Sustainable Energy For All National Action Plan

1.3.2.3 Cement Sector 54

1.3.2.4 Leather Industry 55

1.3.2.5 Fertilizer Sector 55

1.3.2.6. Pulp and Paper 56

1.3.2.7 Brick Kiln 56 Acknowledgement 9

1.3.3 Energy Efficiency in Transport Sector 56 Message of Deputy Chairman, Planning Commission 10

1.3.3.1 Road Transport 57 Message of Resident Coordinator, United Nations Pakistan 12

1.3.3.2 Fuel Efficient Cars: Hybrid and Electric Vehicles 58 Executive Summary 13

1.3.3.3 Railway Transport 58 Preamble 19

1.3.4 Energy Efficiency in Agricultural Sector 58 The Methodology 21

1.3.5 Supply, Transformation, Transmission & Distribution Efficiency 59

1.3.6 Energy Efficiency in Power Sector 61 INTRODUCTION 23

1.3.6.1 Energy Efficiency in Buildings 61 Overview of Pakistan’s Energy Sector 26

1.3.6.2 NTDC’s Expansion Plan 61 Pakistan’s Power Sector Vision & Reforms 27

1.4 Projections for Primary Energy Supply and Final Energy Consumption by 2030 61 Energy Sector Progress (2013-18) 28

1.4.1 Final Energy Consumption 63 Analysis of Key Issues of Pakistan’s Energy Sector 31 Pakistan’s Vision 2025 and Key Policies for the Energy Sector 33 PART 2: PRIORITY ACTION AREAS 66 World Bank Regulatory Analysis (RISE) 35

2.1 Priority Action Areas 66 Pakistan’s Nationally Determined Contributions (NDC) 36

2.1.1 Energy Access - The Status and Trajectory 66

2.1.2 Completion of On-Going Plans / Strategies 67 PART-1: VISION & TARGETS UNTIL 2030 40

2.1.3 Actions Needed to Achieve Energy Access: Modern Cooking Appliances and Fuel 73

1.1 Energy Access Target until 2030 41

2.2 Status of Renewable Energy in Pakistan 73

1.1.1 Limited Access: Load Shedding 43

2.2.1 Biomass Energy 73

1.1.2 Electricity Access Targets-Methodology 43

2.2.2 Bio-Fuel 74

1.1.3 Access to Modern Fuel 44

2.2.2.1 Private Sector 75

1.1.4 Piped Gas Network Status 44 2.2.3 . Solar Energy 75

1.2 Renewable Energy Target Until 2030 46

2.2.3.1 Solarization of Government School and Colleges 76

1.2.1 Biomass 47

2.2.3.2 Promotion of Solar Heating 77

1.3 Energy Efficiency Target Until 2030 48

2.2.3.3 Promotion PV Solar Powered Water Pumps 77

1.3.1 Residential/Domestic Sector 50

2.2.4 Wind Energy 78

1.3.1.1 Electricity Saving Potential in Domestic Sector 50 2.2.5 . Development of Hydel Energy 78

1.3.1.2 Natural Gas Saving Potential in Domestic Sector 51

2.2.6. Development of Small Hydro 78

1.3.2 Residential/Domestic Sector 52

2.2.7 Promotion of Geothermal 79

1.3.2.1 Textile Industry 53

2.3 Promotion of Energy Efficiency and Conservation 80

1.3.2.2 Sugar Industry 54

2.3.1 Energy Efficiency Measures in Buildings 81 1 Table of Content National Action Plan 2

2.3.2. Energy Efficiency in Transportation Sector 82 3.18 Enabling Action Area: On-bill Financing Scheme 107

2.3.3. Energy Efficiency in Domestic Sector 82 3.19 Enabling Action Area: Renewable Energy &Energy Efficiency Funds 107

2.3.4. Improving Vehicle fuel efficiency standards and emissions 82 Capacity Building and Knowledge Sharing 108

2.3.5. Upgradation and Improving the Efficiency of NTDC 83 3.20 Rural electrification and off-grid market 108

2.4 Conclusion 84 3.21 Enabling Action Area: Energy Information Sharing and Delivery 109

3.22 Enabling Action Area: Appliance Testing Laboratories 110 PART 3: ENABLING ACTION AREAS 94 3.23 Enabling Action Area: Mandatory Regulatory Measures for Consumers 110 3 Energy Planning and Policies 94 3.24 Enabling Action Area: Mandatory Energy Audits and Reporting 111

3.1 Energy Planning and Policy Analysis for SEforAll 94 3.25 Enabling Action Area: Mandatory Energy Saving Plans 111

3.2 Policy Analysis: Power Generation Policy 2015 95 3.26 Enabling Action Area: Capacity Building of Government Departments 112

3.3 Policy Analysis: Policy for Development of Renewable Energy 2006 95 3.27 Private Sector Role and Incentives in the Energy Sector of Pakistan 112

3.4 Policy Analysis: Regulatory framework and guidelines 95 3.28 Linkages to Investment Prospectus 113

3.5 Post 18th Constitutional Amendment Assessment 96

3.5.1 Government of Sindh Power policies 96 PART 4: COORDINATION AND FOLLOW-UP 116

3.5.2 Government of Balochistan Power policies 97 4.1 Mechanism for Coordination and Follow-up 116

3.5.3. Government of Punjab Power policies 97 4.2 Monitoring and Tracking Framework 119

3.5.4 Government of Khyber Pakhtunkhwa (KP) Power policies 97

3.5.5 Implementation of Integrated Energy Development Plan / Model 97 NOTES 123

3.5.6 Assigning Priority Based on Integrated Energy Planning 98

3.5.7 Enabling Action Areas: Measures for Renewable Energy at National Level 99 ANNEXTURES 129

3.6. Enabling Action Areas: On-Grid Distributed Energy - Net-metering Regulation 99 Annex I Constitution of SEforAll Steering Committee 129

3.7. Enabling Action Areas:Renewable Energy Resource Planning 100 Annex IV JICA’s Scenario Base Electric Energy Demand Forecast by 2050 132

3.8. Energy Efficiency Regulatory Reforms 100 Annex-V Private Power Infrastructure Board - Power Project List by 2025 133 Business Model and Technology Innovation Annex-VI Power distribution losses Europe versus Pakistan 138

3.9. Mobilizing Private Sector Investment 101 Annex VII Recommended Districts for Solarization for Government Institution 139

3.10 Enabling Action Area: ESCO Business Model for Promotion of Energy Efficiency 102 Annex VIII Woman and Children Effected by Indoor Pollution 140 Finance and Risk Management Annex IX Province wise Progression & Targets for On-Grid Electricity Access by 2030 141

3.11 Enabling Action Areas: Addressing Circular Debt 103 Annex X Province Wise Breakup of Fuel Used for Cooking 142

3.12 Enabling Action Area: Financing for Renewable Energy and Energy Efficiency 104 Annex XI Pakistan’s Solar Sector Jobs by Market Segment and Value Chain 142

3.13 Enabling Action Area: Policy and Financing Mechanism for Off-Grid Rural 105 Annex XII Industrial Sector Energy Saving Potential 143 Electrification Annex XIII PPDB’s facilitated Renewable Energy &Hydropower Power Projects 144 Fiscal and Financial Incentives for Energy Efficiency Program 105 Annex XIV Solicited Hydro Power Projects in the Gilgit-Baltistan Region 148

3.14 Enabling Action Area: Investment Subsidies for Energy Efficiency 106 Annex XV Expansion Plan for NTDC System (2017-18 to 2021-22) 149

3.15 Enabling Action Area: Incentives for Energy Audits 106 Annex XX List of CPEC Project 157

3.16 Enabling Action Area: Concession of Customs Duties /Taxes on EE Equipment 106

3.17 Enabling Action Area: Soft Loans 107 3 Table of Content National Action Plan 4 List of Figures List of Tables Figure 1 Map of Pakistan 3 Table 1 Socio-Economic Indicators 3 Figure 2 Pakistan’s Real GDP Growth 13 Table 2 Primary Energy Supply by Source 13 Figure 3 Historic Demand Supply Situation 14 Table 3 Final Energy Consumption by Source 2017 14 Figure 4 Inventory of GHG Emission (MT Co2-Equivalent) 17 Table 4 Circular Debt Break-Up 17 Figure 5 Village Electrification 18 Table 5 Energy Access, Renewable and Efficiency 18 Figure 6 Percentage of Population using Traditional Sources of fuel for Cooking 19 Table 6 Comparison of Electricity Access 2016 19 Figure 7 Percentage Access to Piped Gas Network 20 Table 7 Projection of Piped Gas Connections 20 Figure 8 Primary Energy Intensity and Rate of Improvement of Energy Efficiency, 21 Table 8 Improved Cooking Stoves Target 23 21 Comparative Assessment 22 Table 9 Estimated Share of Renewable Energy in Total Final Energy Consumption 22 Figure 9 Final Energy Consumption by Sector, FY 2017 23 Table 10 Electricity Savings Potential for Selected Appliances in the Domestic Sector 23 Figure 10 Energy Consumption by Transport Sector 24 Table 11 Gas savings potential in the residential sector 24 Figure 11 Energy consumption mix in Agriculture Sector 24 Table 12 Energy and Cost Saving Potential in the Industrial Sector of Pakistan 24 Figure 12 Power distribution losses in DISCOs in Pakistan 34 Table 13 Possible Interventions and Potential Energy Savings in Agriculture sector 34 Figure 13 Pakistan's Projected Power Generation by 2029-2030 44 Table 14 Projected Primary Energy Supply Mix by 2030 44 Figure 14 Incidence of Poverty by District 45 Table 15 Projected Final Energy Consumption by 2030 45 Figure 15 Geothermal Resource Potential of Pakistan 56 Table 16 Pakistan's Projected Power Generation in MW by 2029-2030 56 Figure 16 Breakdown of Domestic Electricity Consumption by Appliances 61 Table 17 Recommended Priority Districts for Off- Grid Lighting Programs 61 Figure 17 Coordination and Monitoring Mechanism 62 Table 18 Challenges and Recommended Interventions for Access to Electricity 62 Table 19 Existing Programs on Off-Grid Electrification 64 Table 20 Planned LPG Air Mix Plants 67 Table 21 Hydropower Resources in Pakistan 78 Table 22 Small Hydropower potential in Pakistan 87 Table 23 Expected Benefits of Energy Efficiency in Resource Planning 88 5 List of figures National Action Plan 6 Abbreviations ADB Asian Development Bank IESCO Islamabad Electric Supply PESCO Peshawar Electric Supply AEDB Alternative Energy Development Company Company Board IFC International Finance Corporation PPA Power Purchase Agreement AJK Azad Jammu & Kashmir IP Investment Prospectus PSLM Pakistan Social and Living BPDB Balochistan Power Development IPCC Inter-Provincial Coordination Standards Measurement Board Committee PPAF Pakistan Poverty Alleviation Fund CAGR Compound Annual Growth Rate IPP Independent Power Producer PPDB Punjab Power Development Board CCI Council of Common Interest KP Khyber Pakhtunkhwa PPIB Private Power Infrastructure Board CPEC China-Pakistan Economic Corridor KV Kilo Volt QASP Quaid-e-Azam Solar Park CPI Consumer Price Index KWh Kilo Watt Hour QESCO Quetta Electric Supply Company CPPA-G Central Power Purchase LESCO Lahore Electric Supply Company RE Renewable Energy Agency-Guarantee LF Local Financing RET Renewable Energy Technology DISCO Distribution Company LNG Liquid Natural Gas RRA Renewables Readiness A EPA Energy Purchase Agreement ssessment LoI Letter of Intent ESMAP Energy Sector Management PKR Pakistani Rupee LoS Letter of Support Assistance Program MCDA Multi-criteria Decision Analysis SEPCO Sukkur Electric Power Company FATA Federally Administered Tribal MoE Ministry of Energy SHS Solar Home System Areas MEPCO Multan Electric Power Company SPP Solar Power Project FESCO Faisalabad Electric Supply Company MTOE Million Ton of Oil Equivalent TESCO Tribal Areas Electric Supply Company FF Foreign Financing MoE Ministry of Energy (Power Division and Petroleum Division) TFEC Total Final Energy Consumption FO Furnace Oil MSW Municipal Solid Waste UNDP United Nations Development GB Gilgit-Baltistan Programme GDP Gross Domestic Product MVA Mega Volt Ampere USAID United States Agency for GENCO Generation Company MW Mega Watt International Development GEPCO Gujranwala Electric Power NAP National Action Plan WAPDA Water & Power Development Company NDC Nationally Determined Contribution Authority GIS Geospatial Information Systems NEPRA National Electric Power Regulatory WPP Wind Power Project GWh Giga Watt Hour Authority HDIP Hydrocarbon Development NREL National Renewable Energy Institute of Pakistan Laboratory HESCO Hyderabad Electricity Supply NTDC National Transmission and Company Dispatch Company HSD High Speed Diesel PAEC Pakistan Atomic Energy IA Implementation Agreement Commission IEP Integrated Energy Plan PEPCO Pakistan Electric Power Company 7 Abbreviations National Action Plan 8 Acknowledgement Message The Sustainable Energy for All - National Action of Pakistan) reviewed the report and provided the Dr. Muhammad Jahanzeb Khan, Deputy Chairman, Planning Commission Plan (NAP) and Investment Prospectus (IP) with comments. Dr. Khaqan Najeeb (Director General, extensive stakeholders consultation were Economic Reform Unit), Mr. Zargham Ishaq Khan prepared during 2016-18 with the support of (Joint Secretary, Power Division), Mr. Abid Latif Minister /Deputy Chairman, Planning Commis- Lodhi (CEO, CPPA), Mr. Amjad Awan (Ex. CEO, Energy is the chain that connects the economy, periods of water stress and droughts. And though sion, Ministry of Planning, Development & Reform; Alternative Energy Development Board), Mr. environment and developmental issues. The Pakistan’s GHG emissions on a global scale are Secretary, Ministry of Planning, Development & Shahjahan Mirza (Managing Director, Private availability of clean, efficient and affordable minimal in comparison to other industrialized Reform; Member (Energy), Planning Commission Power & Infrastructure Board), Dr. Irfan Yusuf energy is key to a prosperous future. Pakistan is at countries, sustainable energy is the most viable and Officers of Energy Finance & Economics (Director CDM/IC/Solar, Alternative Energy Devel- crucial point in its development stages. Expand- solution to provide access to off-grid areas in Section, Energy Wing, Planning Commission. opment Board), Syed Aqeel Hussain Jafri (Direc- ing its access and transitioning to cleaner Pakistan which are considerable in number, and tor Policy, Alternative Energy Development technology will not only reduce poverty but to address the current energy shortages seen in In addition, Mr. Aman-Ullah Khan (Assistant Board), Mr. Asad Mehmood (Manager, Energy improve the quality, and at a more macro scale, the form of long bouts of load shedding. Resident Representative, Environment and Efficiency and Conservation Authority), Mr. Faisal increase productivity, competitiveness and Climate Change Unit, United Nations Develop- Watto (Manager, Private Power & Infrastructure economic growth. Even today, more than a billion By 2030, Pakistan has a great opportunity to trans- ment Programme), Mr. Usman Manzoor Board), Mr. Qaiser Shah (Deputy Secretary, Minis- people have no access to electricity. It is the form its energy system by improving energy (Programme Officer, UNDP) and Ms. Arish try of Energy) provided institutional input during “energy poor” that suffer the most and lack of efficiency and incorporating more renewable Naseem (Young Professional Officer, UNDP) consultations. basic facilities such as lighting, heating, cooling energy into its mix. The challenge is daunting yet remained actively involved during the prepara- and cooking has created a “poverty trap”. In the not impossible. It will require major shifts in regula- tion. The documents have been prepared by a The provincial / regional government representa- past the energy crisis in Pakistan rattled the econ- tory regimes in the economy, investment and team of consultants – led by Dr. Sardar Mohazzam tives from Energy and Planning & Development omy resulting in heavy losses. Every development accelerated development and deployment of and supported by Mr. Khalil Raza, Ms. Sadia Departments participated in the consultations goal hinges on the ability to improve energy new technologies. Other than this there needs to Qayyum, Ms. Qurat-ul-ain Syed and Ms. Mehvish organized in the respective areas as well as systems. The countries that operated on under- be a change on how we define and perceive Janjua for stakeholders’ consultation and attended the Steering Committee meetings. The performing energy systems may lose up to 1-2 energy needs. There must be shifts in human and research. team apologizes in advance to anyone inadver- percent of growth annually. institutional capacity. tently overlooked in these acknowledgments. The review committee for NAP/IP was headed by Globally, energy systems are one of the main Sustainable Energy for All (SEforALL), initially Dr. Nadeem Javed (ex-Chief Economist, Planning The team also thank the observers from World contributors to rise in Green House Gas emis- launched in 2011, is meant to catalyse all stake- Commission), Mr. Ali Habib (Managing Partner, Bank, Asian Development, GIZ, JICA, SEforALL sions. Current patterns of production, supply and holders to take action in achieving one of the Hema Verta), Dr. Bilal Khan (Dean, Center for Hub in Washington DC and Manila for being part consumption have proved unsustainable and is most critical SDG goals that is, energy security. Its Advance Studies Energy, NUST), and Dr. Moham- of first Steering Committee Meeting and provid- also a matter of concern for Pakistan due to the three main goals: 1. Providing universal access to mad Pervaz (Hydrocarbon Development Institute ing input. adverse effects of climate change in Pakistan. We energy, 2. Doubling the rate of improvement in have observed and suffered the impacts such as energy efficiency and 3. Doubling the share of rising temperatures, catastrophic floods, and renewables in the energy mix; aim to create policy 9 Acknowledgement National Action Plan 10 Message Message Dr. Muhammad Jahanzeb Khan, Mr Ignacio Artaza, Resident Deputy Chairman, Planning Commission Representative a.i. UNDP synergies that will address this issue in a holistic catalyze public sector funding mechanisms and Sustainable Energy for All (SEforALL) is a United In Pakistan, the well-being of 207 million people matter. encourage private sector investments to meet our Nations global initiative which supports countries depends on how effectively land, water, and capital requirements to provide universal access in creating opportunities for access to energy and other resources are utilized. Energy security in Pakistan plans to implement SEforALL by scaling and facilities such as clean cooking stoves partic- improving energy efficiency across various Pakistan is critical to sustaining economic growth up action, facilitating coordination between ularly for low income homes. Success depends sectors, thus enhancing renewable energy and creating opportunities for all—affordable, stakeholders and the execution of its National heavily on fostering public-private partnerships resources. sustainable and reliable energy solutions will Action Plan. We must drive action and commit to that can accelerate deployment of technologies, largely determine the key areas of economic this cause of sustainable development. Pakistan promoting research and development and The goals of Sustainable Energy for All (SEforALL) progress. Together, in consultation with the feder- has identified its Action Areas and its high oppor- expanding local lending capabilities such as complements the Government’s manifesto to al and provincial governments, we have identified tunity areas in National Action Plan and Invest- micro finance institutions and local commercial provide energy services at an affordable cost. potential areas in which considerable invest- ment Prospectus. banks through regulatory and incentive frame- Sustainable Energy is also closely interlinked with ments could be made. The National Action Plan works to attract private investment. Poverty Reduction objectives and social progress provides better opportunities for partnerships and If we work diligently and painstakingly, I am confi- for sustainable development. Access to sustain- collaborations with the international private dent that SEforALL will empower leaders and With formation of the National Action Plan and able energy not only helps in achieving SDG-7 of sector as well as effective governance of climate broker partnerships. If done consistently, we will Investment Prospectus, I am optimistic that Affordable and Clean Energy but also facilitates in finance. There is significant potential in fostering be able to unlock finance that can contribute to sustainable energy will be at the forefront to meet making progress towards eight other SDGs which public-private partnerships to accelerate deploy- makes our goals a reality. Innovative financial our future energy needs. A future that we will work are interlinked with SDG-7. ment of technologies, promoting research and mechanisms and climate finance can be made towards together to leave a better, stronger and development, devising innovative financing available by international donor agencies to more prosperous legacy for our children. UNDP has been supporting the government in mechanisms, and expanding local lending capa- the development of a National Action Plan on bilities to attract private investments. Sustainable Energy for All (SEforALL). The Nation- al Action Plan will provide the opportunity to UNDP stands committed to work together with achieve the global target set forth in the Paris the Government of Pakistan, civil society, national Agreement, which is to keep global temperature partners and the people of Pakistan to help find rise well below 2 degree, while pursuing efforts to solutions to persistent development challenges, limit it to 1.5 degree in this century. including those related to sustainable energy. 11 Message National Action Plan 12 Executive Summary Post 18th Amendment; energy has become a encing the problem of aggregate technical and provincial subject which constraint the AEDB to commercial losses culminating to the circular work directly in the provinces. Therefore, AEDB debt. The transmission and distribution losses of supports the provinces to achieve 100% access Power and Natural Gas utilities in Pakistan are the target through distributed energy sources. The highest in the region. The average power distribu- Sustainable Energy for All (SEforAll) is goal seven of the Sustainable Development Goals. SEforAll focus is on distributed solar housing solutions for tion losses in Pakistan are about 20% and for is an all-encompassing approach linking energy access to other goals. SEforAll National Action underserved areas across the Pakistan. some DISCOs, these losses reach to 38%.4 Plan is a comprehensive and holistic long-term action plan, aligned with Pakistan Vision 2025 and Pakistan’s Unaccounted For Gas (UFG) losses in national energy policies. The plan ensures overall sector-wide coherence and synergy of the Energy Efficiency is one of the key priorities in the the gas network for SSGC and SNGPL stands at collective efforts toward the three goals of SEforAll to be achieved by 2030. Vision 2025. It supplements the energy access in about 15% and 11.5% respectively. The efficiency a cost-effective and efficient manner. Govern- gains as well as reduction in transmission and In total, the energy sector offers an investment major source for cooking in households across ment has recently promulgated National Energy distribution losses both from electricity and gas potential of $66.56 billion under a high growth the country is firewood. AJK and Gilgit-Baltistan Efficiency & Conservation Act of 2016 which aims can save PKR 140 billion annually. scenario till 2030 to achieve the SEforAll objec- do not yet have a piped gas network. Pakistan at developing the mechanism and procedures for tives in Pakistan. The SEforAll three main objec- Social and Living Standard Measurement’s effective implementation of efficiency measures. Planning Commission is mandated to prepare tives are: (PSLM) survey2 analysis reveals that 60.6% The National Energy Efficiency Conservation short, medium and long-term national develop- households are relying on non-commercial Authority (NEECA) has been created while renam- ment plans for all sectors of economy in coordina- a) Universal energy access, source of energy i.e. firewood for cooking. ing the ENERCON. Although ENERCON has been tion with all federal and provincial stakeholders b) Doubling the share of renewable energy, and established in mid 1980s, the energy efficiency through a consultative process. It also monitors c) Doubling the rate of energy efficiency. One of the potential solutions to ensure energy improvements have not taken off very well mainly and keep track of different socio-economic access for areas which are not connected to the due to regulatory, institutional and financial indicators, including SDGs targets agreed under Access to energy at national level is 73%. There grid is through provision of renewable energy barriers. different national and international obligation. are 32,266 villages in the country which will resources. Pakistan’s Alternative Energy Develop- Accordingly, the task of preparation of National remain without grid access1 in coming years. ment Board (AEDB) efforts has contributed over The NEECA is taking steps in the right direction to Action Plan (NAP) for SEforAll commissioned by These villages have sparsely distributed popula- 1200 MW of renewable energy in national grid. It improve Demand Side Energy Efficiency (DSEE) UNDP is being overseen by Planning Commission tion and are in remote locations which is making is projected that renewable energy will rise to at measures. NEECA has successfully launched the through a National Steering Committee (NSC) expansion of grid financially unviable and techni- least 24% in the power generation mix by 2030. Standards and Labelling Regime for efficient fans headed by the Federal Minister for Planning, cally challenging. Provincial comparison of AEDB has successfully attracted local and which is saving approximately 25 MW of electrici- Development & Reform / Deputy Chairman access shows that Sindh has the highest number international companies to invest in renewable ty. Similarly, Zig Zag technology has been Planning Commission and represented by all of un-electrified villages, followed by Punjab, KP, energy projects. Globally, the regulatory analysis introduced for brick kilns by NEECA, wide scale stakeholders. and Balochistan respectively. On the other hand, of AEDB regulatory framework has been ranked usage of this technology can potentially save AJK and Gilgit-Baltistan (GB) compared to the rest high for its performance (RISE, 2016).3 Additional- 30-40% energy use in the brick kilns industry. The NSC was constituted of key stakeholders of the country have over 90% access to the grid. ly, NEPRA-AEDB regulation on “Net-Metering” is consisting of technical experts, academicians, Contrary to electricity access, access to the gas proving instrumental while creating the market for Due to lack of effective Supply Side Energy donor agencies, non-governmental organiza- network is even lower where only 25% of the solar energy. Efficiency (SSEE) measures and good manage- tions, civil society organizations, corporate sector, households have a piped-gas connection. The ment practices. Pakistan’s energy sector is experi- officials from the Ministry of Energy (Power and 13 Executive Summary National Action Plan 14 Petroleum divisions), Ministry of Climate Change, Goal # 1 - Universal Access to Energy: The power generation mix. provincial energy departments are yet to opera- Ministry of Finance, Higher Education Commis- energy access in the country is 73%. To achieve tionalize effectively. sion, National University of Science and Technol- universal access by 2030, over 15 million domes- The off-grid solar is expanding at a much faster ogy, representatives from development partners tic connections would have to be provided in the rate with small and medium-size companies Some of the ‘Priority Action Areas’ identified and and provincial Energy and Planning &Develop- next 15 years which makes an average of 1 providing a solar home solution to the houses in recommended for National Plan are: ment Departments. Acknowledging the impor- million connections per year. Similarly, the target urban and rural areas. However, the penetration tance of SEforAll, Ministry of Climate Change has for laying down gas pipeline has been kept below rate of distributed solar is not very well reported (it Universal Energy Access given its mandate of “Climate Compatible 42% for all provinces as providing gas connection is estimated more than 1000 MW). NEPRA recent Energy” to the SEforAll initiative in Pakistan. regulation of net-metering will increase the RE to each household, particularly those in far flung • Launching of a nationwide program for the areas is going to be economically and financially share considerable in foreseeable future surpass- provision of improved cookstoves through a Pursuant to NSC on SEforAll decision, consulta- challenging, even by 2030. Such households will ing the targets. Similarly, the reverse auction public-private partnership. In total, 14.03 tive meetings were held in four provinces and two be provided energy for cooking and heating regime for on-grid renewable energy projects million improved cook stoves will be required regions. SEforAll consultative meetings used a through alternate means including improved may prove instrumental to increase the share of with an overall investment of $657.54 million. bottom-up approach to gather input from all renewable energy in Pakistan. The renewable cook stoves, solar cookers, biogas digesters, LPG • Pakistan’s Integrated Energy Model develop- stakeholders. In this process, stakeholders identi- air mix plants and solar heaters. energy share in electricity is projected to increase ment for comprehensive planning and fied the various on-ground problems to be from present level of 2016-17 (0.64 MTOE) to evidence-based policy-making in the energy addressed to create a reliable, affordable and To achieve these targets the Action Plan envisag- 2029-30 (4.8 MTOE) during the plan period repre- sector will play an instrumental role. sustainable energy market. senting an overall phenomenal increase of 655%. es to increase in overall final energy consumption • The power market to be reformed from a single from present level of 2016-17 (50 MTOE) to (88 buyer model to competitive power markets Based on consultations, policy dialogues with MTOE) during the plan period representing an Goal # 3 - Doubling the rate of Energy Efficiency: and evolving a fully functional market operator federal and provincial governments, interviews of overall increase of 76%. The National Energy Efficiency & Conservation by 2022. private sector stakeholders, review of plans and Act 2016 aims at developing the mechanism and • Financial mechanisms such as microfinance, policies of different energy sector institutions, Goal # 2 - Doubling the share of Renewable procedures for the efficient and effective conser- consumer finance, concessionary and soft financial and technical analysis of financial institu- Energy: The share of Hydel power is 24.7% where- vation of energy. Developing a meaningful indica- loans will be promoted for distributed solar tions, and evaluation of international donor agen- as; the share of other renewables (solar, wind and tor for energy efficiency would require much systems and energy efficiency retrofits. cies programs in Pakistan. A comprehensive and bagasse) is 4.28%. The large hydro projects devel- more detailed energy consumption, trends and • Solar water-heating for areas with no access to integrated National Plan has been devised to opment till 2020 will be 6,494 MW which will activities data. To achieve the SEforAll Energy the traditional gas network where otherwise it achieve SEforAll goals in short, medium and long almost double the share of hydel until 2025. On Efficiency and Conservation target by 2030, the would require billions of rupees in capital term. the other hand, the share of renewables (solar, rate of improvement ought to be doubled. This expenditure to lay down the pipeline network wind and bagasse) on-gird is constrained due to requires a reduction in primary energy intensity will be provided through consumer financing. SE4AAll goals are tangible; trackable and applica- extension and up gradation of the national grid for by 3.4% annually by 2030. At the institutional • Convert 2 million gas geyser consumers to the ble. National Action Plan operationalize these evacuation of intermittent renewable energy by level, NEECA is still in the infancy stage and solar water heater in the SNGPL network can goals through high-impact opportunity areas. The NTDC. The NTDC will implement a comprehen- full-time ‘technical team’ is required to spearhead save 15 BCF annually or 41 MMCFD which is vision and targets of these three main goals for sive power evacuation plan during the plan the energy efficiency measures in Pakistan. about 9% of total natural gas consumption. Pakistan are highlighted as: period to evacuate at least 25% of RE in the final Similarly, the designated energy efficiency cells in • The SEforAll Small Grants Programme of $ 20 15 Executive Summary National Action Plan 16 million will be established to offer grants up to will be designed for Federal and Provincial The Investment Prospectus (IP) – as a separate through Public Private Partnership (PPP), private USD 100,000/- for any initiatives that accelerate government officers and staff in collaboration document, is designed to provide an approach investment, and government and donor financ- the adoption of any of the proposed actions with international organizations to equip with for operationalizing the Action Agenda. The IP ing for short, medium and long-term. In total, the within the SEforALL plan. sophisticated financial and legal contractual identifies and develops a set of implementable investment potential of $66.48 billion (under a preparation, energy modeling, project programs and projects to enunciate the invest- high growth scenario) is identified for SEforALL Renewable Energy & Energy Efficiency planning and implementation under Public ments requirements. These projects and Action Agenda by combining different invest- and Conservation Private Partnership (PPP) mode. programs reflect the potential for investments for ment opportunities in one package at national • In-house capacity building for Integrated private and public investors. The available financ- and provincial levels. • Strengthening the Alternative Energy Develop- Energy Planning of the Planning Commission’s ing and gaps are identified which can be filled ment Board to enable it to fully achieve its Energy Wing, line Ministries, and Provincial objective of development of on-grid and Energy departments will be developed. off-grid renewable energy applications in the • Sector-wise approach will be developed where country. industry, transport and domestic sector will be • The NTDC will implement a comprehensive addressed for energy efficiency and conserva- power evacuation plan during the plan period tion. to evacuate RE based power generation as per • To further promote the renewable energy the envisaged target. solutions – mechanism such as reverse auction • Strengthening National Energy Efficiency and net-metering will be strengthened. Other Conservation Authority and its role to provide 5 innovative mechanisms will also be introduced effective conservation and efficient use of to support the proliferation of distributed energy in all sectors of the economy. energy generation across the country. • For industrial units and public buildings’ energy audits will be made mandatory, and indus- The National Action Plan has been divided into try-academia partnership-based mechanism three main sections. The first section provides an will be devised and promoted. overall introduction of Pakistan and its Energy • National level campaigns will be launched for Sector. It provides the vision and targets for awareness of renewable energy and energy SEforAll goals by 2030. The second section is efficiency and conservation by AEDB and focused on priority action areas. The sub-section NEECA respectively. discusses enabling action areas which can be • At universities, colleges and poly-technique achieved a) energy planning and policy b) institutes’ courses and the programs will be Business Model and Technology Innovation c) designed for renewable energy technologies Finance and Risk Management d) Capacity Build- and energy efficiency and conservation mech- ing and Knowledge Sharing. The third section anism. Similarly, the NEVTA and TEVTA will be provides the coordination and follow-up mecha- further strengthened. nism, and its integration with SEforAll Hubs for • The capacity building and trainings programs Global Tracking Framework. 17 Executive Summary National Action Plan 18 Preamble Despite this irrefutable importance of energy, 1.1 Broadly, the SEforAll NAP has been billion people - one in five globally- lack access to disaggregated in ten (10) action areas, in order of electricity to light their homes or to carry out their following priority: businesses. Without access to modern energy which is the goal # 7 of Sustainable Development 1. Modern Cooking Appliances and Fuels Goals, it is not possible to achieve the overall 2. Distributed Electricity Solutions Pakistan joined SEforAll global initiative in 2013. Prime Minister of Pakistan along with Prime SDGs. Whether reducing poverty, improving 3. Grid Infrastructure and Supply Efficiency Minister of Denmark and Minister for Development of Norway, co-chaired, the 32-member women's and children's health, or broadening the 4. Development of Large-Scale Renewable countries formed Group of Friends of SEforALL in September 2013. reach of education the role of energy access is Power Projects central to all goals. 5. Sustainable Development of Hydropower 6. Enhancing Industrial and Agricultural These three countries have been leading efforts sources—such as wood, charcoal, dung, and In recognition of the critical need to improve Efficiency at the United Nations in support of Sustainable waste material, for cooking and heating, jeopar- global access to sustainable, affordable and 7. Sustainable Transportation Energy for All. All these representatives agreed dizing their health and safety. Above 60% of environmentally sound energy services and 8. Energy Efficiency and Building Appliances that energy is the golden thread connecting Pakistan’s population relies on firewood, coal, resources, UNDP, in partnership with other agen- 9. Super-Efficient Equipment and Appliance economic growth, increases social equity, and charcoal, or animal waste to cook their food cies, launched the Sustainable Energy for All Deployment creates an environment that allows the world to breathing in toxic smoke that causes lung disease (SEforAll) Initiative with the goal of engineering an 10. Business Model and Technology Innovation thrive. They stressed on the fact that sustainable and kills nearly two million people a year - most of energy transition to ensure that everyone has energy is a central requirement to eradicate them are women and children (UNDP). access to clean and affordable energy by 2030. The NAP targets will be achieved through the poverty, increase food production, provide clean Planning Commission as the focal agency for the combined efforts of federal and provincial water, improve public health, empower women Gender-defined role of women in energy utiliza- SEforAll initiative has ensured collaboration with governments, private sector, development and address climate change. tion in households and communities is the key all the stakeholders through a consultative partners and civil societies, where: component of Sustainable Development Goals process to build the ownership of the NAP. In this • Federal & Provincial Governments will align their Access to modern and reliable energy services at as well as Sustainable Energy for All / SDG#7. respect, Energy Wing of the Ministry of Planning, annual development programs with NAP targets affordable prices remains essential for sustain- Implementation of this action plan will not only Development and Reforms acted as a secretariat and will facilitate its implementation through able human development, economic growth, pose a positive impact on the reduction of to SEforAll National Steering Committee. The augmentation of complimentary sub-sectoral higher quality of life, and better delivery of educa- biomass and fuel wood to mitigate adverse targets as defined by the SEforAll initiative plans in an integrated way. tion and health services. Inadequate energy climate change impacts but also will lessen the include: • The private sector provides business and techni- access has hampered economic growth of coun- burden of women; asa collection of woods cal solutions and drives investment. tries seeking to move out of lower income or remains the sole responsibility of women. Energy 1. Ensure universal access to modern energy • Civil society organizations advocate and moni- lower middle-income status. There are scarcely access to modern and efficient technologies will services; tor public policy and businesses actions. any production processes or sectors today, improve the socio-economic status of the women 2. Doubling of global rate of improvement in • Development Partners will facilitate in raising the involved in creating wealth that does not require in Pakistan. Moreover, provision of cleaner and energy efficiency, and financing required to implement the NAP. energy. renewable energy sources in rural areas of 3. Doubling the share of renewable energy in Pakistan will bring employment and entrepre- the global energy mix. In the absence of energy services, the rural poor neurial opportunities. must resort to the use of traditional biomass 19 Preamble National Action Plan 20 The Methodology • Punjab • Status and Targets for SEforAll till 2030 • Sindh • Priority Action Areas to meet the targets • Khyber Pakhtunkhwa (KP) / FATA • Identification of challenges faced by the coun • Balochistan try in the implementation of the proposed • Azad Jammu & Kashmir (AJK) future energy initiatives The methodology devised for National Action Plan is multitiered following the SEforAll Action • Gilgit-Baltistan (GB) • Evolving Coordination and follow-up Agenda template conceived under SDGs Global Framework context. The mixed method approach mechanism i.e. qualitative and quantitative adopted to conduct a thorough energy sector review and analysis. Participation of all the regions in the consultation process has facilitated in developing a well-coor- In the process of formulation of NAP, the sustain- dinated nationally cohesive Action Agenda for ability parameters of the plan have been given sustainable energy in the country. In addition, due consideration. These include environmental, A series of regional level consultative meetings, phase, Ministry of Finance coordinated with other these regional and provincial consultations economic, and social dimensions. Moreover, the interviews with experts and stakeholders were government ministries such as Planning Commis- included participants from government depart- externalities, and socio-economic cost has been conducted. During the review of literature phase, sion and Ministry of Energy (former Ministry of ments, private sector, civil society and develop- analyzed and viable financing options has been the research reports and official documents were Water & Power and Ministry of Petroleum and ment partners. These consultative meetings were discussed. The priority actions areas have been reviewed. Natural Resources), Energy Sector Regulators designed to discuss the role played by these developed through the systematic analysis which (NEPRA and OGRA), and Provincial Energy regions to deal with the energy crisis and respec- factors-in the on-ground situation and challenges The process started with the constitution of Departments. tive plans. Hence, the outcome of all these consul- expected to these action areas. SEforAll National Steering Committee and with tations was to bring out the following: convening of its first meeting on May 16, 2016. Ministry of Planning, Development, and Reforms The meeting was chaired by Minister for Planning, as a focal ministry has overseen the task of prepa- Development, and Reforms. The meeting was ration of National Action Plan and Investment attended by participants from all concerned Prospectus. A National Steering Committee ministries, provincial energy departments, civil chaired by Minister Planning Commission and society organizations, NGOs and donor agencies represented by all stakeholders at federal and (See Annex-I for Constitution of Steering Commit- provincial level. These consultations eventually tee). operationalized the global SEforALL goals in Pakistan to achieve larger economic develop- National Action Plan builds-up on the findings of ment, poverty alleviation and improvement in the earlier report ‘Rapid Gap Assessment’ and ‘Coun- quality of life of people. try Situation Assessment’. The process started with government’s declaration of partnership with These regional consultations were held in the the SEforAll initiative towards the three goals of following four provinces and two regions for SEforAll. The first substantial step was an engage- analysis and mapping the energy access, renew- ment for Rapid Gap Assessment Report which able energy, and energy efficiency and conserva- was diagnostic in nature. To initiate the diagnostic tion in the country. 21 The Methodology National Action Plan 22 Introduction Fig 1 Map of Pakistan CHINA GILGIT-BALTISTAN KHYBER PAKHTUNKHWA Sustainable Energy for All (SEforAll) initiative is an important component of Sustainable Develop- AJ&K ment Goals. This initiative is an all-encompassing approach linking energy access to other goals. FATA JAMMU & KASHMIR DISPUTED AREA ISLAMABAD SEforAll National Action Plan provides a comprehensive and holistic long-term vision, aligned with AFGHANISTAN National Vision 2025 and national energy policies notified from time to time. The Plan ensures overall sector-wide coherence with a population of 207.07 million.2 It is stretched PUNJAB and synergy of the accumulated efforts toward over an area of 796,096 sq. Km and divided into BALOCHISTAN the three goals of SEforAll to be achieved by 2030 four provinces (Punjab, Sindh, Balochistan and INDIA as summarized below: Khyber Pakhtunkhwa) and three regions (Federal- ly Administered Tribal Areas-FATA, Gilgit-Baltistan, IRAN a) Universal energy access , 1 and Azad Jammu & Kashmir-AJK). However, FATA SINDH b) Doubling the share of renewable energy, and is being merged into KP. c) Doubling the rate of energy efficiency. The rural population is 61% of the total population ARABIAN SEA Pakistan’s vision 2025 and other national and which is employed by the agriculture sector. Source: Geological survey of Pakistan. provincial development plans are broadly in line Traditionally, Pakistan has been an agrarian econ- with goals of SEforAll including access to energy, omy. However, over the years the economy has and economic resilience despite the turmoil in the of energy sector portfolio out of this amount is doubling share of renewable energy, and shifted towards industry and services sector. region. USD 36 billion (See Annex XX for detail project doubling the rate of energy efficiency and conser- These have become major contributors to GDP, list). vation. contributing approximately 80.5% to the econo- Pakistan’s macroeconomic reforms and invest- my.3 ment friendly policies has transformed Pakistan Pakistan’s economic history is characterized by Geographically, Pakistan occupies a strategic into a dynamic, open and private sector friendly recurring cycles of high growth and subsequent location. It is located at the crossroads of South Pakistan has undertaken significant political and economy. Foreign direct investments are encour- stagnations. This volatility of economic growth Asia, Central Asia, China and the Middle East, economic reforms with the devolution of power to aged and the share of international trade in the has serious implications for the social and which makes Pakistan a potential hub for regional provinces after the 18th amendment. The GDP has also increased significantly. China-Paki- economic well-being of people at large. However, trade and economic integration. The region’s management of resources and planning have stan Economic Corridor (CPEC) is a recent devel- the recent performance of the economy has trading history is as old as the history of Silk Route been devolved to the provinces with greater opment initiative, poised to bring economic, largely been positive. The economy has main- in Asia. autonomy. These reforms have enhanced the social and regional benefits for the people of tained growth in real GDP over 4% consecutively deliverance capacity at provincial level. Moreover, Pakistan. Under this initiative, USD 52 billion will in last four years. Pakistan is world’s sixth most populous country the country has also shown democratic, political be invested on country’s infrastructure – the share The following table provides an overview of 23 Introduction National Action Plan 24 economic and social indicators of Pakistan; Fig 2 Pakistan’s real GDP growth Table 1 Socio-Economic Indicators GDP % Islamic Republic of Pakistan 6 Area 796096 5 Capital Islamabad 4 Provinces 04 (Punjab, Sindh, KP and Balochistan) Region 03 (AJK, GB, and FATA) 3 Social / Demographic Indicators 2 Years 1 Population Millions 207.07 2017 Urban 36.83% 2017 0 2014 2015 2016 2017 Rural 63.62% 2017 Source: Eocomic Survey of Pakistan 2017 Male Millions 106.4 2017 Female Millions 101.31 2017 Furthermore, final energy consumption in Population Growth rate % 2.4 2017 Overview of Pakistan’s 2016-17 (50.12 MTOE) is 63% of primary energy Per Capita Income $ 1629 2017 Energy Sector supply during the same year. Labor Force Million 61.0 2014-15 Table 2 Primary Energy Supply by Source Employed Million 57.4 2014-15 Pakistan’s primary commercial energy supplies Primary Energy of 2016-17 Unemployed Million 3.62 2014-15 have been increased to 80 million tonnes of oil Source Unit TOE % Share equivalent (Table 2). The existing primary Unemployment rate % 5.9 2014-15 commercial energy supply mix during 2016-17 Oil 27,366,526 34.4 Economic Indicator Gas 30,163,334 37.9 has increased by 7.6%. According to Pakistan Unit Years Energy Year Book 2017, the share of oil and gas is LNG Import 4,455,734 5.6 Nominal GDP S Billion 271 2015-16 34.4% and 37.9 % respectively, followed by 9.7% LPG 1008,673 1.3 Sectoral Contribution to GDP from hydroelectricity and 8.1% from coal. The Coal 6,482,401 8.1 nuclear share is 2.1%, renewable electricity is 0.8% Agriculture % 19.53 2016-17 Hydro Electricity 7,681,699 9.7 and imported electricity 0.1%. This shows that Industrial Sector % 20.88 2016-17 Pakistan energy mix has diversified over the last Nuclear Electricity 1,670,560 2.1 Services % 59.59 2016-17 five years. Renewable Electricity 636,825 0.8 Real GDP growth rate % 5.28 2016-17 Imported Electricity 118,480 0.1 Oil, gas and electricity, coal and LPG are the major Source: Pakistan Bureau of Statistics & Economic Survey of Pakistan, 2017 Total 79,584,246 100 sources in final energy consumption respectively. Source: Pakistan Energy Year Book 2017 25 Introduction National Action Plan 26 Final Energy Consumption by (DISCOS) and government owned Generation Table 3 Fig 3 Historic Demand Supply Position (2002-03 to 2017-18) Installed Capacity Source 2017 Companies (GENCOS). Similarly, National Trans- MW Final Energy Consumption 2017 mission and Dispatch Company (NTDC) have 30,000 been reformed with the creation of CPPA (G) and Peak demand Source Unit TOE % Share plans are made for the least cost generation plan. 25,000 Oil 17,904,977 35.7 NEPRA capacity building has been developed 20,000 Supply Gas 17,031,100 34.0 and plans are underway to unfold multi-year tariff 15,000 Coal 6,097,816 12.2 regime for all DISCOs to avoid delays in tariff 10,000 Electricity 7,779,939 15.5 determination. However, the privatization of the DISCOs is one of the big challenges for the 5,000 LPG 1,308,471 2.6 government to improve the in the coming years. 0 Total 50,122,304 100 Source: Pakistan Energy Year Book 2017 Considering the gravity of the current energy 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 sector problems, both long-term and short-term Pakistan’s Power Sector measures are being taken. The Power division of Source: Planning commission of Pakistan/NTDC Vision & Reforms Ministry of Energy (former Ministry of Water and of the total installed capacity. On the other hand, nance reforms, the circular debt will be a major renewable energy (including hydroelectricity) burden on Pakistan’s overall economy and more Power) is addressing the electricity sector of constitutes 28.3% of the entire power generation specifically power sector viable operations. Pakistan’s Power sector supply-demand gap has Pakistan. It has focused on increasing electricity mix of the country. Without the inclusion of hydro- Another factor which distorts the power sector declined from 2013-2018. The government of supply from a diverse source such as gas, oil, coal, electricity, the share of renewables (solar, wind, operations is the power sector subsidy – “Tariff Pakistan has an absolute resolve to end energy hydro and nuclear. Power Policy of 2015 was biomass) is 2.2% as it has been since 2005 that the Differential Subsidy” which was PKR. 136 billion in crisis in the shortest possible time. Government launched to set some clear standards and resolve investment by private and public sectors has FY 2015-16. Though, government had plan to has initiated energy sector reforms, which include the electricity problem through tariff rationaliza- opened-up in the renewable energy market in phase out the power sector subsidy. However, multidimensional policy measures and programs tion to arrest circular debt, energy conservation, Pakistan. As new generation capacity has been given the nature of political-economy of the in collaboration with international financial institu- changing energy mix, and strict punishment for added to the system, it has reduced the power sector, institutional dynamics and popula- tions (such as World Bank, Asian Development electricity pilferages. load-shedding. Further, to eliminating the tion living under the poverty line; the total phase Bank, and International Monetary Fund). Through load-shedding, not only the generation but also out of power sector subsidies may continue in the these reforms, vertically integrated energy sector To meet the energy requirements of the country, the transmission and distribution systems will be near future. is being unbundled and privatized for good Ministry of Energy (former-Ministry of Petroleum strengthened. Given the current scenario and governance and efficient management of energy and Natural Resource) is importing LNG as a to provide secure and sustainable energy at medium-term solution. Whereas, hydel and coal government plans the power mix of Pakistan can Energy Sector Progress be seen in figure 4. affordable price. power plants development are envisioned as (2013-18) long-term strategy. Financially, country’s power sector is still strug- The governance and structural reforms of the gling to address the persistent problem of circular The recent investment of $36 billion for power sector has been initiated with a special emphasis The power supply of the country is dominated by debt. In absence of the comprehensive gover- sector under the China-Pakistan Economic Corri- on the performance of Distribution Companies thermal power, as it constitutes around two-third 27 Introduction National Action Plan 28 dor (CPEC) will increase the energy access.4 During the last five years budgetary allocation in Fig 4 Pakistan's Power Generation Mix 2017-2030 - NEPRA CPEC and other government investment has the Public Sector has also been consistently increased the electricity supply by 7,882 MW. increased this is 126% increase at Federal and 40000 154% at provincial level as summarized below: Existing (2017-18) 2018-19 Table4:4 Table Public Sector Development Program- Last Five Years Allocations for Energy Sector 2021-22 2024-25 Million Rupees 35000 2029-2030 % 2013-14 2014-15 2015-16 2016-17 2017-18 Total increase National 30000 Development 153,210 164,390 197,907 267,095 345,620 1,128,222 126 Program Provincial Development 106,110 115,600 142,227 205,020 270,000 838,957 154 Program 25000 On physical side, government has remained To address energy efficiency and conservation, successful to have power generation capacity the Federal Government has passed National 20000 additions7000 MW (out of which 1500 MW of Energy Efficiency and Conservation Act and Solar and Wind projects were also inducted) in the created an Authority (National Energy Efficiency system. The project completed during the last five and Conservation Authority) to promote energy years (2013-18) includes: efficiency and conservation in Pakistan. 15000 • Three LNG power plants (Bhikki, Haveli-Baha- Country’s energy sector is being redefined. With dur, Baloki (3600 MW), the given reform agenda, it is expected that in 10000 • Chashma 3 & 4 Nuclear (340) MW each, future the energy sector will transform and evolve • Guddu Gas (400) + MW, with privatizations, mergers, and consolidations • Nandipur Gas 100 + MW, as well as disaggregation of vertically integrated 5000 • Sahiwal Coal (1320 MW), utilities. Resultantly, the sector will see new oppor- • Various Wind/Bagasse (350 MW), tunities and challenges at all levels of the unbun- • Patrind HPP Hydel (147 MW), dled energy market. This will demand the more • Faisalabad Gas (250 MW), proactive role of sector’s regulators (NEPRA & 0 • Neelum Jhelum (969 MW) OGRA). Hydel Oil & Gas Domestic Imported Imported LNG Nuclear Imported Bagasse Wind and Solar Coal Coal Electricity • Tarbella 4 Extension (1410 MW) • Port Qasim Power Plant (1320 MW) Additionally, the government has initiated number Source: NEPRA State of Industry Report 2016 (in completion phase) of projects to import energy from energy rich 29 Introduction National Action Plan 30 central Asian Countries. In these projects Govern- supply natural gas from South Pars gas field in Iran A sizable population in the country is still deprived from public finance will shrink the fiscal space and ment of Pakistan is partnering with the other coun- to Pakistan. More specifically, the project includes of clean and affordable electricity and other additional challenge to governance of the system. tries in the region for greater prosperity and devel- “laying of 42-inch diameter 1,800 km pipeline with energy sources. Off-grid renewable energy This may jeopardize the government efforts to opment in the region. design capacity of 750 million cubic feet of natural solutions can play important role in bridging this achieve energy security of the country. gas per day (BCFD) from Iran. 1,150-km long gap in access to clean and affordable energy. KEY ISSUES pipeline from the Iranian field to Iran-Pakistan However, it is important to improve the gover- Governance reforms in the energy sector can help • Reliance on oil and gas in the energy mix border is being completed by Iran whereas the nance of energy sector with a special emphasis overcome circular debt and other pilferages in the • Under Utilization of renewable resources Pakistani portion of 781 kms is under consider- on the performance of DISCOs and GENCOs and system. The circular debt is a domino effect of • About 27% of the population lack ation for implementation”. However, due to US 6 strengthening regulatory capacity of NEPRA and Aggregate Commercial & Technical (ACT) losses sanction on Iran no significant progress on this OGRA. – lines losses, electricity theft and poor recovery access to electricity project has been achieved. by DISCOs which creates a shortfall of cash within • Circular Debt hampers smooth function- The NEPRA regulation on “Net-Metering” is the Central Power Purchase Agency (CPPA-G) ing of the system CASA 1000 (The Central Asian-South creating the market for solar housing system, that it cannot pay to power supply companies. • Nascent regulatory frameworks Asian) is $1.6 billion project with the aim to where any household with solar system installed; With the installed capacity of 32,612 MW in FY 17, • Weak governance of DISCOs, GENCOs export 1300 MW hydroelectricity from Tajikistan meeting basic condition can sell excess electricity the circular debt figure was hovering around 566 and Gas Companies and Kyrgyzstan to Pakistan and Afghanistan. to the DISCOs and KE. Similarly, the competitive billion , where additional 533 billion is parked with • Majority of the population lack access to markets (reverse auction) regime for renewables Power Holding Company. For power sector, an clean cooking facilities are put in place. increase in supply to the grid in the absence of • Energy conservation and efficiency Analysis of Key Issues major governance reforms in the energy sector requires special emphasis of Pakistan’s Energy The analysis shows that the importance assigned can exacerbate the circular debt situation and so • Off-grid electricity solutions have yet not proliferated Sector to renewables by various government agencies as for access to the electricity. varied from time to time. Among few policy-mak- ers there are doubts of affordability and reliability At the macro level, the circular debt makes power The above discussion reveals that Pakistan’s Turkmenistan-Afghanistan-Pakistan-In- of renewables, whereas, some believe there is a sector management and operations unsustain- energy mix is currently heavily dominated by oil dia Gas Pipeline Project (TAPI) supply potential for further reduction in cost and address able. This result in increased load-shedding and and gas with a share of 72.3% in overall primary natural gas from the Yoloten, Osman and adjacent the technical challenges. less access to electricity at the national level to all energy supplies. In Power Sector, the majority of gas fields in Turkmenistan to Afghanistan, sectors of the economy. Similarly, the surging PSO electricity generation in the country is through Pakistan and India. It is supported by the Asian The analysis of renewable tariff shows that indica- circular debt negatively impacts all sectors of the thermal sources. Renewable energy (including Development Bank (ADB), “a 56-inch diameter tive upfront tariff, as well as cost-plus tariff for wind economy including power sector which hydroelectricity) contribution in the electricity 1,680 kms pipeline with design capacity of 3.2 and solar power projects has decreased drastical- consumes a major share of oil imports. generation is 28.3%. It is expected that by 2030, billion cubic feet of natural gas per annum ly. Although, the cost of power generation from Pakistan’s energy mix will significantly change in (BCFD). The first gas flow is planned by the end of non-renewable sources are disputed especially favor of renewable energy. It is expected that 2019” 5 when it comes to infrastructure development of significant increase will be observed in the genera- coal and LNG imports – as costs are not sufficient- tion of electricity through solar and wind sources. Iran-Pakistan Gas Pipeline Project will ly internalized. Development of these projects 31 Introduction National Action Plan 32 Pakistan’s Vision 2025 economic feasibility, scalability, risk assess- • Benefits of regional cooperation; • To increase competitiveness in the upstream ment and environmental impact; • Effects of regulations, taxes, and subsidies. and Key Policies for the • Complete two major hydropower projects: sector through foreign direct investment (FDI). Energy Sector Diamer- Bhasha Dam and Dasu Dam; Power Generation Policy 2015, and Policy Frame- • Promotes the on-shore exploration and produc- • Tap Pakistan’s huge potential for alternative work for Private Sector Transmission Line Projects tion (E&P) activity by providing globally compet- energy; 2015 was launched to attract new investments for itive incentives. Pakistan’s Vision 2025 (Pillar – IV) is focused on • Maximize distribution efficiency and cut waste- development of new power generation projects • Proactive resource management through the the energy-water and food security. The energy ful losses through investment in transmission and augmentation of transmission network in the strengthening of Directorate General of sector has been given high priority which shows and distribution infrastructure and effective country. The Private Power and Infrastructure Petroleum Concessions (DGPC) is also on top government’s firm commitment. While addressing enforcement of controls; Board (PPIB) was processing around 37 IPPs with agenda. the energy sector, the Vision document emphasiz- • Address institutional fragmentation and decay cumulative capacity of 15,469MW based on • Emphasizes on training in the E&P sector es ensuring uninterrupted access to affordable of the sector due to poor capacity; multiple fuels (Annex V) meeting international standards and creating and clean energy. • Focus on demand management and conserva- favorable conditions for retaining them within tion to ensure prioritization in allocation, elimina- The IPP projects which are at different stages of the country. GUIDING POLICY­FRAMEWORK tion of wasteful use, incentives to use more processing / implementation includes: • Vision 2025 energy efficient equipment and appliances and Energy Conservation Policy draft is being • Power Policy 2015 achieve better balance between peak and • Sixteen (16) Hydro IPPs of 6,430 MW prepared through stakeholder dialogues to • Petroleum Exploration and Production off-peak hours; • Thirteen (13) Coal based IPPs of 9,491 MW Five ensure commitment and ownership of all relevant Policy 2012 • Introduce institutional reform and strengthen Imported Coal based Project of 4,423 MW sector players. National Energy Efficiency and • Policy for Development of Renewable regulatory frameworks to improve transparen- Seven Thar Coal based Projects of 4,950 MW Conservation Act has been passed and National Energy, 2006 cy and efficiency; One Cogeneration (Bagasse/Imported Coal) Energy Efficiency and Conservation Authority • National Energy Conservation Act 2016 Project 118 MW (NEECA) has been established. Although, NEECA Moreover, the government has already initiated a • Three (03) R-LNG based power projects of is still in its infancy and government is in process Pakistan is yet to achieve its access goal, as the project in collaboration with different agencies for 3,633 MW of developing the organizational structure, national electrification coverage ratios over 86% the development of an “Integrated Energy Devel- • Handling / facilitating 900 KM Long, 4000 MW policies, laws, and regulations at multiple levels. whereas access to piped gas network is as low as opment Plan” that offers a highly structured frame- Capacity, ±660 kV Matiari-Lahore HVDC (High For this purpose, the government has already 25%. The main goals as stated in the Vision 2025 work to simulate results and analyze strategic Voltage Direct Current) Transmission Line engaged international donor agencies and devel- for Energy sector are : 7 options such as: Project, first ever transmission line project of the opment partners. In addition, there have been country in private sector, being sponsored by extensive advocacy initiatives underway to • Eliminate current electricity supply-demand • Least-cost energy systems and compositions; Subsidiary of State Grid Corporation of China. sensitize the provincial governments, public and gap, and cater to growing future demand by • Cost-effective responses to restrictions on private sector and people at large, by NEECA. addition of 25,000 MW by 2025; emissions; Petroleum Exploration and Production • Optimize energy generation mix between oil, • Long-term energy balances under different Policy 2012 focuses on achieving self-sufficien- Policy for Development of Renewable gas, hydro, coal, nuclear, solar, wind and scenarios; cy in energy by increasing oil and gas production. Energy for Power Generation, 2006 has a biomass – regarding its indigenousness, • Impact of new technologies; The salient features of the policy include: mandate for small hydropower up to 50 MW or 33 Introduction National Action Plan 34 less. In addition, other Renewable Energy technol- • Help in broad institutional, technical, and opera Fig 5 Inventory of GHG Emission (MT Co2-Equivalent) announced government target (2005) of produc- ogies – solar, wind, geothermal, tidal, wave, tional capacity building relevant to the renew- ing 9700 MW from renewable energy (Solar, Wind % waste-to-energy from municipal waste and able energy sector; and small Hydro) by 2025. This requires in-depth 450 landfill, anaerobic or pyrolytic biomass gasifica- • Facilitate the establishment of a domestic RET sectoral regulatory analysis with areas where tion, co-firing or cogeneration utilizing crop manufacturing base in the country that can policies can be improved, regulation can be Total residues. Following are the key responsibilities help lower costs, improve services, create enforced, and infrastructure can be developed. assigned to Alternative Energy Development 400 employment, and enhance the local technical Board (AEDB) under this policy: skills. Pakistan’s Nationally • Help ensure universal access to electricity in all Additionally, there is a requirement to review and 350 Determined Contribu- regions of the country; analyze the renewable energy policy 2006 to Energy tions (NDC)9 • Increase the deployment of renewable energy incorporate the evolving changes in sector Agriculture technologies (RETs) in Pakistan so that RE internationally. 300 Industrial Processes Pakistan is a signatory of the international climate provides a higher targeted proportion of nation- Land Use Change & Forestry agreement at the U.N. Framework Convention on al energy supply mix • Help meet the increasing power supply World Bank Regulatory Waste Climate Change (UNFCCC) Conference of the through renewable energy; Analysis (RISE) 250 Parties (COP21) in Paris in December 2015. The Ministry of Climate Change in collaboration with • Introduce investment-friendly incentives, and other ministries has outlined post-2020 climate facilitate renewable energy markets to attract According to World Bank report entitled “Regula- 200 actions intended to take under the Paris agree- private sector interest in RE projects, help tory Indicators for Sustainable Energy” providing a ment.10 nurture the nascent industry, and gradually comparison for SEforAll at the global level, lower RE costs and prices through competition Pakistan’s score on renewable energy is 77 which The NDC document submitted by Government of in an increasingly deregulated power sector; is higher than other countries in the South Asia 150 Pakistan has also incorporated the major projects • Devise measures to support the private sector and even more than some of the developed such as CPEC, projecting the future economic in mobilizing financing and enabling public countries in the world.8 On energy access and growth and the subsequent GHG emissions. It is sector investment in promotional, demonstra- energy efficiency, the score is 59 and 38 respec- 100 also strategically aligned with “Vision 2025”. tive, and trend-setting RE projects; tively. The good score for all these indicators is • Optimize impact of RE deployment in underde more than 66, where both energy access and According to Ministry of Climate Change, the total veloped areas by integrating energy solutions energy efficiency require improvement. 50 GHG inventory of Pakistan (2014-15) is 405.06 MT with provision of other social infrastructure, e.g., CO2-Equivalent. From 1994-2015, the overall educational and medical facilities, clean water Pakistan performance on renewable energy sourc- increase in emission is approximately 123%with supply and sanitation, roads and telecommuni- es is commendable. The investors’ confidence 0 90% of emissions are solely attributed to energy cations, etc., To promote greater social welfare, and interest in investing in developing renewable 1994 2008 2012 2015 and agriculture sector (See Fig. 4). The emission productivity, trade, and economic wellbeing power plants have improved. It is expected that Source: Nationally Determined Contributions of Pakistan profile is dominated by energy sector with the amongst deprived communities; renewable installation will surpass the previously major share of 46%out of total emission, and there 35 Introduction National Action Plan 36 will be significant growth in its share in future. Management Authority (NDMA) assessment The 27% of population is without access to revealed that climate catastrophe resulted in an energy and projected population growth rate of economic loss of USD 4 billion. The floods 2.4%. Population is expected to increase to 102 (2010-2014) resulted in losses of USD 18 billion, million by 2030. In 2014, Pakistan’s per capita oil 38.12 million people were affected, 3.45 million equivalent use was reported to be 482 kg (includ- houses damaged, and 10.63 million acres of ing traditional biomass fuels) which is one of the crops destroyed.12 in addition, federal expendi- lowest ranked across the world. Similarly, Pakistan ture related to climate was between 5.8 and greenhouse gas emissions are very low; between 7.6%of total expenditure in 2015.13 0.1-4.0 tons CO2-equibvalent per capita/year. However, the expected population growth along The scenarios based economic analyses by the with economic development the future emission Ministry of Climate Change shows that: may increase. • 20% reduction is projected emission by 2030 Pakistan is going through major economic requires an overall investment of USD 40 transformation. The government accordingly has billion.14 sets GDP growth target of 7% till 2025 in “Vision • A reduction of 15% GHG emissions requires 2025”, and same for an extended period until USD 15.6 billion and reduction of 10% requires 2030. The addition of 25,000 MW of electricity in USD 5.5 billion. the grid is envisaged by 2025, with major policy shift in the energy mix for renewable energy. The Most of these investments will be channelized currently planned addition of 10,400 MW is in the toward the mitigation; concentrated efforts will be pipeline to eliminate the current demand-supply required for energy and agriculture sector. The gap in 2018. The projected emissions for the GDP emissions share of energysector is more than 50% growth through energy sector by 2030 are calcu- (898 out of 1,603 MT CO2-equivalent) and it has lated as 898 MT CO2-equivalent out of the total the most potential for mitigations and adaptation 1,603 MT CO2-equivalent. in Pakistan. Therefore, it is estimated that Pakistan’s adaptation efforts require between U$ Pakistan’s vulnerability to adverse climate change 7 to U$ 14 billion/annum. More specifically in the is well established. The Global Climate Risk energy sector, the focus of these mitigations and Index has categorized Pakistan in top ten severe- 11 adaptions will be directed towards energy efficien- ly climate-affected countries in the world, with cy and conservation measures. imminent adverse impacts. National Disaster 37 Introduction 1 Vision and Targets Until 2030 Pakistan has achieved 73 % of energy access where the target for 2030 set by the Government under SEforALL is 100%. The gap of 27% will be fulfilled through a major power generated through renewable energy in policy shift and reforms in energy sector of national grid will grow more than 15% by 2030. Pakistan. The government has already initiated a Government has already taken initiative such as number of projects to achieve this target (see net-metering, reverse auctions, and energy Energy Access Section for details). exchange which will disrupt the existing energy markets with more penetration of renewable In 2005, Government of Pakistan tasked Alterna- energy. tive Energy Development Board (AEDB) to deploy minimum 9,700 MW of renewable energy in the The energy efficiency potential of Pakistan is national grid by 2030 (MTDF 2005-10). Renew- estimated around 15-20% of primary energy use.1 able Energy share in national grid is above 1,200 Government has established NEECA (National MW which come to 4.28 % of the installed capap- Energy Efficiency and Conservation Authority) city. The power sector’s future demand projec- after enactment of NEECA Act of 2016. NEECA PART-1 tions will rise, so as the share of renewable energy by 2030. The government has attracted local and has initiated a number of programs and campaigns to raise the awareness for Energy international companies to invest in renewable Efficiency. NEECA is in process of developing a energy projects. According to AEDB the share full-scale institution along with designated the VISION AND TARGETS Table Table4:5 Energy Access, Renewable and Efficiency UNTIL 2030 SEforAll Pakistan’s Target Energy Universal Access Status 2017 73% Target 100% Gap 27% Remarks Regional Matrix Energy Efficiency2 1.5 % 18% 16.5% NEECA Established Renewable Energy Share3 4.3% 15% ---- Government’s Target National Action Plan 40 provincial energy efficiency agencies. According to State of Industry Report 2016, more Fig 6 Village electrification than 32,000 villages in the country continue to remain without electricity grid forcing the 1.1 residents to use traditional sources of energy, Energy Access including firewood, kerosene, and diesel, for meet- Percentage Access GILGIT-BALTISTAN Target until 2030 87.0 - 96.0 KHYBER PAKHTUNKHWA ing their lighting, heating and cooking require- 76.3 - 87.0 ments. For most of these villages, sparsely distrib- 66.8 - 76.3 In total 27% of the population still lives in an area uted population and remote location have made AJ&K Jammu & Kashmir 56.4 - 66.8 where electricity is yet to reach. This means 55 expansion of grid financially unviable. ICT Disputed Area 42.4 - 56.4 million people or 8.8 million households (with an 15.7 - 42.4 FATA average household size of 6.354) are living without Among the provinces, Sindh has the highest 0.0 - 15.7 access to electricity. A comparison of electrifica- number of un-electrified villages, followed by tion coverage ratio across countries in the neigh- Punjab, KP, and Balochistan. On the other hand, boring region shows that Pakistan is behind AJK and Gilgit-Baltistan compared to the rest of PUNJAB China, Sri Lanka, and Nepal - all of which have the country have more than 90% electrification. In electrification coverage ratio above Pakistan’s. GB, the electricity access has seasonality issues; in India also has a higher rate compared to Pakistan summer, there is excess due to high river flow but owing to its large population, a number of whereas, in the winter there is less flow resulting in BALOCHISTAN people without electricity in India (244 million) far less electricity generation. The region is not exceeds the population in Pakistan without connected to National Grid. Therefore, the short- access to electric grid (See table 5). age or excess of electricity in the region cannot be Table Table4:6 Comparison of Electricity Access 2016 SINDH Region Population without National Urban Rural electricity millions electrification electrification electrification Coverage Ratio % rate % rate % Bangladesh 60 62% 84% 51% India 244 81% 96% 74% Source: NEPRA State of Industry Report / UNDP China 0 100% 100% 100% Note: Some district data was not available so we assumed it to be 0 Nepal 7 76% 97% 72% managed. ratio while Gujrat, Hafizabad and Sialkot have less Pakistan 51 73% 90% 61% than 30,000 households which are not electrified Districts in central and south Punjab, including – most of these are temporary settlements. In Sri Lanka 0 99% 100% 98% Jhang, Rahim Yar Khan, and Bahawalnagar, are Sindh, districts like Tharparkar, Sanghar, Dadu, Other Asia 29 35% 66% 24% found to have the lowest electrification coverage and Thatta have more than 150,000 households Source: International Energy Agency - Energy Database 2016 41 Part 1: Vision and Targets Until 2030 National Action Plan 42 without electricity. average annual growth rate of 2.4%, the 1.1.3 regions such as AJK and Gilgit-Baltistan, house- projected population will be about 270 million Access to Modern Fuel holds are relying on either expensive LPG 1.1.1 in 2030. cylinders (transported from down-country) or Limited Access: Load Shedding • Progression for Access to Electricity: Between Traditional fuels like firewood, dung and crop burning of firewood for fulfilling their heating and the years 2006 and 2015, the number of sanc- residues currently contribute a major share in cooking requirements. Sindh has the highest It is pertinent to note that the connection to the tioned connections in the country increased on meeting the everyday energy requirements of number of households with gas connections grid does not equate to the availability of electrici- average by 0.76 million connections per year. rural and low-income urban households in followed by Punjab, KP, and Balochistan. The ty. Most the villages officially listed as electrified, The total domestic consumers, as of end June Pakistan. Analysis of Pakistan Social and Living figure 8 shows piped gas network access. continue to experience long hours of blackouts 2015, were 20.15 million. With these many Standards Measurement shows (112 million thus being forced to spend more than half of the connections, the electricity access in the coun- people) continues to rely on the use of biomass. As of the end of June 2015, 7.6 million house- day without electricity. According to the Solar try (through on grid connections) is 73%. To As shown in the figure 7 below, almost 60% of the holds had gas connections. The remaining popu- Consumer Perception study conducted by IFC achieve universal access by 2030, over 15 country’s population uses wood for cooking, lation continues to use LPG cylinders, firewood Lighting Pakistan program (2015), 73% of the million domestic connections would have to be followed by gas (22%), crop residuals (11%) and and crop residue for cooking and heating. In its country’s population experience few hours of provided in the next 15 years, an average of 1 dung (7%). Both KP and Sindh have more than latest determination, SNGPL has been mandated blackouts. Thus, the goal for the government is to million connections per year (See Annex IX). 60% of the population burning firewood for cook- to add 250,000 new domestic connections annu- achieve 100% electricity access in all the regions ing. ally while domestic connections sanctioned by and to ensure 24 hours of uninterrupted supply of Targets for each province and region are based SSGCL has increased by an average of 60,000 electricity to the customers. on the capacity of the concerned distribution 1.1.4 annually over the last few years. The criterion for company in the region to extend grid for rural Piped Gas Network Status sanctioning gas connection varies from one 1.1.2 electrification and the rate of increase in connec- region to another based on the population densi- Electricity Access Targets-Methodology tions in the last 5 years. In regions, such as Baloch- Access to the gas network is only 25%. The high ty, geography, and the socio-political context.5 istan and Sindh where the present electrification capital cost of laying gas pipelines in some The methodological approach to estimating Extension of Piped Gas Network coverage rate is less than 60% and the geographi- baseline and progression on access assumes: Percentage of population using cal and political situation makes an extension of Fig 7 traditional sources of fuel for • The baseline year for electricity access is the grid to these areas challenging, the target for cooking As per the government’s plan, gas connections 2016-17. Based on Pakistan Bureau of Statistics will increase gradually. Assuming a 5% annual electricity access grid network has been kept Others 0.6% (PBS) data, the total population was 207 million, Dung Cake increase in connections, the total domestic below 100%. The remaining households will be representing approximately 32.59 million connections are going to increase to (See Table electrified through distributed generation. The Crop Residue 6.6% households (at the national average of 6.35 6): aggregated targets for the country are summa- 10.8% Fire wood people per household). Consumption per rized in (Annex IX). The national average of house- • 9.75 million by 2020, capita for the baseline year was 446 kWh with hold electrification through gird electricity will 21.1% 60.6% • 12.38 million in 2025, and access level at 73%, i.e. 151 million people have remain below 100%. However, the distributed Gas • 15.81 million by 2030. access to the electric grid. Thus, by the end of the plan period, 42% of the electricity through renewable energy (solar) will • Population Growth. Based on 2017 population be used a major source to achieve 100% electrifi- population will be provided access through piped of 207 million, compounded annually by the gas network. cation in areas where grid connectivity is not Note: There is almost no use of electricity, kerosene oil, and charcoal/coal for cooking possible. Source: PSLM Data 2014-15 43 Part 1: Vision and Targets Until 2030 National Action Plan 44 Projection of Piped Gas 7,874 remote villages in the province of Sindh and Fig 8 Percentage gas access across Pakistan Table 7 Connections Balochistan through renewable energy technolo- gies but could not implement the task due to Percentage Access funding constraints.10 These villages will now be GILGIT-BALTISTAN Year Connections Access to Piped Gas Network electrified through projects implemented by the 39.2 - 80.9 KHYBER PAKHTUNKHWA provincial governments. 21.6 - 39.2 2015 7,671,7096 26% 14.2 - 21.6 2020 9,705,829 31% The estimates or data for the use of traditional AJ&K Jammu & Kashmir 8.0 - 14.2 Disputed Area 2025 12,387,371 36% biomass are not reported anywhere in the govern- ICT 4.0 - 8.0 2030 15,809,773 42% ment energy statistics, such as the official data 1.3 - 4.0 FATA source of Energy Year Book of Pakistan. The table 0.0 - 1.3 gives the estimates for the share of renewable PKR. 200,000 per customer. Even with these energy in the total final energy consumption in differences in cost, it will not be financially or Pakistan. According to unofficial estimates (Table PUNJAB economically viable to extend piped gas network 10), a substantial amount about 17 MTOE of to several remote locations. traditional biomass is consumed annually in Pakistan, which comes down to about 31% share Improved Cooking Stoves (ICS) Target: A of renewables (including hydroelectricity, solar BALOCHISTAN total of 14.03 million households will be given the and the wind) in TFEC. Doubling this share would alternate source of cooking over the next 15 years be quite unrealistic and extremely difficult as it to reduce usage of traditional fuel for cooking. would require reaching a target of 62% of TFEC The targets have been determined based on the while simultaneously reducing the share of methodology (see footnotes 22) 8 tradition biomass. SINDH

1.2 A total of 14.03 million households will be Renewable Energy given the alternate source of cooking over the next 15 years to reduce usage of Target Until 2030 traditional fuel for cooking. Source: SNGPL / SSGC / Petroleum Division and OGRA Note: Some district data was not available so we assumed it to be 0 Government of Pakistan has set the target of at Additionally, in areas where pipe gas access is not In Punjab, a new housing scheme will be given least 15% of total power generated from Renew- On the other hand, the share of renewable energy possible, the improved cook stoves will be provid- gas connection if the cost of providing the able energy in national grid by 2030. At institu- 9 without traditional biomass stands at about 6.5% ed. See the following Table 7 for short, medium connection is less than PKR. 54,000 per customer. tional level, AEDB (Alternative Energy Develop- in 2017 and it will reach 13% of TFEC in 2030 to and long-term access to improved cook stoves in On the other hand, in KPK and Sindh, the cost ment Board) has been mandated with this task. satisfy the SEforALL objective. Thus, doubling this all provinces and regions. threshold is PKR. 108,000 while in Balochistan it is Additionally, AEDB has been directed to electrify share without considering traditional biomass will 45 Part 1: Vision and Targets Until 2030 National Action Plan 46 low-pressure cogeneration plants. Table Table7: 4:8 Improved Cooking Stoves Target Table 4: Estimated Share of Renewable Table 9 Energy in Total Final Energy II. Municipal Solid Waste (MSW) Landfills: There is Improved Cooking Stoves Target Consumption a potential use of MSW for energy generation at Region Target 2016-2020 2020-2025 2025-2030 Total Year Unit Value the landfills in Pakistan. The World Bank study Short-term Medium-Term Long -Term (Millions) proposed anaerobic digestion of biogas of Punjab 6.70 1.34 2.01 3.35 6.70 TFEC (Without traditional Biomass) MTOE 50.12 MSW as it has a higher electrical efficiency and Sindh 2.00 0.40 0.60 1.00 2.00 TFEC (With traditional Biomass) * MTOE 67 lower environmental impact than the direct KP 2.58 0.52 0.77 1.29 2.58 combustion technology. The amount of MSW Hydro Electricity MTOE 2.62 produced in 16 landfill sites can generate Balochistan 1.381 0.276 0.414 0.691 1.38 Other Renewables (Solar and Wind) MTOE 0.64 around 360 MW of gross power capacity in the FATA 0.097 0.03 0.03 0.03 0.09 Traditional Biomass Estimates MTOE 17 anaerobic digester-based power plants. AJK 1.007 0.201 0.302 0.504 1.01 Total Renewables (Without Biomass) MTOE 3.26 Additionally, Punjab Power Development GB 0.274 0.055 0.082 0.137 0.27 Share of Renewables % 6.50% Board assisting 40 MW waste to energy power (Without Traditional Biomass) project at Lakhodair landfill site Lahore. Sindh Total 14.03 2.79v 4.18 6.97 14.03 Total Renewables (With Biomass) * MTOE 20.26 Solid Waste Management Board conducted Source: Author Estimate based on OGRA / SNGPL and SSGC data Share of Renewables % 31% study 11000 tons per day waste availability in be more rational and realistic target for the Under reverse auction / Competitive bidding tariff (With Traditional Biomass) * power generation project has been initiated by SEforALL objective for Pakistan. The figure shows regime, the solar and wind tariffs can be reduced Source: Utilizes data from Energy Year Book, 2017 - *Author’s Own Estimates Sindh Energy Department. the current as well as a future target for the share even further. Renewable energy technologies are Sindh and 7 In KP.13 90% of this amount of of renewable energy in TFEC for Pakistan. Over the most suitable options for generating clean bagasse is used as fuel in cogeneration plants III. Rice Mills: The results of the rice mills analysis the last 25 years, the TFEC in Pakistan increased electricity for both the large scale – grid connect- to meet the energy demands of the sugar mills. show that with a biomass fuel of 1.86 million by Compound Annual Growth Rate (CAGR) of ed plants and an excellent choice for the off-grid The majority of these plants utilize low-pressure tonnes/year, 1062 GWh (potential capacity of about 3% from 22 MTOE in 1990 to 50 MTOE in applications. steam boilers, which are inefficient and don’t 162 MW) can be annually generated. 2017.11 If TFEC is projected to increase at a 1.2.1 optimize the use of bagasse. The total installed current rate of 3% for the next 15 years, it will reach Biomass power capacity for all 84 existing cogeneration around 88 MTOE by 2030. The SEforALL objec- 1.3 plants is estimated at 830 MW. There is a tive thus requires that renewables share contribu- tion about 13% Primary Energy Supplies in 2030. The NAP targets to implement biomass-based substantial potential for implementing new Energy Efficiency Target co-generation projects of about 2000 MW explor- high-pressure cogeneration plants using Until 2030 ing the following potentials:12 bagasse generated at the sugar mills.14 The Worldwide, the costs of these clean energy results of the sugar mills analysis show that the There is a compelling case for Pakistan to invest technologies are constantly declining, and their I. Sugar Mills: A total of 17.1 Million tonnes/year new high-pressure cogeneration plants at 84 and achieve energy efficiency to improve the efficiencies are improving; some of these technol- of bagasse is generated in the 84 existing sugar sugar mills could have a combined power economy of the country. According to ADB ogies have already reached grid parity in Pakistan. mills in the country. Out of 83 functional sugar capacity output of 1,844 MW - 2.2 times higher studies (2009), there is a potential of 11.09 MTOE One of the mechanisms is ‘Reverse Auction’, mills in Pakistan, 44 are located in Punjab, 32 in than the total power capacity of all existing saving potential in energy sector. It is evident that which has been already approved in Pakistan. 47 Part 1: Vision and Targets Until 2030 National Action Plan 48 big energy efficiency gains translate into higher achieve the SEforALL target, this rate of improve- Primary energy intensity and the domestic sector consumes 49.2%15 of the total economic growth as witnessed in the case of ment requires to be doubled by 2030, which rate of Improvement of energy electricity consumption and while only 27.7% of efficiency, Comparative China. Government of Pakistan could save 11.09 means that there has to be a reduction in the Fig 9 the electricity goes into the industrial sector. While Assessment MTOE through improvements in the energy inten- primary energy intensity by 3.4% annually or by the access to electricity stands at about 73%16 in kgoe/$US sity, without compromising on GDP growth. about 50% over the next 14 years. the country. Percent Change -80% -60% -40% -20% 0 0.2 0.4 According to the European Commission, the cost The passage of recent National Energy Efficiency Natural gas has the biggest share in the energy Russia of “negawatt” hours is much lower than of gener- and Conservation Act of 2016, which has created mix and dominates in domestic sector with a China ating megawatt hours. In other words, it is much National Energy Efficiency Conservation Authori- contribution of 20.79% in energy consumption. Canada cheaper to conserve one unit of energy than it is ty (NEECA) will vest authority to initiate and Even though, only 25% of households in the United States to generate one unit of energy. Negawatt-hour is a enforce all energy efficiency and conservation country have access to piped natural gas. This unit of energy representing an amount of energy measures across the country. The establishment India indicates that about 75% of the households use that can be saved as a direct result of energy of NEECA and promulgation of Energy Efficiency France traditional biomass (animal dung, firewood, etc.). conservation or increased energy efficiency. & Conservation Act is a positive step in the right Pakistan Use of traditional biomass using conventional Pakistan’s energy requirements would significant- direction. It shows the commitment of Govern- cook stoves and open fires is an inefficient Turkey ly increase if it has to achieve higher economic ment of Pakistan to reduce the energy wastage process, and it has a direct impact on deforesta- Japan and GDP growth and thus requires huge invest- and improve energy productivity. Additionally, tion and pollutes the household environment. The Indonesia ments in generation, transmission and distribution there is an increasing demand to develop effec- improved cook stoves can be very instrumental networks. For a country like Pakistan, it would be tive regulatory measures which will be compli- Germany for energy efficiency measures in Pakistan. extremely difficult to manage the financing of mented with appropriate policy, fiscal and finan- Denmark huge infrastructure projects and considering cial instruments to create a meaningful impact. 1.3.1.1 . United Kingdom energy efficiency as an option is inevitable. Electricity Saving Potential in Domestic Switzerland The primary energy intensities of selected coun- Sector The energy efficiency has been based on indica- tries including Pakistan are shown in the figure8 tors of energy intensity in terms of primary energy below for comparison and analysis. Left axis Source: World Energy Council and EnerData According to NEECA that over 10 million new fans and uses PPP (Purchasing Power Parity) for GDP. represents the primary energy intensity for the not the best indicator to assess the energy are sold annually in the domestic market and The target for energy efficiency under SEforALL is year 2014 and their percentage improvement competitiveness of a country. standard power consumption of these fans is to double the rate of improvement of energy (reduction in primary energy intensity) over the about 80 watt each. There are new more efficient efficiency. Therefore, it is important to identify and last 14 years is on the right axis. The fact that 1.3.1 fan entrants in the market which can achieve assess the current rate of improvement of energy Russia has a very high energy intensity, it is not Residential/Domestic Sector around 50 watts of power consumption. In efficiency in Pakistan which has to be doubled by because the country is energy inefficient, but it is addition, 1.3 million new refrigerators are added in 2030. due to Russia’s industrial structure, mainly vast In Pakistan, there are over 29 million households the market annually. Similar trends have been geography and extremely cold climate conditions in the residential sector that consume about witnessed in the case of Air Conditioners as well. The primary energy intensity of Pakistan has make it a highly energy intensive country. As 23.2% of total final energy consumption of the Worldwide, the efficiency of these appliances has decreased by 1.7 annually since 2000. In order to discussed above that energy intensity of GDP is country. However, in contrast to the global trends, been improving and their costs have been declin- ing. 49 Part 1: Vision and Targets Until 2030 National Action Plan 50 The energy (electrical) saving potential for select- Gas savings potential in the of High Impact Opportunity which offer high Electricity Savings Potential for Table 11 ed appliances in the residential sector is given Table 10 Selected Appliances in the residential sector energy saving will include: inTable10 and it shows there is a substantial Domestic Sector potential of electrical saving of 16,791 GWh that is • Retrofitting; Appliance Energy Negawatt-hour Gas Savings Potential about 40% electricity consumption in the domes- Savings Potential • Variable Frequency Drives (VFDs); tic sector and 20%17 of total electricity consump- Potential (GWh) Domestic Geysers 30% • Efficient Electric Motors; tion in Pakistan. For instance, 16,791 GWh trans- Space Heaters 36% • High Pressure and Efficient Boilers; Lighting¹ 60% 8456 lates into 3200 MW of power demand at the Cooking Stoves 43% • Energy-Efficient Lighting; Refrigerator¹ 23% 667 average system capacity factor of 60%. 18 Since, • Heating Ventilation & Air Conditioning (HVAC); Pakistan’s current electricity supply-demand gap Fans¹ 50% 6839 RAFTAAR & 2 – Asian Development Bank • Waste Heat Recovery Systems; is around 4000 to 5000 MW and it can be signifi- Air Conditioners² 40% 829 1.3.2 • Renovation of Process Equipment; cantly reduced by taking adequate energy Sources: 1 – RAFTAAR & 2 – Asian Development Bank Industrial Sector • Improved Process Performance with Applica- efficiency measures in the domestic sector, this tions of Sensors and Controls Network; and potential can be realized by replacing these appli- Fig 10 Final Energy Consumption by The industrial sector of Pakistan is highly energy • Development of Adequate Energy Manage- Sector, FY 2017 ances with more efficient technology (See Fig.8). intensive sector as its intensity stands at 0.117 ment Systems. kgoe/$GDP(PPP) versus 0.08 kgoe/$GDP in the

1.3.1.2 Europe. Industrial sector accounted for 20.88%20 Most of the industrial units use standby genera- Natural Gas Saving Potential in Domestic Other Govt 2.4% Agriculture 1.52% of the GDP and 43.5%of employment in 2016. It is tors as a backup option in case of the power Sector Commercial the biggest energy consumer with 35% of total outages from the grid, while many units do not 3.74% Domestic final energy consumption in 201621 and contrib- even rely on grid electricity and they have their According to Asian Development Bank, a power generation units for self-generation24 22.63% Industrial uting over 18%22 of overall GHG emissions in the 35.77% substantial amount of natural gas saving can be which is more commonly known as captive country. achieved in the Pakistan’s Domestic sector (Table generation capacity. According to an estimate, 10). The table shows the gas saving potential for the import of backup generators exceed over 1 33.93% Energy efficiency in the industrial sector is domestic geysers, space heater, and cook stoves. Transport billion USD per annum in the country.25 Diesel and planned to be achieved by employing a broad Energy efficiency potential for geysers is about natural gas are two commonly used sources of range of energy management, efficient technolo- 30%. In addition, the use of solar water heaters for fuel for local industry. While some units, especially gies, and practices to reduce overall energy water heating can bring down the consumption the textile mills are beginning to use the imported Source: Pakistan Energy Year Book 2017 consumption. A huge potential for investment of natural gas in the residential sector. Liquefied Natural Gas (LNG) from Qatar. Cement exists in the industrial sector. According to a study The potential for improving energy efficiency in conducted by IFC, over US$ 4 billion can be & brick industries meet their fuel demands primari- There are 2 million gas geyser consumers in the space heating is 36%, which can be achieved by ly through local or imported coal. absorbed in energy efficiency improvements in SNGPL network, if all those consumers were to be replacing existing low-quality space heaters with the industrial sector of Pakistan with a typical converted to the solar water heater, there will be more efficient ones. Similarly, the potential for According to IFC, energy shortages and rising payback of around 5 years.23 an estimated saving of 15 19 BCF annually or 41 improving energy efficiency for cook stoves is energy prices are driving industries to take signifi- MMCFD which is about 9% of total natural gas around 40%. cant measures and reduce energy consumption The technologies and practices for improvements consumption in Punjab. 51 Part 1: Vision and Targets Until 2030 National Action Plan 52 ant contributors to economic growth, Natural gas consumption. Sugar mills with HPC technology Table Table7: 4:12 Energy and Cost Saving Potential in the Industrial Sector of Pakistan accounts for about 70% 27 of primary fuel for the consumes 46% less bagasse to produce the same textile sector. Since, it is the highest electricity amount of electricity compared to existing Industry National Sector-Wide Energy Saving Estimates Associated Cost Saving consumer amongst other industries, it is a poten- low-pressure technology (23 bar).31 Energy Savings % per year (MWh) per year (Million PKR) tially suitable area for energy efficiency. Most Textile Spinning 3.50% 247,990 2,075 energy savings are planned to be achieved in the Sugar mills in Pakistan can take advantage of this textile industry by the installation of meters, opportunity by using HPC technology and gener- Textile Processing 18.40% 2,155,043 4,262 controls to reduce leakages of compressed air ate revenue by selling of electricity to the national Sugar 3.60% 1,149,901 1,698 and improved maintenance of electrical motors. grid. Despite all these competitive advantages of Leather 6.90% 9,776 14 using HPC technology, only three sugars mills Pulp & Paper 6.30% 167,176 142 1.3.2.2 have HPC technology in Pakistan where total Total 3,729,886 8,191 Sugar Industry sugar mills are 89. With a production of 4.4 million tonnes of bagasse annually, Pakistan has the Source: IFC-funded Study “Sustainable Growth: Cleaner Production in Pakistan” by National Productivity Organization (NPO) & Cleaner Production Institute (CPI) Sugar is the second largest industry in Pakistan. potential to generate about 1000 MW of electrici- As of 2016, there are over 89 sugar mills in the on a voluntary basis. Some industrial units have • Installation of Variable Frequency Drive (VFD) ty. According to Cleaner Production Institute, already achieved savings of 287 GWh (15% of country producing over 5 million tonnes of sugar there is also a good potential in the sugar industry or inverters on pumps and motors; annually.28 Energy in the sugar industry is current electricity requirement) which translate • Installation of Heat Recovery Systems (HRS) to reduce energy consumption and cost by into a cost saving of PKR 381 million. Most of consumed mainly in the form of steam (96%) and insulation of steam lines and valves in sugar mills from exhaust flue gases in sugar and paper energy saving measures were achieved in the electricity (4%). 29 Energy requirements of sugar that can offer decent energy savings. industry; industry are largely met by combustion of textile and sugar industry. • Thermal insulation of steam lines and valves in bagasse which is a renewable energy source and 1.3.2.3 almost all the industrial units; The Table 11 shows the estimated energy and • Improvement of Maintenance Operation i.e. a by-product of sugar production. Processing of Cement Sector cost saving potential in the industrial sector of every 3 tons of sugarcane, produces about 1 tons reduction of air leakages; and of bagasse . 30 Cement production is an energy-intensive Pakistan. The investments in textile industry can • Proper maintenance and operation of electrical be attractive as it offers highest energy efficiency process. The primary fuel for cement production motors. Electric motor-driven systems (EMDS) gains with a total energy saving potential of 2,150 Only three sugars mills have HPC technology is coal, which accounts for more than 90 per cent in the industry consume almost half of the total GWh and cost saving of over 4 billion PKR. Most in Pakistan where total sugar mills are 89. of energy consumption and thus it is the largest electricity. The cost‐effective potential to energy efficiency gains therefore are planned to contributor of GHG emissions amongst industrial improve the energy efficiency of electric motor be achieved by implementing following funda- Sugar industry offers good potential for energy sector.32 Energy prices havemajor impact on the systems in the industrial sector is about 20% to mental measures: efficiency by deploying the energy efficient cost of production as fuel and energy cost 30%.26 technologies, such as the High-Pressure Cogene- accounts for more than 60% of the total produc- • Improvement in Process Operation. e.g. proper 1.3.2.1 ration (HPC). HPC is an efficient power generation tion cost of cement. Consequently, investments in metering in the textile and sugar industry; Textile Industry technology use high-pressure boilers (66 bar), more energy efficiency cement processing • Replacement of low-pressure boilers with widely deployed in the sugar industry across the technologies can significantly reduce the fuel or higher pressure boilers in the sugar industry; Pakistan’s textile sector is one of the most import- world. It generates electricity based on bagasse energy consumption and as well as cut down the fuel emissions. 53 Part 1: Vision and Targets Until 2030 National Action Plan 54 Pakistan has a production capacity of over 45 In addition, proper metering and insulation offer a high-efficiency steam reforming and 1.3.2.7 million tons of cement.33 It is another industry best energy efficiency potential and reduce the Haber-Bosch synthesis. It has the potential to Brick Kiln where huge energy savings are planned to be energy consumption. The NAP as such envisage reduce gas consumption by 25% by 2030.36 achieved as it an energy-intensive sector. The to tap these potentials in a phased manner. Significant energy efficiency gains in fertilizer The brick kiln sector in Pakistan is mostly unregu- electricity demand for cement industry is over 700 sector will be achieved by investing in co-genera- lated and documentation of this sector is also very MW. Each ton of cement production requires 1.3.2.5 tion, installation of meters and improvement of limited. There are over 18,000-20,000 brick kilns in about 80 to 100 kWh of electricity. In cement Fertilizer Sector power factors etc. Pakistan. The coal is the primary fuel for brick sector, most energy savings could be achieved by manufacturing and consumes more than 3 million improving process related technology and equip- In Pakistan natural gas is being used as raw mate- 1.3.2.6 tons of coal40 making it a third largest contributor ment, including the raw material etc. rial for producing fertilizer. Natural gas supply to Pulp and Paper to GHG emissions in the industrial sector. Most- Fertilizer was constrained and diverted to power brick-kilns still use the bull-trench process for Currently, most cement units employ single stage and residential sector because of emerging acute Currently, there are about 100 paper and pulp brick production, which have been phased out in dry kilns which can be shifted to the more efficient gas shortages across the country. This led to production units in Pakistan with a total produc- almost all the developed regions. The NAP as process of multistage dry kilns to improve overall massive production cuts of fertilizer units based tion capacity of 434,740 tonnes. The production 37 such envisages to promote alternative “Zig Zag” energy efficiency of cementing process. on SNGP network. Due to this fact, the fertilizer of paper and pulp is an energy intensive process. technology considering its potential to save production was drastically reduced to 256,000 The pulp and paper manufacturing mainly rely on 30-40% energy and 70% reduction in emissions. 1.3.2.4 tons against the production capacity of 2 million natural gas as primary fuel to generate steam and Leather Industry tons. It has been the lowest production rate ever 34 electricity for paper production. According to a An alternative brick kiln’s “Zig Zag” technolo- reported. As a result of this low production, the study conducted by the University of West gy will be employed as it saves 30-40% The energy efficiency potential in leather industry government had to spend over $1 billion to import Scotland, for each tonne of paper produced, energy and 70% reduction in emission. is quite low as it is water-intensive manufacturing urea and provided over PKR 8035 billion in subsidy Pakistan’s paper sector consumes the additional rather than an energy intensive. Leather sector on imported urea which may have cost $450 energy of 1.46 MWh compared to the Canada 1.3.3 uses steam as a thermal energy, natural gas, million to the exchequer. and United Kingdom. In addition, pulp and paper Energy Efficiency in Transport Sector diesel and as well as grid electricity to meet its mills in Pakistan have the potential to reduce their energy requirements. According to IFC, leather Fertilizer sector will convert existing process- gas demand by 7%38 and overall energy The transport sector accounted for 33.93% of total industry has annual energy saving potential of es to a high-efficiency steam reforming and consumption by 5.6%39 just by tuning their boiler final energy consumption in 2017. With a contri- over 17,000 MWh. According to CPI, implementa- Haber-Bosch synthesis with the potential to burners and adjusting air-to-fuel ratios. bution of over 13% to Pakistan’s GDP, oil (liquid tion of simple energy-saving techniques such as reduce gas consumption by 25% by 2030 fuels) dominates in the transport energy efficient lighting and installing controls for By tuning boiler burners and adjusting consumption mix, while the share of natural gas is compressed air could help save $134,000 in Therefore, fertilizer sector could be an ideal case air-to-fuel ratios of pulp and paper mills’ gas about 10%. energy costs annually. to invest in energy efficiency technology and demand can reduced by 7% and overall practices that will not only reduce their energy energy consumption will reduce by 5.6% . Much of this gasoline demand is coming from Simple energy-saving techniques such as consumption and the fuel requirements, but it will increasing number of motor cars and motorcycles efficient lighting and installing controls for also improve the economics of fertilizer produc- which have been growing at an excessive rate compressed air are estimated to save tion. The major step towards energy efficiency in (CAGR) at 10% (See Fig. 10). The NAP as such $134,000 in energy costs annually. fertilizer sector is to convert existing processes to 55 Part 1: Vision and Targets Until 2030 National Action Plan 56 envisages to achieve 10% fuel efficiency through 1.3.3.2 by pipeline and remaining 9% by railways.46 In Energy Consumption by Transport sensitization of car users about efficient driving Fig 11 Sector Fuel Efficient Cars: Hybrid and Electric developed regions, this trend is quite opposite. and other fuel consumption measures. 41 Vehicles % Railways is the most preferred way to transport oil 50

1.3.3.1 There is a strong case for Pakistan to develop and petroleum because of the efficient move- Road Transport 45 Electric Vehicles market, because of advantages ment and safety reasons. The railroads consistent- 40 of lower energy consumption, reduced fuel and ly spill less crude oil per ton-mile transported than Pakistan’s vehicle population is over 13 million.42 health costs and the GHG emissions. The environ- any other mode of land transportation.47 Because 35 Since 2000, it has been annually increasing at the mental and economic benefits of using electric of these reasons, Government of Pakistan will 30 rate of 10%. At the government level, NEECA has 43 technology for urban transit and public buses are prioritize and consider freight transport as a most- been assigned to develop a suitable standardiza- 25 even higher than passenger cars. preferable mode for oil and petroleum. As per tion mechanism to monitor and improve fuel 20 findings of a study conducted through ADB, the efficiency for vehicles. a sizeable energy saving Major barriers to adoption of EVs are costs, limited cost of transportation of one tonne of freight by 15 potential can be realized if proper maintenance, driving range and the charging infrastructure. In railways is 80% less than conventional road trans- 10 tune-ups, and fuel efficiency standards are Pakistan, wholesale diffusion of EVs still appears port. However, only 4% of the total freight is applied on all kinds of vehicles. 5 to be far away into the future. Deployment of EVs carried out by railways. The NAP envisages to 0 requires the building of necessary infrastructure increase this percent up to 15% of total freight to Natural Gas Aviation HSD Motor Spirit In this regard, one of the key areas is addressing which would be enormous, especially power be carried by railways. the trucking business for cargo services. These generation and distribution network to charge all trucks are highly inefficient as their design is not those electric vehicles and installation of charging 1.3.4 synchronized with latest scientific practices of Note: Consumption of HOBC, furnace oil, kerosene, and E-10 is almost negligible in stations across the country. Nonetheless, future of Energy Efficiency in Agricultural Sector transport sector aerodynamics. According to one estimate the Source: Energy Year Book 2017 EVs looks promising with increasing share of only change in design of truck can save around renewables into the grid and declining costs of Pakistan’s 62.63 % population lives in rural areas 26 % of energy consumption. battery technology. which rely on agriculture48 to sustain their Recently, public sector has successfully complet- The NAP envisages to follow a more energy livelihood. In agriculture sector energy is ed the Mass Transit Projects i.e. Metro Bus Service The conversion efficiency of conventional CNG efficient policy to encourage manufacturing and consumed for operating water pumps for irriga- in Islamabad, Multan and Lahore. Similar projects vehicles is only 17% to 21%. This implies that this 44 importing fuel efficient cars and electric vehicles. tion and tractors for soil preparation (See Fig.11). are also being planned for other cities like Karachi, precious natural gas resource is being wasted The use of commercial energy is also steadily and Peshawar. The NAP envisages to initiate a that could have been utilized much efficiently in 1.3.3.3 increasing with growing number of mechanized Mass transit projects in other cities to achieve the processes like power production for which the Railway Transport practices to improve agricultural productivity. The fuel efficiency and conservation on larger in road conversion efficiency is much higher. Therefore, process of irrigation through diesel and electric transportation system. NAP envisages to adopt latest power technolo- Railway transport is to play an important role in powered pumps is extremely inefficient. Effective gies, like Combine Cycle Natural Gas (CCNG) achieving energy efficiency and sustainable energy efficiency measures can help farmers save The conversion efficiency of conventional having potential of achieving a conversion mobility. In Pakistan, about 72% of crude oil and energy, increase yields, and reduce production CNG vehicles is only 17% to 21% . efficiency of over 60%. 45 petroleum products are transported by road, 19% costs. 57 Part 1: Vision and Targets Until 2030 National Action Plan 58 assistance of the USAID in 2009. The tube well Energy consumption in Agriculture Table Table7: 4:13 Possible Interventions and Potential Energy Savings in Agriculture sector Fig 12 Sector FY-2017 Efficiency Improvement Program (TWEIP) was Oil introduced to reduce power demand of existing 1.72% tube wells and replace them with more efficient Intervention Saving Potential Sector pumping systems. The program offered 50% Potential Investment (M PKR) subsidy to potential farmers, which helped reduce Use of mechanical seal pumps instead of gland-packed pumps 1-2 % the power consumption of tube wells by 7 mega- Electricity Use of energy efficient electric pumps, motors, and diesel engines 20 % 98.27% watts. Installation of properly sized pumps 5% 10,000 The NAP therefore envisages initiating a program Proper maintenance of pumping system 5% to replace 30,000 existing diesel-based pumps Installation of Variable Speed Drive (“VSD”) 5% Source: Pakistan Energy Year Book 2017 with solar pumps in a phased manner. In addition, Source: International Finance Cooperation farmers will be given incentives to replace ineffi- Over 180,000 tube wells are connected to cient pumps with more efficient ones. the electric grid consuming more than 10% Fig 13 Power distribution losses in DISCOs in Pakistan of the total electricity. Replacing tube-wells 1.3.5 with efficient pumps will save 1000 MW. Supply, Transformation, Transmission & 2017-18 (NEPRA Permitted) 10 years Averae (2008-2018) Distribution Efficiency % In Pakistan, over the last five years, over 90% of the 40 energy consumed in the agriculture sector is in ransmission and distribution losses of Power and the form of subsidized electricity, while 10% is Natural Gas in the country are one of the highest 35 supplied by oil in the form of High-Speed Diesel in the region. In 2016, it was between the range of 30 for irrigation pumps and machinery. Use of solar 9.47% and 38.56%51 compared to 7% in Europe photovoltaic will be cost effective option to (See Fig. 13). 25 convert existing low-headtube wells to run on solar, thereby improving independence and Similarly, a huge volume of natural gas is lost due 20 reducing the overall pumping costs. The low to theft, leakages, and non-recovery of bills. The 15 head pumping requirement for these areas, these UFG (Unaccounted for Gas Losses) losses in pumps are particularly suitable for solar conver- southern (SSGC) network are about 15%, but the 10 sion with an investment of PKR. 1.5 million and permissible limit is about 4.5%52 in 2016. This is they offer a very low payback period of about reported to be one of highest UFG losses in the 5 three years. If converted to solar, these tube wells region. Whereas, the UFG losses in northern 0 can potentially save HSD fuel by about 27%. 50 (SNGPL) network stands at about 11.5%. This IESCO PESCO GEPCO FESCO LESCO MEPCO QESCO SEPCO HESCO TESCO indicates the potential for improvement in efficien- Previously, an initiative to improve energy efficien- cy of the transmission and distribution of gas Source: National Electric Power Regulatory Authority (NEPRA) cy in the agricultural sector was launched with the network, which would not only lead to cost 59 Part 1: Vision and Targets Until 2030 National Action Plan 60 savings but reduce primary energy demands for 1.3.6.2 Projected Primary Energy Supply Mix by 2030 Table7: Table 4:14 various natural. NTDC’s Expansion Plan The NAP envisages to introduce smart metering To cater for transmission of power from upcoming S. No Source 2030 % Change technology for natural gas and power consumers. generation power plants and strengthening of the (over 2017 to 2030) Along with the upgradation of transmission and existing system, NTDC has planned up-gradation % Commercial distribution system. Smart metering technology of its system. By the end of 2017, 3 new grid + Non-Commercial A Commercial Energy MTOE Energy has been proven to be very useful and effective in stations at 500 kV level will be added which will Oil 45 25% 64% reducing the losses, improving the accuracy of add 3,750 MVA in transformation capacity in the measurements and billings.53 system, the fourth 500 kV grid station will be Gas 50 28% 66% completed by the end of 2020 adding additional LPG 3.5 2% 247% 1.3.6 1500 MVA to the system. At 220 kV level, 8 new 8 4% 80% LNG Energy Efficiency in Power Sector grid stations with a cumulative transformation Hydel 25 14% 226% capacity of 5750 MVA will be added in the system.

1.3.6.1 Coal 10 6% 54% Similarly, one overloaded 500 kV grid station will Energy Efficiency in Buildings be strengthened, while six such grid stations at Nuclear Electricity 4.28 2% 156% 220 kV level are being improved by 2019-20 (See Renewable Electricity 4.8 3% 655% Buildings consume a significant amount of Annex XV). Wind 1.8 1% energy. According to IEA, buildings sector Solar 3 2% consumes more electricity than any other sector.

1.4 Others (Geothermal & bagasse) 0.65 0% Generally, the space heating, space cooling, refrigeration, cooking, and lighting are one of the Projections for Primary Imported Electricity 0.1 0% -15% major end-use activities in the buildings sector. Energy Supply and Final Subtotal 151.33 84% 90% Although, Pakistan Engineering Council (PEC) has developed Pakistan Building Codes Regula- Energy Consumption by B Non-Commercial Energy Wood / Dung / Others 28 16% 65% tion 2011 with a provision to employ energy 2030 Subtotal 28 16% 65% efficiency in the buildings sector of Pakistan, it lacks a clarity as to how these codes can be A+B Grand Total 179.33 100% 71% While considering the targets envisaged in the enforced. Establishment of the Pakistan Green preceding sections, it is estimated that the overall Source: Author’s Estimate Based on Energy Year Book 2017 and MOE data Building Council is a positive step towards Commercial Primary Energy Supply and Final improved energy efficiency in the building sector. Energy Consumption will be increased by 88% insufficient to fulfill the country’s demand. This order situation in western provinces (Balochistan PGBC operates under the framework of World and 76% respectively by 2030. requires development of additional infrastructure and KP) has improved. In addition to setting up Green Building Council. PGBC use an internation- such as pipelines, refineries and downstream new refinery projects, capacity expansion of the al LEED (Leadership in Energy and Environmental Oil distribution network and aligned infrastructure. existing refineries is required. This offers good Design) certification system of the USA. Besides, In the case of oil, the final primary energy supply of It is anticipated that domestic exploration and opportunities for the foreign companies. PGBC is also establishing the indigenous the oil would be 45 MTOE, which would still be production activities would boost once law and standards for energy efficiency for local buildings. 61 Part 1: Vision and Targets Until 2030 National Action Plan 62 Similarly, Pakistan’s domestic gas production is Pakistan's Projected Power Projected Final Energy Consumption by 2030 Table7: Table 4:15 Fig 14 expected to decline to 2 billion cft by 2020. Generation by 2029-2030 Demand, on the other hand, is expected to Imported Electricity ascend to 8 billion cft by that time, creating a 6 S. No Source 2030 % Change billion cft shortfall. In order to overcome demand/- Imported Coal Bagass (over 2017 to 2030) Imported LNG 1 supply gap, import of natural gas into Pakistan % 4% A Commercial Energy MTOE % Nuclear 3% 1 % from gas-rich countries in the region including 8% Hydel Oil 22 0.19 23% Iran, Turkmenistan and Qatar are suitable option. 34% Oil 10% Gas 25 0.22 47% Moreover, Pakistan must continue improving the Electricity 28 0.24 260% investment climate in the gas exploration and 11% production sector. Coal 9.5 0.08 56% Gas 13% 15% LPG 3.5 0.03 167% Projected Primary Energy Supply Wind and Solar Subtotal 88 0.76 76% Domestic Coal B Non-Commercial Energy The total Primary Energy supply has been estimat- Source: Author’s Own Estimate Based on Energy Year Book 2017 and MOE Wood/Dung/Others 28 0.24 65% ed at 179.33 MTOE out of which 151.33 MTOE would be met from commercial energy source. It In addition to the above due to adaption of Subtotal 28 0.24 65% is estimated that share of commercial energy in comprehensive power generation policies and A+B Grand Total 116 100% 88% overall primary energy supply will increase by 90 plans additional electricity of 75,000 MW would Source: Author’s Estimate Based on Energy Year Book 2017 and MOE data % compared to 2017. also be made available which will result in reduc- tion of non-commercial energy share. Table7: Table 4:16 Pakistan's Projected Power Generation in MW by 2029-2030 1.4.1 Final Energy Consumption The projected power generation by 2030 is S.No Source Existing 2018-19 2021-22 2024-25 2029-2030 102425 MW from diverse sources, however, there (2017-18) This Action Plan projects that share of final energy will shift from thermal power generation which is consumption by 2030 will 88 MTOE, whereas the 1 Hydel 7122 12089 12089 27196 34500 based on imported oil to indigenous resources. It non-commercial energy will be 28 MTOE and evident from the table that the share of thermal is 2 Oil & Gas 16,370 13370 13370 13370 12000 total from both will be 116 MTOE. The analysis already decreasing from 65% due to 31.65% by 3 Domestic Coal 633 810 4440 8400 13225 shows that that overall share of electricity will 2030 The share of Hydel and other renewables 4 Imported Coal 2640 3600 3600 3600 increase 260% by 2030 as compared to the (e.g. Solar, Wind, Bagasse) will also increase 5 Imported LNG 3600 3600 3600 3600 electricity use of 2017.54 The share of oil and gas considerably (See Table 18). is expected to decrease in overall final energy mix. 6 Nuclear 705 2445 3545 4645 8000 However, the share of coal will increase 56 The projected power generation by 2030 comes 7 Imported Electricity 1000 1000 1500 percent by 2030 as compared to the electricity out to be 102,425 MW which corresponds to 8 Bagasse 146 850 919 1200 2000 use of 2017. Although the share of non-commer- NTDC demand under high growth scenario 9 Wind and Solar 902 2231 4732 9582 24000 cial energy will increase in absolute terms approxi- 104210 MW assuming a growth rate of around Total 25,878 38,035 47,295 72,593 102,425 mately 28 MTOE by 2030. But in relative terms the 10%. Source: Author’s Estimate Based on Energy Year Book 2017 and MOE data non-commercial energy share will decline. 63 Part 1: Vision and Targets Until 2030 National Action Plan 64 2.1 Priority Action Areas To achieve the targets given in part I of the NAP, Government intends to take concrete steps through a comprehensive action plan to be implemented in collaboration with provinces, private sector, local government and the community. Access to energy is the one of top priorities of the Government of Pakistan and considerable measures have been taken in the recent years. The access to energy is in urban areas has improved to great extent. However, there is still considerable efforts required to ensure universal access in rural areas. There are initiatives taken by the government to ensure universal access to energy. These initiatives are discussed in the following sections. 2.1.1 prioritized for installing off-grid RE projects. See Energy Access - The Status and (Fig 15) for the districts with a high incidence of Trajectory poverty. According to Global Tracking Framework, Based on the level of electricity access and the Pakistan’s energy access situation has improved incidence of poverty, priority districts have been exponentially from 1990-2014, where the nation- identified in the table below, which the provincial PART-2 al electrification rate of urban has increased from 58.74%in 1990 to 97.53% in 2014. The situation of governments will target for off- grid electrification in the next 5 years. Work in some of these districts urban electrification is 100% by 2014. Access to has already been initiated, details of which are clean cooking fuel and technologies has summarized in the following table (Table 18). PRIORITY ACTION increased from 23.77% to 44.84%during 2000-2014. Pakistan has a large geographical area with diverse topography and terrain which requires AREAS UN Multidimensional Poverty Report 2014-15, the diverse energy solutions. Similarly, all these areas incidence of poverty is highest in Balochistan have different set of challenges to ensure univer- followed by KP, Sindh, and GB. This is consonant sal energy access. Following is the list of the key with the energy access maps as the districts with challenges and proposed interventions (Table low energy access are the ones with the highest 19) incidence of poverty. These districts will be National Action Plan 66 Fig 15 Incidence of Poverty by District 2014-15 Table Table7: 4:17 Recommended Priority Districts for Off- Grid Lighting Programs Incidence of poverty by district Region Priority Districts Less than 10% CHITRAL Punjab Bahawalnagar, Rahim Yar Khan, Bahawalpur, Rajanpur, Dera Ghazi Khan, Vehari, GILGIT-BALTISTAN Khanawal, Multan, Lodhran and Muzaffargarh 10% - 19.9% UPPER DIR • SWAT KOHISTAN 20% - 29.9% SHANGLA • Sindh Thatta, Badin, Tharparkar, Umerkot, Mirpur Khas, Sanghar, Matiari • BATTAGRAM • LOWER DIR • TOR GHAR 30% - 39.9% MALAKAND • BUNER • MANSEHRA CHARSADDA • MARDAN KP Kohistan, Batagram, Upper and Lower Dir, Buner, Shangla, Tor-ghar, Karak, D.I.Khan, • ABBOTTABAD 40% - 49.9% PESHAWAR • • SWABI • NOWSHERA • HARIPUR Jammu & Kashmir Bannu, Lakki-Marwat and Kohat AJ&K Disputed Area ISLAMABAD 50% - 59.9% HANGU KOHAT ATTOCK RAWALPINDI Balochistan Awaran, Chaghi, Zhob, Sherani, Killah Saifullah, Barkhan, Kohlu 60% - 69.9% KARAK BANNU JHELUM MIANWALI CHAKWAL 70% and above FATA • LAKKI MARWAT GUJRAT AJK Neelam, Haveli Kahuta, Hattain MANDI BAHAUDDIN • SIALKOT NAROWAL No data TANK KHUSHAB • DERA ISMAIL KHAN SARGODHA GUJRANWALA • HAFIZABAD Gilgit-Baltistan KharmongHunza, Gilgit,Ghaza SHEERANI • CHINIOT • SHEIKHUPURA BHAKKAR ZHOB JHANG NAKANA SAHAB • • LAHORE FATA Parachanar. Kurram, Orakzai FAISALABAD MUSAKHAIL • LAYYAH KASUR PISHIN KILLA SAIFULLAH TOBA TEK SINGH • OKARA KILLA ABDULLAH • • DERA GHAZI KHANKHANEWAL SAHIWAL ZIARAT PAKPATTAN Source: Review of Government Programs and SEforAll Review Meeting QUETTA HARNAI LORALAI MUZAFFARGARH • • MULTAN VEHARI SIBI BARKHAN • MASTUNG LODHRAN KOHLU BAHAWALNAGAR • NOSHKI CHAGHI KALAT BOLAN/ KACHHI RAJANPUR BAHAWALPUR Table7: Table 4:18 Challenges and Recommended Interventions for Access to Electricity DERA BUGTI • NASEERABAD JHAL MAGSI • KASHMORE RAHIMYAR KHAN KHARAN JACOBABAD JAFFARABAD • SHIKARPUR WASHUK GHOTKI KAMBER SHAHDADKOT • • LARKANA Region Key Challenges Recommended Interventions SUKKUR KHUZDAR PANJGUR DADU • NAUSHEHRO FEROZE Gilgit-Baltistan Difficult terrain and lack of Interconnectivity of all parts of GB by developing NAWABSHAH \ KHAIRPUR SHAHEED BENAZIR ABAD connectivity with the national the regional grid. This will ensure that surplus AWARAN KECH/TURBAT LASBELA MATIARI • SANGHAR grid. electricity in one part of the region can be JAMSHORO HYDERABAD • • TANDO ALLAHYAR transmitted to another. GAWADAR MIRPUR KHAS • UMERKOT Lack of financing available from KARACHI • TANDO MUHAMMAD KHAN THARPARKAR International donor agencies to Extending technical assistance to GB Water and BADIN THATTA timely execution of planned Power Department for their capacity building SUJAWAL projects. Connecting GB to the national grid to attract Lack of capacity of Water and private sector investment for power projects in Power Department of GB. the region. Source: UNDP Multidimensional Poverty Index Report 2014 Setting up micro/mini hydel stations for 2.1.2 programs under the provincial governments to unconnected and underserved areas of the region. Completion of On-Going Plans / contribute towards electricity services. Upon their Strategies completion these programs are envisaging to (See List of Solicited Projects Annex XIV) contribute around 1150 MW electricity through The following are the existing off-grid plans and solarization and micro/mini-grids. 67 Part 2: Priority Action Areas National Action Plan 68 Table7: Table 4:18 Challenges and Recommended Interventions for Access to Electricity Table7: Table 4:18 Challenges and Recommended Interventions for Access to Electricity Region Key Challenges Recommended Interventions Region Key Challenges Recommended Interventions AJK Dilapidated grid infrastructure Facilitating private sector investment for power KP Limited affordability of rural Setting up mini/micro hydel stations in the and power project issues in the projects in AJK by easing regulatory and population and low connection northern KP. absence of NTDC presence in institutional hurdles. efficiency in remote areas the region. Lack of capacity of constraining viability of rural Distribution of solar home systems in southern AJK power department to Exploit the hydel potential in the north and solar electrification projects. KP undertake major power potential in the south for powering off-grid Punjab generation projects. communities. Business models for Provision of fiscal and/or financial incentives for commercially viable operations the private sector to invest in RE off-grid Channel investment in upgrading the of renewable energy off-grid projects transmission and distribution infrastructure in projects are not well established AJK. yet hindering investment by Implementing business models that minimize either public or private sector. reliance on subsidies and/or grants from the Sindh Power Evacuation has emerged Increased penetration of solar home systems government and generate adequate tariff-based as one of the main problems through micro-financing and/or revenue stream for recovery of at least from newly established pay-as-you-go-systems. operation and maintenance costs Renewable Energy Power sites. Facilitating private companies engaged in the Technical support for communities to install and Lack of financial and technical distribution of solar home systems for operate RE technology capacity of the concerned un-served and underserved communities. DISCOs to extend the grid to Source: Review of Government Programs and SEforAll Review Meeting off-grid areas. Setting up hybrid plants (solar+wind, solar+gas) Balochistan Lack of grid infrastructure for a Expansion of transmission and distribution Table7: Table 4:19 Existing Programs on Off-Grid Electrification scattered population over a network in the province. large area; Distribution of Solar Home Systems to off-grid Present 132 kV lines are not communities on subsidized rate considering Region Program/ Beneficiaries/ Implementing Funding Execution sufficient to meet the current lower per capita income in the province. Project Name Purpose Agency Sources Period demand of 1600MW of the province. Replace of conventional power pumps with more Punjab Khadam-e-Punjab Solarization of Punjab Energy ADB 2016-20201 efficient solar PV powered pumps. This measure Ujala 20000off- grid Department Inability to evacuate the power is expected to reduce power demand by at least Program(KPUP) schools and BHUs from the province if province 400 MW. solar generation potential is Energy solution Vehari and Directorate of Annual 2017-2018 optimally utilized. using indigenous Faisalabad Power Projects, Development resources in Punjab Energy Program High dependency on electricity villages (PV and Department to pumps groundwater for Biogas Hybrid) irrigation. Sindh Pakistan Solar 50,000 households Sindh Energy World Bank 2017-20 and Renewable could be electrified Department Energy Program 69 Part 2: Priority Action Areas National Action Plan 70 Table Table7: 4:19 Existing Programs on Off-Grid Electrification Table7: Table 4:19 Existing Programs on Off-Grid Electrification Region Program/ Beneficiaries/ Implementing Funding Execution Region Program/ Beneficiaries/ Implementing Funding Execution Project Name Purpose Agency Sources Period Project Name Purpose Agency Sources Period Sindh Solar Solar Systems are Sindh Energy otal Cost PKR. 2017-20 Khyber Solar Home Chitral – 3750 Pakhtunkhwa ADB 2016-2020 Electrification of being handed over Department 454 million to Pakhtunkhwa Solutions households Electricity 284 BHUs to School be funded by Central/Southern Department Management ADP Districts – 2,950 (PEDO) Committees households through respective District Education Solarization of 8000 Schools and Pakhtunkhwa ADB 2018-2020 Officer Schools and 187 BHUs will be Electricity BHUs solarized with Department Scheme I 12,000 households Sindh Energy Total Cost is 2016-18 cumulative (PEDO) Electrification of altogether in 300 Department PKR. 0.5 billion capacity of 50 MW 40 homes each in villages will be to be funded 300 villages electrified through through ADP 4440 Mosques will Pakhtunkhwa KPK – ADP 2018-19 Scheme 2: solar home Solarization of be solarized Electricity Electrification of systems Mosques Department 5000 Schools on (PEDO) Stand Alone off-Grid Balochistan Provision of Solar Tapping shallow Balochistan ADB 2018-2022 technology in 10 System for Water groundwater Energy Border Districts Access emanating from Department of the province perennial streams of the river basins 20 million by 2017-18 of Zhob and Mula, Construction of Rural Populations Sindh Energy ADBz using 230 Biogas Department solar-powered Plants in Rural systems in off-grid Areas locations FATA Micro Hydel 19 Small FATA Secretariat ADP 2017-2020 Hydropower Khyber Mini/Micro Hydel 356 stations to be Pakhtunkhwa PEDO, ADB 2016-2020 Pakhtunkhwa Projects for Power Schemes set up in 12 Electricity generation and districts through 6 Department 2017-2020 irrigation NGOs (35 MW). (PEDO) 248 completed and 108 under construction. AJK Solarization of 400 Schools and AJK Electricity ADP 2017-2020 To be scaled up to Schools and 100 BHUs Department 1028 stations with Hospitals cumulative capacity of 100 MW targeting 1.0 Million population 71 Part 2: Priority Action Areas National Action Plan 72 Table Table7: 4:19 Existing Programs on Off-Grid Electrification Table7: Table 4:20 Planned LPG Air Mix Plants Region Program/ Beneficiaries/ Implementing Funding Execution Region Villages/Towns Target Estimated No. of Project Name Purpose Agency Sources Period (2017-2020) Household Served AJK Solarization of 10,000 Houses will AJK Electricity ADP / 2017-2022 Punjab Phagwari, Sher Bagla, Rawat, Ghoro Gali, Charhan, 15 112,500 Remote Areas be electrified Department Community Dhanda, Ariari, Karor, Kotli, Santh Anwali, Kahuti, Participation Lehtrar, Narrar and Panjar Solarization of More than 100 GB Water and GB ADP 2018-2025 Sindh Umerkot and Mithi 2 15,000 office buildings buildings and 5 Power and hospitals hospitals in GB Departments KP Chitral, Ayun and Malkot 3 22,500 Balochistan Zhob, Qilla Saifullah, Loralai, Kharan, Musakhail, 28 210,000 Source: Review of Government Programs and SEforAll Review Meeting Qilla Abdullah, Keecha, Khuzdar, Uthal, Winder, Muslim Bagh, Killi Khanzai, Chaman, Sherani, Sanjawai, Sanjawi, Chagi, Panjgor, Harnai, Washuk, 2.1.3 2.2. Sohbatpur, Wadh, Khuzdar, Barkhan, Bagh, Mitri, Actions Needed to Achieve Energy Access: Modern Cooking Appliances Status of Renewable Injeera, Gandva, Kohlu and Lehri and Fuel Energy in Pakistan AJK Muzaffarabad, Rawalkot, Kotli, Palandri, Forward Kahuta, Bagh, Hajira, Abbaspur, Dhirkot and 10 75,000 Bhimber Government’s plans to provide LPG Air-mix 2.2.1 GB Gilgit and Skardu 2 15,000 plants/facility to population of far-flung / hilly Biomass Energy areas. GOP will be installing 60 LPG Air Mix plants, Total 60 450,000 out of which 28 will be in Balochistan, 2 in Sindh Pakistan has approximately 50 million3 animals for and the remaining 30 will be set up in Punjab, KP, agricultural and livestock-related activities. On Source: Petroleum Division, Ministry of Energy AJK, and Gilgit-Baltistan. According to Petroleum average, the daily waste produced from a cow, these areas, it provides the residents with an landfills by reusing waste products and is compar- Division of Ministry of Energy the size of these bullock or bull (the most common animals kept in environmentally friendly alternative compared to atively environmentally friendly. plants is going to be between 0.5 and 1 mmcfd. Pakistan) is around 10kg, if 50% of this can be LPG, coal, diesel or kerosene. In rural areas, materi- collected for fuel; it amounts to 150 million kg als that can be fed into a biogas digester are 2.2.2 Assuming an average size of 0.75 mmcfd,2 one translating into around 12 million cubic meters of mostly readily and locally available: agricultural Bio-Fuel LPG air mix plant will serve gas to 7,500 house- biogas. The potential uses of this are for house- residues, manure, crops, etc. Furthermore, wastes holds. 60 such plants will serve 450,000 house- holds (cooking/ lighting) and industry, transporta- from landfills or sewer treatment facilities can be The bio-energy alternative is an exciting prospect holds by 2018. The cost of these plants is estimat- tion and to generate electricity helping to reduce used as input materials. for Pakistan as it provides an easily available fuel ed to be PKR. 2500/mmbtu. However, the govern- the dependency on fossil fuel imports in rural that can fit into today’s gasoline and diesel ment will be giving subsidy to the consumers areas. As an agricultural-based economy, biomass is engines with minimal or no changes to existing charging them PKR. 600/mmbtu, which is about readily available in most areas of Pakistan, particu- systems. Since we are an agriculture-based one-third price of an LPG cylinder of 11.8 kg. Biogas is a particularly suitable fuel for rural areas larly in rural areas. Biomass energy offers signifi- economy, production of biodiesel in Pakistan will that are not connected to the gas network. In cant environmental advantages: it saves space in strengthen our agricultural sector and empower 73 Part 2: Priority Action Areas National Action Plan 74 the farmers. engagement of private sector. surge in interest from several local and foreign grid to these areas while providing an uninterrupt- investors for developing on-grid solar power ed supply of electricity. During the plan period, Pongamia is an example of plant that could be 2.2.2.1 projects in Pakistan. following on-going off-grid solar projects will also grown to yield biofuel. The plant can grow on Private Sector be completed: marginal, waste or arid land. Pakistan has large To date, 400 MW of Solar PV plants have areas of such poor-quality land (more than 80 I. Nishat group awarded the electromechanical achieved Commercial Operation Date (COD). I. Distribution of basic solar products to low-in million acres), ideal for the cultivation of energy construction of 6 MW coal and biomass based These are part of the 1,000 MW solar park being come households at provincial level: These crops, so growing Pongamia would not divert power project to Descon Engineering Ltd. It will set up in Cholistan, Punjab. 23 projects of the total include 200-Watt panels, to power three to four land away from growing vital food crops.4 be using solid municipal waste, used tires, capacity of 554.8 MW are at various stages of LED lights, a pedestal and a ceiling fan and a rubber chappals, rice husk, wheat straw and development within the framework of AEDB couple of mobile charging slots as promotional To produce biodiesel, besides vegetable oil, corn-cob, as fuel for heating purposes. In policies and procedures. Out of the 23 projects 6 activity as well as in some areas on subsidized alcohol (ethanol or methanol) is also required. It addition, a feasibility study for a 25 MW solid that have been given Letter of Intent (LOI), 7 have rate. only constitutes about 10% of the volume of municipal waste based power plant has been issued Letter of Support (LOS) directly by biodiesel. - Ethanol is abundantly available owing already been completed for the National Indus- AEDB and four have been issued tri-partite LOS II. Solarization of un-electrified primary schools to the large sugar industry. trial Park at Sheikhupura and the work on the with Punjab Government. Upfront Tariff has been and basic health units in rural areas: The project project would start soon. awarded to 8 of these IPPs by NEPRA; 7 projects offers the basic utility of electricity to those To promote the bio-fuel energy, following on-go- of 72.48 MW are in the process of achieving primary schools in rural areas, which do not ing activities in the public sector will be complet- II. K-electric has incorporated a new entity, financial close while three projects of 100 MW have access to grid electricity. The schools will ed during the planned period: 5 Karachi Organic Energy Limited (KOEL), to each have signed a power purchase agreement have a standalone solar with a battery backup undertake the Biogas project at Cattle Colony, with CPPA-G and are operational since July 2016. to power six (6) LED lights and two (2) fans. I. AEDB is targeting to gradual introduction of Karachi. KOEL will be utilizing biodegradable Stand-alone, emergency equipment in the biodiesel fuel blends with petroleum diesel to waste from the Cattle Colony and organic food AEDB is offering Federal Govt. Guarantee to basic health units will be electrified through achieve a minimum share of 10% by volume of waste from the city to produce 22 MW of projects initiated under provincial LoIs, provided solar energy. the total diesel consumption in the country by electricity and 100,000 tonnes per year of they obtain a tripartite LoS (AEDB, Prov. Govt. and 2025. Furthermore, AEDB would also be organic fertilizer. IPP). Required amendment in the RE Policy 2006 III. Distribution of Solar Products by NGOs and engaging Pakistan State Oil (PSO) for further- was approved by ECC on May 21, 2015. Standard Energy Service Companies in off-grid areas ing the National Biodiesel Program. III. A 12 MW biomass to energy power plant at Templates of LOS, PG, Facilitation Agreement and under pay-as-you-go schemes. Mirwah Gorchani Town, Mirpurkhas, Sindh, will Coordination Agreement have also been II. The cultivation of biodiesel was has increased be set by private sector. approved by the ECC. 2.2.3.1 to more than 700 acres in 2010 compared to 2 Solarization of Government School and acres of 2005. Many institutions imported 2.2.3 Given the excellent solar irradiance throughout Colleges Jatropha seeds for germination from a variety Solar Energy Pakistan, particularly in the south where connec- of sources and countries. They have been tivity to gas and electricity network is the lowest, Schools, colleges, and universities will be growing such nurseries at various sites in The developments in the solar sector, the solarization of homes, schools, hospitals, commu- powered using Solar PV technology through Sindh, Punjab, and Balochistan. This coverage demand for new generation and GoP’s plans to nity buildings, and government offices will either standalone system with a battery backup or will be further increased substantially through harness clean sources of energy have led to a substantially reduce the demand to expand the through the installation of microgrids of 75 Part 2: Priority Action Areas National Action Plan 76 5kWp-115kW. As per the district educational 2.2.3.2 pumping will reduce demand for grid electricity profiles published by National Education Manage- Promotion of Solar Heating as solar energy is used for powering the pumps Currently, in Pakistan, the installed wind capacity ment Information System Academy — Baloch- for 6-8 hours per day. is 1326 MW, which are all located in Ghoro-Keti istan and Sindh have the highest percentage of Solar energy has proven to be a viable resource Wind and Jhampir corridors in the southern part schools without access to electricity. These as solar water heating technology AEDB imple- 2.2.4 of Sindh. Another 450 MW is under construction. schools mostly fall in the districts earlier identified mented a Consumer Confidence Building Wind Energy NTDC has also approved feasibility study of 1224 as the ones with highest poverty incidence. For Program to promote a solar water heating system MW additional wind plants in Jhampir. Lastly, 625 example, in Balochistan – Awaran, Barkhan, and in Pakistan. The main factors contributing to the 7 A mapping exercise of wind energy potential MW is in the pipeline as the LOIs has been issued Chaghi each have less than 10% schools with growth pattern are increasing scarcity of natural undertaken by the government of Pakistan by Sindh Government. Thus, a cumulative capaci- access to electricity while in Sindh – Thatta, gas, the reliability of energy source and increasing through World Bank assistance establishes the ty of 7000 MW wind power projects is estimated Tharparkar and Sujawal have the lowest access affordability. potential of around 130,000 MW. The major wind to come online by 2029-2030. rates. Schools in such districts will be prioritized resource areas in the country include Hyderabad for solar system installations in the next couple of Solar water heating is particularly feasible for to Gharo region and coastal areas south of 2.2.5 years. The recommended priority districts along areas, like Gilgit-Baltistan and/or villages in AJK, Karachi in southeastern Pakistan, hills and ridges Development of Hydel Energy with the number of institutions without access to KP, and Punjab, with no access to the traditional in northern Punjab and near Mardan and electricity in each of these districts is given below. piped gas network. The utilization of solar water Islamabad in northern IndusValley, and near Pakistan has 60,000 MW of hydropower potential, The subsequent investment prospectus will heating technology replacing the natural gas or Nokkundi and hills and ridges in the Chagai area almost all of which lies in Khyber Pakhtunkhwa develop the costing for these schools’ electrifica- conventional sources will have a significant and Makran in the southwestern part of the (24,736 MW), Gilgit-Baltistan (21,125 MW), Azad tions (See Annex VII). impact on economic, environmental, and social country. Jammu & Kashmir (6,450MW) and Punjab sustainability. (7,291MW). About 89% of this hydropower poten- The solar system required for these schools Province of Sindh has a Wind Corridor with area tial is still untapped and yet to be exploited.12 The financing options may be explored by the Govern- 2.2.3.3 coverage of 10,000 sq.kms and it is estimated to table below shows the potential available for ment of Pakistan. The third-party contractor will Promotion PV Solar Powered Water generate wind power of over 50,000 MW.8 The installation of micro/mini Hydro (below 50 MW) in be hired for the installation, as well as operation Pumps corridor is an exceptionally good resource for KP, Punjab, AJK, and the northern mountainous and maintenance of these solar systems over the generating wind power with an average wind regions of the country. During the plan period lifetime. Monthly charges for operation and Water pumping is essential for farmers during the speed ranging from 6.9 to over 9 m/s and power efforts will be made to harness these potentials. maintenance will be decided at the time of installa- dry season, and therefore a major expense for density of 600 to 800 Watt/sq.meter, where a wind tion with yearly upward revision for the contractor. farmers during this season is electricity (when the power plant can easily achieve the capacity factor 2.2.6 For a more sustainable solution, the electricity grid is available) or diesel oil in off-grid areas. With of over 35% at a hub height of 50m. 9 10 Development of Small Hydro which will be produced after school hours, when a fuel consumption of around 3 to 5 liters per it is not used, during the non-working day from hour, the average daily expense per pump is During2016, 1,000 MW of wind power potential Besides large hydropower, there is significant these systems will utilize the net-metering mecha- approximately PKR 700 per day ($7/day) in fuel was identified in Rajanpur district, development of potential for development of small-hydropower. nism for payment of operation and maintenance costs every day. 8 which is being carried out by the Danish Compa- The country with its natural water flow systems changes to the contractor. ny Vestas.11 Four pilot projects, of 250 MW each, and irrigation canals – especially in Punjab Solar water pumping, levelized cost of energy is at would be developed for which Punjab govern- provide immense opportunities for hydropower parity with grid energy. The promotion of solar ment would provide all the possible facilities. development. Over 10,000 MW of run-of-river 77 Part 2: Priority Action Areas National Action Plan 78 Table Table7: 4:21 Hydropower Resources in Pakistan Table Table7: 4:22 Small Hydropower potential in Pakistan Province Projects in Projects Under Implementation Solicited Sites Projects Total Serial Area Number of Potential Total potential Remarks Operation Public Sector Private Sector (Projects with with Hydropower Number potential sites range (MW) (MW) (MW) Province Federal Completed Raw Resources Level Level Feasibility Sites (MW) 1 Khyber Pakhtunkhwa 125 0.2-32 MW 750 Natural falls/flow Studies) (MW (MW) 2 Punjab 300 0.2-40 MW 560 Canals Khyber 3,849 9,482 377 2,370 77 8,930 24,736 Pakhtunkhwa 3 Gilgit-Baltistan 200 0.1-38 MW 1,300 Natural falls Gilgit - Baltistan 133 11,876 40 - 534 8,542 21,125 4 Sindh 15 5-40 MW 120 Canal falls Punjab 1,699 720 308 720 3,606 238 7,291 5 Azad Jammu & Kashmir 40 0.2-40 MW 280 Natural falls FATA 13 19 0 0 Total 3,100 Source: AEDB, 2015 (a) AJK 1,039 1,231 92 3,172 1 915 6,450 Geothermal energy in the form of hot water, steam private sector to harness the potential in the Sindh - - - - 67 126 193 springs, geysers and underground hot aquifers sector. In this respect detail feasibility report Balochistan ­ - - - 1 - 1 are available in the world including Pakistan. Its would be undertaken by AEDB, and pilot project Total 6,720 23,309 468 6,262 4,286 18,751 59,796 promotion is also part of policy for development will be developed for at least 100 MW. of Renewable Energy for Power Generation Source: AEDB 2006.Geothermal is used for electricity genera- 2.3 hydropower potential that can be developed in a tion Agency (Deutsche Gesellschaft für Internatio- tion, space heating and cooling of buildings, the Promotion of Energy relatively short timeframe has been identified in 13 nale Zusammenarbeit - GIZ) published in June supply of hot water, green houses, fish farming Gilgit-Baltistan. 2014 shows the combined capacity of mini- and and setting up of small industries requiring heat. Efficiency and micro-hydropower installations is around 130 Pakistan is found to have substantially large Conservation In KP, the hydropower potential is being devel- MW. Several low-head hydropower projects are geothermal energy resources that could generate oped through both public and private sectors. being developed on canal falls in Punjab. The 100,000MW15 electricity at the cost of 5-10 cents Government has established NEECA through an The Pakhtunkhwa Energy Development Organi- Punjab Power Development Board has issued per unit depending upon different locations of the Act of Parliament. This shows the commitment of zation is developing eight small public-sector letters of intent for 11 small hydropower projects power plants. Various geothermal indices are government to reduce the energy wastage and projects with a combined capacity of 271.2 MW. with a combined capacity of 230 MW. Additional- present in Northern Area, Chagai Area, Karachi, improve energy productivity. Additionally, there is In the private sector, 377 projects with cumulative ly, the Punjab government is developing ten and Hyderabad. Hot springs with high brine an increasing demand to develop effective regula- capacity of about 1679 MW are at various stages projects with a total 80 MW capacity. temperature are present in the North-Western tory measures which will be complimented with of development. There are numerous off-grid 14 Balochistan while South Balochistan hot springs appropriate policy, fiscal and financial instru- mini hydropower installations in the provinces of 2.2.7 have brines of modest temperature. ments to create a meaningful impact. Khyber Pakhtunkhwa and Gilgit-Baltistan. Promotion of Geothermal Estimates by the German International Coopera- During the plan period government will support The primary energy intensity of Pakistan has 79 Part 2: Priority Action Areas National Action Plan 80 requirements for energy-efficient design and Generally, the market for energy efficient applianc- Fig 16 Geothermal Resource Potential of Pakistan construction for new and as well renovated es in Pakistan is gradually developing. The buildings. adoption of energy efficient appliances (LEDs Areas with hot springs Murtazabad GILGIT-BALTISTAN Sassi and DC Inverter Air Conditioners) has been Geopressured geothermal areas with Budelas above normal gradients Tatta Pani Building energy codes helps to ensure that growing at an impressive rate. These are gradual- (3-4 degree Celcius / 100m) KHYBER Dassu efficiency measures are employed at the earlier ly penetrating in the local market due to their cost Ares with volcanogenic geothermal system PAKHTUNKHWA Mushkin stages of building construction. Thermal insula- competitiveness as their upfront costs have come AJ&K JAMMU & KASHMIR DISPUTED AREA tion is also an important measure that can reduce down in the international market. The price point FATA Islamabad energy consumption in the buildings by limiting for these appliances and increased awareness for Salt range the heat loss/gain through effective building the energy efficiency gains are the two major envelope techniques. It is important that energy forces, which have enabled the market for Zhob Valley Dhodak PUNJAB efficiency measures should be adopted from the favorable conditions for the energy efficient very beginning at the building’s design phase. appliances. Because It is often more expensive and difficult to Koh-i-Sultan Sanni Mari Sui employ efficiency measures, once a building is According to a recent study on “Energy Saving in BALOCHISTAN constructed. Pakistan” published by RAFTAAR17 and funded Sehwan by UK DFID, it has been reported that over 67% of Karachi Sari Singh Lakhra 2.3.2 the domestic electricity is consumed by the fans Energy Efficiency in Transportation and lighting. Most of these appliances are SINDH Sector inefficient and do not comply with modern energy efficiency standards due to lack of In the past, Government of Pakistan in collabora- standardization and labeling measures in the Source: Younas et al. 2016 tion with UNDP have taken initiatives to imple- country. This shows that there is a substantial decreased by 1.7 annually since 2000. To achieve tial and opportunity to employ energy efficient ment fuel saving programs, such as the Fuel energy saving potential that exists in the residen- the SEforALL target, the rate of improvement has equipment, material, and practices. There is an Efficiency in Road Transport Sector (FERTS). This tial sector will be achieved by converting low to be doubled by 2030, which means that there energy saving potential to reduce the energy initiative mainly focused on corrective mainte- efficient lighting and fans to more efficient ones. has to be a reduction in the primary energy intensi- wastage by developing improved building nance and tune-ups of vehicles. During the plan Figure3 below gives the breakdown of domestic ty by 3.4% annually or by about 50% over the next envelope. It can be achieved by retrofitting period these efforts will be scaled-up through energy consumption by appliances. 14 years. existing structures or installing roof and wall private sector. Furthermore, the deficiencies insulation in existing buildings. This can improve observed in the pilot phase such as development 2.3.4. 2.3.1 building envelope efficiency, through with of standards, compliance policy, and enforce- Improving Vehicle fuel efficiency Energy Efficiency Measures in electricity demand for air conditioning can be ment capacity will be addressed. standards and emissions Buildings reduced by as much as 20%. 16 There is pressing requirement to adopt a labeling 2.3.3 program and establish a target for vehicle fuel Pakistan as a developing country with increasing Energy Building codes (EBC) are an important set Energy Efficiency in Domestic Sector efficiency standards and emissions. The vehicle demands for new construction has a great poten- of regulations and standards with minimum fuel efficiency standards are essential to phase 81 Part 2: Priority Action Areas National Action Plan 82 power dual drives. investment is required to address the reliability the network to withstand such pressures from Breakdown of Domestic Electricity Fig 17 Consumption by Appliances • Plug-in-Hybrid uses both fuel and electricity and supply quality issues as well as for integration demand and potential accidents is an urgent task charge to power the vehicle. of renewable energy investments. While the for the Pakistan’s electricity sector. As per findings 1% Lighting transmission sector is expected to remain largely of study conducted in 2016, to upgrade and 5% 5% Fans • All Electric Vehicles do not use any fuel (petrol) government owned, the regulatory framework strengthen the transmission and distribution 7% Electric Iron at all and they must be plugged into an electric allows private sector investment and public–pri- network to ensure efficiency will cost $ 9 billion.19 34% 7% Other Appliances outlet to get charged. vate partnerships. 8% Refrigerator 2.4 Heating Air Conditioners Hybrid and all Electric Vehicles (EVs) have several While the sector struggles to tackle technical and Conclusion 33% advantages compared to conventional ICE financial issues, the electricity demand is expect- Air Coolers powered vehicles. Firstly, th ey are highly energy ed to grow at 8% annually with a 6% growth in The following table summarizes the priority action Source: RAFTAAR - DFID: Energy Saving in Pakistan (2016) efficient. For example, EVs conversion efficiency GDP. The high and growing demand make the areas of National Action Plan and isa compilation is about 62%, while conventional vehicles efficien- NTDC’s transmission network constantly of all the priorities which has been described in out inefficient and polluting vehicles. Such cy is only 20%. This means that EV requires almost overloaded, without sufficient margin to prepare the above sections. Additionally, along with the standards will be introduced to improve fuel one-third of the energy used by conventional for accidents. The overloaded transmission priority action area the responsibility of the economy and limit the GHG emissions under a vehicles to cover the same distance. Electric cars system is unable to provide the quality and reliabil- concerned ministry, department or agency has phased program to bring fuel efficiency by to offer high-cost savings. According to IEA, electric ity of supply required under the national grid been also specified: international standards 2030. cars can cost about one- fourth to one-fifth of the code, resulting in major blackouts. Expansion of cost of using conventional vehicles.18 Hybrid and Electric vehicles are revolutionizing the automobile market. Electric vehicles have During the plan period, it is envisaged to replace seen impressive growth in last five years mostly in the fuel vehicles by hybrid vehicle by 30% and the developed world. They are challenging the introduce electric mass transit vehicles. conventional vehicles that use Internal Combus- tion Engines (ICE). Currently, three different 2.3.5 variants of hybrid and electric cars exist in the Upgradation and Improving the market, namely Hybrid, Plug-in-Hybrid and all Efficiency of NTDC Electric Vehicles. Pakistan’s National Transmission and Dispatch • Hybrid vehicles use only petrol/gasoline to run Company (NTDC) system lossesare2.57% of the power drives, such as electric motor & engine total transmission and distribution losses in at the same time. They are equipped with 2015-16. The system consists of over 14,000 regenerative braking technology to generate kilometers of high-voltage transmission lines and electricity when brakes are applied. Both the 38,000 MVA of transformer capacity. The system chemical energy from fuel and electricity gener- is overloaded, contributing to major blackouts, ated from regenerative braking are used to system trips, and supply constraints. Substantial 83 Part 2: Priority Action Areas National Action Plan 84 Summary of Priority Action Areas for National Action Plan for SEFORALL Objectives SDG No. Priority Action Responsibility Timelines Objectives SDG No. Priority Action Responsibility Timelines (S=Short Term, (S=Short Term, M=Medium Term, M=Medium Term, L=Long Term) L=Long Term) A-Enhance 7.1.1 1 Serving Underserved districts in all provinces Provincial and S A-Enhance 7.1.1 8 Increase the utilization of renewable energy Federal and M-L energy for off-gird lightening programs. Punjab (10 local energy to alleviate the power shortage problems as Provincial access districts), Sindh (07 Districts), KP (13 Governments access renewable (wind and PV energy) costs have Governments districts), Balochistan (7 District), AJK (3 lower fluctuations as compared to Oil, Coal district), Gilgit Baltistan (4 districts) and LNG. 7.1.1 2 Enhancement of generation capacity upto Federal and S 7.1.1 9 Improved Cooking Stoves for around 40 Provincial and L 1,02,425MW by 2030 against the current Provincial percent of population by giving alternate local 25,878 MW as 2017. Hydel 34,500 MW, Governments source of cooking (biomass) Governments Thermal 21300 MW, Renewable 16200, and Expansion of Transmission Capacity of Power Sector B-Renewable 7.2.1 1 Exploit potential of Municipal Solid Waste Provincial S Energy (MSW) to generate around 360 MW of gross Governments 7.1.1 3 Solarization of government schools and Provincial M power capacity in the anaerobic colleges (the number of institutions without Governments digester-based power plants by utilizing 16 access to electricity in each province has landfill sites. been documented in the report) 7.2.1 2 Promotion of Solarization in the country NGOs S 7.1.2 4 Solarization of basic health units which do Provincial M through Distribution of basic solar products &Provincial not have access to the electricity now Governments to low-income households Governments 7.1.1 5 Schools, colleges and universities will be Provincial M 7.2.1 3 Promote Wind energy projects in Hyderabad powered using Solar PV technology through Governments, to Gharo region and coastal areas south of Federal & S either standalone system with a battery Private Karachi in southeastern Pakistan, hills and Provincial backup or through installation of micro grids Sector ridges in northern Punjab, near Mardan and Governments of 5kW-115kW. &International Islamabad. In northern Indus valley, and near Agencies Nokkundi and hills and ridges in the Chagai area. Makran in the southwestern part of the 7.1.2 6 Install 60 LPG Air Mix plants in areas un Federal M country. served by piped network, out of which 28 will Government be in Balochistan, 2 in Sindh and the 7.2.1 4 Conduct feasibility for establishing a pilot Federal S remaining 30 will be set up in Punjab, KP, AJK 100 MW geothermal power generation unit in &Provincial and Gilgit-Baltistan. Size of these plants is an area of high potential Governments going to be between 0.5 and 1 mm. 7.2.1 5 Promote Solar water-heating for areas, like Provincial S-M 7.1.2 7 Improve access to clean cooking by Federal M-L Gilgit-Baltistan and/or villages in AJK, KP and Governments extending provision of LPG to the regions Government Punjab, with no access to traditional gas without access to gas connections. Subsidy network. Otherwise it would require billions of for one cylinder per month using BISP rupees in capital expenditure to lay down the mechanism. pipeline network. 85 Part 2: Priority Action Areas National Action Plan 86 Objectives SDG No. Priority Action Responsibility Timelines Objectives SDG No. Priority Action Responsibility Timelines (S=Short Term, (S=Short Term, M=Medium Term, M=Medium Term, L=Long Term) L=Long Term) B-Renewable 7.2.1 6 Solar powered water pumps will be provided Federal and S-M B-Renewable 7.2.1 13 Diversification of fuel mix by introducing Public and M-L Energy to reduce the cost of fuel consumption to Provincial Energy biogas for cooking and power generation. private sector farmers on subsidized rates. (With a fuel Governments consumption of around 3 to 5 liters per hour, 7.2.1 14 Development of about 600 Small-Hydel Provincial M-L the average daily expense per pump is Projects site with cumulative power Hydel Power approximately PKR 700 per day ($7/day) in generation capacity of around 3100 MW Development fuel costs every day) Organizations / Private 7.2.1 7 Promotion of biomass energy in the rural Provincial M Sector areas where no gas connections are Governments available. Materials that can be fed into a 7.2.1 15 Promote job creation through fostering Federal and L biogas digester are mostly readily and locally renewable energy technologies. Developing Provincial available and it can be used for households indigenous capacity for manufacturing Governments (cooking/ lighting) and industry, renewable energy in SEZs. transportation and to generate electricity helping to reduce the dependency on fossil fuel imports. C-Energy 7.3.1 1 Promote usage of energy efficient Federal S Efficiency appliances in domestic sector (LEDs and DC &Provincial 7.2.1 8 Replace low-pressure steam boilers in 84 Private M and Inverter Air Conditioners) to improve energy Governments Sugar Mills with high-pressure cogeneration Sector and Conservation efficiency. / NEECA plants. Regulatory Agencies 7.3.1 2 Regulate the manufacturing sector to Federal S produce energy efficient products. &Provincial 7.2.1 9 Increase in the share of biomass fuel by Provincial M Governments generating 162 MW will through Rice mills Governments / NEECA waste. / Private Sector 7.3.1 3 Improvement of Maintenance Operation i.e. Private S reduction of air leakages; and Proper Sector 7.2.1 10 Produce biodiesel in Pakistan on Private and M maintenance and operation of electrical experimental basis to diversify the fuel mix. Public Sector motors to increase energy efficiency 7.2.1 11 Convert 2 million gas geyser consumers to Federal M 7.3.1 4 Energy savings in the textile industry by Private S solar water heater in the SNGPL network to Government – installation of meters, controls to reduce Sector / save 15 BCF annually or 41 MMCFD which is SNGPL / leakages of compressed air and improved Regulator about 9% of total natural gas consumption in SSGCL maintenance of electrical motors. Punjab. 7.3.1 5 Implementation of simple energy-saving Private S 7.2.1 12 Provide Clean and Improved Cook stoves Provincial M techniques such as efficient lighting and Sector / with higher conversion efficiencies to help Governments installing controls for compressed air in Regulator relieve the environmental damage and to and NGOs Leather sector. save biomass resources. 7.3.1 6 Introduction of Zig-Zag Technology to Private S increase energy efficiency in Brick-Kilns Sector / Industry. Regulator 87 Part 2: Priority Action Areas National Action Plan 88 Objectives SDG No. Priority Action Responsibility Timelines Objectives SDG No. Priority Action Responsibility Timelines (S=Short Term, (S=Short Term, M=Medium Term, M=Medium Term, L=Long Term) L=Long Term) C-Energy 7.3.1 7 Replacing smart metering technology for Federal S C-Energy 7.3.1 16 In Cement Industry, shifting of single stage Private M Efficiency natural gas and power consumers to improve Government / Efficiency dry kilnsto multistage dry kilns to improve Sector / and revenue collection. DISCOs / and energy efficiency of cementing process Regulator Conservation NEPRA Conservation . 7.3.1 8 Achieve Energy efficiency in the industrial Federal and S-M 7.3.1 17 Introducing high efficiency steam reforming Private M sector by employing a broad range of energy Provincial and Haber-Bosch synthesis in fertilizer Sector / management, efficient technologies and Governments sector. Regulator practices to reduce overall energy / NEPRA consumption. 7.3.1 18 Tuning of boiler burners and adjusting Private M air-to-fuel ratios in Pulp and Paper mills to Sector / 7.3.1 9 Standardizedfuel efficiency mechanism in Private S-M reduce their gas demands. Regulator transport sector i.e. Fuel Efficient - Hybrid Sector / and Electric Vehicles. Regulator 7.3.1 19 Introduction of system to withstand NTDC / M-L pressures from demand and potential Ministry of 7.3.1 10 Up-gradation of NTDC transmission system NTDC / S-M breakdowns in national transmission system. Energy compatible to evacuate enhanced power Private Strengthening the capacity of NTDC to (Power generation capacity. Sector manage the power supply and demand in Division) peak hours. 7.3.1 11 Improvement in Process Operation in Private M Industrial Sector e.g. proper metering in the Sector / 7.3.1 20 Replace tube wells pumps i.e. 180,000 with Provincial M-L textile and sugar industry Regulator more efficient pumps by 2030 Governments / Private 7.3.1 12 Installation of Variable Frequency Drive (VFD) Private M Sector or inverters on pumps and motors reduce Sector / energy losses; Regulator D- 1 Facilitation to SEforAll National Steering UNDP / S-M Coordination Committee for providing effective leadership Development 7.3.1 13 Installation of Heat Recovery Systems (HRS) Private M and follow up in execution of SEforAll NAP. Partners / from exhaust flue gases in sugar and paper Sector / Ministry of industry Regulator Planning, Development 7.3.1 14 Thermal insulation of steam lines and valves Private M and Reforms in industrial units Sector / Regulator 2 Establishment of Sustainable Energy for All Ministry of S Secretariat at the Energy Wing, Ministry of Planning, 7.3.1 15 Sugar industry to deploy energy efficient Private M Planning, Development and Reforms with the Development technologies, such as the High-Pressure Sector / support of UNDP and other development and Reforms Cogeneration (HPC). Regulator partners. SEforAll Secretariat will liaison with ministries, departments, authorities, research organization, universities, financial institution and private sector at national level for tracking and monitoring. 89 Part 2: Priority Action Areas National Action Plan 90 Objectives SDG No. Priority Action Responsibility Timelines (S=Short Term, M=Medium Term, L=Long Term) D- 3 At provincial level, Planning & Development Federal and S Coordination departments will liaison with provincial Provincial and follow up stakeholders – ministries, department, Governments authorities, financial institutions, academia, research organization, private sector, NGOs and CSOs. In addition, provincial level Sustainable Development Goals (SDGs) Unit headquartered in provinces could provide input to Planning & Development departments. 4 Establishment of SEforAll Cell in all Energy Federal and L related Ministries (Power and Petroleum Provincial Divisions and Provincial Energy Departments Division and to coordinate with SEforAll Secretariat. Departments. 91 Part 2: Priority Action Areas 3.1 Energy Planning and Policy Analysis for SEFORALL For the developing countries like Pakistan it has been daunting task, to attract private investors for the provision of private infrastructure (power sector projects) in the absence of political stability and high-security risk. The government operated and owned the power sector in the country, with the budgetary allocations as one of its main responsibilities. For Sixth Five-Year Plan (1983-1988) budgetary allocations were 38 % which sky-rocketed to 50% for FY 1989-901 for power sector. However, these allocations weren’t able IV. Petroleum Policy 2012 toimprove the operational efficiency to meet the V. LNG Policy 2015 increasing demand for electricity. The adverse situation of the sector, and global wave of market The analysis of policies delineates that the renew- liberalization and deregulations, Government ables energy received varied policy response and invited private sector (Independent Power priority from different government agencies from Producers) to install additional power generation time to time. Few policy-makers still have doubts capacity. These IPP installed thermal power plants of affordability and reliability of renewable energy with sovereign guarantee offered by the govern- resources, whereas, some do see a potential as ment to overcome the supply shortfall. The induc- well as further reduction in cost and improvement PART-3 tion of thermal plants has not only dominated the energy mix but also made power sector tariff in technology. volatile for oil prices shocks. The renewable tariff analysis shows that indicative The following key policies were promulgated for upfront tariff wind and renewable has decreased ENABLING ACTION enabling an investment environment in power drastically since 2013. Although, the cost of sector: power generation from different sources are I. Power Generation Policy 2015 disputed especially when it comes to infrastruc- AREAS II. Policy for Development of Renewable Energy ture development of coal and LNG imports – as for Power Generation 2006 costs are not properly internalized. Additionally, III. National Policy for Power Co-generation by the development of these projects from public Sugar Industry and Guidelines for Investors finance will shrink the fiscal space and pose 2008. additional challenge to operation and manage- 11 Energy Planning and Policies National Action Plan 94 ment of the system. Further, this may jeopardize op solar, wind and small-scale hydropower promoting new forms of renewable energy. In develop provincial policies or opt for federal the government efforts to achieve energy security projects. Later in March 2013, bagasse, biomass 2015, it issued “NEPRA (Alternative and Renewable government policies. Furthermore, amendment of the country. and waste-to-energy were included in the policy Energy) Distributed Generation and Net Metering although has opened avenues for greater provin- through an addendum. Pakistan energy sector Regulations, 2015)”. cial participation in development of energy sector, 3.2 has seen some positive advances in the renew- however, in absence of requisite legislation the Policy Analysis: Power able energy arena, especially in solar and wind. In parallel, Petroleum division, and Oil and Gas Regulatory Authority (OGRA) is to foster competi- opportunities are not been capitalized. During the plan period, issues of legislative gaps will be identi- Generation Policy 2015 However, the policy for Renewable energy requires tion, attractive private investment, and ownership fied and addressed accordingly a thorough evaluation and revisions due to chang- in the midstream and downstream petroleum On April 2015, the Power Generation Policy of es after 18th Amendment in overall governance industry. The regulation of activities relating to 3.5.1 2015 was announced to provide better incentives structure. Similarly, the recent promulgation of Liquefied Petroleum Gas (LPG) and Compressed Government of Sindh Power policies and efficient processes for the developer of reverse auctions and net-metering regimes needs Natural Gas (CNG) sector are assigned to Oil and power project companies. The policy addresses to be embedded in the policy framework. Gas Regulatory Authority. The government of Sindh has adopted federal the development of large hydropower projects government power policies for the development of (greater than 50 MW) and new thermal power 3.4 3.5 renewable energy, offering same incentives as of Policy Analysis: Post 18th projects in public and private sector. The policy federal government. Sindh Energy Department is set the framework for project development and the provincial department issuing letters of intent underlies the importance of promoting least-cost Regulatory framework Constitutional for solar power projects and wind power projects. power generation. However, with regards to the and guidelines Amendment overall energy mix, it does not specify any binding The Government of Sindh has a strong willing- targets or shares for thermal and large hydropow- Assessment ness to develop renewable energy. One of the key In addition to aforementioned policies, various er projects. initiatives in this regard is “Sindh Land Grant Policy guidelines to develop a comprehensive regulatory The 18th Amendment to the Constitution of for Renewable Energy Projects 2015” to facilitate regime for the sector has been also issued by the 3.3 government of Pakistan from time to time. The Pakistan of 2010, transferred the policy-making renewable energy investment. It was introduced Policy Analysis: Policy establishment of NEPRA through NEPRA Act 1997 powers and operations to provinces. Before 2010, with the aim to simplify and fast-track access to land for investors in renewable energy projects by for Development of is the most important achievement. The NEPRA Act the energy policies and planning for the large-scale power projects (more than 50 MW) were under the offering lease agreements for up to 30 years at of 1997 is complemented through various guide- Renewable Energy lines and amendments from time to time. However, statute of the federal government. The provinces favorable terms. By implementing this policy and earmarking large areas of land for renewable 2006 one of the most important guidelines from the are allowed to issue a letter of intent for hydropow- energy projects, provincial government attracted government is in setting tariffs. In November 2005, er projects of 50 MW or below, of installed capacity. investors. However, the provincial government The government of Pakistan promulgated the the guidelines were issued to define and interpret After the 18th amendment, the functions were lacks an effective mechanism coordinating the Policy for Development of Renewable Energy for various financial and fiscal incentives, such as a tax devolved to the provinces, including energy and issuance of letters of intent with the federal Power Generation in 2006. The policy focused on on dividend, interest on loans etc., and how they climate change, empowering the provinces to play government. promoting renewable energy power projects in would constitute the applicable tariff. NEPRA has also been issuing various regulations for the a more proactive role in the energy sector. The Pakistan. Initially, the policy mandate was to devel- smooth functioning of the power sector and provinces have been given authority to either 95 Part 3 : Energy Planning and Policies National Action Plan 96 3.5.2 non-renewable power projects. The policy directs indirect involvement of Ministry of Finance and will increase the investors’ confidence and bring Government of Balochistan Power the Punjab Power Development Board to co-ordi- Ministry of Planning, Development, and Reform. transparency in the development process as well policies nate with the federal government and NTDC when Ministry of Climate Change is also gaining promi- as better understanding of future policy discourse. issuing letters of intent for renewables. Recently, nence and considered as one of the key stakehold- The “Balochistan Power Generation Policy 2007” the Punjab Energy Efficiency and Conservation ers in the policy arena related to the energy sector, 3.5.6 has been devised for all power projects up to a Authority has been also established to effectively as it has the responsibility to coordinate the efforts Assigning Priority Based on Integrated maximum of 50 MW. After 18th amendment, the implement the energy efficiency and conservation for reducing its CO2 emissions to tap into the Energy Planning policy now applies to projects at any scale. Nation- at the provincial level. global financial resources for the energy sector. al Power Generation Policy 2002is the basis for This will require to project an indicative future Pakistan energy crisis has severely affected the the provincial 2007 policy, for implementation of 3.5.4 energy mix plan commensurate with government GDP growth and socio-economic dynamics of procedures and incentives. Further, the Baloch- Government of Khyber Pakhtunkhwa commitment under NDC. society. On the supply side, more power genera- istan Power Development Board was established (KP) Power policies tion is a required and it has been planned effective- as a one-window facilitator to encourage private Ministry of Finance constituted the Energy Expert ly. Government plans are in execution phase which investors. Even though Balochistan is endowed Federal Government Renewable Energy Policy of Group in 2009 also emphasized to address the will change the future energy mix. However, there is with massive renewable energy potential, particu- 2006 has adopted by Government of KP for their all energy sector challenges through an integrated a confusion and uncertainty prevail when it comes larly for solar and wind, the province has not yet renewable energy projects, except for hydropower. energy planning approach.The provinces have to renewable energy resources. Two main issues been able to exploit these resources due to Due to immense hydropower potential, the provin- also observed that lack of integrated plan raises with renewable energy (mainly with solar, wind) are under-developed infrastructure, challenging cial government has put in place the “Khyber concern about the power evacuation plan, which – tariff and issues of intermittency. The higher tariff terrain and uncertain security conditions. Pakhtunkhwa Hydropower Policy 2016”. Policy requires more comprehensive and integrated for the renewable energy resource has been goals are to maximize utilization of hydro-potential. approach for optimal functions and planning. The always raised as a major concern from the

3.5.3 Both for public and private sectors, KP government integrated energy plan will serve as a policy analy- policy-makers on comparison with the availability Government of Punjab Power policies has developed a ten-year action plan for hydropow- sis tool based on evidence-based management, of large hydropower projects. er development. The cornerstone of provincial economic analysis on both demand and supply To maximize the utilization of indigenous energy policy is that it requires the project developer to projection while incorporating input from across To address the aforementioned issue, government sources including coal, biomass, hydropower, construct the transmission line. The cost of extend- ministries, sectors, and provinces. will implement an Integrated Energy Planning wind and solar for power generation the “Punjab ing transmission lines from project site to an Regime based on evidence-based planning using Power Generation Policy 2006” was implemented existing distribution company or NTDC network is Although there are efforts going on for the develop- different computer-based models. The National by Punjab Government which was further revised embedded in the tariff. ment of Integrated Energy Planning2 between Steering Committee on Integrated Energy in 2009. Under this, the Punjab Power Develop- Planning Commission and USAID. Some of the Planning, constituted under the Chairmanship of ment Board is empowered to ease the way for 3.5.5 recent meetings at Government level has involved Federal Minister for Planning, Development & investors setting up power projects in Punjab. Implementation of Integrated Energy public sector stakeholders in this process. Howev- Reform / Deputy Chairman Planning Commission Development Plan / Model er, it is proposed that private sectors will be and comprising of representative of all energy The policy allows the board to assist in liaising with involved in the consultation process for develop- sector stakeholders, will ensure its effective imple- federal agencies such as NEPRA, NTDC, and Pakistan energy sector has multiple stakeholders ment of Integrated Energy Planning. These private mentation. In this respective, development DISCOs in matters of tariff and grid connectivity etc. dealing with energy sector which includes Ministry investors are investing in power generation, trans- partners including USAID will be insisting the The policy is applicable to all renewable and of Energy (power and petroleum division)with the mission, distribution, and energy efficiency. This government of Pakistan. 97 Part 3 : Energy Planning and Policies National Action Plan 98 3.5.7 in 2015 is the “Alternative & Renewable Energy Expected Benefits of Energy Efficiency in Resource Planning Table7: Table 4:23 Enabling Action Areas: Measures for Distributed Generation and Net Metering Renewable Energy at National Level Regulations”.3 The regulation permits domestic, commercial and industrial consumers to become Electricity Natural Gas The government of Pakistan as per the policy estab- a seller of surplus electricity generated through Energy Reduced Electricity Purchase Reduced Natural Gas Purchase lished, Alternative Energy Development Board. solar system to their respective DISCOs changing Related Reduced Transmission and Distribution Losses Reduced UFG Losses AEDB has been specifically mandated to facilitate the role of DISCOs from power distributor to Benefits Reduced Emissions Reduced Emissions renewable energy development, both on-grid and power management company at utility scale. The Capacity Generation capacity/ resource adequacy Production Capacity/ LNG Facilities off-grid. The efforts of AEDB is also partly comple- regulation has seen major success with more than Related Availability Operating Reserves Additional Pipeline Facilities mented by PPIB through implementation of 200 licenses approved by NEPRA for so far.4 The Benefits Additional Transmission and Distribution Capacity Less strain on the distribution system medium to large hydroprojects AEDB in collabora- regulation will signal the market for on-premises Other Benefits Cost Reductions tion with international donor agencies – bilateral installation for solar power systems replacing the and multilateral development partners have UPS and generators. Further, it will not only create Lower Business Risks created an environment to attract private sector a revenue stream for the household but also investment in Pakistan. Some of the effective policy reduce the load on the grid. 3.7 policies supporting renewable energy develop- ment. They will inform decisions on transmission tools and initiatives by AEDB, related to national and provincial level, interalia include: During the plan, the initiative will be supported Enabling Action infrastructure planning and facilitate private through effective regulation, facilitating DISCOs to Areas:Renewable sector investigation and site selection in new a) Allocation of Land (Sub-lease agreement) adopt a bottom-up approach for improvement of Energy Resource areas. b) Upfront tariffs for renewable energy technologies dilapidated grid infrastructure through focused c) Standardized Agreements investments in an area where net-metering Planning 3.8 d) Net Metering Provision “distributed generators” are expected to penetrate The endowment of renewable energy in the Energy Efficiency Regulatory Reforms e) Renewable Resource Mapping manifold. DISCOs implemented revenue-based country is very diverse and they will be developed f) Grid Study to determine the limit of intermittent load-shedding model, the same revenue-based based on regions’ requirements. However, the renewable energy sources model will be revamped in this case for grid strategic mapping of these untapped resources The primary mandate to promote energy efficien- g) Grid codes for solar and wind energy projects improvement. To incentivize the consumers in all will get serious consideration by the government cy and conservation in the country has long been categories (domestic, commercial and industrial), AEDB have initiated the project, under the ESMAP with National Energy Conservation Center (ENER- 3.6 the government may offer tax rebates and import through World Bank support, to assess and map CON now reconstituted as National Energy Enabling Action Areas: duties reduction on equipment for grid-connectiv- ity as well invertors and other auxiliary equipment the renewable energy resources including Efficiency & Conservation Authority (NEECA)). On-Grid Distributed with solar installation. biomass, solar and wind energy. This mapping NEECA Act 2016 is aimed at developing the mech- anism and procedures for effective conservation Energy - Net-metering will signal the investors to realize the market poten- tial to invest in RE resources. 5 and productive use of energy in the Country. Regulation NEECA will be the focal federal agency for devel- These resource maps will significantly improve opment, implementation, and coordination of One of the key regulations put in place by NEPRA the country’s capacity for developing effective energy efficiency and conservation in all econom- 99 Part 3 : Energy Planning and Policies National Action Plan 100 ic sectors of Pakistan. In the long-term labels will be complemented with development of new infrastructure projects. 3.10 MEPS (Mandatory Energy Performance During SEforAll consultative meetings, grid The establishment of NEECA as an autonomous Standards) to remove inefficient equipment or infrastructure, and evacuation emerged as one of Enabling Action Area: federal agency shows the commitment of practices. Energy efficiency labels guide consum- the crucial problems for power projects inves- ESCO Business Model Government of Pakistan to reach energy efficien- cy goals through an effective regulatory frame- ers to make informed choices by enabling them to compare various equipment from standpoint of tors/developers. According to AEDB, there is a huge volume of wind power projects are about to for Promotion of work. This will compliment with existing appropri- energy efficiency and cost savings, while the reach to commercial operations. Meanwhile, new Energy Efficiency ate policy, fiscal and financial instruments to MEPS provide minimum performance standards substations and associated transmission lines will create a meaningful impact. for new appliances and buildings. In view of be constructed and upgrades. NEPRA has issued Implementation of energy efficiency retrofits and above, NEECA has to develop MEPS for many upfront tariff for transmission project under the process improvements that pay for itself through NEECA will be mandated with developing neces- appliances, such as air conditioners, refrigerators, BOOT framework for the private sector. This has 6 energy saving can be a complex task. Recently, sary policy measures which play an important role fans, and lighting. set a new precedent for the private sector to invest there has been a growing trend and interest to in the market to reinforce the role of energy prices in the grid infrastructure while mobilizing their provide energy services to achieve energy and create the appropriate conditions for energy resources.7 To attract the private sector invest- efficiency. Some companies provide these efficient equipment and services. The conditions further drive consumer towards the most cost-ef- Business Model and ment in transmission projects a profitable tariff will specialized energy services to the energy consumers which may include the installations be offered. fective solutions. Development of energy Technology Innovation and supply of energy efficient appliances, retrofits standards and the introduction of labeling for the A comprehensive integrated infrastructure devel- and process improvements. various appliance on the market are one of the 3.9 opment plan will be launched in near future. The few instruments that can help improve energy Mobilizing Private provincial and federal government has issued These companies are called the Energy Service efficiency. NEECA will establish these standards Letters of Intent (LOI) they will be assessed and Companies (ESCOs). Particularly, ESCOs have and introduce attractive policy instruments on a Sector Investment incorporated into the plan. The recommendation experienced and qualified manpower which can high priority bases and use them to strategize the proposed by Ministry of Energy through USAID effectively deliver or provide the maximum The reforms process in energy sector has amount of energy resource efficiency. ESCOs energy efficiency. supported grid study will be the part of this plan. remained in transition from last two decades. This have extensive implementation and technical The CPEC projects are also assessed and incor- inter alia mainly include privatization of power experience in developing energy efficiency porated in the plan till 2030. To develop a holistic generation, transmission, and distribution. The measures, this is the reason that organizations NEECA Act also provides a legal framework to set strategy for the country in accordance with the development of energy infrastructure (power as often require services of ESCOs while considering targets and adopt regulations, such as Energy development goals. well as fuel) is a capital-intensive project which energy efficiency and retrofit projects. ESCOs labeling, Standards, and MEPS. NEECA therefore, cannot be financed by limited public fiscal space. even provide some financial guarantee for energy will organize mandatory energy audits of certain In collaboration with the provincial / regional Therefore, the financing framework has remained saving that these savings will pay for the debt large consumers and implement energy savings governments efforts will also be made to formu- based on Build-Own-Operate-Transfer (BOOT) servicing. The major difference between an ESCO obligations for power and gas utility companies. late policy to attract private sector investment for under the Public Private Partnership mode of and any other energy efficiency company is that Energy efficiency law provides a legal framework community run small hydel projects, particularly financing. This framework will be refined and the ESCO provide guaranteed energy savings for setting up an energy efficiency fund which will in KP, AJK and GB. The capacity of small hydel expanded further to help the private sector to which are generally stated in the terms of agree- be used to facilitate the effective functioning of projects in the country has been estimated mobilize their resources to upgrade existing and ment of the contract between the ESCO and the Energy Servicing Companies (ESCOs). around 3000 MW. 101 Part 3 : Energy Planning and Policies National Action Plan 102 client organization. ESCOs can even finance the 3.11 v. Eliminate tube-wells subsidy in Balochistan by market towards a competitive, open, multi energy efficiency measures or process improve- installation of solar PV based tube wells. buyer market ments, whereby their earnings are directly linked Enabling Action Areas: vi. Introduce tax reform for energy producers to h) Moving away from cost plus tariffs in to the energy savings of client organization. Addressing Circular settle refund claims within a rational time favor of international competitive bidding However, in Pakistan, the market for ESCOs is Debt period. vii.Introduce supply side reforms including: - i) Fuel supply should be the responsibility of the power producer instead of purchas- quite underdeveloped and there are hardly any a) Improve Generation Mix through induc er. The NAP intends to eradicate the causes of local companies that can provide energy services tion of cheap RE resources such as wind viii. Introduce demand side reforms including; circular debt by formulating policies aiming at to and simultaneously finance the efficiency and solar based power which provides an a) Optimal determination of consumer tariff improve the governance and performance of improvements or project retrofits. The two biggest opportunity to phase out retiring imported by NEPRA energy sector entities to decrease costs, increase barriers to implementation of energy efficiency oil-based power plants. b) Improvement in recovery and losses by cash flow, and ensure operational/financial integri- are access to finance and availability of reliable b) Tariff determination - Heat rate testing of DISCOs ty of the sector. These will include: - service providers (e.g. ESCOs) in the market. Thus, GENCOs by NEPRA to monitor the c) Unbundling of DISCOs into separate wire ESCOs can play a significant role in achieving efficiency of these plants. NEPRA to strict- and retail business i. Address the legislative lacunas in the execu energy efficiency in the country. There is an ly implement its laid down standards. d) Outsourcing of retail functions of DISCOs tion of public private partnership projects increasing demand to develop and build the Inefficient plants which are having low especially of areas where recovery rate is particularly in the coal and hydro sectors. capacity of local companies in Pakistan which can heat rates, leading to lower performance comparatively lower i. Timely tariff determination by NEPRA & its provide energy services to end users. of power plants, to be immediately shut e) Professional composition of BODs, CEOs notification - delay in tariff determination and its down. Inspection of power plants with of Public Sector entities and DISCOs notification by government causes accumula- Finance and Risk tion of receivables and disturbs liquidity low heat rate to be carried out regularly. c) Audit of actual units purchased by Management position of DISCOs. CPPA-G and delivered by IPPs/GENCOs. 3.12 ii. Improve the liquidity position of DISCOs - Pakistan’s energy sector is financially haunted by settlement of receivables particularly from AJK, Automated and software based sale and Enabling Action Area: purchase agreements to be put in place the menace of circular debt .8 The current energy FATA and K-Electric (13% of Circular debt in FY d) Thermal power generation to be planned Financing for 2017-18). It is imperative to recover the cost of crisis has evolved as a critical socio-economic electricity sold to these entities. on availability of indigenous fuel. Import- Renewable Energy and issue. It is deep rooted in the country’s poor ed fuel-based power generation to be governance. More specifically, the electricity iii. Clearance of Tariff Differentials Subsidies on discontinued. Energy Efficiency monthly basis - delayed or under payments on shortages are mainly due to widespread e) Renewable energy - Wind/ Solar etc., to account of Tariff Differentials Subsidies (TDS) inefficiency and corruption with lack of political be given priority in short term power Worldwide, the financial institutions, such as the was constituting 9% of circular debt during the will to solve the problem. The multiple generation mix over thermal and nuclear. commercial banks are providing attractive finan- financial year 2017-18. dimensional problems are poor supply-demand f) Abolishing the ‘Take or Pay’ mechanism cial packages for renewable energy and energy iv. Operationalization of a time-bound payment management and projections, power thefts, in Power Purchase Agreements by efficiency technologies to investments in industri- mechanism of the subsidy to DISCOs besides costly input and the rising recurring costs. The eliminating capacity payments for idle/ al, residential, agriculture and commercial sectors. ensuring that only life-line consumers get this peak power shortfall reaches almost 5000 underutilized IPPS. As, these sectors have capacity to absorb these facility is very much crucial. megawatts across the country. g) Moving away from single buyer power investments for their profitability. 103 Part 3 : Energy Planning and Policies National Action Plan 104 Currently, in Pakistan there are a limited number of low-income clientele. It also argued that rural include tax credits, exemption fromcustoms through financial incentives provided by the energy financing products offered by the electrification cannot be sustained on client duties and taxes on energy efficient equipment government. These audits will be financially commercial banks. Although, there is a great revenues and requires external financing. This 9 and processes. These measures include incentivized to encourage consumers by carrying potential to attract investments to improve renew- result in governments offering subsidies, grants out energy audits at subsidized rates. able energy technologies and energy efficiency in and concessional loans. Pakistan Poverty Allevia- 3.14 the industrial sector as it is relatively easy for the tion Fund and GIZ demand assessment study Enabling Action Area: 3.16 industries to have access to capital and as well as indicated that over 72% rural population are Investment Subsidies Enabling Action Area: the capacity to utilize these investments to make interested to take microloans for solar home profits. New energy financing instruments or prod- systems.10 for Energy Efficiency Concession of ucts for renewable energy and energy efficiency Customs Duties /Taxes for industrial users will be offered through regula- The plan therefore envisages to facilitate rural tory framework under State Bank of Pakistan. electrification through off-grid /distributed solar Investment subsidies to retrofit existing buildings, on EE Equipment appliances and industrial facilities with a goal to system supported by government policy and shorten the payback times. Subsidies will be Access to finance in the agriculture sector energy regulatory framework. Similarly, mini-grids will be considered to reduce the replacement cost of Many countries encourage the purchases of user (tube-well) will be ensured. Government will promoted through a clearly defined policy mech- efficient equipment that are more expensive than energy-efficient products or renewable energy introduce an agriculture relief package including anism. Policies for mini-grids will be carefully the average market price. Investment subsidies equipment by providing concession on tax and markup free loan for the farmers to install solar formulated for universal energy access while can be implemented for LEDs, electric motors, duties on the purchase of such equipments. The tube wells. These loans will be utilized for small to ensuring economic viability. 11 Government will solar water heaters, & boilers etc. and these government is already offering generous tax relief medium scale farmers and financing will be facilitate the micro-financing mechanism for rural subsidies are often conditional on replacement of in the power sector. The government has reduced limited to farmers who own land of 12 acres or clients to develop a sustainable market-based old or inefficient equipment. sales tax and duties to zero for power generation more. The federal and provincial government will model. using renewable energy resources (the wind, pick-up themarkupcost of this financing. 3.15 solar and hydro) and are subject to some condi- Fiscal and Financial Enabling Action Area: tions. 3.13 Incentives for Energy Incentives for Energy Enabling Action Area: Similar tax and duty exemption measures will also Efficiency Program Audits be implemented for energy efficient equipment, Policy and Financing such as inverter air-conditioners, refrigerators, Mechanism for Fiscal and financial incentives are essential to Energy auditing is one of the effective ways to LED lamps, electric motors, cook stoves etc. While Off-Grid Rural achieving energy efficiency improvements. These income tax credit will be offered to businesses deliver targeted information that enables consum- incentives are typically provided to encourage who invest in energy conservation and efficiency Electrification ers to undertake investments and cut energy investments in energy efficiency by bringing or the manufacture of renewable energy equip- wastages. Energy Auditing is a service where the down the equipment and processes costs for ment. factories or buildings are evaluated based on their The goal of universal access to energy is not improvements. Financial incentives generally energy usage with the aim to recommend the possible without 100% electrification of rural include subsidized investments’, soft loans, and best means to improve energy efficiency. areas. However, the rural electrification programs subsidized energy audits. While fiscal instruments Energy audits by consumers will be encouraged are considered to be high-risk investment due to have an indirect impact on investments and 105 Part 3 : Energy Planning and Policies National Action Plan 106 3.17 refrigerators, and fans. On-bill financing of solar water heaters is being provided through SNGPL, avenues to set up indigenous funds as well as attract investments from energy efficiency fund Capacity Building and Enabling Action Area: who have sold over 2,000 units to its consumers with the support of the multilateral organization. Knowledge Sharing Soft Loans through easy installments of up to 24 months. The World Bank, Global Environment Facility (GEF), UNFCCC, Asian Development Bank, GIZ, 3.19 and USAID are fairly active in financing energy 3.20 Initial capital cost is a potential barrier which can be intensive in energy efficiency investments. An Enabling Action Area: efficiency programs in developing countries. Rural electrification access to capital for initial investments at attrac- Renewable Energy The government of Pakistan can also attract and off-grid market tive financing terms can be a fundamental step to overcome this barrier. Consumers who invest in &Energy Efficiency investments through financial mechanism operat- ed under Green Climate Fund (GCF). GCF is a energy efficiency equipment would be provided Funds fund set up under the framework of UNFCCC to There is a provision of off-grid and distributed renewable power generation under the Renew- soft loans at subsidized interest rates by establish- assist developing countries like Pakistan in adap- able Energy Policy 2006mandated to AEDB and ing specific credit lines with the support of guaran- Energy Efficiency funds are dedicated funds for tation and mitigation practices. The target for other concerned provincial agencies. However, tee schemes which encourages banks to finance the investment in a project that reduce energy climate financing under GCF is to reach US$ 100 the implementation mechanism and procedural energy efficiency investments. wastage, extract useful energy from waste and billion annually, whereby it primarily redistributes modalities will bedeveloped.12 Initially, the avoid excessive energy consumption. These money from the developed world to developing small-scale hydropower projects were imple- funds are typically invested in public and commer- world to counter climate change. mented under the policy framework. Although 3.18 cial building retrofits; industrial energy sector; policy provides an option for other off-grid Enabling Action Area: urban infrastructure and utilities to improve the The SEforAll Small Grants Programme will be technology such as solar, biomass, and wind to energy efficiency. Large multilateral organizations On-bill Financing and governments generate this fund which is established to offer grants up to USD 100,000/- for be developed for community or isolated grid any initiatives that accelerate the adoption of any Scheme distribution.13 However, no detail policy mecha- routed through Energy Services Companies of the proposed actions within the SEforAll plan. A nism has been so far developed.14 Further, in the (ESCOs), where Energy Efficiency Agencies (e.g. trust fund of USD 20 million will be set aside, and absence of the policy mechanism, there is no NEECA) monitors the fund and client organiza- On-bill financing can be one of the effective instru- only the investment income be utilized for grant incentive for private sector to invest in this area tions utilize them. These funds, if utilized and ments for utility consumers to overcome the making. It is suggested that at least 40% of this which can be a critically important area for the invested well can provide extraordinary solutions barrier presented by the high initial costs of USD 20 million is contributed from the govern- economy and social development. that deliver energy savings and produce optimal energy measures. On-bill financing enables the ment’s own funds, and the rest can be through performance and best value for money for customer to pay for energy efficiency equipment, donor contributions facilitated by UNDP. The In the absence of the government policies, neither consumers. whereby the investments are financed through SEforAll Trust Fund should be established as a public sector nor private sector has put serious monthly installment via bill payments. It delivers Section 42 non-profit company with an indepen- efforts for development of micro/mini-grids for Pakistan as developing country can take benefit financial benefits to the consumers by providing dent Board. rural electrification. Rural areas lack technical of external finance in the form of special credit them access to low financing costs offered by the skills and no financial incentive for development lines with soft loans and special grants. The power or gas utility company. Such facilities will and implementation of any such technology. government of Pakistan has signed the Paris be extended to replace old appliances with more There is a lack of standardization for solar PV Agreement; therefore, it will explore various efficient products, such as LEDs, air-conditioners, which has resulted in the poor performance of 107 Part 3 : Energy Planning and Policies National Action Plan 108 small-scale systems. It also lowered end-user stand the broad benefits of Energy Efficiency. The commercial developers will be enhanced to procedures, NEECA will develop harmonization confidence in stand-alone systems. 15 objective of development of such a tool would be address the issue of split-incentives through schemes for equipments’ testing and standards to provide a simplified framework to show a improvement in the building codes. so that the locally made equipment could be The Private sector has highlighted the issues with business case for energy efficiency from the exported and as well as encourage the import of the investment in rural areas such as: standpoint of consumers, utilities, and govern- 3.22 efficient appliances and equipment. This would ment policies. Enabling Action Area: also enhance the international and regional coop- I. Solar PV installation offered in some region for eration and strengthen trade of energy efficient free by Government and donor agencies; Worldwide, many countries have established Appliance Testing equipment within the region. International energy II. Commercial risks and higher investment costs; energy information centers to inform and educate Laboratories organizations will be used as an exchange III. No information available of market potential; households on energy efficiency actions. These platform to learn from the experiences of other IV. Lack of financing mechanism for solar installa- information centers have been developed for Successful implementation of energy appliance countries to develop policies and identify best tion for small scale solar installation; energy information and dissemination where labeling measures requires adequate facilities of practices. V. Lacking Government support. households and consumers can receive all energy standards and certification laboratories in information relevant to energy efficiency, these the country. Pakistan Standards and Quality 3.23 The government will devise policy framework to are called the “one-stop shops” for energy Control Authority (PSQCA) is the designated Enabling Action Area: facilitate private sector to provide an off-grid efficiency. NEECA will establish similar kind of solution to rural areas. information centers in all the provincial headquar- agency of the Government of Pakistan which develops the national standards. PSQCA is respon- Mandatory Regulatory ters to facilitate and educate the public and sible for the development of national standards, Measures for 3.21 consumers about the potential benefits of energy quality testing and conformity assessment of Consumers Enabling Action Area: efficiency in Pakistan. various products. Conformity Assessment Energy Information includes a range of activities such as the testing, Mandatory regulatory measures often produce In gas sector there is no incentive for utilities to calibration, inspection, system and product certifi- Sharing and Delivery positive results because compliance to these improve their efficiency. It is evident from the fact cation. measures become obligatory. Mandatory regula- thatbusiness model of SSGC and SNGPLis based tions have been quite successful in several Currently, customers lack access to information on return on assets. This incentivized to build At present, there is a paucity of testing and inspec- jurisdictions. Many countries have adopted on energy saving opportunities that exist in large network, instead of improvement in the tion labs for certification of energy appliances and mandatory regulatory measures for the consumer various sectors of the economy. This potentially efficiency of the system. As such tariff regime will products. NEECA and PSQCA are working to that meet a certain threshold. For example, in reduces the investments in the energy efficiency reviewed and reformed to improve the perfor- establish liaison with each other to develop these Singapore, companies with energy consumption as consumers are not well aware of the fact as for mance and efficiency of the system. energy standards, testing and certification labora- exceeding over 54 Tera Joules are required by how these energy efficiency programs, such as tories for various products and appliances. These law to appoint an energy manager, conduct labeling or Minimum Energy Performance In addition, there is a barrier of split-incentive, laboratories have to be run and managed by energy audit periodically and submit these audit Standards and benchmarking can help consum- which usually discourages home builders and qualified professionals which will be trained reports and plans to improve energy efficiency. ers save resources, energy, and capital. commercial developers to improve energy according to international best practices, thus An Energy Efficiency Benefits Calculator as such efficiency in the new building because often it is capacity will build in setting up these labs. Similar measures have been implemented by the will be developed. This will help educate the the tenants who pay the energy bills not home UK government, whereby certain large consumer energy customers and stakeholders to under- builders.The capacity of the builders and In addition to the development of local testing 109 Part 3 : Energy Planning and Policies National Action Plan 110 (organizations with more than 250 employees or recommend cost-effective strategies that will save whereby these power and gas utility companies and management. an annual turnover of more than €50 million) are them money and energy. Energy savings will be required to set targets and timelines to cut required by law to submit serious targets and achieved through energy efficiency improve- their energy losses and improve energy efficien- plans to reduce energy use. These organizations ments will increase their business competitive- cy. The Mandatory Energy Saving Plans can also 3.27 are also required to monitor their performance ness and operations. be implemented in the private businesses and Private Sector Role and against those targets. Similarly, India has estab- government organizations as well. NEECA will lished mandatory minimum energy standards for The mandating of energy audits will be an import- impose a penalty in case of non-compliance to Incentives in the buildings with a connected load of over 100 kW or ant step which will allow the consumers to know these measures. Energy Sector of contracted demand of over 120 kVA. Likewise, the actual opportunities that exist within their there is a great potential to reduce energy use in business operations. Consumers will get their 3.26 Pakistan large organizations in Pakistan. NEECA will initiate facilities audited, and based on the outcomes of Enabling Action Area: Energy Sector will be opened for more private similar measures in Pakistan. these audit reports, NEECA will issue Energy Performance Certificates. These certificates will Capacity Building of sector investment. Pakistan has a proven track Government record of encouraging private sector participation 3.24 indicate as to how these facilities perform and and investment in both developing its oil & gas Enabling Action Area: how much energy they consume relative to other facilities. The major goal of developing any such Departments resources and building, owning, and operating Mandatory Energy mechanism is to encourage the market towards power generation facilities to supply energy to the Audits and Reporting Government departments are the owner and economy. To encourage and incentivize this an increased demand for energy efficient practic- implementers of the Sustainable Energy for All investment, the government has issued a number es, operations, and facilities. initiatives. The departments at national and provin- of energy development policies such as the Energy auditing is one of the effective ways to cial levels are dealing with day to day energy Private Power Development Policy, the Petroleum deliver targeted information that enables consum- 3.25 planning, financing, management and legal Development Policy, the LNG Import Policy, and ers to undertake investments and cut energy Enabling Action Area: issues. The energy markets are becoming more the Renewable Energy Development Policy. wastages. Energy Auditing is a service where the factories or buildings are evaluated based on their Mandatory Energy and more sophisticated whereas, the personnel in These policies provided a variety of guarantees, Saving Plans these departments and ministries are using the risk insurance, and tax breaks to private sector energy usage with the aim to recommend the conventional techniques and knowledge. There- investors. The government’s energy planning best means to improve energy efficiency. Without fore, the capacity building/ training of officers and process has addressed from different getting a building or factory audited, consumers Transmission and distribution losses of Power and staff at national and provincial energy depart- dimension in this National Action Plan. A more would generally be not aware of the potential Natural Gas utilities in Pakistan are one of the ments will be organized in phased manner. rigorous all energy subsectors (oil, gas, power savings or improvements that they could make by highest in the region. The average power distribu- renewables, etc.) mechanism will revised. The implementing relatively simpler measures. tion losses in Pakistan are as high as about 20% Furthermore, Planning Commission’s Energy sufficient analytical rigor to focus the policy and Consumers and organizations often do not realize and for some DISCOs, these losses can reach over Wing will spearhead the Integrated Energy incentive process for more private sector partici- the true potential and financial attractiveness of 38%.16 For comparison, the average power Planning in collaboration with international donor pation is one of the desired goals to be achieved. implementing energy efficiency measures. distribution losses in Europe are less than 7%. agencies. In-house capacity buildings through Investment prospectus will identify the gaps NEECA will devise a mechanism by which certain While the UFG losses in the gas network for SSGC trainings, courses and international collaborations where private sector can be driving force for consumers will get their facilities audited by and SNGPL stands at about 15% and 11.5% will be developed for sustainable energy planning implementation of energy projects. certified energy auditors. These auditors will respectively. NEECA will enforce a mechanism 111 Part 3 : Energy Planning and Policies National Action Plan 112 3.28 Linkages to Investment Prospectus The implementation of this National Action Plan by and large depends on the resource availability which will be developed and linked to the Invest- ment Prospectus (IP). Adaption of viable financial mechanism on business models to execute the planned follow-up projects will depend on selection of projects having potential to repay the capital investment through its own cash genera- tion. In addition, the prioritization of projects is required to make the Action Agenda financially viable. The Investment Prospectus will present three scenarios for operationalization of SEforAll in the country. First and foremost, the low-hanging short-term projects, then medium-terms projects and lastly long-terms projects aligned with public sector annual and five years plans. The aim is to categorize the projects in such a way that foreign direct investment in the energy sector will be attracted. Similarly, the international donors’ agen- cies will be provided the list of the projects to execute projects as per their resource availability and field of expertise. The Public Private Partner- ship will be promoted for the development of medium and long-term power projects as well. In this regard, China-Pakistan Economic Corridors (CPEC) serves as example for investments in the energy sector of Pakistan. 113 Part 3 : Energy Planning and Policies 4.1 Mechanism for Coordination and Follow-up Sustainable Energy for All initiative at national, provincial, and district level requires a comprehen- sive and all-inclusive coordination, monitoring and tracking framework to achieve a tangible result. The coordination and tracking framework developed at this level will be part of global tracking framework. The flow diagram (see figure Coordination and Follow-Up) delineates the organizational structure and mechanism. Sustainable Energy for All Secretariat established for coordination and tracking of initiatives under at the Energy Wing, Ministry of Planning, Develop- SEforAll. The relevant section of the Energy Wing ment, and Reforms will be strengthened with the notified as Secretariat of SEforAll National Steer- support of UNDP and other development partners ing Committee will serve as the lead manager of (See Fig. 19). The Energy Wing at national level the Action Plan. In addition to National Coordina- plays a vital role for review of projects to be tor, the other proposed team members include: funded under PSDP. UNDP will assume as the PART-4 Financial Management Partner (FMP) to opera- tionalize the SEforAll project in Pakistan. The 1. National Project Manager 2. Specialist Energy Access credibility of SEforAll initiative rely to a great extent 3. Specialist Renewable Energy on UNDP / SEforAll’s ability to mobilize the 4. Specialist Energy Efficiency and Conservation COORDINATION required resources for the implementation of NAP 5. Specialist Communications and Media / Social and IP. It is therefore necessary that UNDP should Media follow-up with donor agencies. The same kind of 6. Business Development Specialist AND FOLLOW-UP model has been adopted in other countries for the 7. Specialist Policy and Program Analysis operationalization of SEforAll NAP and IP.1 8. Specialist Trainings and Capacity Building 9. Specialist Public Private Partnership The SEforAll Secretariat while leading the SEforAll 10. Specialist NDC Partnerships. initiative will have management responsibilities 11 Coordination And Follow-up National Action Plan 116 External loans Subsidies Grant Aid Credit Guarantees Donors/Intl. SEforAll Finance Facility Project UNDP As FMP Energy Alliance Administrative Unit Resource Base PUNJAB SINDH BALOCHISTAN KHYBER PAKHTUNKHWA GILGIT BALTISTAN AZAD JAMMU & KASHMIR Partners responsible Partners responsible Partners responsible Partners responsible Partners responsible Partners responsible for delivery for delivery for delivery for delivery for delivery for delivery - Finance - Finance - Finance - Finance - Finance - Finance - Technology - Technology - Technology - Technology - Technology - Technology - Service - Service - Service - Service - Service - Service Local projects

4.2 For effective SEforAll implementation the provin- Table Figure7: 4:18 Coordination and Monitoring Mechanism cial government will work with local governments Monitoring and Tracking for the development of comprehensive imple- Ministry of Planning, Development, and Reforms Framework mentation strategy along with clearly defined roles and responsibilities. The local governments Sons Secretariat Ministry of The involvement of diverse stakeholders’ vis-a-vis will implement the SEforAll at grass-root level and 5E4A11 Secretariat / Energy and Plan Coordination Energy Wing Stakeholders success of the initiative demands a Secretariat increase the provincial governments’ outreach. Section with an ability to properly support provincial and The local governments will be vital to achieve the regional governments. The secretariat will targets of SEforAll from multiple perspective i.e. communicate the best practices in completing identification, planning, implementation, monitor- the relevant processes and liaison with right Provincial / Regions International ing and oversight. The involvement of people at P&O Department Development Partners, partners globally. The effective communication as grass-root level will capture the local needs which Coordination SEforAll Financial Institutions SEforAll Hubs well as networking between the SEforAll will be reflected into the planning, execution and stakeholders and partners is a key for successful monitoring of the projects. A successful imple- implementation. SEforAll Secretariat will liaison mentation of SEforAll will benefit the local Provincial Departments & Other Stakeholders with the ministries, departments, authorities, communities and ensure universal access to Energy Departments research organizations, universities, financial energy. Agriculture Departments Local Government Industries Departments institutions, donor agencies, CSO and private Provincial Communication Departments sector at the national level for tracking and Government of Pakistan has already established monitoring of SEforAll initiatives. Moreover, the the SDGs Secretariat and the Ministry of Planning, Secretariat will coordinate with SEforAll hubs for Development and Reform convened a “Local • Water and Power Development Authority information sharing and capacity building. The Government Summit on SDGs” with the theme of To develop a comprehensive collaboration mech- • Central Power Purchasing Agency anism at the national level will require the follow- o Petroleum and Natural Resources Division Integrated Energy Planning Regime being estab- “Development for All”. This has initiated the lished by the government will also support to coordination and support mechanism framework ing key stakeholders to be on board: • Sui Northern Gas Pipelines Limited coordinate the activities of SEforAll Action Plan. for SEforAll among all three tiers of government. At • Ministry of Planning, Development, and Reforms • Sui Southern Gas Pipelines Limited district level, proper accountability mechanisms • Energy Wing • Oil and Gas Regulatory Authority Post 18th constitutional amendment, the power will be designed to monitor and control the prog- • Ministry of Energy • Ministry of Housing and Works has devolved to the provincial which substantially ress on the SDGs (SEforAll) related schemes and o Power Division • Ministry of Communication / National Transpor- increased the function and responsibilities of the projects. • National Transmission and Dispatch tation Research Center provincial government. The SDGs (Goal #7 – Company • Capital Development Authority / Planning and SEforAll) mandate right from planning, resource • Alternative Energy Development Board Design Wing allocation, and implementation perspective has • National Energy Efficiency and Conser vation Authority Similarly, at the provincial level, Planning & Devel- been transferred to provinces. The role of provin- cial governments as a policymaker and imple- • National Electric Power Regulatory opment departments will liaison with provincial Authority stakeholders – ministries, department, authorities, mentor is to effectively coordinate with federal and local governments, and other stakeholders. • Distribution Companies financial institutions, academia, research organi- 119 Part 4: Coordination And Follow-up National Action Plan 120 zation, the private sector, NGOs, and CSOs. In • Provide an overall leadership and coordina- • Engage UNDP District Accelerator programs to individual and joint efforts taken at the country addition, provincial level Sustainable Develop- tion mechanism for SEforAll in Pakistan monitor the SEforAll targets. level on sustainable energy; ment Goals (SDGs) Unit headquartered in • Manage awareness campaign and advocacy • Development of medium to long-term action • Pilot innovative business models for energy provinces could provide input to Planning & for SEforAll for better coordination in the line plans to support investments in energy access, service delivery, especially those that strength- Development departments. To develop a ministries. renewable resources, and energy efficiency en income-generating and entrepreneurial comprehensive collaboration mechanism at • Collaborate with local and international • Implementing a technical assistance program opportunities by promoting productive uses of provincial level will require the involvement of the research organization, think-tanks, research to utilize indigenous renewable energy energy; following provincial departments: centers and universities to bring best practices resources to supply electricity and improve • Integrate decentralized energy systems with and research to meet the SEforAll goals. living standards of poor, and remote communi- productive uses of energy and entrepreneurial • Provincial Planning and Development • Develop and improve the mechanism ties that are not covered by power grids; activities using the energy plus approach; and, Departments proposed for SEforAll Coordination, Tracking • Prepare Investment Prospectus identifying • Develop platforms of key stakeholders to • Provincial Energy Departments and Monitoring Framework. specific projects and programs to initiate public promote knowledge and information • Provincial Agriculture Departments • Implementation of SEforAll Coordination, private partnerships exchange and new partnerships to advance • Provincial Transportation Departments Track- • Develop capacities of partner organizations sustainable energy solutions; • Provincial Environment Protection ing and Monitoring Framework: Acquire and government departments related to • Actively promote and carry out advocacy, Departments information for SEforAll targets in short, energy access, energy efficiency and renew- outreach and communication activities to • Provincial Industries, Commerce and medium and long-term. able energy increase the knowledge and information about Investment Departments • Negotiate and establish SEforAll Tracking • Provide resources that support policy and sustainable energy business models and • Provincial Higher Education Departments Frame institutional reforms and regulatory frameworks available financial resources among energy work with Provincial Planning and Develop- that encourage development of sustainable practitioners Along with the Governmental ministries and ment Departments. energy production • Development of SEforAll Database / Mobile departments at the national and provincial level, • Liaison with International Development • Conduct stakeholder workshops to identify the application, the Secretariat will be responsible International development organizations such as Partners and International Financial Institutions. capacity barriers of the country, including for update of the database and mobile applica- USAID, GIZ, and JICA etc., and international finan- • Introduce new technologies in Pakistan togeth- sub-regional or thematic workshops; tion. Secretariat will also track the information in cial institutions such as ADB, AIIB, WB etc., will be er with international partner organizations. • Promote existing regional, sub-regional and this system. Data feeding responsibility will be engaged as observer and partners at the national • Organize Workshops for the end users for national initiatives that align with the objectives of the stakeholders – agencies, line ministries, level with SEforAll secretariat. Along with the awareness related to advantages related to of SEforAll; as well as initiatives that arise from and departments at provincial and federal level. financing, these development organizations and adoption of new technologies. financial institutions can provide assistance to • Develop and manage a website for ready introduce latest trends/technologies/best practic- information for the end users and the stake- es around the World to implement in Pakistan holders. under the SEforAll. • Provide assistance/support to the donor agen- cies to implement relevant projects smoothly. Some of the proposed key responsibilities of • SEforAll secretariat will act as one window SEforAll Secretariat are: solution for all the stakeholders including end-users and donor agencies. 121 Part 4: Coordination And Follow-up National Action Plan 122 NOTES Executive Summary 4 http://pc.gov.pk/uploads//plans//Ch19-Ener- 2 UNDP, SEforAll “Pakistan: Rapid Assessment 6 Oil and Gas Regulatory Authority Source: gy1.pdf Page: 208 Gap Analysis, 2014“, “Pakistan's total energy http://www.ogra.org.pk/ufg Data Taken Jan 21, 1 Source: http://www.nepra.org.pk/industryre- savings potential at 11.16 million tons of oil 2018 ports.htm 5 http://pc.gov.pk/uploads//plans//Ch19-Ener- equivalent (MTOE), (inclusive of savings in gy1.pdf Page: 209 end uses as well as energy transformation), or 7 NEPRA State of Industry Report 2016 based on 2 Source: http://www.pbs.gov.pk/content/paki- 18% of primary energy use (FY2008)”. Another TESCO Data – Date Taken Jan 29, 2018 stan-social-and-living-standards-measurement 6 source: http://pc.gov.pk/web/vision indicator for energy efficiency thorough rate of decrease in energy intensity from 2000 8 Number of households without a gas connec- 3 Source: http://rise.esmap.org/country/pakistan 7 Consult Report on the following link: http://ww- onward which is 1.7% and it will be doubled tion for baseline year (2016-17) was calculated - RISE Report reviewed the regulatory perfor- w.worldbank.org/en/topic/energy/publica- 3.4%. as (population of each region divided by mance SEforAll three goals of SEforAll. tion/rise---regulatory-indicators-for-sustainable- household size of 6.5). The assumption here is Pakistan has a very high score on Renewable energy 3 Alternative Energy Development Board, “The that all the households without access to Energy. Brick kiln industry by Syed Akhtar Ali – Government of Pakistan has tasked the AEDB piped gas are using inefficient cooking stoves. Business Recorder 8 After submission of intended nationally to ensure 5% of total national power genera- Given the almost insignificant penetration of determined contribution the word “intended” tion capacity to be generated through renew- ICS in Pakistan, this is a rational assumption. 4 For comparison, the average power has been dropped to Nationally Determined able energy technologies by the year 2030. In This figure was projected to the year 2030 by distribution losses in Europe are less than 7%. Contribution. addition, under the remote village electrifica- the annual growth rate of 1.8% (average tion program, AEDB has been directed to annual population growth rate for last 10 5 A full-time management and technical staff is 9 These post-2020 climate action intended to electrify 7,874 remote villages in Sindh and years). The target is determined by computing required for NEECA to operationalize the take under the Paris agreement are known as Baluchistan provinces through ARE technolo- the number of households that will not have a activities and plans which are mandated Intended Nationally Determined Contributions gies”. http://www.aedb.org/index.php/ae-tech- gas connection by 2030, as these are the through the National Energy Efficiency and (INDCs). nologies/bio- households that will continue to use biomass Conservation Act. mass-waste-to-energy/53-about-aedb for cooking purposes 10 http://germanwatch.org/en INTRODUCTION 4 Provisional Results of 2017 Census & House- 9 Medium Term Development Framework goal 11 http://www.ndma.gov.pk/ hold Integrated Economic Survey 2014-15 is 9700MW A multi-dimensional definition as "the ability to 1 Date Accessed: December 1, 2017 http://ww- Source: avail energy that is adequate, available when 12 http://www4.unfccc.int/Submissions/INDC/Publ w.pbscensus.gov.pk/ needed, reliable, of good quality, convenient, ished%20Documents/Pakistan/1/Pak-INDC.pdf 10 http://www.aedb.org/index.php/ae-technologi affordable, legal, healthy and safe for all 5 In Punjab, a new housing scheme will be given es/biomass-waste-to-energy/53-about-aedb required energy services. Source: https://ww- 13 Calculated at current prices. gas connection if the cost of providing the w.esmap.org/node/55526 connection is less than PKR. 54,000 per 11 Energy Year Book, 2017 PART-1: VISION & TARGETS UNTIL 2030 customer. On the other hand, in KPK and 2 Pakistan Bureau of Statistics, Government of Sindh, the cost threshold is PKR. 108,000 while 12 ESMAP, NUST, and World Bank carried out an Pakistan. National Census, 2017. Source:https://www.adb.org/proj in Balochistan it is PKR. 200,000 per customer. extensive biomass potential mapping study for 1 ects/42051-023/main#project-pds Access Even with these differences in cost, it will not Pakistan. Analysis of agro-industrial sites was 3 Economic Survey of Pakistan 2016.17 Date: December 1, 2017 be financially or economically viable to extend conducted to evaluate the potential of each List of CPEC Projects is annexed at the end pped gas network to several remote locations. site for implementing a biomass-based power or cogeneration plant. 123 Notes National Action Plan 124 NOTES 19 Findings of USAID GOPA 2016 Study. 10 MicroEnergy International, 2014. PART-3: ENABLING ACTION AREAS 11 IRENA, 2016 (f). 12 Government of Pakistan, 2006. 1 Source:https://www.sdpi.org/publications/files/ A106-A.pdf 13 Government of Pakistan, 2006. 2 Source: http://www.dawn.com/news/1295092 14 AEDB, 2015 (b). 3 http://www.nepra.org.pk/Legislation/Regulatio 15 Ali S. , 2015. ns/NOTIFICATION%20SRO%20892%20-2015. PDF 16 National Electric Power Regulatory Authority 4 Source:https://propakistani.pk/2016/08/12/raw alpindi-resident-becomes-first-pakistani-to-sell- PART-4: COORDINATION AND FOLLOW-UP electricity-to-grid-save-thousands/ 1 Bangladesh and African Countries has 5 http://documents.worldbank.org/curated/en/1 successfully operationalized the SEforAll 04071469432331115/Biomass-resource-map National Action Plan and Investment ping-in-Pakistan-final-report-on-biomass-atlas Prospectus through similar model. 6 This 660 kV, 878 km transmission line will have ANNEXTURES transmission capability amounting to 4,000 MW. For detailed information about the project 1 Engelmeier et al., 2014. and its financial and technical features, please see NEPRA’s tariff determination document 2 Market Study of Sustainable Energy Finance in (NEPRA, 2016 (e)). Pakistan, IFC 2014 7 DAWN News, 2016. 8 Circular debt is the amount of cash shortfall within the Central Power Purchase Agency (CPPA) that it cannot pay to power supply companies. Source: www.pdip.pk/circular-debt-report/ 9 Ibid. 127 Notes NOTES 13 Pakistan Sugar Mills Association website 26 Arshad H Abbassi & Maha Kamal, “Importing 39 Asian Development Bank 2009 8 These high fuel costs are not fully transferred LNG: A Policy Analysis” Sustainable to the end consumer, due to commodity 14 Use of new extraction condensing steam Development Policy Institute (SDPI) 40 Ibid market prices, but instead absorbed by the turbine allows the high-pressure cogeneration farmers, reducing their profit margin system to run during the off-milling season by 27 Pakistan Sugar Mills Association (2016) 41 National Electric Power Regulatory Authority substantially. utilizing all the bagasse generated at the sugar mill as well as additional biomass feedstock 28 IFC funded Study “Sustainable Growth: 42 Sui Southern Gas Company Limited 9 Alternative Energy Development Board (AEDB) sourced from the vicinity of the sugar mill. Cleaner Production in Pakistan” by National Productivity Organization (NPO) & Cleaner 43 According to the Environmental Protection 10 This study has also shown that about 3% of 15 Pakistan Energy Year Book 2017 Production Institute (CPI), 2016. Agency (EPA), Natural gas emission through Pakistan’s total land has Class 4 wind resource leakages into the atmosphere is approximately and about 9% of the land has Class 3 or even 16 Energy Access Outlook - International Energy 29 CKDN “Catalyzing leadership on efficient 21 times more harmful than carbon dioxide. better wind resource Agency, 2017 bagasse processing: Case Study on Pakistan Sugar Industry” 44 The rational for this increase is extensive 11 Wind Resource Assessment and Mapping for 17 Pakistan Energy Year Book, 2017 growth in power sector with exponential Afghanistan and Pakistan, NREL access 30 ibid growth in installed power projects. at:http://www.nrel.gov/international/pdfs/afg_p 18 NTDC ak_wind_june07.pdf 31 International Institute for Sustainable PART-2: PRIORITY ACTION AREAS 19 Energy Saving in Pakistan by RAFTAAR, DFID Development, IISD 12 http://www.pcq.com.pk/denmark-company-ve (2016) 1 Source: http://cm.punjab.gov.pk/node/3971 stas-to-bring-wind-energy-to-punjab-region-of- 32 All Pakistan Cement Manufacturing pakistan/ 20 Economic Survey of Pakistan (2016-17) Association (APCMA) (2016) 2 0.75 mmcf = 750 mmbtu Therefore 0.1 13 Alternative Energy Development Board (AEDB 21 Pakistan Energy Year Book (2017) 33 International Finance Cooperation, 2014 3 NRSP, Renewable Energy: Evaluation of Biogas Initiative in Punjab. 14 GIZ, 2013. 22 International Institute for Sustainable 34 Brick kiln industry by Syed Akhtar Ali – Development, IISD Business Recorder 4 Usmani, Jafar. “Presentation on Biodiesel in 15 Khyber Pakhtunkhwa Energy & Power Pakistan” Department, 2016 (a). 23 International Finance Cooperation, 2014 35 World Energy Council 5 IFC-Market Study of Sustainable Energy 16 https://www.thenews.com.pk/print/107384-Pa 24 Market Study of Sustainable Energy Finance in 36 Petroleum Institute of Pakistan Finance in Pakistan k-geothermal-energy-resources-have-potential Pakistan, IFC 2014 -to-generate-100000MW-power-Research Energy Saving in Pakistan, RAFTAAR, DFID 37 Petroleum Institute of Pakistan 6 http://www.aedb.org/index.php/ae-technologi Sustainable Energy Efficiency Program, ADB 2016 https://www.fueleconomy.gov es/solar-power/solar-current-status (2009) 25 Trends in Global Energy Efficiency: An 38 National Electric Power Regulatory Authority 7 Raheem, A., Abbasi, S.A., Memon, A. et al. Energ 17 RAFTAAR: Research and Advocacy for the Analysis of Industry and Utilities, ABB (2011) (NEPRA) Sustain Soc (2016) 6: 16. Advancement of Allied Reforms doi:10.1186/s13705-016-0082-z 18 Global EV Outlook 2016 125 Notes National Action Plan 126

Annex I: Constitution of SEforAll Steering Committee 2-The Composition of the Steering Committee shall be as follow: i. Minister for Planning, Development & Reform Chairman Annex-II ii. Secretary Ministry of Planning Development & Reform Vice Chairman iii. Secretary Ministry of Water and Power No.44 (11) Energy/Pc/2014 iv. Secretary Ministry of Petroleum & Natural Resources Government of Pakistan v. Secretary Economic Affairs Division Ministry of Planning Development and Reform vi. Secretary Ministry of Climate Change *** vii. Secretary Ministry of Communication Islamabad the 3 September, 2015 rd viii. Secretary Ministry of Industries & Production ix. Secretary Ministry of Textile Industry NOTIFICATION x. Secretary Ministry of National Food Security and Research xi. Governor/ Representative of State Bank of Pakistan Constitution of National Steering committee for SEforAll xii. Director General (UN), Ministry of Foreign Affairs xiii. Director General Economic Reforms Unit, Ministry of Finance Ministry of Planning, Development and Reform has constituted National Steering Committee (NSC) for xiv. Assistant Country Director, (Energy and Environment) UNDP Resident Mission Islamabad Sustainable Energy for All (SEforAll) Programme, with following mandates/ TORs: xv. Representative of World Bank xvi. Representative of Asian Development Bank i. Preparation of National Action Plan for SEforAll in line with the vision 2025 and in harmony with xvii. Secretary Department of Energy, Government of Punjab global goals and targets set forth upto 2030 under sustainable Development Goals (SDGs) through xviii. Secretary Department of Energy, Government of Sindh a consultative process involving relevant Federal/Provincial/Private International stakeholders and xix. Secretary Department of Energy, Government of KPK civil society organizations. xx. Secretary Department of Energy, Government of Balochistan ii. Monitor Execution of national action plan and develop annual reports. Coordinate with national and xxi. Secretary Department of Power, Government of Gilgit-Baltistan international teams of UNDP. xxii. Secretary Energy/Power FATA Secretariat iii. Provide guidance to stake holders for achievement of goals of SEforAll xxiii. Secretary Department of Energy, Government of AJ&K iv. Energy wing (Energy Finance & Economic Section) of the Planning Commission will act as xxiv. Chief Executive Officer. Alternative Energy Development Board, secretariat to the NSC. xxv. Managing Director, ENERCON, Government of Pakistan xxvi. Chairman, National Electric Power Regulatory Authority (NEPRA) xxvii. Chairman, Oil and Gas Regulatory Authority xxviii. Three (03) Technical Experts (to be nominated by the Chairman) xxix. Member (Energy) Planning commission Secretary 129 Annexures National Action Plan 130 3- A brief on SEforAll is also attached for the facilitation of the Members. Annex Table 4:IV 7: JICA’s Scenario Base Electric Energy Demand Forecast by 2050 Sector Wise Electric Energy Demand Forecast (High case) Distribution (Abdul Hamid Balghari) Chief (EF&E) Unit 2014 2015 2020 2025 2030 2035 2040 Ph: 9245068 All Members. Total GYM 152.282 162.311 238,979 343,495 485.669 656,920 890.168 Aorlcultsre.Fishery GM 15,200 16,200 22,000 26.800 31,200 35,600 40,500 Industry GM 44.403 49000 88.400 142.500 216.700 311.500 445.300 Copy for information to:- Commercial & SanAces GM 10,100 11,100 18,100 28,303 42,400 62,200 90,100 Public Goverrirnent GM 73 76 97 124 158 202 258 i. Chief Secretary Governments of Punjab, Sindh, KPK, Baluchistan, AJ&K, Gilgit Baltistan, Lahore, Pubic Street NM GM 509 534 682 871 1.111 1,418 1,810 Karachi, Peshawar, Quetta, Muzafarabad Anklet& GM 56,400 58.900 76,700 102.000 133,400 163.900 203.900 ii. Additional Chief Secretary (Development), Governments of Punjab. Sindh, KPK, Balochistan, AJ&K, Gilgit Baltistan, Lahore, Karachi, Peshawar, Quetta, Muzafarabad T/D loss MAN 25,600 26.500 33.000 42.900 60.700 82.100 111.300 iii. Chief Economist, Planning Commission Total 596 100.0 100.0 103.0 103.0 100.0 1000 100.0 iv. Chief (Macro) Ministry of Planning Development & Reform AcylcuttusiSbnery 5% 100 10A 9.2 7.8 6.4 5.4 4.5 v. Chief (Plan Coordination), Planning Commission Industry 29.2 30.2 37.0 41.5 44.6 47.4 50.0 vi. All Chiefs Energy Wing. Commerdal & Senas 596 6.6 6.8 7.6 8.2 87 9.5 10.1 vii. Staff Officer to Minister for Planning Development and Reform Public Government 0.0 0.0 0.0 0.0 0.0 0.0 0.0 viii. SPS to Secretary, Ministry of Planning Development & Reform Public Street gm S% 0.3 0.3 0.3 0.3 0.2 0.2 0.2 ix. SPS to Member (Energy) ResIdentUls 5% 37.0 36.3 32.1 29.7 27.5 24.9 22.6 110 loss 5% 16.8 16.3 13.8 12.5 12.5 12.5 12.5 Annex Table 4:IV 7: JICA’s Scenario Base Electric Energy Demand Forecast by 2050 Sector Wise Electric Energy Demand Growth Rate (High case) 2015/10 2020/15 2025/20 2030/25 2035/30 204W35 2040/15 Total 5.0 8.0 7.5 7.2 6.2 6.3 7.0 noriculture.F 'show 4.13 6.3 4.0 3.1 2.7 2.6 3.7 Industry 7.6 12.5 10.0 8.7 7.5 7.4 9.2 Commercial & Services 5.0 10.3 9.4 8.4 8.0 7.7 8.7 Public Government -2.6 5.0 5.0 5.0 5.0 5.0 5.0 Public Street light 3.1 5.0 5.0 5.0 5.0 5.0 Residentials 5.8 5.4 5.9 5.5 4.2 4.2 5.0 T/D loss 0.0 4.5 5.4 7.2 6.2 6.3 5.9 131 Annexures National Action Plan 132 Table 4: 7: Annex-V Private Power Infrastructure Board - Power Project List by 2025 2018 Project Sponsor/ Power Location Fuel Capacity Expected COD/ Company Name Policy (MW) Remarks 2017 Project Sponsor/ Power Location Fuel Capacity Expected COD/ 8(i)* 1320 MW Imported coal China Power HUB 2015 Balloki, Punjab RLNG ST 423 Combined Cycle Company Name Policy (MW) Remarks based Power Project at HUB Generation Co. by Jan-18 Balochistan Ltd. 1 Patrind Hydropower Project Star Hydropower 2002 Kunhar River, Hydel 147 Oct-17 Under 9(i)* 660 MW Thar Coal based Engro Powergen 2015 Haveli Bahadur RLNG ST 430 Combined Cycle Limited KP/AJ&K testing & Power Project Thar Limited Shah, Punjab by Jan-18 commissioning 2* 1320 MW Imported coal Huaneng 2015 Qadarabad, Coal First Unit Inaugurated on 3(ii)* 1320 MW Imported coal Port Qasim 2015 HUB, Coal First Unit Dec-18 LOS based Power Project at Shandong Ruyi District 660 25.05.17 based Power Project Electric Power Balochistan issued FC in Qadarabad Dist Sahiwal (Pakistan) Energy Sahiwal Second Inaugurated on Co. (Pvt) Ltd progress (Pvt) Limited Unit 03.07.17 (under 660 construction) 3(i)* 1320 MW Imported coal Port Qasim 2015 Coal Dec-17 based Power Project Electric Power Port Qasim, First Unit Under Sub Total (2018) 2503 Co. (Pvt) Ltd Karachi 660 MW construction 4 1180 MW RLNG based QATPL 2015 RLNG Open Cycle (717 2019 Project Sponsor/ Power Location Fuel Capacity Expected COD/ Project at Bhikki Bhikki, Punajb 1180 MW) Company Name Policy (MW) Remarks commissioned Combined Cycle 8(ii)* 1320 MW Imported coal China Power HUB 2015 HUB, Coal Second Aug-19 by Dec-17 based Power Project at HUB Generation Co. Balochistan Unit 660 Balochistan Ltd. MW 5(i) 1223 MW RLNG based NPPMCL 2015 RLNG Open Cycle by Project at Balloki, Punjab Balloki, Punjab GT1 & GT2 Sep-17 9(ii)* 660 MW Thar Coal based Engro Powergen 2015 Tharb lock-II, Coal Jun-19 800 Power Project Thar Limited Sindh Second 6(i) 1230 MW RLNG based NPPMCL 2015 RLNG Open Cycle (760 Unit 330 Project at Haveli Bahadur Haveli Bahadur GT1 & GT2 MW) inaugurated MW Shah, Punjab Shah, Punjab 800 on 07.07.17 10 163MW imported coal Grange Power 2002 Arifwala, Coal Sep-19 LOS based Power Project at Limited Punjab issued FC in 7 Fatima Energy Cogeneration Fatima Energy Co-gen Bagasse/ ec-17 Arifwala Punjab 163 progress Project Limited Policy 2008Muzaffargarh Imported Coal 118 LOS issued FC in progress (Under 11 Gulpur Hydropower project Mira Power Ltd 2002 Poonch Hydel Oct-19 FC Construction) River/Gulpur, achieved Under AJ&K 102 Construction Sub Total (2017) 5025 12 1250 MW RLNG based Punjab Thermal 2015 Near Trimmu RLNG Oct-19 LOI Project near Trimmu Barrage, Power (Pvt) Ltd Barrage, Jhang, issued. LOS in 2018 Project Sponsor/ Power Location Fuel Capacity Expected COD/ Jhang, Punjab (PTPL) Punjab 1250 progress Company Name Policy (MW) Remarks 5(ii) 1223 ME RLNG based NPPMCL 2015 Balloki, Punjab RLNG ST 423 Combined Cycle Sub Total (2019) 2505 Project at Balloki, Punjab by Jan-18 6(ii) 1230 MW RLNG based NPPMCL 2015 Haveli Bahadur RLNG ST 430 Combined Cycle Project at Haveli Bahadur Shah, Punjab by Jan-18 Shah, Punjab 133 Annexures National Action Plan 134 2020 Project Sponsor/ Power Location Fuel Capacity Expected COD/ 2022 Project Sponsor/ Power Location Fuel Capacity Expected COD/ Company Name Policy (MW) Remarks Company Name Policy (MW) Remarks 13* 1320 MW Thar Coal based Thar Energy 2015 Thar Coal 1320 Dec-20 21* Suki Kinari Hydropower S.K Hydro Pvt Ltd 2002 Kunhar Hydel 870 Dec-22 Power Project Limited Block-I, Sindh LOS issued Project River/Mansehr FC achieved FC in progress a, KP Under construction 14* 330 MW Thar Coal based Thar Energy 2015 Thar Block-II, Coal 330 Dec-20 Sub Total (2022) 870 Power Project Limited Sindh LOS issued FC in Progress 2024 Project Sponsor/ Power Location Fuel Capacity Expected COD/ 15* 330 MW Thar Coal based Thal Nova Power 2015 Thar Block-II, Coal 1180 Dec-20 Company Name Policy (MW) Remarks Power Project Thar (Pvt) Ltd Sindh LOS issued FC in Progress 22* Kohala Hydropower Project China Internation- 2002 Jehlum Hydel 1124 Jun-24 al Water & River/Kohala, LOS issued Sub Total (2020) 1980 Electric Company AJ&K FC in progress 23 Chakothi-Hattian Suhail Jute Mills 2002 Muzaffarabad, Hydel 500 Jun-24 2021 Project Sponsor/ Power Location Fuel Capacity Expected COD/ Hydropower Project Ltd AJ&K Feasibility Study Company Name Policy (MW) Remarks level tariff determined by 16 660 MW Thar Coal based Lucky Electric 2015 Port Qasim, Coal 660 Jun-21 NEPRA. PPIB has Power Project Power Company Karachi LOS issued requested the Ltd. FC in progress Sponsors for submission of 17 330 MW Thar Coal based Siddiqsons 2015 Thar Block-II Coal 330 Sep-21 Performance Power Project Energy Limited LOS issued Guarantee for FC in progress issuance of LOS. 18* 1320MW Thar coal based Oracle Coal 2015 Thar Block VI, Coal 1320 Dec-21 Azad Pattan Hydropower Alamgir Power 2002 Jehlum Hydel 640 Dec-24 Power Project Fields PLC Sindh Project proposal 24 Project Pvt Ltd River/Sudhnoti, LOS issued England yet to be submitted AJ&K FC in progress 19* 300 MW Imported coal 2015 Gawadar Coal 300 Dec-21 based Power Project at China LOI issued 25 Kaigah Hydropower Project Telecom Valley 2002 Kaigah/Indus Hydel 548 Dec-24 Gawadar Communication Tariff determination Pvt Ltd River, KP Feasibility Study Construction Co. in progress completed. Ltd. (CCCC) Sponsors 20* Karot Hydropower Project 2002 Jehlum River, Hydel 720 Dec-21 submitted Karot Power Distt. FC achieved feasibility study Company Pvt Ltd Rawalpindi Under construction level tariff to Punjab NEPRA Sub Total (2024) 2812 Sub Total (2021) 3330 135 Annexures National Action Plan 136 Transmission Line Project 2025 Project Sponsor/ Power Location Fuel Capacity Expected COD/ Company Name Policy (MW) Remarks Sr.# Project Sponsor/ Transmission Location Technology Expected COD/ 26 Mahl Hydropower Project CWE Investment 2002 Jehlum River, Hydel 590 Dec-25 Company Name Line Policy Remarks Turtonas-Uzghor Corporation/ AJ&K/Punjab LOI issued. China Three FS completed and Gorges & Trans approved by POE. 1 Matiari-Lahore HVDC China Electric Power TLP 2015 Matiari to + 660 kV 2020 Tech Pakistan Tariff Application Transmission Line Project Equipment & Technology Co. Lahore HVDC LOS issued. has been filed with Ltd. (CET)/ State Grid (Approx 880 Transmissio Tariff Approved by CPPAG for Corporation of China (SGCC) Km) n Line NEPRA negotiation FC in progress 27 Hydropower Project Sinohydro-Sachal 2015 Golen Gol Hydel 58 Dec-25 Consortium River, Chitral LOI issued. * CPEC Projects ** COD will be assessed after issuance of LOI Valley KP Feasibility Study in GT = Gas Turbine progress ST = Steam Turbine 28 Athmuqam Hydropower Korea Hydro and 2015 Neelum River, Hydel 350 Dec-25 Project Nuclear Company AJ&K LOI issued. Feasibility Study in progress Annex-VI Power distribution losses Europe versus Pakistan Sub Total (2025) 998 2021 Project Sponsor/ Power Location Fuel Capacity Expected COD/ Company Name Policy (MW) Remarks 16 Rajdhani Hydropower Project 2002 Poonch River Hydel 132 ** to be advertised AJ&K shortly Neckeherdim-PaurHydropow- 17 er Project 2015 Yarkun River, Hydel 80 Chitral Valley KP Madian Hydropower Project 18* 2015 Swat River, KP Hydel 157 Asrit-Kedam Hydropower 19* Project 2015 Near Hydel 215 Kalam/Swat River, KP Kalam-Asrit Hydropower 20* Project 2002 Swat River, KP Hydel 197 Source: Eurostat and NEPRA Sub Total 781 Grand Total 20804 137 Annexures National Action Plan 138

Annex VII Recommended Districts for Solarization for Government Institution Region District Number of institutions with Number of institutions without access to electricity access to electricity AJK Hattian 11 337 Region District Number of institutions with Number of institutions without access to electricity access to electricity Haveli 8 233 Punjab DG Khan 48 923 Neelam 10 252 Rajanpur 63 431 Poonch 15 699 Rahim Yar Khan 70 979 Sudhnoti 15 419 Sindh Thatta 4 1,459 Muzaffarabad 18 728 Tharparkar 4 3,834 Total 22,898 Sujawal 8 1,507 Source: Author’s own analysis and calculation based on Consultative Meetings Kashmore 12 742 Ghotki 21 1,539 Woman and Children Effected by Young children are often carried by mothers or kept in the

Annex VIII Umerkot 22 1,741 Indoor Pollution kitchen area during cooking exposing them to high levels of smoke. Because women do most of the cooking and Tando Mohammad Khan 23 779 spend more time indoors, they are exposed more to KP Torghar 2 231 Number of People Affected by Hazardous 111,079,269 pollutants and are believed to have greater adverse health Kohistan 5 1,012 Air Pollution (HAP) impacts. In general, rural women and children are Number of People Households Affected 16,335,187 Batagram 15 693 malnourished and the impact of indoor air pollution on by HAP Shangla 27 525 them is likely to be much stronger. The table below shows Number of deaths per year by HAP 114,806 the health effects of air pollution caused by use of Upper Dir 30 669 33,673 Number of child deaths per year by HAP traditional fuel Balochistan Awaran 1 263 Source: Global Alliance for Clean Cook-stoves, Pakistan Profile Chaghi 11 234 Barkhan 9 541 Dera Bugti 7 332 Kachhi 13 392 Khuzdar 17 600 Musa khel 12 268 Ziarat 9 241 GB Astore 34 77 Skardu 49 218 139 Annexures National Action Plan 140

Annex IX Province wise Progression & Targets for On-Grid Electricity Access by 2030 Annex X Province Wise Breakup of Fuel Used for Cooking Region Year Total Added Total Access to Province Firewood Gas Kerosene Oil Dung Cake Electricity Crop Residue Charcoal Others Consumption Connections Household Grid Network Punjab 2015 11,496,063 15,748,031 73% KP 79% 16% 0.09% 0.70% 0.05% 4% 0.05% 0.15% 2020 13,699,427 2,203,364 16,912,873 81% Punjab 46% 24% 0.09% 9% 0.03% 20% 0.06% 1% 2025 16,826,650 3,127,223 18,490,825 91% Sindh 64% 25% 0.10% 10% 0.04% 1.38% 0.07% 0.07% 2030 20,215,997 3,389,347 20,215,997 100% Balochistan 18% 25% 0.10% 1.33% 0.02% 3% 0.25% 0.74% Sindh 2015 4,467,692 6,769,231 66% Total 61% 22% 0.11% 7% 0.03% 11% 0.09% 0.63% 2020 5,379,751 912,058 7,269,933 74% Source: PSLM Data 2015 2025 6,676,496 1,296,746 7,948,210 84% 2030 8,168,382 1,491,886 8,689,769 94%

Annex XI Pakistan’s Solar Sector Jobs by Market Segment and Value Chain KP 2015 3,030,551 4,456,693 68% 2020 3,589,757 559,206 4,786,343 75% 2025 4,447,968 858,211 5,232,903 85% Residential Commercial Utility-scale All 2030 5,435,071 987,103 5,721,127 95% Installed capacity 2014/2015 (MW) 300 200 100 600 Balochistan 2015 437,202 1,461,538 30% Value chain activities Jobs (thousands)* 2020 532,326 95,124 1,569,645 34% Manufacturing** 0.4 0.2 0.1 0.6 2025 667,796 135,470 1,716,091 39% Supply chain 1.0 0.5 0.1 1.6 2030 823,911 156,115 1,876,200 44% Installations 4.0 1.6 0.3 5.9 AJK 2015 676,598 735,433 92% Design 0.0 0.4 0.0 0.4 2020 780,135 103,537 796,056 98% Business development 4.0 4.0 2025 878,911 98,775 878,911 100% Project development 1.2 0.0 1.2 2030 970,388 91,478 970,388 100% O&M 1.0 0.6 0.2 1.7 GB 2015 184,394 204,882 90% Total employment 10.4 4.5 0.6 15.5 2020 224,234 39,841 228,811 98% 2025 262,689 38,454 262,689 100% ** Assuming 20% local manufacturing primarily in structures and electrical equipment. * Based on employment factors defined in Engelmeier et al., 2014. 1 2030 301,583 38,894 301,583 100% 141 Annexures National Action Plan 142

Annex XII Industrial Sector Energy Saving Potential 2 Table Annex7: 4:XIII PPDB’s facilitated Renewable Energy &Hydropower Power Projects A. Solar Power Projects in IPPs mode by Private Sector –Current Projects Industry Potential Annual Potential Main Equipment for investment Sr. No. Sponsor Capacity Location Remarks Savings Potential Investment name MW per year Savings per (million PKR) (MWh) (million PKR) 1. Quaid-e-Azam Solar 100 Quaid-e-Azam Solar Park, Lal Project completed in March 2015 and electricity is Company Ltd. Sohanra, Bahawalpur being fed into the National Grid. Textile 1,965,500 20,638 173,000 Compressors, heat recovery, heat transfer equip., lights, meters, motors, power factor correction equip., main process, 2. Zonergy Company Ltd 900 Quaid-e-Azam Solar Park, Lal 3x100 MW out of 9x100 MW started Commercial process control, steam system, variable frequency drives (“VFDs”) (CPEC Project) Sohanra, Bahawalpur Operations since July 31, 2016.Remaining 600 MW is under development Sugar 138,350 1,453 105,000 Co-generation, heat recovery, transfer equip., motors, general process, process control, steam system, VFDs 3. Zorlu Enerji Elektrik 100 Quaid-e-Azam Solar Park Tariff application @ US cents 6/kWh filed before NEPRA Uretim A.S (extension), Lal Sohanra, Leather 17,000 179 1,150 Compressors, heat recovery, heat transfer, motors, Bahawalpur power factor, main process control, steam systems 4. Zorlu Enerji Elektrik 200 Quaid-e-Azam Solar Park Feasibility study is in process Paper 92,400 970 7,800 Compressors, heat recovery, motors, power factor, Uretim A.S (extension), Lal Sohanra, main process, process control, VFD Bahawalpur Cement 660,000 6,930 30,600 Co-generation, meters, motors, power factor, main process, 5. Zhenfa Pakistan New 100 Rakh Chaubara, Layya Power Acquisition consent is pending at CPPA-G end process control, VFDs Fertilizer 88,200 926 5,800 Heat recovery, heat transfer, main process 6. Energy Co. Ltd. 100 Chishtian, Bahawalnagar Grid Interconnection Study was pending at NTDC end. (Extension of QA Solar Park) After approval, sponsor is in process to approach Other sectors 486,750 5,111 80,800 Diverse process and ancillary equipment NEPRA for completion of regulatory processes Total 3,448,200 36,207 404,150 7. Storm Harbour 100 Chishtian, Bahawalnagar Grid Interconnection Study was pending at NTDC end. Solution De Energy (Extension of QA Solar Park) After approval, sponsor is in process to approach Source: International Finance Cooperation (2014) NEPRA for completion of regulatory processes 8. CWE & Welt Konnect 50 QA Solar Park, Lal Sohanra, Grid Interconnection Study was pending at NTDC end. (Joint Venture) Bahawalpur After approval, sponsor is in process to approach NEPRA for completion of regulatory processes 9. Kinetics Renewable 49 Hasilpur, Punjab Matter is pending at NTDC end Energy Services Company 10. TBEA Xingiang 100 Punjab Matter is pending at NTDC end Sunoasis Co. Ltd. 11. Roshan Power (Pvt.) 10 Lahore Grid Interconnection Study was pending at LESCO end. Ltd. After approval, sponsor is in process to approach NEPRA for completion of regulatory processes 12. China Gezhouba 4 Village Rakh Mari, Attock FS is in process Group Co. Ltd. Total capacity Solar – 1,813 MW 1A. Solar Power Projects in IPPs mode by Private Sector – Projects approved 143 Annexures National Action Plan 144 1A. Solar Power Projects in IPPs mode by Private Sector – Projects approved D. Hydropower Projects in Punjab Sr. No. Sponsor name Capacity Location Sr. No. Sponsor Capacity Location Remarks name MW 1. MASDAR Mubadla, UAE 300 MW Punjab 1. Olympus Energy (Pvt.) 20 Marala (Lucky HPP) Cost Plus Tariff is approved by NEPRA. 2. Zhenfa Energy Group Co. Ltd. 100 MW Punjab Limited (Chenab), District Sialkot Gazette Notification by MoWP is awaited. 3. Shandong Linuo 100 MW Punjab 2. Trident Power JB 4.6 Lower Bari Doab Canal Upfront Tariff is approved by NEPRA. (Pvt.) Ltd. RD. 260+000, District Gazette Notification by MoWP is awaited. Total capacity 500 MW Sahiwal Sponsor has submitted performance guarantee LOS signing pending at PPIB 3. Alka Power (Pvt.) 1.8 Upfront Tariff is approved by NEPRA. Limited Jhang Branch Canal Gazette Notification by MoWP is awaited. 1B. 50 Solar Dispersed Sites in Punjab – Development of small scale solar power projects (RD. 0+000 to 69+000) by IPPs – Distributed Power Generation District Hafizabad 4. Gugera Power 2.57 FS is approved. GL is awarded by NEPRA. Company Upper Gugera Branch Canal, Power Acquisition Request from CPPA-G is awaited. Sr. No. Sponsor name Capacity Location RD. 214 + 000 to RD. 220 + 750, District Nankana 1. 50 solar small sites – most sites ranging 5 MW 215 MW Dispersed locations in Punjab 5. Mehar Hydropower 10.49 FS is approved. Application of GL is with NEPRA. (Pvt.) Limited B.S. Link-I Canal HPP, RD. Power Acquisition Request from CPPA-G is awaited. Total capacity 215 MW 106+250, District Kasur 6. M/s Trident Power GR 7.55 FS is approved. Application of GL is with NEPRA. (Pvt.) Limited Lower Chenab Canal (LCC) Power Acquisition Request from CPPA-G is awaited. HPP, RD. 0 + 000, District B. Wind Power Projects in Punjab Gujranwala 7. Mandi Baha-ud-Din 3.3 FS is approved. GL is issued by NEPRA on 23.08.2017. Energy Limited Lower Jhelum Feeder Canal Power Acquisition Request from CPPA-G is awaited. HPP, RD. 8+626, District Mandi Baha-Ud-Din Sr. No. Sponsor name Capacity Location Status Remarks 8. Blue Star Energy 2.8 FS is approved. Application of GL is with NEPRA. (Pvt.) Limited Khokhra HPP, Gujrat Branch Power Acquisition Request from CPPA-G is awaited. 1. Vestas Asia Pacific 1000 MW Rojhan, Rajanpur FS completed Power Acquisition Canal, RD 0+000 to 2+000, Wind Technology (4x250 MW) for 250 MW consent is pending at District Gujrat (Pvt) Ltd CPPA-G end 9. C.J. Hydro (Haseeb 25 Updation of FS is in progress. Khan & Co.) C.J. Link Tail Canal Fall, (RD. Total capacity Wind - 1000 MW 316+622) District Khushab 10. S2 Hydro Ltd (Suraj 18 FS is in progress. Cotton Mills Limited) Rasul HPP, Rasul Barrage, District Mandi Baha-Ud-Din C. Waste Power Project in Punjab 11. Saigols (Pvt.) Limited 1.6 FS is in progress. & Associates LBDC HPP, RD. 489 + 000, District Sahiwal 12. Packages Power 2.54 FS is in progress. Sr. No. Sponsor name Capacity Location Status Remarks (Pvt.) Limited BRBD Link Canal HPP, RD. 509+712, District Kasur 1. Lahore Xingzhong 40 MW (based Lahore FS Completed NEPRA is in process of 13. Murree Hydropower 10 FS is in progress. Renewable Energy on 2,000 determination of (Pvt.) Limited Jhalum Tributary Project Co. (Pvt.) Ltd. tons/day MSW) upfront tariff Municipal Solid Waste – 40 MW New initiative at Lahore based on 3,000 tons/day MSW – 60 MW Faisalabad, Multan, Gujranwala –WtE projects would also be started 145 Annexures National Action Plan 146 Sr. No. Sponsor Capacity Location Remarks Annex7: Table 4:XIV Solicited Hydro Power Projects in the Gilgit-Baltistan Region name MW 14. Soan Hydropower 50 River Soan Tributary FS is in progress. (Pvt.) Limited Sr. No. Name of Distance Capacity Completion project (MW) year 15. Khanewal 1.80 LBDC HPP, RD. 602+000, FS is in progress. Hydropower (Pvt.) District Khanewal 1 Hydro power project Phander 85 km from Gilgit 80 2022 Limited 2 Hydro power project Shagharthang skardu 36km from Skardu 26 2021 16. Paidar Energy (Pvt.) 4.50 BRBD Link Canal HPP, RD. FS is in progress. Limited 0+000, District Sialkot 3 Hydro power project Ghowari 55 km from Skardu 30 2021 17. Engro Powergen 7.10 D.G. Khan Link – III Canal HPP, FS is in progress. 4 Hydro power project Turmic 67 Km from Skardu 10 2021 Limited RD. 0+000 to RD. 14+000, 5 Hydro power project Hassan abad Hunza 100 km from Gilgit 5 2020 District DG Khan 6 Hydro Power Project near KIU Gilgit. Gilgit city 100 2025 18. Mefa Industries (Pvt.) 1.80 Pakpattan Canal HPP FS is in progress. Limited RD. 306+000, District 7 Hydro power Project Attabad Hunza. 20 km from Aliabad Hunza 32 2020 Pakpattan 8 Hydro power project Passu Gojal 52 km from Hunza 30 2020 19. Under Process 135.00 Taunsa HPP on Taunsa Evaluation of Bids is in progress. Barrage, Muzaffargarh 9 Hydro Power Project Sai Nallah 67 km from Gilgit 6 2021 Total capacity Small Hydro - 310.45 MW 10 Hydro power project Golodass 10 Km from Gahkuch Ghazir 15 2020 11 Hydro power project Thak 17 km from Chilas 4 2020 12 Hydro Power project Astak 90 km from Skardu 24 2022 13 Hydro power project Basho 36 km from Skardu 40 2025 14 Hydro power project Baasha Shigar Valley 10 2021 15 Hydro Power project Ghursay 14 Km from Khaplu 10 2021 16 Hydro power project chorbat 56 km from khaplu 20 2025 Total 442.0 17 Establishment of Regional grid and high Connection of District Gilgit, Evacuation of electric 2021 voltage lines in GB (phase-1) Skardu aqnd Hunza. power from one region to another. 18 Establishment of regional grids and high Linking of all Districts in GB Evacuation of electric 2025 voltage lines inGB(phase-2) power from one region to another 19 Establishment of regional grids and inter Inter connection of high Evacuation of surplus 2030 connection of high voltage lines voltage lines power to National Grid Other renewable projects. 1 Solarization of office buildings, schools, Across GB --- 2030 hospitals in GB. 2 Installation of arial bunch conductor(ABC) Across GB Conservation plan 2030 and smart meters 147 Annexures National Action Plan 148 Annex7: Table 4:XV Expansion Plan for NTDC System (2017-18 to 2021-22) Sr. No. Name of MVA Addition in PC-I Approval Financing PC-I Cost Expected the Project Capacity T/L (km) Date (MRs. Completion Planning Power (NTDC) MUS$) Sr. No. Description 500 kV 220 kV 8- Augmentation of Existing 21.01.2010 3900 No. of Grid Capacity Lines No. of Grid Capacity Lines Grid Stations 46 Stations (MVA) (km) Stations (MVA) (km) 500kV Sheikh Muhammadi 1x160 - - Iranian Loan - June 2018 1- Existing (upto September 2017) 17* 21,324 5,122 42** 27,513 9,796 to 1x250 2- Addition upto 2017-18 01 3,300 1,981 08 6,360 761 220kV Burhan June 2018 1x160 - - Iranian Loan - 3- Addition from 2018-19 to 07 11,250 1,599 14 17,806 1,765 to 220kV Quetta Industrial 1x250 - - ADB - June 2018 2021-22 25 35,874 8,702 64 51,679 12,322 2x160 * Out of 17, 15 No. 500 kV Grids Operated by NTDC (19650 MVA) 500kV Rewat to - - ADB - June 2018 ** Out of 42, 39 No. 220 kV Grids Operated by NTDC (26450 MVA) 2x250 9- 220kV D.I. Khan 2x250 100 09.12.2010 ADB- Tr-IV 3779 Mar 2018 44 Sr. No. Name of MVA Addition in PC-I Approval Financing PC-I Cost Expected 10- 220kV Chakdara 2x250 85 03.10.2014 ADB- Tr-IV 4397 Mar 2018 the Project Capacity T/L (km) Date (MRs. Completion 45 MUS$) 11- Improvement & Upgradation - - 08.06.2016 ADB MFF-II 887 December of Protection System to 8.5 2017 1- 220 kV Dera Murad Jamali 2x160 5 07.04.2011 NTDC Own 880 Dec, 2017 Avoid the Frequent Trippings Resources 11 in South Areas 2- 500kV Lahore New G/S 2x750 130 (500kV) 09.12.2010 JICA 12664 Commissioned 500kV Rahim Yar Khan G/S 104 (220kV) 147 in Dec, 2017 12- 2x600 60 22.10.2007 JICA 4936 + 81 Dec 2017 3- 220kV Mansehra 2x250 1 07.04.2011 ADB 905 Dec, 2017 2x250 Tranche-III 11 Extension/Augmentation of 4- 220 kV GIS Ghazi Road 2x250 30 25.02.2005 KfW 2592 Mar, 2018 13- 220/132kV Rewat 430 - 23.09.2014 ADB MFF-II 844 Lahore 43 substation (2x160 to 8 June 2018 2x250 + 1x250) 5- 3rd 500 kV Circuit from - 590 26.08.2013 ADB 36857 Dec, 2017 Jamshoro to Rahim Yar Khan Tranche-III 351 6- 220 kV Nowshera 3x250 10 06.02.2008 ADB 1876 Jun, 2018 Tranche-IV 31 7- 220kV Lalian 3x250 8 11.11.2011 ADB 1581 Jun, 2018 Tranche-IV 18 149 Annexures National Action Plan 150 Ongoing Power Evacuation Projects Sr. No. Name of MVA Addition in PC-I Approval Financing PC-I Cost Expected the Project Capacity T/L (km) Date (MRs. Completion MUS$) Sr. No. Name of MVA Addition in PC-I Approval Financing PC-I Cost Expected 10- 1320 MW Hubco - 220 07.11.2016 Local Bank 16415 June 2018 the Project Capacity T/L (km) Date (MRs. Completion Borrowing 157 MUS$) 11- 1320 MW Imported Coal 1x600 4 31.08.2015 Own 1115 T/L energized on 1- 969 MW Neelum Jhelum HPP - Phase-I 02.03.2015 Own Resourc- 21697 Phase-I (Nov 2017) based PP at Sahiwal Resources/ 11 27.01.2017 (145km) es 218 Phase-II (Dec. ADB T/F by June 2018 Phase-II 2018) 2- 1000 MW Quaid-e-Azam 3x250 (130km) 12.02.2014 Own Resourc- 4065 12- 1200 MW LNG Based Power 750 40 09.07.2015 NTDC Own 3433 T/L energized Solar Park at Lal-Suhanra es 39 Completed in Plant at Balloki Resources 34 40 May 2017 /ADB 3- 147 MW Patrind HPP - 27.01.2015 USAID 966 10 Phase-I: April 2017 70 (132kV) Phase-II: Dec. 2017 4- 500kV D/C T/L from - 29.07.2011 ADB 7856 Guddu-Muzzafargarh (747 91 June 2018 Planned Projects MW Guddu) 276 Summary of Additions from 2018-19 to 2021-22 5- 220 k V Jhimpir G/S 3x250 03.07.2014 Own 5833 Sr. No. Voltage Level Addition in Transformation Capacity (MVA) Addition in Estimated Expected alongwith allied T/Ls Resources/ 59 Grid Completed on 70 (220kV) USAID August 2017 T/Line (km) Cost (MUS$) Completion 172 (132kV) New Aug. Ext. Total 6- 220kV Gharo G/S alongwith 2x250 03.07.2014 KfW & ADB 5445 allied T/Lines and Extension (Gharo) 55 June 2018 1- 500kV 9900 300 1050 11250 1599 4306 2021-22 at 500kV Jamshoro G/S + 85 (220kV) 1x450 20 (132kV) 2- 220kV 1171 4206 1890 17806 1765 (Jamsho- ro) 7- Reinforcement in Islamabad 09.01.2016 and Burhan area for Tarbela 4th Extension i) Replacement of existing NTDC Own 1293 220 kV Tarbela-Burhan 12.5 March D/C T/L (35km) 35 2018 Resources 2326 ii) Replacement of existing JICA 22.5 June 220 kV Tarbela-Burhan- 2018 ISPR D/C T/L (62.5km) 62.5 8- 1200 MW Thar Coal Power 16.08.2012 Local Bank 22306 Plant (500 kV Thar – Matiari Borrowing 237 June 2018 T/L) 250 9- 1320 MW Bin Qasim Plant 13.05.2015 Local Bank 12977 Borrowing 129 Phase-I: Phase-I: 50 Commissioned Phase-II: 130 Phase-II: June 2018 151 Annexures National Action Plan 152 Planned Projects Sr. No. Name of MVA Addition in Date of Financing Estimated Expected (For Which Financing Has Been Arranged) the Project Capacity T/L (km) Approval Cost (MRs. Completion MUS$) Sr. No. Name of MVA Addition in Date of Financing Estimated Expected 12- 220kV Kohat G/S 2 x 250 50 Under WB 3675 2019-20 the Project Capacity T/L (km) Approval Cost (MRs. Completion Preparation 35 MUS$) 13- 220kV Mastung G/S 2x250 120 Submitted WB 6405 2019-20 1- 500 kV Faisalabad West G/S 3x250 125 (220 kV) 12.01.2015 JICA & ADB 9380 2018-19 to 61 + 32 (500 kV) 93 MoPD&R on 2x750 15.08.2017 2- 500 kV Islamabad West 3x250 35 (220 kV) 20.07.2016 WB 8288 2018-19 14- 220kV Punjab University Grid 3x250 4 Approved on WB 2948 2019-20 + 27(500 kV) 79 Station 19-09-201 28 2x750 7 3- 220 kV Zhob 2x160 220 07.11.2016 ADB 6878 2018-19 15- 500 kV Lahore North 2x750 110 (500 kV) Approved on ADB 20034 2019-20 66 15 (220 kV) 24-11-201 191 7 4- 220kV Mirpur Khas 2x250 70 07.11.2016 ADB 3857 2018-19 37 16- Evacuation of Power from - 10 Approved on Own Resourc- 525 2020-21 Karot and Azad Pattan HPPs 02.03.2015 es 5 5- 500kV Chakwal 2x450 33 12.04.2017 KFW 6710 2018-19 + 64 Approved on 4x160 17- Evacuation of Power from - 53 24-11-201 World Bank 4718 2020-21 Tarbela 5th Extension 7 45 6- Enhancement in 1050 - 12.04.2017 WB 16526 2018-19 Transmission capacity of (500kV) 158 Approved on NTDC System by Extension 6096 18- 220kV Jamrud G/S 2 x 250 20 19-10-201 ADB 2398 2020-21 and Augmentation of (220kV) 7 23 Existing Gridstations 07.05.2015 7- Conversion of Four 220kV - - 07.03.2017 WB 5684 2018-19 19- Interconnection Scheme for - 100km (HVDC) World Bank 16659 2020-21 Grids from AIS to GIS 54 CASA-1000 (HVDC Part) 169 8- Evacuation of Power from 1250 35 (220kV) Approved on USAID 10,753 2018-19 500 kV Peshawar Nowshera) 2x750 15 (500 kV) 12634 2020-21 1224MW Wind Power Plants 220 (132kV) 24-11-201 102 alongwith allied HVAC /Ls 24 (220 kV) 130 at Jhimpir Clusters 7 (HVAC Part of CASA-1000) -do- 9- Evacuation Of Power from 250 100(220kV) Recommend NTDC Own 4339 2018-19 20- Evacuation of Power from - 250(765kV) WB 75680 2021-22 1230MW RLNG Power Plant 15(132kV) ed by CDWP Resources 41 2160 MW Dasu Hydro Power 722 2 At Trimmu on Project (Phase-I) 04.12.2017 Recommend 10- 220kV Zero Point Grid 3 x 250 24 Approved on WB 2541 2019-20 21- Upgradation/Extension of - - ed By CDWP ADB 11410 021-22 Station 19.09.2017 24 NTDC's Telecom & SCADA on 108 System 19.09.2017 Approved on 11- - 360 24-11-201 ADB 8624 2019-20 Cosntruction of New 220kV 7 80 Guddu-Uch-Sibbi S/C T/ Line 153 Annexures National Action Plan 154 Planned Projects Sr. No. Name of MVA Addition in PC-I Status Estimated Expected (For Which Financing Is Required) the Project Capacity T/L (km) Cost (MRs. Completion MUS$) Sr. No. Name of MVA Addition in PC-I Status Estimated Expected 13- 500kV Moro Grid Station 2x750 - Studies in 4725 2021-22 the Project Capacity T/L (km) Cost (MRs. Completion (500/220kV) progress 45 MUS$) 3x250 (220/132kV) 1- 500 kV HVAC T/Lines for - 60 Approved on 4806 2018-19 Interconnection of HVDC Converter 07.11.2016 46 14- 220kV Nawab Shah Grid Station 3x250 65 Studies in 5040 2021-22 Station at Lahore & Matiari with existing progress 48 HVAC System 2- - 116 Approved on 7501 2019-20 15- 220kV Larkana Grid Station 3x250 65 Studies in 5040 2021-22 Evacuation of Power from K2/K3 12.04.2017 72 progress 48 Nuclear Power Plants near Karachi 3- - 275 Approved on 21783 2019-20 16- 500kV Quetta Grid Station alongwith 2x750 350 Concept Paper 24939 2021-22 Evacuation of Power from 2x660 MW 12.04.2017 208 Quetta-D.G Khan T/L submitted to 237 Thar Coal Based SSRL/SECL Power Plant Planning at Thar Commission on 4- - 40 Approved on 2520 2020-21 12.12.2017 Evacuation of Power from 350 MW 17.01.2017 24 Siddiqsons Ltd 17- 220kV D/C T/L from Khuzdar to Gawadar 2x250 670 Concept Paper 30000 2021-22 5- - - Hiring of 21000 2019-20 submitted to 286 Installation of Series Compensation for consultant in 200 MoE on Enhancement in Transmission Capacity progress 15.11.2017 6- - 13 Studies in 1260 2020-21 Evacuation of Power from 660 MW progress 12 Lucky Electric Power Company 7- - 697 Submitted to 73287 2021-22 Evacuation of Power from Suki MoPD&R on 696 Kinari,Kohala and Mahal Hydro Power 24-10-17 Projects in Northern Areas 8- - - Submitted to 2690 2021-22 Implementation Of Integrated Solution MoE on 25 To Improve Productivity and Control in 27-09-2017 NTDC by Enterprise Resource Planning (ERP) System. 9- - - Concept Paper 6300 2019-20 Procurement of 5 No 220kV Mobile Grid submitted to 60 Stations MoE on 12-10-2017 10- 2 x 250 5 Studies in 1595 2021-22 220kV Kamra G/S progress 15 11- 2 x 250 10 Submitted to 3147 2021-22 220kV Jauhrabad G/S MoE on 30 27-12-2017 12- 2 x 250 58 Studies in 3473 2021-22 220kV Head Faqirian G/S progress 33 155 Annexures National Action Plan 156 Annex7: Table 4:XX List of CPEC Project Summary of Additions from 2018-19 to 2021-22 Sr. No. Name of the Project MW 1 2×660MW Coal-fired Power Plants at Port Qasim Karachi 1320 2 Suki Kinari Hydropower Station, Naran,Khyber Pukhtunkhwa 870 3 Sahiwal 2x660MW Coal-fired Power Plant, Punjab 1320 4 Engro Thar Block II 2×330MW Coal fired Power Plant 660 TEL 1×330MW Mine Mouth Lignite Fired Power Project at Thar Block-II, Sindh, Pakistan 330 ThalNova 1×330MW Mine Mouth Lignite Fired Power Project at Thar Block-II, Sindh, Pakistan Surface mine in block II of Thar Coal field, 3.8 million tons/year 330 5 Hydro China Dawood 50MW Wind Farm(Gharo, Thatta) 50 6 300MW Imported Coal Based Power Project at Gwadar, Pakistan 300 7 Quaid-e-Azam 1000MW Solar Park (Bahawalpur) Quaid-e-Azam 300 600 100 8 UEP 100MW Wind Farm (Jhimpir, Thatta) 100 9 Sachal 50MW Wind Farm (Jhimpir, Thatta) 50 10 SSRL Thar Coal Block-I 6.8 mtpa &SEC Mine Mouth Power Plant(2×660MW) 1320 11 Karot Hydropower Station 720 12 Three Gorges Second Wind Power Project 50 Three Gorges Third Wind Power Project 50 13 CPHGC 1,320MW Coal-fired Power Plant, Hub,Balochistan 1320 14 Matiari to Lahore ±660kV HVDC Transmission Line Project Matiari (Port Qasim) —Faisalabad Transmission Line Project 15 Thar Mine Mouth Oracle Power Plant ( 1320MW) & surface mine 1320 157 Annexures