Saturday, April 25, 2009

ENERGY INDUSTRY OVERVIEW ::..

Pakistan has a total installed electricity generation capacity of 19,440 MW, which produced more than 93,621 GWh of electricity this year. 30% of the electricity is generated by private sector companies. Pakistan has attracted foreign investment of USD 300 million in the energy sector in the last year. Over USD 600 million a year is spent to upgrade the existing generation, transmission and distribution system in Pakistan and USD 706 million was spent on the import of power generation equipment in 2006 - 2007.
The potential hydropower capacity is estimated at 41,700 MW, however existing hydropower generation capacity of the country is 6600 MW. The Government is giving priority to exploit this potential to cater to the increasing demand for energy and power resources.
Currently there is a shortfall of 4,000 MW in the demand and supply of electricity in Pakistan and the government expects to add about 1300 MW capacity over next few years through the private sector.
Pakistan also possess immense potential to harness unlimited solar and wind energy. The Government of Pakistan is now emphasizing on the acquisition of power through alternate energy resources and planning to add 500 MW in the next 5 years through alternate sources, which is likely to attract significant investment in this sector.
Pakistan is the world's 8th biggest producer of coal and has an estimated 185 billion tonnes of coal reserves. Feasibility studies are also under way for producing of over 1,000 MW of energy through the use of solid waste and coal.

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