The government is to allow power distribution companies (discos) to purchase power directly from generation companies (gencos), aiming at enhancing competition between companies, sources in the Planning Commission told Business Recorder here on Tuesday.
"Complete transition to a single buyer plus model will be completed that would allow for direct contracting between discos and gencos. This model will allow for inter-disco trading of maximum demand limits to promote competition," sources said. The peak power sector demand is expected to increase to approximately 21,000 mw in 2011-12, which implies that there will be no let-up in load shedding next year. Power load shedding in 2011 spring reached 6000 mw, primarily due to fuel supply constraints. The plans submitted by gencos, PPIB and Wapda will provide only 2,110 mw.
The details of the projects are as follows: (i) Allai Khwar HPP-installed capacity 121 MW- commissioning date October 2011; (ii) Gomal Zam HPP-installed capacity 17 MW- commissioning date October 2011; (iii) CC at Chichoki Mallain -installed capacity 525 MW-commissioning date June, 2012, (iv) GT from UAE thermal- installed capacity 320 MW, commissioning date December 2011, (v) CC from UAE thermal-installed capacity 120 MW -commissioning date 2011, Block -VI, Oracle coal fields, UK/coal project-1-installed capacity 300 MW- commissioning date December 2011, Grange Holdings Power Project-installed capacity -147 MW- commissioning date December 2011, Becon Energy Limited/ Wind project-c-installed capacity 50 MW-commissioning date December 2011, Fauji Fertiliser Co Limited -installed capacity 50 MW-commissioning date, Green Power wind project-installed capacity 50 MW-commissioning date December 2011, Chashnupp-C2-installed capacity 340-commissioning date December 2011, Pak Steel Waste GR-installed capacity-10 MW-commissioning date, October 2011, Municipal Waste Gas Rec-installed capacity 20 MW-installed capacity 20 MW-commissioning date November 2011 and Landi Bio Gas-installed capacity 40 MW-commissioning date December 2011.
During 2011-11, approximately 1900 MW were added under the PPIB programs. According to the Planning Commission, the current energy crisis was predicted at least seven years ago as part of the Medium Term Development Framework (MTDF)) 2005-10. Sadly, the warnings of MTDF have come true. Similarly, the 10th five-year Plan makes some critical recommendations, which will be of little value if these are not implemented.
"If the country continues to ignore the warnings and recommendations of the 10th Plan, then it will not be able to recover from the energy crisis. Power load shedding and fuel shortage will continue, and industry will continue to suffer," sources quoted Planning Commission in Annual Plan 2011-12. According to the Planning Commission, foreign exchange requirements for imported fuel will rise to around 15 percent of GDP in about 5-6 years if no remedial actions are implemented.
The Commission also fearlessly said that around 30 percent of the population does not have access to electricity at all. This restricted access to energy combined with widespread load shedding aggravates the high poverty level in the country. Planning Commission''s planned reforms and initiatives suggest that Pepco will be dissolved and CPP will be strengthened to ensure financial transparency and accountability. The privatisation program of energy companies will be revitalised and tariff differential subsidy will be eliminated.
Strong monitoring at each utility level as well as at the central level will be established and a thorough study to formulate a master plan will be conducted. The government will also focus on energy efficiency. According to assessments by various international agencies, energy efficiency measures can promote energy savings of 11.16 MTOE or 17 percent of primary energy supply. This is sufficient to provide over 7,000 MW of thermal power.
A project management office will be established for implementation of major energy efficiency programs such as tube well replacements, CFLs distribution, upgrading power and gas transmission and distribution networks, improvement in efficiency of water heating devices, installation of solar geysers, loss reduction via audit and benchmarking etc.
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