* Feasibility is under review.
Source: Water and Power Development Authority

A. Water and Power Development Authority (WAPDA)

i) Electricity Generation
The power generation development programme of WAPDA mainly focuses the optimal utilization of indigenous energy sources i.e. hydroelectric, coal and natural gas. The Ghazi Barotha project, a site downstream of Tarbela near Attock having 1,450 MW (5x290 MW) is under construction, and scheduled for completion by mid - 2003. The work on Chashma Low Head Hydro Project of 184 MW (8x23 MW) is going to be completed by end 2000. The PAEC Nuclear Power Plant (325 MW) will be in commercial operation by mid -2000. The feasibility studies of Kohala (593 MW) and Munda (600 MW) are underway. The feasibility study of Basha/Diamir (3,360 MW) upstream of the Indus will also be undertaken. Dasu (2,270 MW), Thakot (2,400 MW) and Bunji (1,290 MW) have been identified, as prospective sites for future large scale hydro development. Besides, hydro projects feasibility studies have also been carried out for gas-fired combined cycle power plants which will be developed to provide low cost thermal power. The current level of electricity generation indicates that hydel power potential has not been fully exploited. All the untapped hydel potential is located in Northern Areas and NWFP. However, over the years, the relative share of the hydro electricity which was 51.8 percent in the total electricity production under the WAPDA system, has declined to 41.8 percent in 1998-99, while the share of thermal power has increased from 48.2 percent to 58.2 percent for the same period. During July 1999 to March 2000, the share of hydel generation has further declined to 38.5 percent and share of thermal has increased to 61.5 percent. The annual trend of electricity generation (hydel verses thermal) since 1992-93 to 1999-2000 (July-March) is given in Table 16.14.

* Provisional data includes purchases from HUBCO, KAPCO, KEL, AES Lalpir, AEA Pak Gen, SEPCOL and Habibullah Energy
Source: Water & Power Development Authority

ii) Transmission of Power
The total length of transmission lines in the country has increased to 43,483 circuit kms (provisional) by March 2000. The length of transmission lines include 500 KV (4,160 circuit kms), 220 kV (5,986 circuit kms), 132 kv (26,045 circuit kms) and 66 kv (7,292 circuit kms). In order to ensure uninterrupted and stable power supply to consumers, the augmentation of existing transmission network is another major activity. In addition to the on-going secondary transmission lines and grid stations programme, new 500 and 220 kV transmission lines for power dispersal of Ghazi Barotha Hydropower Project and 500 kV Muzaffargarh-Gatti transmission line will be constructed. For Ghazi Barotha power dispersal, 613 km long 500 kV transmission line, 95 km long 220 kV transmission line, a new 500 kV substation at Gujranwala and a new 220 kV substation at Nowshera Industrial area are planned to be constructed by 2002-2003. Muzaffargarh-Gatti 500 kV transmission line will be 275 km in length, and is planned to be completed by 2001-2002.

iii) Growth in Consumers
The number of consumers has increased markedly due to rapid urbanization, extension of electricity facilities to un-electrified areas and village electrification. The number of consumers has increased to 14.3 million by March 2000. Table 16.15 indicate the annual trend of electricity consumer groups since 1992-93 to 1999-2000 (July-March).

*Provisional data
Source: Water & Power Development Authority

iv) Village Electrification
The village/rural electrification has been designed to increase the productive capacity of the country’s population living in rural areas. The number of villages electrified has increased from 45,644 in 1992-93 to 68,047 by March 2000 indicating an increase of 49.1 percent. The annual growing trends of village electrification since 1992-93 to March, 2000 are given in Table 16.16.

* Provisional data including FATA & PATA
Source: Water & Power Development Authority

v) Electricity Consumption by Economic Groups
The consumption of electricity by economic groups identifies domestic/household as the largest consumer of electricity. Over the years, the share of domestic consumer in total electricity consumption has increased from 35.9 percent in 1992-93 to 46.1 percent in March, 2000, while the respective shares of the industrial and agriculture consumers have declined correspondingly. The share of commercial consumers, however, remained almost static. During July-March 1999-2000, the domestic consumers accounted for 46.1 percent of total consumption, followed by industry (26.9%), agriculture (11.1%), bulk supply and public lighting (7.0%), commercial (4.9%) and traction (0.04%). In order to boost overall economic growth and increase electricity sales to the productive sectors (agriculture and industry), many concessions in the form of financial relief have been provided through tariff reforms. It is hoped that these measures would give boost to the productive sectors of the economy. Table 16.17 shows the pattern of electricity consumption by economic groups since 1992-93 to 1999-2000 (July-March).

* Provisional data
Source: Water & Power Development Authority

vi) Power Losses
The power losses during 1992-93 to 1999-2000 have been growing annually due to technical reasons/natural system losses and theft. The transmission and distribution (T&D) losses which were 21.1 percent in 1992-93, increased to 24.2 percent during July-March 2000 but was lower when compared with 25.8 percent in 1998-99. Table 16.18 gives annual trend of power losses since 1992-93 to 1999-2000 (July-March).

Source: Water & Power Development Authority
*. Provisional data

The WAPDA has been making efforts to improve its operational efficiency and management in order to reduce both technical losses and theft. The programmes of renovation, rehabilitation, installing capacitors and strengthening consumer-end distribution supply network will help reduce power losses.

vii) WAPDA’s Restructuring
In order to bring improvement on long term and sustained basis in financial, operational and management in all tiers of WAPDA, measures are in vogue to split WAPDA into various independent power companies, i.e. eight Distribution Companies, three Generating Companies (GENCOS) and a National Transmission and Dispatch Company (NTDC). These entities are to be corporatized under the management of PEPCO.

B. Private Power Generation
WAPDA has signed Power Purchase Agreements (PPAs) with 18 power projects, having a total capacity of 5,798 MW including KAPCO (1621 MW) and HUBCO (1292 MW). The PPA with Eeshatech Ltd. has been terminated. Against which, 4,674 MW are already being supplied by the IPPs to the national grid. The remaining 1124 MW capacity will be completed, as per dates indicated against each project in Table 16.19.

Source: Water & Power Development Authority

C. Karachi Electric Supply Corporation (KESC)
The Karachi Electric Supply Corporation (KESC) has been granted the licence to generate, transmit and distribute power under the jurisdiction of Karachi and suburban areas of Karachi and part of Balochistan i.e. Hub, Vinder, Uthal and Bela. It is the responsibility of the Corporation to forecast demand for power and plan its generation, transmission and distribution. Presently, the number of consumers on billing panel is 1,627,442 as on March 31, 2000. The KESC has taken certain measures for the recovery of outstanding dues from the private and public sector consumers, but the recovery is not upto the expectation of the government. Further steps for its improvement are being taken by the KESC authorities to achieve the targets. The operational performance of the KESC is discussed in the following paragraphs.

a) Production Trends
The Karachi Electric Supply Corporation generated 5742 Gwh of electricity from its own sources during the period July-March 1999-2000. The import of electricity from sources internal of KESC system i.e. PASMIC, Kanupp, the IPPs totaled 1312 Gwh. The KESC and other agencies generated a total of 7054 Gwh of electricity, against the planned target of 6955 Gwh. The corresponding figures for the nine months period, July-March 98-99 was 4934 Gwh and 1638 Gwh respectively thus totaling 6572 Gwh. The system registered a growth in electricity generation of 6.82% due to increase in system demand.

b) Performance of Power Plant
The KESC owns four Power Plants and imports power from two other public sector organizations, Pasmic and Kanupp (technically integrated with KESC grid). The total imports from these two public sector organizations totaled 310 Gwh, against the budgeted 313 Gwh. The corresponding figures for 98-99 were 361 Gwh of energy generation. These organizations generated 1011 Gwh, against 1360 Gwh in the same period last year , registering a fall of 25.7%.

c) Performance of Private Sector
The total installed capacity of private sector in KESC area is 252 MW, consisting of Gul Ahmed and Tapal Energy Limited. The energy contributed by these two IPPs was 1011 Gwh with a plant factor of approx. 65%. The growth in system demand has been greatly taken care of by the existence of these plants in the KESC grid.

d) New Measures , 1999-2000
KESC has taken firm steps to rationalize the maintenance needs of its power stations. The rehabilitation of Unit-1 (66 MW) at Korangi has been successfully completed, which is generating 40 MW. Similarly, major overhaul of unit-4 KTPS has been completed, which is generating 80 MW. The Bin Qasim Power Station is the most important source of electricity generation with installed capacity of 1260 MW. Major rehabilitation of Unit No.1 has been completed which is generating 190 MW. The rehabilitation/major overhauls of Unit No.2 is in progress and it is expected that this unit will be synchronized in the mid of June. The station capability will be 1035 MW in June after rehabilitation of Unit 2, presently station minimum availability is 850 MW, Routine maintenance of Units 3 and 4 is also planned in the current fiscal year. One of the major programs planned for Bin Qasim Plant is the gradual commissioning of the station on gas fuel. Units 5 and 6 have recently been commissioned on gas. Unit No.2 will also be commissioned on gas up to June, 2000.

D. Nuclear Power Energy
Pakistan Atomic Energy Commission (PAEC) is responsible for development of nuclear power in the country. The Karachi Nuclear Power Plant (KANUPP) has been in commercial operation since 1971. The KANUPP has gross capacity of 137 Mwe and operated safely for more than 28 years. During July 1999-March 2000, the plant generated 228.64 Gwh, raising the life time plant generation to 9.5 billion kWh. A project, namely "Safe Operation of KANUPP (SOK)" is in progress with the technical support from the IAEA to extend the life of the plant. After completion of all the planned modifications and safety upgrades, KANUPP is expected to operate ten years beyond its design life of 30 years i.e. upto the year 2012. The KANUPP Institute of Nuclear Power Engineering (KINPOE) also conducts M.Sc. Nuclear Power Engineering courses for engineers and post diploma training courses for technicians.

The second nuclear power plant, a 300 Mwe Chashma Nuclear Power Plant (CHASNUPP) is being constructed at Chashma, District Mianwali, under a contract between Pakistan Atomic Energy Commission and China National Nuclear Corporation. The plant is under testing and commission phase and is expected to start commercial operation during this year.

The PAEC has developed a fairly large infrastructure which is playing a vital role in the indigenisation effort by providing mechanical engineering and related services to various organizations of the PAEC as well as to the local industry. The existing infrastructure is capable of manufacturing large mechanical equipment and components for power and process plants. Major jobs of design, fabrication and manufacture have been undertaken for different establishments of the PAEC. The European Centre for Nuclear Research at Geneva has awarded a contract for the fabrication of 8 steel supports for the Compact Muon Solenoid (CMS) Magnet Barrel Yoke. The job is underway and proceeding on schedule. The National Centre of Non-Destructive Testing (NCNDT) and the Pakistan Welding Institute (PWI) conduct training courses in these fields. In addition, Non-Destructive Test Services are provided to various industries/projects in the government and private sector. The Institute of Nuclear Power (INUP) is acquiring indigenous capability for core design and safety analyses of pressurized water reactors including incore fuel management, accident analysis and nuclear fuel development. Technical Cooperation and Support is provided to CHASNUPP and other PAEC establishments. The Informatic Control and Computer Complex (ICCC) has developed methodologies and software packages for design and project management techniques for nuclear power plants. Development of Computer and Control equipment for nuclear power plant is also underway.

E. Coal
Estimated reserves of coal in the country are 185 billion tonnes which include 175 billion tonnes of Thar coal field, discovered by Geological Survey of Pakistan in 1992. Presently, about 91 percent of total coal production is being utilized for brick burning and 9 percent for power generation. The production of coal remained stagnant, as no significant market demand has been created for coal consumption. A brief review of the province-wise coal extraction is given in the subsequent paragraphs.

a) Balochistan: The PMDC is operating three coal mines in Balochistan at Sharigh, Sor-Range, Deghari and Lakhra Coal Mines (Sindh) which produced 269,262 tonnes of coal during July 99 to March 2000. The overall resource potential is over 194 million tonnes with measured reserves of 52.5 million tonnes.

b) N.W.F.P : Hangu is the only coal field in NWFP. Some sporadic mining is reported from Charat. The resource potential is over 44 million tonnes with measured reserves of 0.5 million tonnes. During July 1999 to March 2000, 53,199 tonnes of coal was produced in NWFP.

c) Punjab: The Punjab Mineral Development Corporation is engaged in mining coal in Dandod, Padhrar and Pail in Punjab and produced 39,480 tonnes of coal during July 1999 to March 2000.

d) Sindh: The Lakhra Coal Development Company is engaged in coal mining and coal production in Sindh. During July 1999 to March 2000, 198,281 tonnes of coal was produced by this organization.

F. National Electric Power Regulatory Authority (NEPRA)
The National Electric Power Regulatory Authority (NEPRA) was enacted by the Parliament in December 1997 to set out a new regulatory regime for the power sector in Pakistan. During the period July 1999 to March 2000, the NEPRA expended considerable effort and successfully secured agreements from the World Bank and the Asian Development Bank to find expatriate input to review the many draft documents developed in-house by local professional staff. To cater to Government’s policy that future power projects will have to be based on indigenous fuel, experts were hired to advise NEPRA on considering requests for licence for coal fired power projects and hydel projects. One study concluded in December 1999 and the other was completed in March 2000. Two studies were commissioned to resolve issues raised during a public hearing related to tariff for agricultural tubewells.

Progress was also achieved in following new rules, recently notified for the market. Pursuant to the Licence Application and Modification Rules, 9 Distribution Companies of Water And Power Development Authority (WAPDA) and Karachi Electric Supply Corporation (KESC) paid Licence Application Fee in December 1999 and February 2000 respectively. The process to issue them licenses has been initiated through a public hearing in Lahore from 28 February, 2000. Subject to how the hearings proceeds, the NEPRA expects all distribution companies to be licenced by June/July, 2000. Following distribution, the NEPRA proposes to focus on the business of generation. Rules for granting generation licence have recently been approved by the Government. During this period, public hearings were also held to determine a petition by the KESC to review its tariff in the light of revisions in tariff for WAPDA. Workshops were also conducted to acquaint WAPDA Distribution Companies with the Application Procedure for a Distribution Licence. The NEPRA also provided advice, support and explanation to the Privatization Commission and their consultants to facilitate sale of the KESC.