Energy is considered to be life line of any economy and most vital instrument of socioeconomic development of a country. Energy is pivotal in running machinery in factories and industrial units, for lighting our cities and powering our vehicles etc.
There has been an enormous increase in the demand of energy as a result of industrial development and population growth, in comparison to enhancement in energy production. Supply of energy is, therefore, far less than the actual demand, resultantly crisis has emerged. An energy crisis can be defined as any great bottleneck (or price rise) in the supply of energy resources to an economy.
2. Pakistan’s Energy Sector:
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Share of gas consumption stood at 43.7 %, followed by oil 29.0 percent, electricity 15.3 percent, coal 10.4 percent and LPG 1.5 percent.
3. Sources of Energy in Pakistan:
3.1 Non-renewable resources (Fossil fuels): [Limited – Expensive]
Non renewable resources are primarily fossil fuels emanating from remains/decomposition of animals and plants deposited deep into the earth crust and converted into oil and gas. These resources cannot be replenished. There are three main types of fossil fuels: coal, petroleum, natural gas and liquefied petroleum gas (LPG).
a). Petroleum products:
In 2009-10, consumption of petroleum products was 29% of total share of energy. Majority of crude oil is imported from gulf countries to meet the demand. Power, industry and transport sectors consume higher quantity of petroleum followed by agriculture and house holds. Petroleum is also used in generation of electricity, which counts 64 percent of total electricity generation (34 coming from hydro generation). Balance recoverable reserves of crude oil in country have been estimated at 303.63 million barrels and we are extracting approximately 24 million crude oil annually, meaning if we do not explore new wells, we will exhaust our current crude oil reserves in 12-13 years.
b). Natural Gas:
Importance of natural gas is increasing rapidly. Average production of natural gas is 4,048.76 million cubic feet per day as against 3,986.53 million during corresponding last year, showing an increase of 1.56 percent. Natural gas is used in general industry to prepare consumer items, to produce cement, for manufacturing fertilizers and to generate electricity. In form of CNG, it is used in transport sector. Share of natural gas in energy consumption is 43.7 percent. Due to price differential between CNG and Petrol, vehicles are using converted to CNG and approximately 2.0 million vehicles are using CNG and currently Pakistan is the largest CNG user country in the world. Liquefied petroleum gas (LPG) contributes around 0.7 percent to total energy supply in country and is being imported to stop deforestation in hilly areas.
Pakistan has coal reserves estimated at over 185 billion metric tones, including 175 billion metric tones identified at Thar coalfields. Coal is primarily being used in brick kiln and cement industries and approximately 67 percent coal is imported because indigenous coal is not considered of good quality.
Guddu plant is largest plant thermal operated plant with a capacity of 1,650 MW, while two largest Independent Power Plants (IPPs) in Pakistan are Kot Addu (1,600 MW) and Hubb River (1,300 MW).
3.2 Renewable Resources: (Unlimited – sustainable – clean)
Renewable energy resources are those, which are naturally replenished and come from resources such as water, sunlight, wind, rain, tides, and geothermal heat.
a). Hydro power:
Hydro power is generated by using electricity generators to extract energy from moving water. Pakistan...