RENEWABLE ENERGY OPTION FOR SOCIOECONOMIC DEVELOPMENT IN PAKISTAN

http://dx.doi.org/10.31703/ger.2021(VI-I).06      10.31703/ger.2021(VI-I).06      Published : Mar 2021
Authored by : Muhammad Tahir Hassan , Muqarrab Akbar , Shumaila Dilawar

06 Pages : 71-80

    Abstract:

    An uninterrupted supply and easy access to energy are necessary for the economic and social development of a country. It can only be possible by careful management of available energy and including the increased share of clean, renewable energy (RE) in the overall energy supply. A substantial reduction in the use of fossil fuel can also help to mitigate the global environmental effects. Pakistan has been suffering from a severe energy crisis for the last many years that has badly affected its industrial sector, and consequently, a substantial reduction of economic growth is witnessed in the country. This paper explores the alternative opportunities of energy supply in Pakistan by highlighting the available potential of non-fossil energy resources. It also highlights the present scenario and prospects of RE adoption in the country that will help for socio-economic development in the country..

    Key Words:

    Renewable Energy, Pakistan, Energy Crisis

    Introduction

    Pakistan is among the rapidly emerging countries of South Asia, and due to its industrial growth and rising rate of population, energy security has become one of its major issues these days. The country has been experiencing an acute energy crisis for last many years. There is a significant gap in the demand and supply of electricity and natural gas both for industrial and domestic users (Faheem, 2016; Kashif et al., 2020; Luqman et al., 2019). Roughly 140 million people are living without electricity which is considered a basic facility for a human being all over the world, and those who have access to such facility faces a regular disruption in the electricity for more than 12 hours a day (S. A.A. Shah et al., 2019). The electricity shortfall reached 6000 MW to 7000 MW in 2008 (Lin et al., 2019).

    The industrial sector all over the world is considered to be the most energy-intensive sector. In Pakistan, the industrial sector uses more than 37% of available primary energy (figure 1). During the present shortfall of energy, the Pakistani industrial sector has been seriously influenced, resulting in a significant decline in its operational productivity (Asif, 2009; Asif et al., 2007; Nadeem, 2014). The shortage of electricity and natural gas is managed by regular disruption in their supply at both domestic and industrial levels. Due to such load management by electricity and gas distribution companies, many industrial units have shut down their businesses, and roughly 500,00 people became jobless (Syed Ahsan Ali Shah et al., 2018).

    Energy consumption in Pakistan by sector (Hydrocarbon Development Institute of Pakistan., 2019)

     

    In Pakistan, the major demand for primary energy use is mainly fulfilled by conventional fossil fuel, which is not only expensive but also limited in nature and subsequently creates vast financial problems at the national level. More than 70 % of the energy supply mix in the country is covered by oil and natural gas (Hydrocarbon Development Institute of Pakistan, 2019). The gross primary energy supply in the country during 2018-19 has decreased from 86.3 to 83.8 million tons of oil equivalent (MTOE) mainly because of a decline in the supply of oil and LPG as compared to the previous year. Almost 88% of total primary energy was supplied during 2018-19 by fossil fuels. The total energy supply mix (figure 1) of the country includes natural gas 35%, oil 25.7%, Coal 15.4%, LNG 10.6, hydroelectricity 7.8%, Nuclear energy 2.8%, LPG 1% and renewable electricity 1.3% (Hydrocarbon Development Institute of Pakistan, 2019). 

    Total Energy Supply Mix of Pakistan (Source: HDIP 2019)

     

    Currently, the RE energy share is less than 2% (figure 2) in overall primary available energy. According to the Hydrocarbon Development Institute of Pakistan (HDIP), 4682 GWh electricity was generated by wind energy (67.6%) followed by biomass (19%) and solar energy (13.4%) during 2018 – 19 (figure 3). Despite the huge available potential, the adoption of RE in Pakistan seems to be relatively slow. The reasons for reluctance to the implementation of such clean and widely available energy may include lack of awareness and relevant technical knowledge, particularly at domestic and small industries level.

    Electricity generation by renewable energy projects (Source: HDIP 2019)

     

    There is a great need of making serious efforts by the Pakistani government to improve infrastructure and encourage investors to invest in renewable energy generation on a large scale.      

    Overview and Prospects of Renewable Energy Resources in Pakistan Solar Energy

    Pakistan is located in South Asia, and due to its geographic location, it has a great potential for solar energy, but due to several reasons, this opportunity to generate clean energy has not yet been untapped to the required extent. Solar energy is mainly used to generate electrical and thermal energy both for domestic and industrial purposes. Most areas in Pakistan are covered with full sunshine, and an estimated average of 5.5 kWh m – 2 per day solar energy is available for daytime sunshine of 8 to 10 hours in around 300 sunny days over the year (Ulfat et al., 2012).  In a study of design and economic analysis of photovoltaic energy generation for household applications, Ghafoor et al. (2015) found that the unit cost of electrical energy using solar PV system was around PKR 15 per kWh cheaper than the electricity supply from WAPDA. 

    Solar photovoltaic energy generation is not new technology for Pakistan. A 450 kWh electrical generation system was installed in the 1980s (Kamran, 2018). However, the adoption of solar energy technology could not be successful due to a lack of relevant technical and management skills (Shaikh et al., 2013). The first serious effort in this regard was made in 2003 when the Alternative Energy Development Board (AEDB) started its work in Pakistan. AEDB is a federal body responsible for promoting, encouraging and looking after RE developments in Pakistan. Another body having similar responsibilities called the Pakistan Council of Renew Energy Technologies (PCRET), was established under the umbrella of the Ministry of Science and Technology, Government of Pakistan, in 2001. The primary objectives of PCRET include coordination of research and development regarding RE technologies and their promotional activities in the country.

    After the development of these bodies in Pakistan, a significant improvement in the solar energy infrastructure was witnessed, and the pace of adoption and development of new RE technologies was increased. A solar power plant of 178 kW capacity was one of the initial such projects in the country, successfully installed in 2010 in two building in Islamabad (Kamran, 2018). Another solar system of 2 MW capacity was also installed and in operation at the National Assembly of Pakistan. After the successful commissioning of such projects, private investors found interest in this field and several small solar projects at domestic and industrial scale have been completed in the country during the last two decades. The Alternative Energy Development Board issued letters of interest to several companies in Pakistan, and installation of solar projects are under construction. 

    For accurate solar data, several solar measurement stations have been installed at various places in all provinces of the country, which covers most of the solar and climate regimes. Table 1 shows the geographical location of various sites of solar measurement (SM) stations in Pakistan. 

    Table 1. Geographical Location of Solar Measurement Stations in Pakistan.

    S. No

    Location of SM Stations

    1

    QA Solar Park.

    2

    MNS University of Engg. And Tech., Multan.

    3

    UET Kala Shah Kaku, Lahore.

    4

    NUST, Islamabad.

    5

    UET Peshawar.

    6

    Balochistan UET, Khuzdar.

    7

    Balochistan University of IT, Quetta.

    8

    Mehran University, Jamshoro.

    9

    NED University, Karachi.

     


    A big initiative in this regard was taken by the Pakistani government in 2013 and established an infrastructure called Quaid-e-Azam Solar Park (QASP) near Bahawalpur, having an overall power generation capacity of 1000 MW. In the first phase, a 100 MW pilot project was completed and commissioned in 2015 with a cost of $131.15 million. This initial pilot project intended to seek the attention of domestic and international investors to invest for the remaining target capacity of 900 MW.  As a result, three more projects of the same capacity each were developed at QASP and commissioned in 2016, and the park is open for investors for more projects.

    Table 2 shows 5 projects completed from 2015 – 2017 with an overall capacity of 430 MW under agreement with the AEDB Pakistan. There are 16 more

    ventures of 461 MW capacity at various stage of completion.

    Table 2. Solar Projects Completed in Pakistan between 2015 – 17.

    S. No

    Name of Project

    Capacity

    Location

    Date of Completion

    1

    QA Solar Pvt. Ltd.

    100 MW

    QASP, Bahawalpur

    July 15, 2015

    2

    Appolo Solar

    100 MW

    QASP

    May 31, 2016

    3

    Best Green

    100 MW

    QASP

    July 31, 2016

    4

    Crest Energy Pakistan Ltd.

    100 MW

    QASP

    July 31, 2016

    5

    Harappa Solar

    18 MW

    Sahiwal

    Oct. 14, 2017

    6

    AJ Power

    12 MW

    Pind Dadan Khan

    Dec. 13, 2017

     


    The use of solar energy system for thermal energy generation is another application of solar energy and is well proven all over the world. To encourage solar technology in the country, the Pakistani government allowed a tax-free import of solar products in the country and around 15,000 solar water heaters were imported for domestic purposes, and 1400 water pumping projects based on the solar system were completed in 2013
    (Kamran, 2018). Various solar thermal energy equipment such as solar water geysers, solar cookers and solar dryers are frequently available in the local market.

    Wind Energy

    Wind energy is the second most popular form of renewable energy in the world. Various studies have been conducted in Pakistan, and their results demonstrated that a good potential for wind energy is available in the country. In a survey by Pakistan Meteorological Department in 2002, it was concluded the wind corridors at coastal areas of Balochistan and Sindh provinces are the best sites for windmill projects having vast potential of exploiting wind energy. The estimated potential of wind speed at these areas in this study were 4 – 9 m s – 1 and 12.5 s – 1 at 10 m and 50 m of heights, respectively (Hashmi, H.N., Malik, N.E. Yousuf, 2007). In a study under the USAID program (2007), it was estimated that around 346,00 MW wind energy potential is available in Pakistan (Farooqui, 2014).  

    In 2013, a wind power project of 50 MW capacity was established at Fauji Fertilizer Company, and it was one of such initial projects based on wind energy (Farooqui, 2014). According to AEDB, a total number of 24 projects based on wind power with a cumulative capacity of 1235.20 MW have been completed and are operational in the country and adding share to the national grid (see table 3).

    In the near future, 16 more wind power projects are expected to start their generation; among those, 12 projects of 610 MW capacity have already achieved their financial closing, and 4 projects of 165 MW capacity are under development phases.

    Table 3. Operational Wind Power Plants in Pakistan. (Source: AEDB Pakistan)

    S. No

    Name of Project

    Capacity (MW)

    Location

    Commercial Operation Date

    1

    FFC Energy

    49.5

    Jhampir, Sindh

    May 16, 2013

    2

    Zorlu Enerji

    56.4

    Jhampir, Sindh

    July 25, 2013

    3

    Three Gorges 1st W. Farm

    49.5

    Jhampir, Sindh

    Nov 25, 2014

    4

    Foundation W. Energy – 2

    50

    Gharo, Sindh

    Dec 10, 2014

    5

    Foundation W. Energy – 1

    50

    Gharo, Sindh

    April 11, 2015

    6

    Sapphire W. Power

    52.8

    Jhampir, Sindh

    Nov 22, 2015

    7

    Yunus Energy

    50

    Jhampir, Sindh

    Sep. 16, 2016

    8

    Metro Power

    50

    Jhampir, Sindh

    Sep. 16, 2016

    9

    Tapal W.Energy

    30

    Jhampir, Sindh

    Oct. 07, 2016

    10

    Tenaga Generasi

    49.5

    Gharo, Sindh

    Oct. 11, 2016

    11

    Master W. Energy

    52.8

    Jhampir, Sindh

    Oct. 14, 2016

    12

    Gul W. Energy

    50

    Jhampir, Sindh

    Oct. 18, 2016

    13

    Hydro China Dawood Power

    49.5

    Gharo, Sindh

    April 05, 2017

    14

    Sachal Energy Development

    49.5

    Jhampir, Sindh

    April 18, 2017

    15

    United Energy

    99

    Jhampir, Sindh

    Jun 16, 2017

    16

    Hawa Energy

    49.6

    Jhampir, Sindh

    March 15, 2018

    17

    Jhampir W. Power

    49.7

    Jhampir, Sindh

    March 16, 2018

    18

    Artistic Energy

    49.3

    Jhampir, Sindh

    March 16, 2018

    19

    Three Gorges 2nd W. Farm

    49.5

    Jhampir, Sindh

    Jun 30, 2018

    20

    Three Gorges 3rd W. Farm

    49.5

    Jhampir, Sindh

    July 09, 2018

    21

    Tricon Boston - 1

    49.6

    Jhampir, Sindh

    Aug. 16, 2018

    22

    Tricon Boston - 2

    49.6

    Jhampir, Sindh

    Sep. 14, 2018

    23

    Tricon Boston - 3

    49.6

    Jhampir, Sindh

    Sep. 11, 2018

    24

    Zephyr Power

    50

    Gharo, Sindh

    Mar. 27, 2019

     

    Biomass


    Pakistan is an agricultural country, and it is blessed with enormous resources of biomass, one form of renewable energy resources. The key types of biomass available in Pakistan include agricultural stalk, wheat straws, bagasse, rice husk, sugar cane trash, poultry waste and wood chips etc.

    In a report prepared by UNIDO under the project title “Policy advisory services for Biomass Energy Conversion technologies in Pakistan”, it was found that the overall energy potential through biomass has not yet been determined on a scientific basis in the country. In another report of renewable energy source mapping program (ESMAP) funded by the World Bank, the estimated available surplus biomass for energy generation in Pakistan is shown in table 4.

    Table 4. Available Surplus Biomass for Energy Generation in Pakistan (Source: UNIDO, 2016).

    Type of Biomass

    Available for energy generation (tons)

    Agri-based residue

    20,494,000

    Agro-industrial residue

    25,271,000

    Wood Based Residue

    1,121,000

    Total

    46,886,000

     


    The use of wheat straw and rice husk for power generation is limited in Pakistan because both are used as the main food ingredients of livestock (Tareen et al., 2020).  The widely used type of biomass used in Pakistan as a source of power generation bagasse is a residue of sugarcane and easily available sugar mills.

    In Pakistan, out of 83 sugar mills with a projected potential of 3000 MW electrical energy (Kamran, 2018), 8 mills (see table 5) have successfully installed power plants based on their by-product bagasse and are fully operational. The cumulative energy produced by these projects in operation is 259.1 MW.

    Table 5. Power Plants Working on Bagasse (Source: AEDB).

    S. No

    Plant

    Total Capacity of Project

    Location

    1

    Chiniot Power

    62.4 MW

    Faisalabad

    2

    Layyah Sugar Mills

    41 MW

    Layyah

    3

    RYK Mills

    30 MW

    RYK

    4

    JDW Sugar Mills- 2

    26.35 MW

    RYK

    5

    JDW Sugar Mills - 3

    26.35 MW

    Ghotki

    6

    Hamza Sugar Mill

    15 MW

    RYK

    7

    Almoiz Industries

    36 MW

    Mianwali

    8

    Chanar Energy

    22 MW

    Faisalabad

     


    There are 16 sugar mills that have received letters of support (LOS) from AEDB and are under completion stages for biomass plants with expected cumulative energy of 563.5 MW. Moreover, 9 more companies with a cumulative energy generation of 314.5 MW received letters of intent from AEDB and are under the development phase. After completion of all these projects, the overall power generation from bagasse (biomass) will reach up to 1137.5 MW in the country.

    Micro Hydro

    There is a huge potential for power generation through micro hydro-power plants in Pakistan. Due to the geographic location of Pakistan, natural waterfalls available at various sites of the country invite policymakers to develop micro-hydro projects to meet its domestic energy requirements and to address the energy security concerns in the country. According to the AEDB Pakistan, a total of 3100 MW power generation potential is available at various natural waterfalls and rivers at 815 sites in the country (table 6). 

    Table 6. Estimated Power Generation Potential at Various Sites of Waterfall and Rivers (Source: AEDB)

    S. No

    Province/Area

    Potential Sites

    Power Range (MW)

    Total Estimated Potential

    1

    Punjab

    Upto 300

    0.2 - 40

    560-MW

    2

    Gilgit

    Upto 200

    0.1 - 38

    1300-MW

    3

    KPK

    Upto 125

    0.2 - 32

    750-MW

    4

    KPK

    Upto 200

    0.1 - 38

    1300-MW

    5

    Sindh

    Upto 150

    05 - 40

    120-MW

    6

    AJK

    Upto 40

    0.2 - 40

    280-MW

    Total available potential

    3100 MW

     


    Currently, 128 MW is generated using micro/mini hydro-power plants located at various sites in the country, new micro hydro-power plants of 877 MW capacity are under construction, and various sites around 1500 MW capacity are under development phases.

    Under provincial government, 7 small hydro-power projects, 3 from KPK with US$ 150.9 million estimated cost and 4 in Punjab with an estimated cost of US$ 138.74 million having 76 MW overall capacity are at completion phases (table 7).

    Table 7. Micro-Hydro Power Plants under Completion Phases

    Khyber Pakhtunkhwa

    Punjab

    No.

    Location

    Capacity

    No.

    Location

    Capacity

    1

    Ranolia

    17.0 MW

    1

    Chianwali

    5.4 MW

    2

    DaralKhwar

    36.6 MW

    2

    Sheikhpura

    4.1 MW

    3

    Machai 

    2.6  MW

    3

    Pakpattan

    2.8 MW

    Total

    56 MW

    4

    Marala

    7.7 MW

     

     

    Total

    20 MW

     


    Recently, 9 potential sites for small hydro-power plants of capacities from 11 MW to 36 MW are identified in KPK, and their development through engagement of the private sector is under process.

    Conclusions

    Keeping in view the geographical context and wide availability of specific types of renewable energy resources in Pakistan, 4 significant RE resources have been discussed in this paper. It can be concluded that the widely available potential of RE resources in Pakistan should be exploited on a priority basis. Through the adoption of clean RE resources, Pakistan can avail its socio-economic benefits, overcome the present energy crisis and significantly reduce greenhouse effects for environmental protection. The government of Pakistan has realized and initiated several projects to utilize the available potential of RE resources. Many projects have already been completed, and some more are at various stages of completion. However, the share of renewable energy in the total primary energy supply is very low, and the pace of adoption of RE technologies is significantly slow. There is a need for serious attention to overcome the barriers to the adoption of RE technology in the country. To create awareness in organizations and the public, a campaign should be devised at various levels. It may include public-funded seminars, conferences and workshops addressing the need, benefits, reluctance, and associated complexities in the adoption of RE technologies. Moreover, renewable energy as a subject should be included in the curriculum at polytechnical institutes, technical colleges, and engineering universities.

References

  • Alternative Energy Development Board (AEDB). Ministry of Water and Power, Government of Pakistan. Available online: Accessed on 7 October 2020.
  • Asif, M. (2009). Sustainable energy options for Pakistan. Renewable and Sustainable Energy Reviews, 13(4), 903-909. doi: 10.1016/j.rser.2008.04.001
  • Asif, M., & Muneer, T. (2007). Energy supply, its demand and security issues for developed and emerging economies. Renewable and Sustainable Energy Reviews, 11(7), 1388-1413. doi: 10.1016/j.rser.2005.12.004
  • Faheem, J. B. (2016). Energy Crisis in Pakistan. IRA-International Journal of Technology & Engineering (ISSN 2455-4480), 3(1), 1-16. doi: 10.21013/jte.v3.n1.p1
  • Farooqui, S. Z. (2014). Prospects of renewables penetration in the energy mix of Pakistan. Renewable and Sustainable Energy Reviews, 29, 693- 700. doi: 10.1016/j.rser.2013.08.083
  • Ghafoor, A., & Munir, A. (2015). Design and economics analysis of an off-grid PV system for household electrification. Renewable and Sustainable Energy Reviews, 42, 496- 502. doi: 10.1016/j.rser.2014.10.012
  • Hashmi, H. N., Malik, N. E., & Yousuf, I. (2007). Effectiveness of Wind Farms in Pakistan. China's Oil Industry and Market, 75-115.
  • Hydrocarbon Development Institute of Pakistan2019. Pakistan Energy Year Book 2018-19.
  • Kamran, M. (2018). Current status and future success of renewable energy in Pakistan. Renewable and Sustainable Energy Reviews, 82(September 2017), 609-617. doi:10.1016/j.rser.2017.09.049
  • Kashif, M., Awan, M. B., Nawaz, S., Amjad, M., Talib, B., Farooq, M., Nizami, A. S., & Rehan, M. (2020). Untapped renewable energy potential of crop residues in Pakistan: Challenges and future directions. Journal of Environmental Management, 256(September 2019), 109924. doi: 10.1016/j.jenvman.2019.109924
  • Lin, B., & Raza, M. Y. (2019). Analysis of energy related CO 2 emissions in Pakistan. Journal of Cleaner Production, 219, 981-993. doi: 10.1016/j.jclepro.2019.02.112
  • Luqman, M., Ahmad, N., & Bakhsh, K. (2019). Nuclear energy, renewable energy and economic growth in Pakistan: Evidence from non-linear autoregressive distributed lag model. Renewable Energy, 139, 1299-1309. doi: 10.1016/j.renene.2019.03.008
  • Nadeem, F. (2014). Barriers , Drivers and Policy Options For Improving Industrial Energy Efficiency In Pakistan. International Journal of Engineering (IJE), 8, 49-59.
  • Pakistan Council of Renew Energy Technologies (PCRET). Accessed on 14 September 2020
  • Renewable Energy Resource Mapping in Pakistan, Energy Sector Management Assistance Program, The World Bank. Available: Accessed: 18 December 2020.
  • Shah, S. A. A., Solangi, Y. A., & Ikram, M. (2019). Analysis of barriers to the adoption of cleaner energy technologies in Pakistan using Modified Delphi and Fuzzy Analytical Hierarchy Process. Journal of Cleaner Production, 235, 1037-1050. doi: 10.1016/j.jclepro.2019.07.020
  • Shah, S. A. A., Valasai, G. Das, Memon, A. A., Laghari, A. N., Jalbani, N. B., & Strait, J. L. (2018). Technoeconomic analysis of solar PV electricity supply to rural areas of Balochistan, Pakistan. Energies, 11(7). doi: 10.3390/en11071777
  • Shaikh, P. H., Shaikh, F., & Mirani, M. (2013). Solar energy: Topographical asset for Pakistan. Applied Solar Energy (English Translation of Geliotekhnika), 49(1), 49-53. doi: 10.3103/S0003701X1301012X
  • Tareen, W. U. K., Dilbar, M. T., Farhan, M., Nawaz, M. A., Durrani, A. W., Memon, K. A., Mekhilef, S., Seyedmahmoudian, M., Horan, B., Amir, M., & Aamir, M. (2020). Present status and potential of biomass energy in pakistan based on existing and future renewable resources. Sustainability (Switzerland), 12(1). doi: 10.3390/su12010249
  • Ulfat, I., Javed, F., Abbasi, F. A., Kanwal, F., Usman, A., Jahangir, M., & Ahmed, F. (2012). Estimation of solar energy potential for Islamabad, Pakistan. Energy Procedia, 18, 1496- 1500. doi: 10.1016/j.egypro.2012.05.166
  • United Nations Industrial Development Organization (UNIDO) Accessed on 11 October 2020.

Cite this article

    CHICAGO : Hassan, Muhammad Tahir, Muqarrab Akbar, and Shumaila Dilawar. 2021. "Renewable Energy Option for Socio-Economic Development in Pakistan." Global Economics Review, VI (I): 71-80 doi: 10.31703/ger.2021(VI-I).06
    HARVARD : HASSAN, M. T., AKBAR, M. & DILAWAR, S. 2021. Renewable Energy Option for Socio-Economic Development in Pakistan. Global Economics Review, VI, 71-80.
    MHRA : Hassan, Muhammad Tahir, Muqarrab Akbar, and Shumaila Dilawar. 2021. "Renewable Energy Option for Socio-Economic Development in Pakistan." Global Economics Review, VI: 71-80
    MLA : Hassan, Muhammad Tahir, Muqarrab Akbar, and Shumaila Dilawar. "Renewable Energy Option for Socio-Economic Development in Pakistan." Global Economics Review, VI.I (2021): 71-80 Print.
    OXFORD : Hassan, Muhammad Tahir, Akbar, Muqarrab, and Dilawar, Shumaila (2021), "Renewable Energy Option for Socio-Economic Development in Pakistan", Global Economics Review, VI (I), 71-80
    TURABIAN : Hassan, Muhammad Tahir, Muqarrab Akbar, and Shumaila Dilawar. "Renewable Energy Option for Socio-Economic Development in Pakistan." Global Economics Review VI, no. I (2021): 71-80. https://doi.org/10.31703/ger.2021(VI-I).06