1
GOVERNMENT OF KHYBER PAKHTUNKHWA
ENERGY & POWER DEPARTMENT
Presentation to Energy Task Force Khyber
Pakhtunkhwa
13th April 2012
2
Aim
 The entire country is facing acute Energy shortage
which is likely to increase during summer.
 National Energy Conference was held in Lahore on
9-04-2012, hosted by Punjab Government chaired by
the Prime Minister of Pakistan to address the issue.
 The Conference made certain recommendations which
are to be shared with the stake holders and to enable
implementation.
 For this the Provincial Government has notified an
Energy Task Force.(ETF)
3
COMPOSITION OF ENERGY TASK FORCE
1.
Senior Minister for P & D/ E & P
Chairman
2. Senior Minister, Local Govt:, Election
& Rural Develop
3. Minister for Information & Public Relations IPC
& Transport
Member
4. Minister for Industries, Commerce,
Mineral Develop
5. Minister for Health
6. Minister for Law Parliamentary Affairs
& Human Rights
7. Minister for Labour
Member
Member
Member
Member
Member
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ROLE OF ENERGY TASK FORCE IN KHYBER
PAKHTUNKHWA
 The Task Force is assigned the work for engaging in a
consultative process with the stakeholders for
successful implementation of recommendations of the
Energy Conference. The Task Force shall also
periodically review the progress on implementation.
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Sequence of presentation:
a) Present situation and extent of problems
b) Recommendations of Energy Conference
c) Way forward
6
Present situation and extent
of problems
7
Pakistan Energy Sector Overview Summer and Winter
Fuel Mix - Summer
Nuclear
3%
Thermal - Gas
14%
Hydel
35%
Supply- Demand Gap
Summer Projected (Peak)
3500 to 4500 MW
7 - 9 hrs load shedding
Thermal - RFO
26%
GENCOs
22%
Fuel Mix - Winter
Nuclear
8%
Thermal - Gas
15%
Supply- Demand Gap
Winter (Peak)
3500 to 6000 MW
8-16 hrs load shedding
Hydel
18%
GENCOs
16%
Thermal - RFO
43%
8
Historical Supply & Demand
25000
20000
15000
10000
5000
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
-5000
2004-05
0
-10000
Computed Peak Demand
Corresponding Supply
Surplus/ Shortfall
9
Power Sector – Generation Addition
Fuel Mix - Capacity Additions (MW)
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
2002
2003
2004
Hydro-Wapda
2005
2006
Thermal-Genco
2007
IPP-Hydro
2008
2009
IPP-Thermal
2010
2011
PAEC
Power Sector – Generation Addition (2008-2011)
Malakand - III
81
Nishat Power
200 Hubco
Khan Khawar
72
Nishat Chunian
200 Foundation Power
Attock Gen
163
Sapphire Power
225 Halmore Power
Atlas Power
219
Techno Power (R)
60
Chashnup-II
Engro Power
227
Liberty Tech
200 Karkey - Rental (R )
Saif Power
225
Gulf – Rental (R)
62
Walter Naudero (R)
Orient Power
225
(Excluding Rentals of 405 MW = 2995 MW)
Total
225
202
225
300
232
51
3,400
10
Generation Additions (2008-2012)
Sector Description
Capacity (MW)
A. Gas/RFO/HSD
3237
B. Hydel Projects
153
C. Wind Power Projects
312
D. GENCO Rehabilitation
636
Total (A+B+C+D)
4338
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25
25,000
20
20,000
15
15,000
10
10,000
5
5,000
Consumers
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
-
2002
-
Demand (MW)
Millions
Power Sector – Load Growth
Demand (MW)
Demand Increase per year = 7.31%
Actual number of consumer increase 2002 – 2011
•Total
= 5.38% (average per year growth)
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Key reasons for shortfalls
1.
Liquidity crunch resulting in under-utilization
of installed capacity
2.
Diminishing gas supply
3.
Low priority to conservation and efficiency
4.
Stalled progress on reforms
13
Key reasons for shortfalls – Liquidity Crunch
1.
Tariff Differential – (Rs 9.56/unit average cost vs Rs 7.84 /units sale price = Rs
1.72/unit)
2.
Fuel Price Adjustment
Rs. 101 b unrecovered
a) 1- 350 units court stay in Punjab and Sindh and all FPA collection stopped in KPK
b) Late NEPRA determination from fuel consumed from Sept 2011 to Jan 2012
3. Equalization surcharge (no raise in tariff in FY12)
Court Stay – Rs 80 b
4
5
6
7
8
Low recoveries from DISCOs (83%) of current bills
Higher than NEPRA allowed system losses – Rs 24 b
Total Receivables Rs 354 b (Private 169 b, KESC 54 b, Provincial 85 b, Federal 6 b)
AJ&K tariff Rs 14 b
AGRI TUBEWELL
•
GOP SHARE @ 40% IN BALOCHISTAN = 5 B Rs
•
Support in Payment of PUNJAB SHARE @ 12.5% = 6 B Rs
•
Support in Payment of BALOCHISTAN SHARE @ 30% = 7 B Rs
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AVERAGE GAS REQUIREMENT VS. ACTUAL GAS SUPPLIED TO GENCOS
(MMCFD)
POWER STATIONS
Required Gas
DESCRIPTION
•
Gas
Available
Gap
Required
Gas
Gas Available
Gap
Total Gap
Availability
(%age)
(GENCOs)
(GENCOs)
(GENCOs)
(IPPs)
(IPPs)
(IPPs)
(GENCOs +
IPPs)
2005-06
750
583
167
671
524
147
314
78%
2006-07
750
451
299
671
523
148
447
69%
2007-08
750
438
312
671
491
180
492
65%
2008-09
750
405
345
671
408
263
608
57%
2009-10
750
361
389
671
391
280
669
53%
2010-11
750
267
483
671
358
313
796
44%
2011-12
750
265
485
955
466
489
974
43%
KESC supply (182 MMCFD) not included
IPPS
GENCOS
PRESENT
REQUIREMENT
PRESENT
ALLOCATION
PRESENT
REQUIREMENT
PRESENT
ALLOCATION
750
265
955
466
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Projected Demand & Supply Position
April to August 2012
Supplied Breakup (MW)
Months
Supplied
(MW)
Hydel
Nuclear
Gas
RFO/HSD
Computed
Demand
(MW)
Shortfall
(MW)
April
12,992
2,305
615
2,761
7,311
16,492
-3,500
May
14,660
5,019
615
2,761
6,265
18,383
-3,723
June
15,451
5,036
615
2,761
7,039
19,564
-4,113
July
15,200
5,854
615
2,761
7,023
19,300
-4,100
August
15,210
5,992
615
2,761
7,021
19,322
-4,112
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RECOMMENDATIONS OF
ENERGY CONFERENCE
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GENERATION – Immediate
Sr. #
1.
Measures
Reallocation of gas to power sector
Allocation of gas to:
•
•
•
4 IPPS (@38MMCFD PER PLANT = 152 MMCFD)
KAPCO 55 MMCFD
Ideally 310 MINIMUM 207 MMCFD giving 1000MW
2
Release of receivables and subsidies
3
The borrowing limits of Provinces to be set by NEC
4
Directive to NEPRA for early determination of upfront tariff
5
Once stay on FPA vacated, power prices will jump to reflect correct cost
of power. Provinces’ understanding required.
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2-
…CONTD
Release of Receivables and Subsidies
Description
GOP SHARE @ 40% IN AGRI. BALOCH RECEIVABLES
Bln. Rs.
Bln. Rs.
5.08
5.08
PROVINCIAL GOVT. DEPTT/AGENCIES
9.24
a) PUNJAB
49.13
c) SINDH
6.83
d) BALOCHISTAN
65.21
PROVINCIAL GOVT. AGRI. T/WELL SUBSIDY
a) PUNJAB (12.5%)
5.00
e) BALOCHISTAN (30%)
7.00
KESC
Payable by KPK Consumers for delayed tariff increase due to Court Case
Sub Total
12.00
49.66
18.10
150.05
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GENERATION – Medium Term
Sr.
#
Measures
1.
Rehabilitation of public sector power plants
USAID = 636 MW
ADB = 800MW
2.
Out sourcing management, O&M,
rehabilitation and conversion of public
sector power plants onto cheaper fuels
Status
Contracts for three plants by
December 2012
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DISTRIBUTION – Immediate
Sr. #
Measures
1.
Introduction of Pre-paid meters
2.
Revision of Electricity Act 1910: Provinces to expedite endorsement
for presentation to CCI
3.
To create deterrence regarding electricity theft, Provinces to help
in registration of FIRs, designating special magistrates and
nominating focal persons e.g. home secretary at provincial and
DCO at district level for expeditious disposal of cases.
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DISTRIBUTION – Medium Term
Sr. #
1.
Measures
To bring in predictability and end unscheduled load shedding in the
system automation of SCADA system in DISCOs
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CONSERVATION – Short Term
Sr.
#
Measures
Action
Effects
1.
Commercial establishments to close
by 8 pm or power supply to be cut
Same decision in 2010.
Provinces to implement
250 MW at
Peak
2.
Street Lighting Conservation:
•Alternate lights
•Replacement with efficient lights
Provinces to implement
250 MW
3.
Five days week for government
departments and affiliated
institutions
Provinces to implement
700 MW
4.
Installation of Solar Geysers in
government housing
Federal and provincial
governments
5.
Easy financing for installation of
solar water heater, solar water
pumping, solar lighting
Directive to SBP for
interest free financing
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CONSERVATION – Short Term
Sr. #
Measures
Action
Effects
Legal cover for
implementation of
energy
conservation
measures
6.
Enactment of Energy
Conservation Bill
Pakistan Energy
Efficiency & Conservation
Bill is being finalized in
consultation with
Provincial Governments
7.
Mass Awareness
Campaigns
Provision of Rs 50 m to
ENERCON for launching
of awareness campaign
for promotion of energy
efficiency culture
8.
Launching of Pilot Projects EAD to approach donors
on Energy Efficiency &
for provision of funds for
Capacity Building under
pilot projects
Public –Private Partnership
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CONSERVATION – Medium Term
Sr.
#
Measures
1.
Mandatory Energy Audits
2.
Cell Tower conversion to
solar
3.
Mandatory Vehicle Tune ups
4.
Non-supply of power to
billboards and neon signs
5.
Target
•Private Steel Mill E.E.
•Pulp & Paper
•Textile Industry
For energy efficiency
improvements
6.
Phasing out of
manufacturing and import
of Incandescent bulbs in
two years
Status
After Energy
Efficiency Bill
Announcement. Also
replacements by CFLs and
LEDs
2800 MW
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THE WAY FORWARD
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WAY FORWARD: Action by Provincial Government
(GENERATION /DISTRIBUTION)
Sr.#
Measures
Actions/way forward
1.
Re-allocation of additional gas to power sector
•4 IPPS (@38MMCFD PER PLANT = 152 MMCFD)
•KAPCO 55 MMCFD
•Ideally 300 MINIMUM 207 MMCFD giving 1000MW
Ministry of Oil & Gas
2.
Upfront tariff for all types of fuels by NEPRA
NEPRA
3.
Revision of Electricity Act 1910: Provinces to expedite
Ministry of Water &
Power /Energy & Power
Department
4.
Expedite conversion of steam based Independent Power Ministry of Water &
Plants/GENCOs to coal.
Power
5.
Provinces to help in prompt registration of FIRs, designating Home Department to
special magistrates and nominating focal persons e.g. home devise the mechanism
secretary at provincial and DCO at district level for expeditious
disposal of electricity theft cases.
6.
Release of receivables and subsidies. Possibility of at source Ministry of Finance/
deduction
Finance Department
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WAY FORWARD: Action by Provincial Government
( TARIFF & INSTITUTIONAL REFORMS)
Sr.#
Measures
Actions/way forward
1.
Implement the tariff increase of 12%
Ministry of Finance / Ministry
of Water & Power/ NEPRA/FD
2.
Uniform tariff & Revised Tariff Differential
Mechanism to be implemented
NEPRA/ FD
3.
Increase the lifeline slab to 100 . Balance to pay
NEPRA Determined Tariff in full
Ministry of Finance / Ministry
of Water & Power/ FD
4.
Strengthening of NEPRA
Ministry of Water & Power/
E&P Department
5.
Fully empowered institutional mechanism for
Reconciliation & settlement of all power sector
disputes , billing etc.
Finance Department /EMC
6.
Installation of Pre-paid meters for all federal and
provincial government connections
Ministry of Water & Power/
Finance Department /PESCO
7.
Ensure equitable load shedding in the country
Ministry of Water & Power
8.
KESC to voluntarily reduce its import of power from
NTDC from 650MW to 300MW.
Ministry of Water &
Power/KESC
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…CONT
Sr.#
Measures
Actions/way forward
9.
Gas to be priced closer to relevant alternative fuel
prices.
Ministry of Finance /
Ministry of Oil &
Gas/Provinces/CCI
10
Sources of subsidy and magnitude to be
determined by the governments.
Ministry of Finance/
Finance Department
29
WAY FORWARD: Action by Provincial Government
(CONSERVATION)
Sr.#
Measures
Actions/way forward
Effects
1.
Street Lighting Conservation:
•Alternate lights
•Replacement with efficient lights
Local Government Department/
Commissioners
250 MW
2.
Commercial establishments to close by 8
pm.
chamber, of Com & Inds: Home
Department
250 MW at Peak
3.
Five day week for all governments
Recommendations of Energy Task
Force
700 MW
4.
Subsidy for Solar Agri Tubewells
Agriculture Department/IFI’s
5.
Daylight savings from April 15th, 2012
Recommendations of Energy Task
Force/E & A Department
800-1200 MW
6.
Non-supply of power to billboards and
neon signs
LG Department/PESCO
125 MW
7.
Phasing out of Incandescent bulbs
Industries Department
1200 MW
8.
Overall Supervision of Energy
Conservation & Issues
Energy Task Force through EMC of
Finance Department
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