Power generation: ADB preparing project to promote greater use of renewably energy

Asian Development Bank (ADB) was preparing a project to promote greater use of renewable clean indigenous energy sources for power generation in Pakistan, through a technical assistance (TA) grant approved for 550,000 dollars. Sources in ADB said here on Friday that the grant was from the Japan Special Fund, financed by the government of Japan. The TA would provide support for analysis of the renewable energy potential of each province and feasibility study of selected sample sub-projects for financing under the ensuing loan.
They said that as a net importer of energy, Pakistan each year spends three billion dollars, equivalent to about 30 percent of total imports, to import oil to meet its energy needs, posing a heavy burden on the government's foreign exchange. Recent increases in oil prices and their continuous fluctuation have put further pressure on the economy, they added.
The sources averred that most of the imported oil was used for generation of electricity, although it could not satisfy demand. Pakistan faces a 20 percent shortfall in power availability, while only a little more than half of the population has access to electricity from the national grid. The remaining 45 percent use kerosene, wood and other bio-fuels for lighting, cooking and heating.
According to sources, Pakistan also has one of the lowest per capita consumption of energy in the world. More than 70 percent of the country's electricity comes from thermal sources, while a little less than 30 percent coming from hydropower. The government was putting emphasis on renewable energy and has set a target of 10 percent renewable energy, or 2700 MW, in the country's energy mix by 2015. It has established the Alternative Energy Development Board (AEDB) as the apex organisation to co-ordinate renewal energy promotion.
They said that the ensuing 200 million dollars investment project would be considered for board approval in 2006. ADB was also processing for approval in 2004 an additional TA for 150,000 dollars for capacity building of AEDB. The total cost of the TA was about 800,000 dollars, of which 250,000 dollars would be funded by the government. AEDB would be the executing agency for the TA and would be responsible for co-ordinating its activities and disseminating the information learned. The TA would also work closely with the departments of irrigation and power in Balochistan, NWFP, Punjab, and Sindh to conduct pre-feasibility studies for projects that show strong renewable energy potential.