at Nandi pur, Cheecho ki malyan would be operational by 2011 supplying 1050 MW in the system, while other IPPs and micro-hydel power plants through the alternate energy board were expected to generate 8976 MW by 2012.Apart from these projects, the scheduled generation of 1550 MW would be supplied by the 13 rental power projects. The country could generate extra 4500 MW from Diamer Bhasha dam, while developing Dasu hydro power project 4000 MW can be generated. All other possible alternate energy sources are also being tapped to optimize the electricity generation in the country and for this AEDB is consulted on regular basis. National strategy is being formulated for the utilization of bio mass/waste to energy resources. Demonstration work on solar plants have also been started along with deliberations for electricity generation through geothermal energy ,wind energy and bio fuel . Work on various sights in Sindh is also under way to generate wind energy. Efforts for nuclear power plants are going in a positive direction too. AEDB has reiterated that 42 MW electricity will be made available in the system by dec this year out of which 35 MW from bio gas, 6 MW from wind and 1 MW from micro level hydro projects. . Collaboration with Asian Development Bank and World Bank is also done to cope up with the financial needs to generate electricity. As per the out come of negotiations between the world bank, Asian development bank and the government, The electricity consumers would be able to avail RS/67 billion subsidy during the current fiscal year . ADB has recently extended $780 million through a multi tranche financing facility for priority energy efficiency projects for reducing country’s reliance on costly, polluting fossil fuels. Government of Punjab has stepped forward and recently formulated a comprehensive coal policy to generate 3500 MW electricity from coal which has been found in abundance near Khoshab . This electricity generation will ease up the pressure from distribution system and facilitate PEPCO to meet the growing demand .Government of Pakistan is also working on a feasibility study of 24 new small dam projects in Pothohar area of Punjab costing 90.84 million rupees. Punjab government has also forwarded five new 120 MW hydel power generation projects to NEPRA for approval, costing 4.70 billion rupees. Government of Sindh is also working on Thar coal project, having 175 billion tones of coal reserves, under coordination with all related organizations and it has signed an agreement with Engro Power Generation Ltd for production of 600-1000 MW on public –private partnership basis, with an equity ratio of 60:40. Thar coal reserves can produce energy equivalent to 400 billion barrels of oil or 850 trillion cubic feet of gas and can produce 100,000 MW electricity for next 30 years. Synergizing with private sector, PEPCO has signed over 2000 contracts with private sector to over come energy crises. Recently it has signed 747 MW combined cycle project with Harbin power engineering CHINA, located at Guddu power company under GENCO II. The project will replace the existing underrated units and increase the generation capacity of the power plant. China has also formally indicated to provide two nuclear power plants with a generation capacity of 300 MW each. China has also included 969 MW Neelum –Jhelum Hydro electric power project with a cost of RS/ 128.4 Billion in its 2009-2010 FYDP. China has allocated $700 million for the construction of small dams in all four provinces of Pakistan. Chinese companies would transfer technology to Pakistan to generate solar and wind energy, which would be provided to farmers for irrigation across the country. Funding of the projects to get 2000-3000 MW electricity generated will be done by ZTBL Pakistan. PEPCO has also signed a fuel supply accord with PSO for fulfilling furnace oil and HSD requirements of all power stations of NPGCL, one of its subsidiary. This agreement will enable PSO to streamline its supply chain activities for timely provision of oil for electricity generation. PEPCO is also contemplating for upgrading its distribution net work through technical collaboration of NESPAK and other engineering organizations, for smooth power supply. Recently NESPAK completed detailed route survey of 132 kv transmission lines of GEPCO. This huge project included preparation of plan, profile drawings and tower sporting which have been approved by GEPCO and NTDC for implementation. Detailed design review and construction supervision of 425 MW combined cycle Power plant at Nandi pur have also been completed. All these efforts would definitely lead to a much better energy situation in the country, necessary for social and economic development, to be compatible in the contemporary world.

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