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|08-27-2012, 10:20 AM||#1|
Efficiency of thermal power plants in Pakistan is abnormally low
Energy report points at faults in Pakistani systems
ISLAMABAD: Efficiency of thermal power plants in Pakistan is abnormally low, consuming high quantity of fuel to generate per unit electricity, which is a fundamental issue in Pakistanís energy sector, a comprehensive report prepared by the Sustainable Development Policy Institute (SDPI) said.
The 143-page report titled ďPakistan Power Sector Outlook: Appraisal of the Karachi Electricity Supply Company (KESC) in Post Privatization PeriodĒ authored by SDPI Advisor Engineer Arshad H Abbasi analyzed the energy crisis in Pakistan and presents its possible solutions.
It said that the findings, conclusions and recommendations of the study are equally applicable to all thermal power plants of Pakistan, which, consuming furnace oil and gas, are capable of generating almost 70% of electricity. The report suggested that enhancing fuel efficiency (per unit generation) would not only help produce more electricity from the available fuel, but also help reduce power prices by bringing down the cost of production at cheaper rate. At the same time, achieving this efficiency would result in saving the scarce fiscal resources that the government spends on subsidizing the power sector.
The study said that in Pakistan, electricity generation from renewable sources constitutes 32.8% of total power production. A major bulk of this share comes from hydropower while other renewable sources such as wind, solar, biomass and geothermal have negligible contribution.
This has subsequently not only led Pakistan towards an unprecedented energy crisis but has negatively affected its economic growth. The share of natural gas and oil in Pakistanís energy mix are 29% and 35% respectively. This heavy dependency on fossil fuels has been causing rapid depletion of Pakistanís gas reserves, an ever-growing circular debt and enormous price hikes of electricity.
The report said the generation fleet within the KESC is wholly dependent on fossil fuels and the prevalent crisis has further strained its performance and increased the cost of production. The total cost of fuel as per June 2011 is estimated to be Rs61130.296m with Rs1,843.796m on gas and Rs59,286.5m furnace oil.