ENERGY CRISIS AND PAKISTAN..

According to the Wikipedia,

“An energy crisis is any great bottleneck (or price rise) in the supply of energy resources to an economy. In popular literature though, it often refers to one of the energy sources used at a certain time and place, particularly those that supply national electricity grids or serve as fuel for vehicles.“

Natural resources are limited in supply but more in demand. Natural resources take hundreds or thousands of years to replenish the stores. It is impossible to meet growing demands of limited natural resources without running out of them. That’s common sense! If you are not concerned about life after your time on earth is gone there is not any real energy crisis but if you do care about what future generation will inherit, then energy sector is in real threat.

The prevailing energy crisis in Pakistan is taking away 2 percent (or Rs 380 billion) of the economy, despite the government has spent Rs 1.1 trillion as subsidies on the sector in the last four-year which accounts for 2.5 percent of the total volume of economy. Power crisis in Pakistan is bleeding the exchequer and nullyfying any reform initiative. In 20011-2012 Pakistan’ two biggest power production houses debt was same as of defense’ budget more than around 5 billion rupees. In 1994 when only 40% of population had access to electricity Pakistan was using hydro-power method to produce energy. To fulfil 2000 MW shortage government would have to invite foreign investors to meet the growing needs fulfilled. As private sector at that time was not able to tackle the situation. In 1980s around 60% of energy was generated by hydro-power. However, in 2000s the proportion of power production from hydro and nuclear sources remains 36%, from furnace oil-fired sources is at 35%, gas fired power generation accounts for 0.1% and coal fired plants for a minuscule of 0.1%.

 In Pakistan over consumption of natural resources such as fossil fuels and coals etc puts strain on economy. Over population is also playing its part as demands of fuels are skyrocketing. Poor infrastructure, most of the energy producing units are using out-dated equipment, hence restricts the energy production. Poor distribution system is an another factor. Unexplored renewable options like energy production from recycling materials remains unknown. Delay in commission of power projects because of political disagreement is causing us a huge loss. Whereas, major accidents and calamities, climate change, wars and attacks, market manipulation, localized shortages, tax hikes, circular debt, shortage of gas supply, power theft and non payment of bills, reduction of hydro-electric power, nationalization of energy sector, shift supply and demand of energy away from its economic equilibrium.

To sum up, I am penning doing some suggestions for mitigation of energy crisis.

1- The formula energy conversation: by avoiding wastages you can prevent shortages. 67% of more consumption is due to inefficient appliances.

2- Shift to renewable form of energy such as from wind and solar plants. As china is producing about 140,000 MW by wind and solar method. We can also acquire this kind of system from china on an account of CPEC.

3- Implementation of fuel policies aimed at ensuring consistent natural gas supply to power production houses for affordable production.

4- Clear under-covered bills so that cash will be in flow which will enhance energy production by decreasing shortage.

5- By liquidating circular debt.

6- Investment in energy sector also strong governing polices regarding power sector.

7- Proper check and balance by administrative action, accountability of negligent officials and management practices.