Energy outlook in Pakistan

Abstract

Pakistan is facing a severe energy crisis of its history due to increase in the energy demand and lack of investment in mobilizing its energy resources. This paper aims to discuss the energy outlook and ways toward greener environment in electricity production in Pakistan. Gross domestic product and population are the major drivers behind the growing demand for energy. Demand for electricity in Pakistan is always growing with its GDP and population growth. The growth for electricity in Pakistan forecasted by Ministry of Petroleum & Natural Resources has shown an increase of 0.75% in 2012 compared to 2011. This growth has been driven by strong demand from industrial and government sectors. Overall, the share of electricity consumption to total energy consumption has decreased due to short fall of electricity from 13.6% in 2007 to 12.5% in 2012. The total electricity generation was reported at 95TWh in 2012 whereas electricity consumption was 76.7TWh showing 17.3% line losses. Oil is still the major fuel source in Pakistan contributing to 35.2% of the total generation fuel mix of electricity followed by hydro, 29.9%, gas, 29% nuclear and imported, 5.8% and Coal, 0.1%. The shortfall of electricity is expected to drop when the Quide-Azam solar park and 45 ongoing wind energy projects will inject a total of 4200 MW electricity into the national grid by 2016.