On Tuesday, President Asif Ali Zardari asked leading businessmen and industrialists to work with the government to find a permanent solution to nationwide power shortages. He asked private sector entrepreneurs to brainstorm ‘out-of-box’ solutions to the ongoing power crisis, admitting that rental power projects contracted by the government could only address immediate energy needs.
President Zardari invited the businessmen to weigh in on the idea that energy investors form a company which could offer shares to the general public to raise capital. In turn, the private entrepreneurs suggested addressing circular debt, harnassing solar energy and hydel generation.
Do you think the private sector can help the government counter the country’s power crisis? What would you have suggested as a solution to the energy problem if you had been invited to brainstorm ideas with the president and prominent entrepreneurs?
The views expressed in the following reader comments do not necessarily reflect the views and policies of the Dawn Media Group.
I am developing a business plan in which my team is giving a plan of wapda independent societies. Investors who are constructing new societies can make their houses independent of wapda. Their street lights will also be based on solar technology.
A person who is buying a new house is more willing to invest in solar panels which will provide him electricity free for guaranteed 20 years.
In first stage we will import panel but after getting investment I am planning to manufacture solar panels completely in Pakistan.
In second phase of our plan we will offer electricity to industries.
In India electricity is partially privatized (half of the share stack is still with Indian state governments) leaving only one state Tamil Nadu due to generation of high revenue for state government through electricity board of Tamil Nadu.
Fully Privatization of government asset is never consider as a good or out of the box move however Pakistan can follow India by using reservoirs, wind, hydro, atomic, cosmic, heat, solar resource to gain the lost battle against electricity crises. India is capable of generating electricity for whole Asia for thirty years regularly.
Well! Its not a matter of whether they can help or not. Its definitely their social responsibility to participate in actively diffusing the country-wide tension & thus the crisis specially the power crisis. I personally know Nishat Group is too much interested in installing power plants along with many other power generation projects. There are many gigantic groups who can change the course of this crisis into opportunity positively. Every one has to contribute. Small scale private sector companies can also create awareness regarding these issues through trainings and advertising with the help of media.
Importantly, Govt. should think itself that whether they are motivative enough to attract these private companies. Small steps usually form a big leap.
I agree with yousaf, If Govt. lower the taxes on solar panels, allow and support installation of the same, The problem could be solve, I know some industries who have tried to installed Solar penal but due to policy/regulatory issue they didn’t get approval to install and use that for power generation.
Wind and Solar are extremely capital intensive and have efficiency problems right now. Short term Pakistan should import Power and improve their Grid, transmission and distribution to eliminate line losses and theft. Nuclear is possibly the most cost effective however supply of nuclear materials to Pakistan could always be an issue. If the price of Gas is right Pakistan could use the piped gas from Iran for firing Power Plants.
Yes they can,they just have to add additional 10% on the cost to be in this business.
Lets be honest people. We know we subcontinent (india/pakistan) people are not born with silver spoon in our mouths.
When we have power shortage to satisfy the basic needs, why do we allow air conditioner to run in corporate offices and at homes of rich people. We should stop this wastage as soon as possible.
Dont get me wrong, I am not against luxuries of life, but before we enjoy them lets fulfill our basic needs.
And if the question is if I can buy, then I must enjoy then lets sell all energy to the rich and let the poor dream about it only.
I agree with Roy. I am of the opinion that on Renewables like Solar, Wind, Solar Thermal, Biomass and Energy generation through Municipal waste its the organised public sector institutions like ‘Alternate Energy Development Board’ who have to play the lead role. For private sector ‘ROI’ is the name of the game and rightly.
wind energy and solar farms are capital intensive, and private firms will hesistate to get involved unless govt will make subsidies and grants available to them. In india only 1% of the total energy production comes from wind and solar power, and this is heavily subsidised by the govt.
Unless the govt of pakistan take initiative and provide incentives in production of energy from renewable sources this is a no starter.
The best option for pakistan is to rely on traditional sources of power generation. The best traditional source being natural gas powered thermal power stations.
As someone who used Pakistan software houses for web development, I am appalled at the state of Pakistan. How can work be delivered when there is no power. How will private entreprenuers invest in Pakistan when those in power keep their money outside Pakistan. How will anyone with sense invest in Pakistan when law is arbitart, if you are connected to someone in power, you can do anything you want. Business cannot operate in an environment where the law of land and policy is not followed, and changes every five minutes according to any minister who decides he knows what is best.
Miss management of the revenue and lack of future ecconomic planning by the past pakistani governments has put pakistan in this ecconomic and energy crisis.
Since this problem is the result of commulative failures from all the governments ,it cannot be resolved by quick fixes and the people of pakistan will have to bear with it and not only find the present government but all the past rulers of their state guilty and take them to court for not giving priority to energy related matters.
I say put money on infrastructure and energy to uplift living standereds of your poor people.You can not win other people’s cause by loosing your own people’s cause.
Photo-voltaic technology an offshoot of solar energy is the new and economic solution and could be installed withen half a year for a city of the size of Karachi. Till then, however, refurbish the present system of land poles and age old wires and stop current theft. Should really not be a problem. Cities like Mumbai and Delhi have no such problems as we have and that without phot-voltaic or solar technology, but with hard work, honesty and far-sightedness.
The idea of private-public partnership was introduced firstly under the Power Policy of 1994 by the Benazir govt. It brought mixed results as at one time Pakistan had surplus power however, it increased the price of electricity exubitantly.
Subsequently, the Nawaz govt raised serious objections upon the tariffs agreed by the outgoing PPP govt and tried to renegotiate the tariffs with IPPs. It brought a set back to investment in power sector. The repercussions of these renegotiations can be felt even to day as the investors are not ready to take the political risk in Pakistan.
The best way to come out of this quagmire is to firstly make the existing Independent Power Producers to produce maximum electricity and start the ones which are shut down. This requires timely payment to them withheld by WAPDA, which itself is not getting paid mostly by the governmental institutions.
As a long term the government needs to provide for effective legal system which is pro-investment and has built in checks and balances for ensuring market competition not only for production but also for distribution of electricity. So that the nation is not left at the mercy of either WAPDA or KESC.
I have only two words as solution…
WIND….SOLAR…..
Yes! Small scale solar energy. Solar farms are excellent idea, but you are talking about millions/billions of dollars. When ruling vultures see $$$ signs the game changes, everyone wants a cut and the project fizzles out. I recommend do what Garmen bank has done in B-Desh. Very small scale solar units that light-up few bulbs/ fan are given to villagers through micro-finance. We can do the same in cities. Private sector is allowed to provide subsidized small scale solar units. The unit price be subsidized by Govt (God knows we get enough aid for the people). Trust me we will save enough energy to overcome our shortages. If anyone is interested, I have the calculations. If you do not trust me, as they say ‘do the math’.
After reading most of the suggestions,i think all the ideas are practical and feasable,but nobody mentions two most
important point rather only points to solve
the present crises that are WILL and INTENTION of the government,other things start falling behind.Till than it is just
hoping against hope.
Private sector should be kept out of essential services. Electricity will be
bonanza for private sector to make profit. The Government does not care for the consumers i.e. the public. I am sure someone at the top will get commission from such contracts.
Besides focusing on the generation side of electric power, the government must take steps to improve its distribution. The so-called line losses are among the highest in the world in our country. I don’t know the exact figures but I am sure considerable number of megawatts are simply pilfered from the national grid. Unauthorized connections, kundas, slow meters all contribute to it. Ask any CNG station owner how much he pays as electricity bill and how much to power company guys and things would become much clearer.
Pardon my cynicism but in Pakistan novel ideas seldom take root because of a regressive bureaucratic mindset and disdain for anything other than the accepted wisdom. Besides, well-entrenched lobbies would not let their control go over contry’s increasing reliance on fossil fuel for power generation. We would most probably have a few showpiece wind turbines in Gharo and maybe a solar farm in Cholistan but these on national scale!!! No way!!
PS: I pray I am proven wrong.
Solar farms seem to be the way to go or at the very least some pilot projects should be set up. Locate the solat farm just outside a town or village, this farm could provide common power to the people. Also each home that can should have solar panels to power what they can inside the home.
The government can still make their money by introducting a standard charge over the lifetime of the household… Lots of small pisa will make mountains of pisa, look at 50 years commercial model…not a short one.
By the way this is not rocket science europeans have been doing this for a long time.
Being a citizen of my dear country, I would advice to the concerned authorities, as power crisis getting worse day by day, we should immediately go to import cheap electricity from our surrounding countries.
for permanent solution, we have to adopt such electric generation technologies which is less dependent upon other, simply we must invest in our own resources like gas, coal and wind turbines either it may cost heavily in the initial.
Massive multipronged appraoch is the only recourse and even this will take years before power can be harnessed in any sizable amount:
o Alternative/renewable energy sources are still not the mainstream with a reason – this can be encouraged but it will only address the problem fractionally. Conventional energy production is the only way as of now.
o Power theft should be made a criminal offence.
o Power subsidy should be reduced drastically.
o Public-private partnership…?. Best to incentivize private sectors with tariff guarantees. International bids should be considered seriously.
o Sign NPT to get access to nuclear energy technology and fuel – clean and cheap if managed properly.
o Improve relationship with neighbors so that large power infrastructure can be more secure and look for possibility of selling power to shore up revenue for building additional capacity.
Kanuup capacity should be & increased take cables underround so ppl wont steal.. i guess
Wind mills are very good idea. and faster to make karachi has wind 24/7 so does hyderabad
Pakistan is one of the richest country of the world but has no such Leadership which is capable and willing to serve nation.
Single Thar Coal reserves are 850 trillion feet, it require an initial 420 billion rupees investment, where as Pakistan receives annually 1220 billion from tax only. Just 2 percent usage of that coal can generate 20,000MW of electricity for next 40 years. But no one serious about it.
Same is the case with hydro power. Only Kala Bagh Dam project can generate 7500MW and one unit price will be 60 paisas only, and Wind air energy that can be generated up to 50,000MW, but our government keep starting and providing electricity from petroleum and gas which is highly expensive in per unit price and increasing over the time.
I hope govt. will take some wise decision on
time to overcome this situation.
May Allah bless Pakistan and leaders with capability and will to serve Pakistan.
Yes we can overcome this issue with the help of public and private partnerships.
We should lower the duties on import of all energy related equipment for at least next one year.
Encourage companies to setup industries for solar panel manufacturing. It should be a tax free industry, and the land should be provided to them free of cost.
I’d rather suggest a two-point strategy:
1- Government should build dams which can address the power-production needs much more efficiently for they are a much better alternative than doling out billions on rental projects.
2- Private enterpreneurs should be encouraged to generate energy from unconventional energy resources, the chief being solar panels which may be the best energy source in the coming years – they should also be helped with establishing the relevant industry.