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The Economic Hydropower potential in Pakistan is estimated at 20,000 MW, while the
country's existing Hydropower generation capacity is 6,460 MW and projects for an
additional 3,500 MW are currently under development in the public and private sectors.
The estimated requirement in Pakistan for building mega dams in the next two decades is
USD 20.4 billion, against which the World Bank has approved annual funding of USD 900
million. The Government of Pakistan, on its part, has also planned on spending a similar
amount on an annual basis for the next 20 years. In addition, private investors have
submitted Expressions of Interest to generate over 9,000 MW of power required in the next
5-6 years through Hydel, Thermal and Coal based projects. Similarly, under a phased
programme the entire Thermal power Generation, which consumes a major part of the
imported fuel oil, is also being switched over from oil to indigenous natural gas.
The government is currently spending USD 200 million a year to upgrade the existing
generation, transmission and distribution system. However, the Water and Power
Development Authority (WAPDA), requires funding of USD 5 billion to improve upon the
existing transmission and distribution network of 360,000 km's in the country. Pakistan also
possesses an estimated 185 billion tons of Coal reserves, which are one of the largest in the
world. Feasibility studies are also underway for the development of Energy of over 1,000
MW, through the use of coal and solid waste. Exploration and utilization of alternate sources
of power through use of Solar and Wind energy, has also been initiated in Pakistan. During
the last two decades Pakistan has developed its potential in Photovoltaic (PV) technology,
which is suitable for small power requirements and remote area applications.
Clean Fuels Initiative
The government's 1995 Clean Fuel Initiative introduced the possibility of using alternative
fuels for vehicles. As of 2001, 200,000 cars were fitted to use compressed natural gas
(CNG) which pollutes less than gasoline. The government has also set up 150 CNG fueling
stations around the country, and is looking into converting diesel vehicles to CNG as well.
Pakistan has investigated converting rickshaws to CNG through a pilot project with the
Canadian International Development Agency (CIDA). Preliminary results suggest that
converting rickshaws to CNG would bring considerable cost-savings for rickshaw owners
and environmental benefits throughout Pakistan. Unfortunately, outside funding would be
required to expand the program as the capital investment to convert rickshaws to CNG is
beyond the reach of most rickshaw owners.
Renewable energy consumed in Pakistan in 1997 totaled 1,132 trillion Btu, a 1% increase
from 1996. Hydroelectric power is an important domestic energy source, generating 28% of 127 all electricity in the country, and a number of new sites are being developed. Although the
mountainous north gives Pakistan much hydroelectric potential, difficulty of access and the
high cost of transmission to the populous south make development...
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This note was uploaded on 10/02/2010 for the course MBA 32343 taught by Professor Samghouri during the Spring '10 term at Karachi Institute of Economics & Technology.
- Spring '10