Pakistan will go for more coal fired electricity than furnace oil. This is the main point of the 2013-18 power policy. The policy was finalized by Council of Common Interests on July 31. Energy mix will be changed in 3-5 years so that electricity prices remain affordable and load shedding is eliminated by gradual increase in generation. Increase in generation will be kept two steps ahead of demand to get rid of load shedding .
This will be attained mainly by substituting furnace oil with coal. Pakistan’s energy mix was topped by hydro power 20 years ago, said an official. PM Special Assistant on Energy Dr Musadik Malik said the new policy would eliminate supply – demand gap. We would set up ‘coal corridors’, ‘energy cities’ and ‘industrial corridors’ to attract investors. We would woo foreign investors here as the government is unable to spare $ 7-8 b from its resources. CCI deferred the issue of Federal Adjuster for a month as three provinces – Khyber, Sindh and Balochistan – did not agree with proposed mechanism.
The matter will be discussed by M/o Water & Power and 3 provinces. If required, the issue will be put back to CCI. Provinces are facing different issues. For instance, transmission in Balochistan is not high quality; and cannot be given full electricity. Electricity in Khyber is under attack. Muha-mmadi grid station – a key station destroyed by terrorists, is functioning at half capacity. Potential of hydro generation in Khyber is substantial and it intends more hydro power plants. Sindh has huge Thar coal which would be used for thermal power.
Sindh is the only province which has given its suggestions for the power policy. It urged giving Thar coal due importance in power generation. However, some suggestions appear to have been ignored in the new policy.
These points are: 1. Sindh wanted the ‘concept of provincial grids and tariff setting bodies’ includd in the proposed power policy. 2. It had wanted that development of transmission network be prioritised in case of Thar and coastal areas of Sindh. 3. Fiscal incentives for mining and power projects at Thar as approved by ECC be highlighted in the power policy to attract direct private/ foreign investment in Thar. 4. Fixed time frame be included in rules for implementing the policy on an immediate basis rather than allow amendments to cause further delay. Though the new policy rightly emphasizes use of Thar coal as ‘Fuel 1’, but strangely enough the policy is totally silent on adopting/ developing solar, wind and bio-gas as big sources of power. No explanation of this silence could be obtained immediately.
