Government’s Over-Ambitious Power Generation Plans
The new energy plan of the government proposes to add 19,765 MW of power generation capacity by 2034 at an estimated cost of $63.31 billion. This is all very well, but analysts say that these power expansion plans fail to take account of one important thing, Pakistan may have no customers for the extra power very soon.
Decline In Demand And The Rise Of Solar Energy
The demand for electricity from the national grid is decreasing fast as domestic consumers, business houses and farms are changing over to decentralised solar systems. The economy as a whole is therefore changing over from electricity from the national grid to solar energy generated normally by much smaller units. Figures presented by Renewables First indicate that the demand for grid electricity has decreased from 29,000 MW in June 2023 to 27,400 MW in June 2024. Solar energy is now generating more than one-fourth of the power total generated in the summer months. The change-over in the agricultural sector is even sharper, the demand for national grid electricity having decreased by some 45%.
Over-Capacity And The Inherent Economic Costs
The country’s present installed capacity is already 46,000 MW, which is far above its peak capacity of approximately 30,000 MW. But even though this situation exists new plants are still being started, adding to circular debt situations arising from the wide gap which exists between the cost of power generation and the amount received from consumers. The ultimate result is increased power costs, increased subsidy payments and increased pressure on fiscal strains on the economy.
There Is A Better Way To Go
Experts are of the opinion that it would be better for the government to not only refrain from additional investments in unnecessary capacity, but rather spend any money available on cleaner and cheaper sources of supply such as wind and solar, while at the same time phasing out the existing expensive sources such as either coal, oil or LNG. Money that would otherwise go on new power generation plants should be put into the upgrading of the existing grid and national infrastructure to advance the cause of greater and more sustainable renewable energy
