ISLAMABAD:
At a time when Pakistan is facing resistance from the US in going ahead with the Iran-Pakistan gas pipeline project, Iran has proposed an electricity supply project which will provide 10,000 megawatts in the second year of its operation.
The quantity is more than the production of independent power producers in the country and almost half the country’s total production capacity.
Under an extensive package to resolve the energy crisis, Iran has also offered to build an oil pipeline and set up a refinery at Gwadar Port to provide oil on long-term deferred payment.
The country’s power production ranges between 5,000 megawatts and 14,800 megawatts against total installed capacity of 20,800MW. Internationally, 80 per cent power can be generated from the total installed capacity but Pakistan’s generation capability stands at 65 per cent due to inadequate upgrading of plants, poor maintenance and circular debt.
Under a plan submitted to the government, Iran will provide 1,000MW of electricity in the first year of the programme and increase it nine-fold to 10,000MW in the second year, sources said.
Iran made the offer during President Asif Ali Zardari’s visit to Tehran on July 15. During the tour, Interior Minister Rehman Malik and Petroleum Minister Dr Asim Hussain also accompanied the president.
Asim Hussain confirmed to The Express Tribune that Iran had made the offer for export of 10,000MW of electricity.
Iran exported 3,940 gigawatt hours of electricity to its neighbours in the first half of the Iranian calendar year, according to Iranian broadcaster IRIB.
Iran’s electricity network is integrated into power grids of seven neighbouring countries including Afghanistan, Pakistan, Iraq, Turkey, Armenia, Azerbaijan and Turkmenistan.
Feasibility study on 1,000MW project completed
Pakistan has already started work on another project costing $500 million, which will import 1,000MW from Iran.
An official of the Ministry of Water and Power said that the feasibility study on import of 1,000MW from Iran through Zahidan to Quetta had been completed. Iran has already started laying a transmission line at Pak-Iran border.
To expedite the process, Pakistan has offered the company laying the transmission line on the other side of the border to build it on this side as well to avoid delay caused by the bidding process, the official added.
Pakistan is currently importing 35MW of power from Iran to meet requirements of Gwadar while work on increasing it by 100MW is in process. The two sides signed an agreement on this project in 2007 which is expected to become operational next year.
Pakistan also has another project in the pipeline to import 1,000MW of electricity from Tajikistan. Feasibility report has been finalised on this project, while work is expected to be completed by 2016.
Moreover, India has also offered Pakistan to export electricity and a working group has been formed to undertake the assignment following commerce secretary-level talks held between the two countries in April.
Currently, independent power producers generate most of the electricity in the country by producing 7,600MW, followed by 5,000MW by Wapda and 2,000MW by power generation companies.
Published in The Express Tribune, October 25th, 2011.
COMMENTS (20)
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Do it do it do it... as well as fix our internal systems we need all the energy we can get from all our neighbours, otherwise economy will stagnate!
What evidence is there to show that we won't mismanage this too? Of a installed capacity to generate about 20k mw of power, thanks to government interference and mismanagement, Pak doesn't even generate 50% of installed capacity.
Good though, it will provide jobs in Balochistan. Maybe the Iranians should manage Balochistan, they seem to be doing a better job of it in their part.
Why don't they accept the offer? A good neighbor is the last blessing for Pakistan. We have already seen Saudi Arabia and India at work in Pakistan.
I think we should first re-design our Energy once before deciding the bargain.
Many a countries plan on single Energy source for consumers, e.g, we can have just Gas or just Electricity in the households.
This way the other fuel can be fully utilized by the industry including the Power generation sector, thereby reducing the infrastructure cost to half, immediately.
Moreover, we'll plan just a single source of energy for our heating, cooking, lightning, cooling, and other purposes.
Serious thought is invited.
Why suddenly India and Iran both got so nice to pakistan after all we are same peoples.
why is it always pak-iran brotherhood or pak-china brotherhood or brotherly countries? why not sisterhood or sisterly countries. we might start treating our country better if it were female since everyone gets in to a foul mood if you talk negatively about women in their household etc... but doesn't get into a bad mood if you throw insults at the males. who all agree with me?
To all those who have knowledge on Iranian Economy no one contradict my statement that Iran does posses the capacity of exporting more than 20,000 mw of electricity to neighboring countries.Iran is already exporting power to Iraq which has similar situation like Pakistan In terms of electricity shortage. Pakistan must not miss this chance because it will be a big strategic mistake.
i think this opportunity should be grabbed by both hands because CASA 1000 project is impossible and not feasible considering the dispute between Uzbekistan and Tajikistan on dam issues.Now, rulers of Pakistan should Pakistan must keep this thing in their mind that due to the shortage of electricity Pakistan growth rate gets reduced @ 2% to 3% which is a complete devastation for the economy of Pakistan.The kind of idiotic policy on reko diq which has been taken by the Pak Rulers have already deprived poor baloch community of jobs and development for next 5 years from now because even if the dispute with TCC is settled it will take atleast 10 years for full fledged exploitation of Copper reserves, now if they are not going to quickly act on iranian offer they will repent it for centuries. I request them to get sensible and act on this issue on war-footing basis for the betterment of public.
10000 is a bit doubtful and not very realistic, as well as we need not to cure our wound with the heavy bill of imports, should rather focus on hydro-electricity in the north-west and nuclear power use for civilian purposes, however Iran is our neighbor and we ought to help them in this critical time of them being isolated.
Its a pitty that we are killing ourselves...If US stops us from taking help from Iran as Iran has probelms with US,,then could we say US please stop talking to India as we are having problems with them....
We should go for the Iran option in eletricity and gas as soon as possible .As iran is the only country which can provide gas and eletricity at discounted rates because we have an common border (there is lot of saving on account of transportaion cost and transmission cost)
Just go for it .
Iran is the dominant power in the Middle East, whether one likes it or not. Their influence stretches from the Caucasus to the Mediterranean. We should import all we can in oil and power and learn a few things more from them. Besides cleanliness in Iran, there is no corruption in Government and no one sells themselves for a few pieces of silver.
Seems attractive offer, but what would be cost of per kWh and mode of payment?
Iran is our friend and was the first country to recognize Pakistan in 1947, we should never forget that. Long Live Iran-Pakistan Brotherhood.
I am not sure of any country's intention if it sounds too magnanimous. Regardless of what Iran's motives are and what are US fears; economic integration brings countries closer. I do not see any harm in going ahead with the project as long as we plan for possible contingencoes ahead.
we should wait a minute to proceed!
Sorry Iran brother, we are not going to sign a deal with you. The reason is pretty obvious that we won't be able to do politics on load-shedding anymore. Your offer would bring prosperity in our country which we don't want at all. Keep your electricity with you, we are not beggars. We can live in dark for 100 more years.
I would sign the deal as Oil imports are pakistans biggest problem, the arabs want only cash not prayers