Optimal energy mix

Addressing the inaugural session of Pakistan Oil and Gas Conference 2017 on the topic of “Emerging fuel mix and marketing outlook”, the Prime Minister Shahid Kaqan Abbasi said that gas load shedding for all consumers is a thing of the past and electricity shortage would end soon. He said the import of Liquefied Natural Gas (LNG) has helped the country adequately meet its energy needs and asked for objective intellectual input for optimal use of renewable source of energy.

The government had abandoned the pursuit for cheaper sources of energy. The contraction of big, medium size dams and hydro power stations thereon was excluded from the priority list. The political leadership started a negative campaign against the construction of Kalabagh dam in the Khyber Pukhtunkhwa and Sindh. Pakistan People’s Party is a national level political party but its leadership opposed the construction of this dam tooth and nail. The PML (N) leadership has never made serious efforts to build a consensus for the early construction of Kalabagh dam. Likewise, the present government did not take tangible measures for starting the construction work on Diya Mir Basha and Dasu dams. WAPDA invested Rs. 2 billion in Alfalah Bank instead of spending it on Noulang dam in Baluchistan. Construction of Motorways, Orange Train and Metro Bus Service are also essential but they should not be given preference over the productive mega projects like dams and hydro power stations.  KP and Baluchistan provinces have vast reserves of oil and gas which need exploration activities on fast track basis to further reduce dependence on the import of POL and gas, saving the precious foreign exchange. For this purpose, finances should be made available and their judicious utilization should be ensured.

Wind mills are another major source of renewable energy but this is neglected altogether. The use of costly furnace oil and diesel for power generation has made the tariff of electricity sky high. The Prime Minister has assured that thermal power plants will be converted on gas but multiple indirect taxes have also made the gas costly. The price of LNG is also on high side. The government is indecisive on the import cheaper natural gas from Iran through pipeline. At present 70 percent power is generate from very costly thermal sources and 30 percent from hydro and other sources. This ratio has to be reversed if optimal energy mix has to be achieved. The under construction coal power plants will be run on imported coal producing expensive electricity. Solar and bio-gas power plants can also produce inexpensive electricity. The objective intellectual input for optimal energy mix is available. It needs prioritization by the government in its development plans and strategies.