Future Prospective For Ipps In Energy Sector Essay

Table of Contents
Energy Profile of Pakistan 3
Sector Organization 3
Hydroelectricity 3
Conventional Thermal 4
Renewable Sources 4
Nuclear 4
Introduction to IPPs – Independent Power Producers 5
IPPs and Circular Debt Issue 7
Recent Energy Crisis and IPPs 8
Recommendations 10
Short Term 10
Mid and Long Term 10

 
Energy Profile of Pakistan

Pakistan had 20.4 gigawatts (GW) of installed electric generating capacity. Conventional thermal plants using oil, natural gas, and coal account for about 66 percent of Pakistan’s capacity, with hydroelectricity making up 32 percent and nuclear 2 percent. Pakistan's total power generating capacity has increased rapidly in recent years, due largely to foreign investment, leading to a partial alleviation of the power shortages Pakistan often faces in peak seasons. However, much of Pakistan’s rural areas do not have access to electric power and about half the population is not connected to the national grid. Rotating blackouts ("load shedding") are also necessary in some areas. In addition, transmission losses are about 30 percent, due to poor quality infrastructure and a significant amount of power theft.
Sector Organization

The electric power sector in Pakistan is operated by the Water and Power Development Authority (WAPDA), and the Karachi Electricity Supply Corporation (KESC), with additional generation contribution from Independent (private) Power Producers (IPPs). WAPDA is responsible for supplying power to all of Pakistan, with the exception of Karachi, which is supplied by KESC. Currently, 23 IPPs operate in Pakistan under a Build-Own-Operate (BOO) basis. The National Electric Power Regulatory Authority (NEPRA) regulates the power sector in Pakistan, which includes power generation, transmission and distribution. NEPRA is also responsible for determining electricity rates in Pakistan.

Disputes over rate adjustments are common within the industry. WAPDA is at the center of a public sector "circular...