NEPRA Has Decided to NTDC’s Plan Strict Scrutiny Of

on 15/07/2020

National Electric Power Regulatory Authority (Nepra) has decided to conduct a hearing on NTDC’s ‘Indicative Generation Capacity Expansion Plan (IGCEP) 2047, on Wednesday (15th July 2020). National Transmission and Despatch Company (NTDC) have designed the project to cover the future horizon of energy for 28 years i.e. 2020 to 2047.

            Load forecast and generation capacity expansion and despatch optimization exercises are the two significant progressions on which this generation is composed. Whereas, these processes need statistical and computation efforts and a purposeful made software for more exact results.  

            However, the planning has been done to meet the demand of 43,820 MW by the year 2030, a generation capacity of 76,391 MW is required. On the other hand, to fulfill the demand of electricity by the year of 2030, the share will also be taken from Variable Renewable Energy (VRE) resources i.e., 10,327 MW of wind and 12,793 MW of solar, respectively.

            Whereas, the case of the demand by the year of 03,065 MW by the year 2047, a total of 168,246 MW of nominal generation capacity is required. And 32,948 MW of STs on Thar coal, 4,749 MW of CCGTs and 25,828 MW of OCGTs on RLNG, 55,836 MW of hydro, 1,000 MW of CASA, 913 MW of bagasse, 4,407 MW of nuclear, 5,297 MW of imported coal, 26,921 MW of solar and 10,327 MW of wind-based generation have been made available by the software. A total of 97,080 MW of nominal generation capacity has been optimized by the software during the period 2031-47.

            As far as the concern of RLNG-based plants and imported coal-based plants share will decrease, i.e. 26% to 11% in 2025 and then eventually falling to merely 1% beyond 2034 and from 18% in 2020 to only 1% by the year 2047 respectively. Apart from these energy plants the share of wind and solar in the overall energy mix increases from about 3% in 2020 to 23% in 2030.

            The end year of the IGCEP (2047) the system will have around 168,200 MW which is right now (2020) 33,000+ MW. A Major increase in the capacity is observed in the hydropower, local coal, VRE and RLNG based plants. New VRE plants are suggested by PLEXOS being a cheaper source of energy. This results in the capacity addition of around 35,762 MW of solar and wind up till 2047. Moreover, the results also show the capacity of 45,929 MW hydropower, 1,562 MW imported coal, 32,345 MW local coal, 27,071 MW RLNG, the 3,177 MW nuclear energy and 654 MW bagasse power plants are selected by the software.

            The rate of GDP growth scenario forecast, energy generation in GWh grows at Cumulative Average Growth Rate (CAGR) of 4%, 5%, 5.6%, 6.1% and 4.6% by 2025, 2030, 2030, 2035, 2040 and 2047 respectively. Similarly, peak demand in MW grows at CAGR of 4.9%, 5.3%, 5.6%, 6.1% and 4.6% by 2025, 2030, 2030, 2035, 2040 and 2047 respectively.

            Private Power and Infrastructure Board (PPIB), has decided to RLNG with coal and hydel projects as per the direction of the GOP. Then RLNG can be used in other projects. PPIB also is also show its concern on the period of ICGEP and said that 27 years are too long. CODs of 720 MW Karot HPP and 884 MW Suki Kinari lIPP (both under construction/committed category project) have been mentioned in IGCEP as 2022 and 2023, respectively. PPIB has recently signed agreements for Kohala hydropower project and Patrind hydropower project.

            Thar/Local Coal based power project also needs sufficient block allocation in IGCEP as it was financed from International Multilateral Financing Agencies. PPIB also demands that IGCEP should only consider those aspects which are effective and profitable in time-wise and cost-wise.

            The KP government has also shown its concerns over IGCEP due to which high level changes in bureaucracy of Power Division were made as the provincial government was unhappy with the plan.

Whereas, Wapda is also not giving so much importance to IGCEP as it is working on three hydropower projects; Dasu, Mohmand and Diamer which are expected to start electricity generation between the year 2024 – 2028 and calling it a real game changer for power division. Chairman Wapda raised the question on the authenticity of IGCEP report and said that civil contract for the Diamer Basha Mega project will be expected to complete in 2028  and the project will generate 4500 MW Power with annual energy of 18097 GWh but the IGCEP 2047 indicated the commissioning of the Project during 2043, which is too far.

            The present situation of Pakistan claims that the projects of power evacuation should be completed on an immediate basis specially the projects located in the tough terrain of Northern Areas hardly accessible and having limited flexibility in the narrow transmission corridor.

            The government of AJ&K is giving importance to the hydropower option in generating energy and wanted a fast pace in the implementation of these energy projects.

            According to IGCEP, it has decided to consult every possible source to improve the energy sector in Pakistan, it also has plans to work on alternative and renewable energy generation targets and promising new technologies in the future of Pakistan.

            Whereas, the energy sector needs a very detail planning, which should be revised in every five years. IGCEP should work on reducing the randomness and also trying lessen the risks which will attract the potential investors.

Buzdar Announced 13 Special Economic Zones

on 14/07/2020

Chief Minister Punjab Usman Buzdar announced the program of 13 Special Economic Zones (SEZs) and Industrial estates on more than 10,000 acres of land which will be the opportunity of a million jobs. He defined that the industrial city would have more than 550 industrial units. According to him this project will also attract the international companies and bring the foreign investment in Pakistan. He mentioned that the project of the Allama Iqbal Industrial City which would be more than 3,000 acres of land and generate employment opportunities for 300,000 youths.

            Furthermore, CM also introduces the concept of one-window system, which will facilitate the firms, local and international, in making investments.

 CM is hopeful about this project and called it a game changer project for Pakistan’s economy. He also criticized the previous governments and politicians as there were only three economic zones which have been established in the entire history of Pakistan.

Optical Fibre operationalize from Khunjrab to Islamabad

on 14/07/2020

A project of implanting optical fibre cable had been operationalized from Khunjrab to Islamabad mentioned. The news revealed by special assistant to the Prime Minister on Information and Broadcasting, Lt-Gen (retd) Asim Saleem Bajwa via tweet.

            He also mentioned the next phase of the cabling project which would be laid from Islamabad to Karachi and Islamabad to Gwadar. He said that the project is being executed under CPEC and with the cooperation of China, as he is also the Chairman of China Pakistan Economic Corridor.

Euro-V Is The Only Standard That Can Be Imported By Oil Companies

on 10/07/2020

Government has issued a notice which directs the oil industry to import petrol and diesel no less than Euro-V standard from Aug 1, 2020, and Jan 1, 2021, respectively. This decision has generated a kind of resistance mood among the oil industry against the government, as the oil industry already poles apart on petroleum pricing mechanism and regarding the issue of 20-day stocks.

The oil industry has given a number of reasons that prove that the given instruction is not possible to practice. This decision will cause Rs7-8 per litre price hike and $200 million annual foreign exchange loss. The Oil Companies Advisory Council (OCAC) sent a letter to the Petroleum Division, explained that it is impractical for them to compliance of EURO-V with other fuels. They also highlight the expected cost of the shift in energy, which is dreadful. The industry has realized its impact on its storage and logistics of OMCs at every stage; from port to retail outlets, which can give serious damage to the country’s economy.

            This shift of energy is also not easy from the consumer end. Consumers will have to pay more price than they are paying right now. Moreover, the condition of country’s motor vehicles is not in a position to accept the shift in nature of the fuel, as there are a large number two- and three-wheelers vehicle and very old cars as well which are consuming more than 50pc petrol.  The oil industry demanded a smooth and step by step shift in energy as other countries did, which will not disturb the supply chain, avoid a sudden shift in price, give time to examine its environmental benefits, upgrading the engines of vehicles and giving sufficient time to local refineries to prepare their plants.

July sees the jump in the prices of Suzuki and two-wheelers vehicles

on 10/07/2020

Alto 660cc VX model, also called the city car, now is not in reach in most of the city dwellers. The price of the car has increased Rs63,000 to Rs1.198 million from July 7, as Pak Suzuki Motor Company Limited (PSMCL) announced a new price list.

          PSMC has already increased the price of two-wheelers in the wake of July i.e. 1st July, which is about Rs3,000-6,000. The new prices of GD110S, GS150, GSX150SF are RS175,000, Rs185,000, Rs202,000, Rs279,000 and Rs579,000 respectively.

          Whereas, the company did not mention any particular reason for the price hike in the letter sent to authorized dealers. Although, those who have already booked the model with full payment, will not have to pay the upward price difference.

          The news of the rise in the price of PSMC’s product also awakes the other industries of vehicles, such as N.J. Auto Industries, assembler of the Super Power 70-250cc bike models has also revised their already raised prices and made it Rs1,200-2500 which was Rs1,000-2,000 according to the report of 1st July. Assemblers of Unique bikes raised the prices of 70-100cc models by Rs1,200-2,200 effective from 10th July. Moreover, the Chinese and the Japanese are not far behind and also announced their new price hikes in the range of Rs500-20,000 on July 1st.           The reason which has been given behind the price hikesis rupee’s depreciation against the dollar, and increase the demand of rupees to import the parts of vehicles.