Participants at a seminar on Tuesday said that Pakistan's economic growth is unsustainable if current levels of energy usage with inefficient system continues, advising the firms to reduce operating costs, minimise waste, and decrease harmful environmental impacts. The experts maintained that designing cleaner production reforms helps the national economy and strengthens Pakistan's ability to compete globally. All must play a role in ensuring policies and laws are in place to provide the enabling infrastructure for the private sector to adopt energy-efficient measures.
According to the experts, Pakistan has taken a number of actions to reduce energy consumption in the manufacturing sector yet serious energy shortages persist. And as the population grows, these shortages are likely to increase, putting additional pressure on industry to find ways to conserve natural resources, increase productivity and reduce costs.
In 2014, Ernst and Young conducted a study of Pakistani industrial usage based on audits of 230 manufacturers operating in the textile, sugar, paper and leather industries. The audits, led by National Productivity Organisation (NPO) and Cleaner Production Institute (CPI) included information on energy consumption, costs, and recommendations for more efficient energy usage and estimated payback periods for returns on investments in energy efficient technology.
The study found that manufacturers operating in these four industries had already implemented energy saving recommendations that reduce consumption by more than 287,000 MWh annually which is equal to Rs 8 billion. By adopting other energy efficient practices recommended by the audits, energy consumption in textile, sugar, paper and leather industries could be reduced by a total of more than 3.7 million MWh annually and save more than $76 million in energy costs which is equal to 650 MW installed power or about 25 per cent of the electricity required for Karachi. However, the study also found that as few as one-fifth of the manufacturers in each sector had implemented recommended energy saving techniques due to an array barrier.
The study further suggests that sugar producers can reduce their energy usage by 3.6 per cent or just over 1.1 million MWh of energy annually by improving the energy of the drying process, installing more efficient boilers and motors and other top priority investments recommended in audits of 66 sugar mills. Doing so would be financially profitable. Estimated payback periods on investment were less than two years for most recommendations. However, despite the potential to earn quick returns on investments, most sugar mills included in the audits had not implemented more recommendations. For instance, fewer than 50 per cent of sugar manufacturers had improved the efficiency of motors, the drying process and other hot process. Less than 60 per cent had installed more efficient boilers. Only installation of thermal insulation of steam line and valves had relatively high implementation rate of just over 80 per cent.
By implementing top priority recommendations, textile spinning and process mills could reduce energy usage by almost 22 per cent or 2.4 million MWh with a corresponding reduction in cost savings of just over $60 million (Rs 6.3 billion). However, lack of information on investment costs and payback periods on investments inhibited a full analysis of the sector.
Pakistan produces about 440,000 tons of paper products annually using mostly steam. With the implementation of top priority energy saving measures recommended in the audits, the sector could save an estimated 167,000 MWh of electricity for a cost of savings or more than $1.3 million (Rs 142 million). These included turning boiler burners and improving air to fuel ratios, measures that would save 5.6 per cent of the sector's collective energy bill.
The study also found that 34 tanneries included in the audits could save energy by implementing relatively simple measures, such as installing energy efficient lighting and controlling compressed air leakage. However, only 23 per cent of tanneries included in the audit had installed energy efficient lights and less than 40 per cent had taken measures to control compressed air leakage. Other top line recommendations included improving metering and monitoring or installing thermal insulation or steam lines and valves had implementation rates below 40 per cent. The audits offered information on payback periods for only three of 16 top priority measures. The thermal insulation of steam lines and halves, energy efficient lighting and power factor improvement showed payback periods on investment of less than two years.