Research Analyst, PAGE
June 28 - July 04, 2010
Pakistan's economy is growing at a very steady rate that needs energy to be sustainable. Given the existing energy supplies, the economy is in great danger.
The total installed power generation capacity witnessed an increase of 2.1 per cent during 2009?10 against the one per cent growth in corresponding period last year. Private sector witnessed a prominent growth of 7.1 per cent in its installed capacity during the 2009-10.
On the other hand, the installed capacity of Wapda declined by 0.5 per cent during July-March 2009?10. Furthermore, the installed capacity of KESC stood at 1,955 MW during the period under review.
TOTAL INSTALLED GENERATION CAPACITY (MW)
COMPANY INSTALLED CAPACITY SHARE (%) INSTALLED CAPACITY SHARE (%) CHANGE 2008-09 2009-10 (1) WAPDA 11,454 57.9 11,399 56.5 ?0.5 Hydel 6,555 57.2 6,555 57.5 0.0 Thermal 4,899 42.8 4,844 42.5 ?1.1 (2) IPP's 5,954 30.1 6,374 31.6 7.1 (3) Nuclear 462 2.3 462 2.3 0.0 (4 ) KESC 1,910.0 9.7 1,955.0 9.7 2.4 Total 19,780 100.0 20,190 100.0 2.1
NATIONAL ELECTRIC POWER REGULATORY AUTHORITY
Nepra is exclusively responsible for regulating the provision of electric power services. During the period July-March 2009?10, Nepra has processed ten applications for the grant of generation licenses including thermal and hydel power plants with a cumulative capacity of 311.4 MW. In addition to these thermal and hydel power projects, cases/applications of five wind energy projects with a cumulative capacity of 200 MW for grant of generation licenses were also processed. To encourage the hydel and coal based power projects in the country, the authority has allowed 17 per cent IRR to hydel and indigenous coal and 16 per cent to imported coal power projects as against the 15 per cent IRR for oil and gas based thermal power projects. Furthermore, during the period July-March 2009?10, Nepra issued twenty seven tariff determinations and 169 tariff adjustments in respect of generation and distribution companies.
During the period under review, Nepra has processed the tariff petition in respect of 80 MW cogeneration power project based on bagasse and imported coal.
SUPPLY SOURCES OF ELECTRICITY
The installed capacity of Pepco system stood at 18,233 MW as of March 2010 with hydro 6,555 MW and thermal 11,678 MW. The hydropower capacity accounts for 35.95 per cent and thermal 64.05 per cent. Out of 11,678 MW of thermal power, 4,844 MW is owned by Ex-Wapda Gencos, 135 MW by rental, 325 by PAEC and remaining by IPPs. There is 55 MW of isolated generation capacity in Pasni & Panjgoor areas.
KARACHI ELECTRIC SUPPLY COMPANY LIMITED
During the last fiscal year July-March 2009?10, the installed capacity of KESC's various generating stations remained at 1,955 MW against the peak demand of 2,459 MW. During this period, KESC's own generation stood at 5,504 million units (kWh) against 5,837 million units (kWh) during same period last year showing a decline of 5.7 per cent. Total units available to the KESC's system exhibited an increase of 5.6 per cent during July-March 2009?10 against the same period last year.
The length of transmission lines was 5078 ckM for 500-kV and 7325 ckM for 220-kV level at the end of June 2009. The length of transmission line was 4748 ckM for 500-kV and 7318-ckM for 220-Kv level at the end of June 2008. In order to ensure uninterrupted and stable power supply to the consumers as well as integrity of the grid supply system, the augmentation of the transmission network is a continuous process. In addition to the various ongoing secondary transmission lines and grid stations program, new transmission lines/substations are being envisaged.
GROWTH IN DEMANDS
The number of consumers has been increasing due to expansion of electric network to villages and other areas. The growth in number of consumers has increased by 4.5 per cent during July-March 2009?10 against the 4.2 per cent rise in the same period last year. Moreover, the longer term analysis of group wise consumers exhibits that the share of domestic consumers remained the highest with more than 80 per cent of total number of consumers.
Transmission and distribution (T&D) losses as per cent of net system energy more or less remained stagnant at 21 per cent to 25 per cent from 2000?01 to 2008?09. Furthermore, during July-March 2009?10, T&D losses witnessed an increase of one percent over the corresponding period last year. Keeping in view of these losses, the NTDC and Discos invoked various technical and administrative measures to improve operational and managerial efficiency to reduce power losses. Other measures such as renovation, rehabilitation, capacitor installation and strengthening the distribution system network are continuous process for controlling wastage of power.
Electricity generation from the hydro and thermal sources saw an increase of 5.6 per cent growth during July-March 2009?10 compared to five per cent decline in July-March 2008?09. Moreover, after growing negatively since 2007?08, the electricity generation has started to grow positively during the fiscal year 2009?10.
The composition of electricity generation suggests the stagnation in shares of hydro and thermal sources in the electricity generation with share of thermal remained larger than that of the hydro source.