Govt fails to fully utilise power plants
Put to use only 41.43% of total dependable capacity in March 2016
Put to use only 41.43% of total dependable capacity in March 2016. PHOTO: REUTERS
LAHORE:
As summer season kicks in and temperatures rise, one of the shortcomings of the economy becomes more apparent: energy shortfall.
Sources in the Ministry of Water and Power reveal that one of the main reasons behind this scarcity is under-utilisation of resources that not only causes a loss to the national exchequer but also increases the financial burden on citizens.
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With the power shortfall crossing 4,500 megawatts, it is evident the government is not fully utilising its power plants, resulting in long hours of load-shedding.
“Power sector data shows that the real issue is under-utilisation of capacity as in March 2016 only 41.43% of total dependable capacity was utilised,” said a source in the power sector. The government’s usual stance is that the energy crisis is the outcome of production shortfall, however, this is not the case.
“Not running the power plants at full capacity makes them lose efficiency and per unit cost increases. Running more costly re-gasified LNG plants is adding to the woes of consumers due to increase in per unit cost whereas cheaper furnace oil-based plants are not being utilised fully,” added the source.
“The cost of generating electricity through re-gasified LNG was Rs7.26 to Rs7.66 per unit, whereas the capacity utilised is 59.2%. However, the cost of heavy fuel oil-based electricity stood at Rs4.70 to Rs5.70 per unit and the capacity utilised was 41.6%,” said the source.
For instance, the Nandipur plant is being run despite being uneconomical and inefficient. “Nandipur was utilised at 36% of its capacity at a cost of Rs7.54 per kilowatt-hour in March 2016.”
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Similarly, plants in Muzaffargarh (only 30% of capacity utilised) and Faisalabad (21% of capacity utilised) are producing electricity at a cost of Rs6.07 to Rs6.91 per unit and Rs10.20 per unit, respectively.
Moreover, the government is planning to add more than 6,000MW to the national grid through LNG and coal-based plants. “What is the rationale to add more capacity, when existing one is not being utilised fully,” the source asked.
Published in The Express Tribune, May 13th, 2016.
As summer season kicks in and temperatures rise, one of the shortcomings of the economy becomes more apparent: energy shortfall.
Sources in the Ministry of Water and Power reveal that one of the main reasons behind this scarcity is under-utilisation of resources that not only causes a loss to the national exchequer but also increases the financial burden on citizens.
HUBCO to set up 330MW coal power plant in Thar
With the power shortfall crossing 4,500 megawatts, it is evident the government is not fully utilising its power plants, resulting in long hours of load-shedding.
“Power sector data shows that the real issue is under-utilisation of capacity as in March 2016 only 41.43% of total dependable capacity was utilised,” said a source in the power sector. The government’s usual stance is that the energy crisis is the outcome of production shortfall, however, this is not the case.
“Not running the power plants at full capacity makes them lose efficiency and per unit cost increases. Running more costly re-gasified LNG plants is adding to the woes of consumers due to increase in per unit cost whereas cheaper furnace oil-based plants are not being utilised fully,” added the source.
“The cost of generating electricity through re-gasified LNG was Rs7.26 to Rs7.66 per unit, whereas the capacity utilised is 59.2%. However, the cost of heavy fuel oil-based electricity stood at Rs4.70 to Rs5.70 per unit and the capacity utilised was 41.6%,” said the source.
For instance, the Nandipur plant is being run despite being uneconomical and inefficient. “Nandipur was utilised at 36% of its capacity at a cost of Rs7.54 per kilowatt-hour in March 2016.”
Italian investors offer energy-efficient structures to Pakistan
Similarly, plants in Muzaffargarh (only 30% of capacity utilised) and Faisalabad (21% of capacity utilised) are producing electricity at a cost of Rs6.07 to Rs6.91 per unit and Rs10.20 per unit, respectively.
Moreover, the government is planning to add more than 6,000MW to the national grid through LNG and coal-based plants. “What is the rationale to add more capacity, when existing one is not being utilised fully,” the source asked.
Published in The Express Tribune, May 13th, 2016.