For the very first, and sadly, the very last time in its history, Pakistan managed to produce 3000 MW surplus electricity through successful implementation of the 1994 Power Policy chalked out by the then People's government.
The short-sightedness of governments over the last three decades has had a detrimental impact on the energy sector. The country plunged into an energy crisis by the year 2007 due to rising electricity demand which entered into double-digit figure following increasing sale of electrical and electronic appliances on lease finance.
The government has announced a vision statement for the power sector which envisages addition of 20,000 MW by 2020. President Zardari has asked for an early adoption and utilisation of modern solar and geothermal technologies including solar cookers, geothermal heat pumps, solar water heaters and solar water pumping etc to take full advantage of the available natural energy resources to meet the energy requirements of the country.
The government is considering importing energy from Iran and Central Asian Republics and using indigenous sources, such as hydel, coal, waste, wind and solar power as well as other alternate energy sources, besides nuclear power plants for production of energy.
The country has an energy deficit of approximately 5000 MW - only producing around two-thirds of its energy requirements. According to the data available with PEPCO, the shortfall has increased to 3,120MW forcing increased hours of load shedding in the country. The electricity generation was recorded at with hydel generation providing 3,607 MW, Wapda thermal 1,920 MW, IPPs 4,975 MW and rental power 62 MW.
A country that uses oil for almost 40 percent of its primary energy needs, the fact that crude prices are rising again is enough to remind it of the energy crisis that continues to haunt it. A strategy to cut the current account deficit has to deal with cutting oil imports and this can be achieved by reducing reliance on power-generation from furnace oil. These are the five pillars on which the People's Government is building a prosperous Pakistan.
The People's government is committed to establishing a comprehensive and credible programme that ensures energy security and adequacy of supply to maximum use of indigenous water and hydrocarbon resources, energy conservation, development of alternative energy including wind and solar energy, reviving Keti Bunder project and establishing an energy corridor from Central Asia to Balochistan with a sustainable program to bring energy to the doorstep of the poor.
The People's Government is focusing on short, medium and long-term measures to fulfil energy needs of Pakistan. More than 2,000 MW to the national power grid would be added this year, which would be equal to the electricity, added last year 2010.
The new vision depends heavily on use of indigenous fuel resources like coal, hydel, gas and renewable, Diamer-Bhasha Dam and Thar Coal Project as part of efforts to rid the country of electricity shortages.
Diamer-Bhasha Dam Project will be the highest Roller Compacted Concrete Dam in the world, height of 272 meters spillway with 14 gates each 11.5mx16.24m. The gross capacity of the reservoir will be 8.1 MAF, with a live storage of 6.4 MAF. Two underground power houses are being proposed, one on each side of the main dam having six turbines on each side with total installed capacity 4500 MW. Scheduled completion period of the project is 2009 to 2016 at a cost of US $ 8.505 billion.
Diamer-Bhasha Dam would ensure food and water security, besides increasing cultivable lands. The project would also extend the life of Tarbela Dam by 35 years and would help control flood damage in the country.