ISLAMABAD: Closure of power plants for four months due to anticipated surplus power generation ranging between 2400MW to 3400MW is estimated to cost more than Rs 24 billion heavy loss to the national exchequer, it was learnt.
Background interviews and discussions with energy experts disclosed to Pakistan Today that the closure of power plants for four months due to the availability of expected surplus power generation ranging between 2400MW to 3400MW in the main grid system of the country’s electricity is calculated to cost above Rs 24 billion to the national exchequer. They said the decision to close the power plants due to surplus power in the system also revealed the mismanagement and delayed decision, which in result will benefit the owners of power plants. Instead of choosing the peak demand season of electricity like May/June in the summer, the government’s decision to close the power plants in winter when demand stood stagnant and low as well is only to gain some political mileage, said, experts.
Sharing concerns and worries over the ill-conceived management and poor decision making by the concerned towards the anticipated surplus power and closure of power plants for the four months, the experts also said that the country is heading toward capacity trap due to the reckless commissioning of new generation capacity in extravagant terms. They said more generation capacity would be surplus to projected requirements while creating further burdens on the country’s fiscal and foreign exchange resources. During next winter, surplus power will be double to the said anticipated surplus. So, we must keep a balance between supply and demand of power and we should be careful in choosing the types of supply resources to retain the cost of electricity affordable, they said.
“The decision to hire additional generation capacity over the past few years has exposed the ill-planning and mismanagement done in power sector by the government during past few years,” experts said.
It is important to note here that Water and Power former secretary Younas Dagha and National Transmission and Dispatch Company former managing director Dr Fiaz Chaudhry have raised their serious and sincere concerns about the expected surplus power and insisted to put a cap on imported fuel based plants and also warned about the capacity trap, respectively. Both were subsequently removed from their responsible positions apparently on baseless grounds.
Sources in power corridors said that present Pakistan Muslim League-Nawaz (PML-N) government in a bid to gain public sympathy has planned a grand ceremony to announce an end to a decade-long era of load-shedding. They said the government is organising the ceremony in the winter season when electricity demand is either low or remains stagnant instead of the summer when demand remains high only because it is aware that its tenure will expire before the peak summer season.
Prime Minister Shahid Khaqan Abbasi on Friday directed to close less-efficient power plants in a phased manner and to convert oil-based plants to gas in shortest possible time, in view of the availability of ample gas for the power sector.
Chairing a meeting which reviewed power generation and the demand-supply situation in the country at the PM Office, the prime minister said the conversion of oil-based plants to gas and maximising the efficiency of existing power plants would not only reduce oil import bill of the country but also ensure maximum availability of power.
The meeting also reviewed projected estimates of power generation and the expected demand in the coming four months; from November 2017 to February 2018. The prime minister was informed the average demand for the next four months, calculated on the basis of data received from various power distribution companies, stood at around 14452MW while the average net firm generation after deducting any unforeseen outages from IPPs and power generation companies would remain at 16865MW approximately.
He has informed the projected surplus for the next four months had been estimated to range between 2400MW to 3400MW approximately.
It is worth mentioning here that country’s power sector has been struggling to control the prevailing energy crisis in the country. And, according to the power sector expansion plan, there will be a surplus of electricity in the country in near future. However, despite the massive expansion plan currently underway, the problem of prolonged and widespread load-shedding across the country has continued to defame the Pakistan Muslim League-Nawaz government.
