IMAPCT OF LOAD SHEDDING ON PAKISTAN ECONOMY

DEDICATION
Dedicated to MY
Beloved Parents
&
Respected Teachers who are
the Nation Builders.

1|Page

IMAPCT OF LOAD SHEDDING ON PAKISTAN ECONOMY

Executive Summary
Purpose of this project is to study that which type of problems we face during these years due
to energy crises. Pakistan is face different types of problems but the energy crises is one of the most
important problem. Energy problem is on priority that how to solve or get out of this problem.
In this research we try to see the backgrounds of the energy crises. we can see that how energy
will affect and destroy the economy of Pakistan and how he is affect the life of a student, business
man, employee etc. we also see that why we not handle the position from last 6,7 years. We also
discuss the solutions and recommendations regarding energy crisis that we overcome the situation.
Every person is in tension due to energy crises. Over government have taken some serious step
regarding load shedding. Through this research may be we can help over people because in this
research we also concern with general public ,experts, businessman and take solution from there site.

TITLE PAGE
2|Page

IMAPCT OF LOAD SHEDDING ON PAKISTAN ECONOMY

Table of Contents:

1. INTRODUCTION.

2.

What is load shedding?

How load shedding is Occurs?

Causes of load shedding

BACK GROUND OF STUDY

3. THEORATICAL FRAME WORK

Dependent variable

Independent variable

Moderating variable

4. DATA COLLECTION.

Questionnaire

Interviews

Internet

Articles

5. HOW TO OVERCOME THE PROBLEM

Technical

Political

Utilization of natural resource

6. CONCLUSION
7. RECOMMANDATION AND SUGESTIONS
8. REFERENCES

9. QUESTIONAIRE

INTRODUCTION
3|Page

IMAPCT OF LOAD SHEDDING ON PAKISTAN ECONOMY

In todays contemporary world, there are certain threats that have become the most significant
issues for the world economy to deal with. These include an ever increasing population, intensifying
regional conflicts and the most severe threats of all; the depleting power and energy reserves.
Electricity shortage and load shedding is a phenomena that is not new to Pakistan.
WHAT IS LOAD SHEDDING?

Load shed happens due to generator over load. It happens during 1 or more engine trips as a
result load shedding activated for the reason that the remaining generator/engines will suffer under
frequency and over voltage. When the government stops paying money to the generation companies,
in the revenge they start load shedding. Electricity to its customers. This act is called load shedding.
HOW LOAD SHEDDING IS OCCURS?

Load shedding can also be referred to as Demand Side Management or Load Management
Demand Controller devices are used to shed loads when a pre-set KW reading has been reached. These
devices are tied in to circuits supplying electric heat, stoves, dryers, and hot tubs--anything that tends
to use a lot of power. When set properly, Demand Controllers can be very effective at reducing your
energy bill. This question may be referring to the kind of load shedding which often occurs in places
where the total electrical power load which can be taken by consumers greatly exceeds the available
amount of energy which can be generated by the local power station or national network of power
stations. This is a situation which is common in many developing countries.
As soon as total power demanded exceeds a certain percentage - usually 98% - of the
maximum possible power that can be generated, parts of the distribution network have to be
disconnected. Such disconnections are known as "load shedding". If load shedding was not done the
generating equipment's overload breakers would automatically shut down the whole power station to
protect its alternators (electrical generators) from very severe damage. Such damage would be
extremely expensive to repair and would take a lot of time to do. So in practice, to keep the power
stations running 24/7 under such conditions, load shedding is applied to different parts of the
distribution network at various set times throughout a regular "power availability" period of, usually a
week.
For example, parts of the network supplying homes and small business offices may only get
power for two or three hours at a time every day or every other day, whilst important places - such as
hospitals, major factories and, typically, government offices - may get power almost 24/7. Load
shedding, normally used in industrial, large commercial, and utility operations, is monitoring electric
usage continuously (usually by automated instrumentation) and shutting down certain pre-arranged
electric loads or devices if a certain upper threshold of electric usage is approached there are two
reasons for doing it, both of them financially motivated. Power companies sometimes set up an
Industrial customer or a school with an electric billing rate in steps, i.e. if you are pulling less than this
amount of electric current during certain times you gets billed at one rate for the electricity you use.
If you are pulling MORE than this amount of electric current during that time, you get billed at
a higher rate, even if you use the same amount of electricity overall. The highest current you draw
during the time period in question is your "peak demand".

4|Page

IMAPCT OF LOAD SHEDDING ON PAKISTAN ECONOMY

The power company has to have generating capacities built and in place to generate the sum of
all of the peak demands of its customers during the highest peak demand period. Say that period is
10 am to 12 am during weekdays.
If the highest peak demand exceeds the capacity of the power company to generate, they either
have to build another power station to cover that 2 hour period each day, which is a waste of money, or
they have to buy power from some other power company during those 2 hours which is also
expensive. So power companies look for ways to cut down on the highest peak demand. They
encourage their large customers to cut back on peak demand during those "highest peak demand
periods" by charging them more if they exceed a certain peak demand.
Customers can stay below this set peak demand limit by monitoring their electric demand and
cutting off unnecessary electric loads if they get too close to their demand limit. That is one form of
load shedding.
The other way is for the power companies to ask their small customers for permission to
install a piece of equipment in their home or business and wire one or two appliances to the equipment
which will shut down the appliances based on a radio signal from the power company. The appliances
are usually electric water heaters. The power company gives a discount to these customers. Then, if the
power company sees that its demand is coming close to its generating capacity, it sends out a signal
and cuts off all these appliances. That is also called load shedding.

BACKGROUND OF STUDY
Economic and national security challenges since its birth. Energy crisis is the biggest of all. It
is multi-dimensional; both from inside and from outside. Inside is messed up with mismanagement,
inaction and loyalty with hidden hands, and outside interference aims at giving Pakistan final blow.
The problem starts from mismanagement of water. (a) Within the country misuse of water agreement
with all the provinces and the neigh boring Indias water offensive from outside. Our rivers are getting
dried up because India has on its side built more than 25 big and small dams. We have not built dams
to store the already available water in rivers. Kalabagh Dam is the biggest example. Yashwant Sinha
was then Indian foreign minister, who, during US visit asked the Secretary of State Collin Powell for
pressuring Pakistan not to make Kalabagh Dam. And Powell accepted the Indian request. (b) We have
one of the largest coal deposits in the world in Tharparkar Desert, but world powers are not letting
stooge governments to start work on this project. Imagine how deep the root of anti-Pakistan
conspiracy is! (c) We had gas reserves which are fast decreasing because of excessive use. Pakistans
gas agreement with Iran had been hit with snags. Earlier the IPI (Iran-Pakistan-India) gas pipeline plan
was abandoned. (d) Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project is not moving
ahead despite various renewals. All under a well planned anti-Pakistan strategy. Let us look at the
problem
we
are
facing:
The Problem: Under a special Energy Law, government is to pay a minimum agreed monthly
payment to IPPs for the contract period, even if no power is supplied. This means that if the power
plant is not operating, Pakistan would still need to pay the energy bill. In 2008 the 8 Thermal Power
plants and 2 Nuclear power plants of Pakistan were forcefully shut down for maintenance. With
reduced supply of electricity, WAPDA has fewer units to sell and thus have less income per year. But
the payment to the Thermal power companies was at a fixed rate, creating a very big $100m energy
deficit.

5|Page

IMAPCT OF LOAD SHEDDING ON PAKISTAN ECONOMY

Everyone is the victims of the shortage of energy. Students even during exams and patients
during operations can get no electricity. All urbanites are experiencing more than 12 hours of load
shedding, what to talk of royalties. Causes of current energy crisis are enumerated as (a) aging of the
equipment; (b) lack of high standard maintenance; (c) no replacement with latest generating system;
(d) wastage of energy with lesser conservation steps; (e) high cost of fuel, crude oil cost has increased
from $40 to $150 per barrel. IPPs are costing high. Wapda & KESC are paying high price to IPPs. So
they can sell
power to consumers on low rates; (f) Monopoly in the business: Wapda and KESC are two
generation and dispatch units although NEPRA is a government authority to settle the tariff issues but
the fact remains that once the question of WAPDA comes the authority has a very little influence; Zero
Exploration: No serious work is done to explore the coal; No progress in renewable energy generation,
which can be met from hydro and wind power sector; Inaction on part of government in investment,
installing
generating
units,
importing
hi-tech
equipment.
The oil and gas reserves will be finished into the second half of this current century. There are
929bn tons coal reserves available in the world whose 40% is used to produce the electricity. The third
biggest coal reserve of 185bn ton exists in Pakistan which is equivalent to 400bn barrels of oil, which
are equivalent to Saudi Arabia and Irans combined oil reserves. As per research, $50 per barrel price
gives the value of our coal reserve as high as $30trillion which goes to 187 times high as compared to
current GDP of Pakistan. Our natural gas reserves are finishing rapidly so it is necessary that electricity
be
produced
by
alternative
resources.
Solution Fast Track: Although fuel supplies and payments to the thermal power plants can be
increased to produce more energy, but with the low efficiency, the energy produced will be at a very
high cost. Therefore the best option would be to install 5000MW Coal Power plants in locations that
are away from the population, near the port or other transport facility and close to the National Grid. -

THEORATICAL FRAME WORK

The problem starts from mismanagement of water. (a) Within the country misuse of water
agreement with all the provinces and the neighboring Indias water offensive from outside. Our rivers
are getting dried up because India has on its side built more than 25 big and small dams. We have not
built dams to store the already available water in rivers. Kalabagh Dam is the biggest example.
Yashwant Sinha was then Indian foreign minister, who, during US visit asked the Secretary of State
Collin Powell for pressuring Pakistan not to make Kalabagh Dam. And Powell accepted the Indian
request. (b) We have one of the largest coal deposits in the world in Tharparkar Desert, but world
powers are not letting stooge governments to start work on this project. Imagine how deep the root of
anti-Pakistan conspiracy is! (c) We had gas reserves which are fast decreasing because of excessive
use. Pakistans gas agreement with Iran had been hit with snags. Earlier the IPI (Iran-Pakistan-India)
gas pipeline plan was abandoned. (d) Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline
project is not moving ahead despite various renewals. All under a well planned anti-Pakistan strategy.
Let us look at the problem we are facing:
The Problem: Under a special Energy Law, government is to pay a minimum agreed monthly payment
to IPPs for the contract period, even if no power is supplied. This means that if the power plant is not
operating, Pakistan would still need to pay the energy bill. In 2008 the 8 Thermal Power plants and 2
Nuclear power plants of Pakistan were forcefully shut down for maintenance. With reduced supply of
electricity, WAPDA has fewer units to sell and thus have less income per year. But the payment to the
Thermal power companies was at a fixed rate, creating a very big $100m energy deficit.

6|Page

IMAPCT OF LOAD SHEDDING ON PAKISTAN ECONOMY

Everyone is the victims of the shortage of energy. Students even during exams and patients
during operations can get no electricity. All urbanites are experiencing more than 12 hours of load
shedding, what to talk of royalties. Causes of current energy crisis are enumerated as (a) aging of the
equipment; (b) lack of high standard maintenance; (c) no replacement with latest generating system;
(d) wastage of energy with lesser conservation steps; (e) high cost of fuel, crude oil cost has increased
from $40 to $150 per barrel. IPPs are costing high. Wapda & KESC are paying high price to IPPs. So
they can sell power to consumers on low rates; (f) Monopoly in the business: Wapda and KESC are
Two generation and dispatch units although NEPRA is a government authority to settle the
tariff issues but the fact remains that once the question of WAPDA comes the authority has a very little
influence; Zero Exploration: No serious work is done to explore the coal; No progress in renewable
energy generation, which can be met from hydro and wind power sector; Inaction on part of
government in investment, installing generating units, importing hi-tech equipment.
The oil and gas reserves will be finished into the second half of this current century. There are
929bn tons coal reserves available in the world whose 40% is used to produce the electricity. The third
biggest coal reserve of 185bn ton exists in Pakistan which is equivalent to 400bn barrels of oil, which
are equivalent to Saudi Arabia and Irans combined oil reserves. As per research, $50 per barrel price
gives the value of our coal reserve as high as $30trillion which goes to 187 times high as compared to
current GDP of Pakistan. Our natural gas reserves are finishing rapidly so it is necessary that electricity
be produced by alternative resources.
Solution Fast Track: Although fuel supplies and payments to the thermal power plants can be
increased to produce more energy, but with the low efficiency, the energy produced will be at a very
high cost. Therefore the best option would be to install 5000MW Coal Power plants in locations that
are away from the population, near the port or other transport facility and close to the National Grid.
Solution Long Term: Pakistan has the potential to generate 55,000MW of electricity, which can be sold
to Afghanistan, India, China and Oman.

Independent variables

1.
2.
3.
4.

Electricity
(Dependent variable)

Dam
Power stations
Fuel & Gas
Bad Management

Bad Management
(Moderating variable)
In this diagram we clearly show the dependent and independent variables.
7|Page

IMAPCT OF LOAD SHEDDING ON PAKISTAN ECONOMY

This is because, Pakistans Northern areas rise like a series of steps, which create opportunities
for Hydel Power. But these big and small Hydro Power plants can take 2-6 years for construction, and
with Dams there is an additional 2-5 years for filling the Dam. But the good news is that Banks and
Donor organizations love to fund Hydro Power Projects, because this is clean renewable energy, which
does not produce any pollution and has a life of 30-50 years. Also Pakistan can use Hydro and even
Wind Power projects for Self Funded Pension Schemes, where Pakistani citizens can buy shares in a
project, which would give them a regular income for 25 years. Wind Power is also a very good option,
since Pakistans Sindh and Baluchistan regions have very good wind rates and there is opportunity to
generate up to 50,000 MW of energy with Wind Power from that region alone. Wind Power has all
similar equipment and installation procedure
Currently, Pakistan has an installed power generating capacity of nearly 23,000MW from all
sources. According to IAEA assessment, its demand will increase to more than 49,000MW by the year
2025. Since 1996 no new power project has been launched. In 14 years our production capacity has
increased by just 1000-2000 MW. Since we generate about 40% of our total power by hydro electricity
we can look at solar and wind energy that has a start up cost and after that producing electricity from it
is very cheap. Nuclear Reactors are another option available for us to produce electricity by using them
but its not very advisable for us since they have a very high building cost and generating that much
capital to make a lot of nuclear power plants will be almost impossible for a developing country like us
which already has a shortage of funds and capital.

DATA COLLECTION
In this research we use different methods to collect data. We use the data through surveys,
internet, Articles, interviews etc.we use internet for collection of data and conduct informal interviews
for our research. We also use personal references for this research and our relationships. After that we
are going in general public and ask different types of questions to them regarding this research. We
discuss how energy influence there lifes and what type of problems they due to Load shedding.
We also discuss how energy will affect the economy and business class. We also discuss the
most important question that why people shift their business in other countries. Why investment will
not come in our country.
We concern with students that how they are affected. We ask questions through questionnaire
And take their views. After know the problems and know how they are all affected we want to tell us
about the solutions and what steps are taken compulsory.

8|Page

IMAPCT OF LOAD SHEDDING ON PAKISTAN ECONOMY

HOW TO OVERCOME THIS PROBLEM

POLITICAL
Political controversies relating to Kalabagh dam must be resolved. In this connection seminars
and media can play a good role. If there is a need the modifications in design may also be suggested

Technical Issues
Inadequate Maintenance and Repair of Power Plants

Inadequate maintenance and repair of public sector power generation plants, either due to
financial constraint or sheer neglect, has either drastically reduced the operating efficiency of the
plants thereby increasing cost of generation to unsustainable levels or made them unserviceable. Many
of the plants are therefore, not operating.
Old and Dilapidated Transmission and Distribution Systems

Lack of proper maintenance or replacement of old transmission lines and grid stations cause
excessive line losses which in turn result in cost increase for power utilities and the consumer. It also
provides an avenue for hiding electricity theft.
Fast Track Solution:
Although Fuel supplies and payments to the Thermal power plants can be increased to produce
more energy, but with the low efficiency, the energy produced will be at a very high cost. Therefore the
best option would be to install 5000MW Coal Power plants in locations that are away from the
population, near the port or other transport facility and close to the National Grid.
Long Term Solution: Pakistan has the potential to generate 55,000 MW of electricity, which
can be sold to Afghanistan, India, China and Oman. This is because, Pakistans Northern areas rise like
a series of steps, which create opportunities for Hydel Power. But these big and small Hydro Power
plants can take 2-6 years for construction, and with Dams there is an additional 2-5 years for filling the
Dam. But the good news is that Banks and Donor organizations love to fund Hydro Power Projects,
because this is clean renewable energy, which does not produce any pollution and has a life of 30-50
years
9|Page

IMAPCT OF LOAD SHEDDING ON PAKISTAN ECONOMY

Also Pakistan can use Hydro and even Wind Power projects for Self Funded Pension Schemes,
where Pakistani citizens can buy shares in a project, which would give them a regular income for 25
years. Wind Power is also a very good option, since Pakistans Sindh and Baluchistan regions have
very good wind rates and there is opportunity to generate up to 50,000 MW of energy with Wind
Power from that region alone. Wind Power has all similar equipment and installation procedure.

5 steps to solving Pakistans energy crisis:

Replacing thermal power fuel

10 | P a g e

IMAPCT OF LOAD SHEDDING ON PAKISTAN ECONOMY

Pakistan produces about 81 percent of its electricity through oil and gas which costs us about
9.4 billion dollars. To put it in other terms, that is about 53 percent of our total exports and is the
biggest cost on our import bill. Now given that our reliance on thermal power is so large, we simply
cannot dismantle it and magically move to hydro power, however we can change the fuel used to gain
thermal power. Instead of using oil and gas, both of which are getting more expensive and have
volatile international prices, we can move to using coal.

But not the Thar coal, I will explain why later, but imported coal. If we were to import clean
coal and use that as a fuel instead of oil and gas, it would cost us less as the price of coal is more stable
than that of oil and gas in the international market. This can bring some sort of price stability in our
electricity prices that keep changing due to changes in international market prices.

Moving past the myth of Thar coal

Yes, there is coal in Thar, but assuming that it can be used immediately or it will solve all our
energy problems are a myth propagated by a few people and political parties for their personal gains.
Experts agree that Thar coal is highly unstable making it difficult to transport it from one location to
another and even its gasification is not risk-free.
11 | P a g e

IMAPCT OF LOAD SHEDDING ON PAKISTAN ECONOMY

On location gasification also requires heavy investment, which has practical difficulties due to
the unstable nature of the coal deposits. So instead of wasting time and effort on this, we should focus
on importing coal to replace the ever increasing oil and gas bill.

Improved energy mix

Energy mix refers to the sources of energy we utilize in Pakistan to fulfill our overall energy
needs. I need to give credit to the PML-N on this one as they are the first ones to talk of the holistic
energy mix and not just the CNG or the electricity crisis.

The fact is that all our energy is interdependent. I have previously advocated that we need to
move off CNG as we simply do not have enough of it to supply to all the commercial, industrial and
home users. Its about time that any future energy strategy Pakistan is supposed to have comes with a
proper energy mix to solve our issues.
We need more hydel plants and renewable energy projects. In the next five years, the aim
should be at getting five percent of our total power supply from renewable sources and to also use the
nuclear power we are so proud of, to provide electricity. Right now, we are at about three percent
power generation from nuclear sources, which have to go up to at least percent. Hence an overall
improved energy mix is what can solve our issues in the long run.
12 | P a g e

IMAPCT OF LOAD SHEDDING ON PAKISTAN ECONOMY

Stand alone power projects

This is a suggestion that I gave at the conference and I am advocating it now again. About 40
percent of Pakistan is off the national grid; that means they effectively get to no electricity.
The way our grid operates, it is already suffering from heavy line losses and other technical
issues, which makes it extremely hard and costly to get 40 percent of the Pakistan on to the national
grid. However there are solutions to this.
We can finance independent stand alone power projects that can function in areas where there
is no national grid, this way the local communities and businessmen can set up their own energy
solutions without taking prior permission from the National Electric Power Regulatory Authority
(NEPRA) like they have to now. This will enable them to set up small scale solar panels and plants in
their communities and sell electricity locally. Small wind farms can also be used in areas which are
close to wind corridors.
The bottom line is, let the people who are living in areas that dont come under the national
grid, do whatever they can to supply themselves with electricity without any government involvement.

Dismantle the national grid

The national grid needs to be dismantled and provincialised, because under the 18 th
amendment, the profits of power generation go to the province that is producing the power, meaning if
electricity is being produced at Tarbela, royalties of that are being paid to KP Government by all other
provinces. However, they sell it to the national grid and then the national grid sells it down to the
District Electrical Supply Companies who further sell the power to the consumers. This way, if there is
a shortfall; national grid chooses the electricity supply patterns and hence decides which areas suffer
outages the most.
If we dismantle the national grid and change the electricity supply to an open market, where
provincial grids can buy energy directly from the source, it would improve the power supply and be
more financially beneficial for the power producing province. This way, the provinces with the most
issues with electricity supply can simply outbid the others to get enough for their local demand. This
would not be privatization but provincialization, and will encourage provincial governments to start
doing more for their people instead of relying on the federal government
This can eventually lead to provinces working harder to upgrade their grids and reduce their
line losses as their people would know exactly who to blame if the power goes out. I think it is time we
started thinking on these lines given that the 18 th amendment has already been passed and provincial
autonomy is our future.

13 | P a g e

IMAPCT OF LOAD SHEDDING ON PAKISTAN ECONOMY

I hope our political parties come with their own alternative strategies while taking these points
in to account too. Energy crises is a national issue and all possible solutions should be explored to
solve it.

CONCLUSION
Pakistan is facing electricity and gas shortfalls. Oil and gas supply the bulk of the countrys
energy needs. The indigenous reserves of oil and gas are limited and the country is heavily dependent
on the import of oil. On the other hand, there is abundant potential of hydropower, wind energy, solar
energy and biomass energy in the country. A lot of efforts are required to revive the energy sector
which can smoothly meet the requirements of energy for domestic, commercial and industrial sector in
Pakistan.
All types of renewable energy may be used at both domestic and industrial level. Biofuel is an
important alternative fuel to keep running the existing transport and industrial system smoothly.
Currently, Pakistan may focus to utilize available biomass in the form of residual crops as an
industrial fuel in combination with fossil fuel. It may replace the fossil fuel partially and reduce
emission of greenhouse gases.
The energy requirements of a progressive and thriving Pakistan demand an aggressive
investment of resources, financial as well as technological for nuclear power development. This is
more so to overcome the current deficit of electricity generation. Pakistan has a solid base of
engineering and technology and time-tested human resource which can handle the challenges and
benefit from the opportunities which are available in the nuclear arena. Notwithstanding the challenges
associated with nuclear power generation, there had never been such an opportunity in Pakistan, albeit
due to many reasons, for exploiting the benefits of nuclear power for sustainable growth of the country.
Energy brings economic prosperity and nuclear power is one of the major options to bring energy to
Pakistan

RECOMMENDATION AND SUGGESITONS

The current policy environment in Pakistan is favorable to RETs. The 2006 Renewable Energy
Policy offers an attractive package of fiscal and financial incentives to private sector investors. The
setting up of PCRET, AEDB, Private Power and Infrastructure Board and National Electric Power
Regulatory Authority (NEPRA) are important steps towards having a sound institutional infrastructure.
However, there still exist barriers to renewable energy deployment in the country. Following
recommendations are made to accelerate the dissemination of RETs in Pakistan.

The government, power and gas utilities, and regulators should adopt and properly implement
least-cost planning in resource acquisition

Transmission, distribution, reliability, and other cost savings associated with decentralized
power generation through RES should be identified. Environmental benefits of RES should be

14 | P a g e

IMAPCT OF LOAD SHEDDING ON PAKISTAN ECONOMY

considered in resource planning and acquisition processes. The Energy Wing in the Ministry of
Planning and Development and WAPDA should enhance capacities to ensure that the long-term
economic and environmental benefits of RES are captured in the national planning process, and
time-based targets designed for exploitation of available renewable energy potential.

Methods for determining energy output, financial return, estimating local externalities, and
increased local employment should be standardized, that will allow a fair comparison among
projects. Innovative and sustainable financing programmers for RETs should be instituted. The
government should consider setting up a renewable energy development fund, especially for
lending to small investors attractive terms and conditions.

NEPRA should work closely with Alternative Energy Development Board (AEDB) to define
criteria and limits for tariffs for purchase of power from non-utility generators. NEPRA should
develop the expertise to be able to evaluate tariffs for the purchase of power from RES. The
institutional capacity of NEPRA should be strengthened by 36 Solutions for Energy Crisis in
Pakistan streamlining staffing procedures to ensure that capable and qualified staff can be hired
on permanent positions.

Ministry of Environment (MOE) should support the development of RES by helping the public
and private sectors benefit from financial instruments, such as GEF and CDM. Enabling
actions, such as resource mapping, technology transfer, and training should be conducted under
environmental technical assistance programs coordinated by MOE with international donors.

Pakistan Council for Renewable Energy Technologies (PCRET) should enhance its capacity to
include wind and PV systems along with micro-hydro, solar thermal and biogas systems in its
portfolio, and to coordinate its activities with the provincial governments. Also it should work
closely with the NGOs and rural support organizations to ensure that technology packages
offered are compatible with the local conditions in which the technologies are to be applied.
Product standardization is one of the measures that PCRET can take to promote RETs. The
commercial success of RETs is vitally dependent on adoption and enforcement of appropriate
standards and codes.

Minimum performance standards in terms of durability, reliability, and thermal performance

are also necessary for market penetration.

Some legislative measures e.g. making it obligatory for every (new) building to install a solar
water heater and for every power generation company to generate at least 20% electricity from
RES should be taken to accelerate the diffusion of RETs in the country.

Information specific to viable RETs needs to be made easily accessible both to increase general
awareness and acceptability as well as to aid potential investors and sponsors of such projects.
A media campaign should also be launched to convince more people about the advantages and
gains of renewable energy systems installation

Technical assistance programmers should be designed to increase the planning skills and
understanding of RETs by utilities, regulators and other institutions involved. Technical

15 | P a g e

IMAPCT OF LOAD SHEDDING ON PAKISTAN ECONOMY

infrastructure should be developed to achieve the expansion of RETs. The indigenous industry
should be encouraged as well as technology transfer from abroad.

Workers should be skilled and trained to construct, operate and maintain the RETs.

16 | P a g e