HYDROPOWER is the largest source of renewable power generation worldwide, being recognised as reliable, sustainable, dependable, most cost-efficient in generating electricity and clean resource of renewable energy.

Economic life-time of a hydropower station is between 40 to 80 years and annual operational and maintenance cost is one to four per cent of capital cost. Also, hydropower technology is well-proven, with efficiency rates up to 90 per cent.

Globally, there are over 11,000 hydroelectric power plants operating in 150 countries, contributing about 20 per cent share to total energy-mix. Interestingly, hydropower share of national power generation in Norway, and in many African countries, is as high as 99 per cent, while Brazil has 84 per cent, Venezuela 74 per cent and Canada 59 per cent of the total grid-based electricity.

Pakistan’s total hydropower resources have been estimated at 59,796MW gross (or theoretical), out of which 41,045MW is so far considered exploitable potential. Nonetheless, utilisation of hydropower potential is far from being realised.

At present installed capacity for hydropower generation is only 6,792MW or just over 11 per cent of gross, or about 16 per cent of exploitable resources, is being utilised today. It is promising however that an ambitious plan has been launched to harness hydropower potential optimally, through investments by public sector as well as private sector.

Currently, implementation of a number of hydropower projects, of cumulative capacity of 27,157MW, is being undertaken. Wapda’s Allai Khwar (121MW) and Duber Khwar (130MW) power stations have been completed and are being connected to national grid. Jinnah project (96MW) is in advanced stage, expected to achieve commercial operations shortly.

Construction of Golen Gol (106MW) is in progress. Gomal Zam dam (about 18MW) is nearing completion, while construction of Kurram Tangi dam (83MW) has been initiated, and prequalification of contractors for Keyal Khwar (128MW) is in process.

The under-construction Neelum-Jhelum hydropower project of 969MW is re-scheduled for commissioning by 2016. Issuance of tender for construction of Diamer Basha dam project (4,500MW) is awaiting financing by the international donor agencies. Tarbela fourth extension project of 1,410MW being financed by the World Bank is to kick-start by end of this year. Meanwhile, feasibility studies of Bunji (7,100MW) and Basho (28MW) have been finalised. Feasibility study of Akhori dam (600MW) has recently been prepared. Also, Wapda would shortly embark upon developing Dassu project (4,320MW) in different phases. Likewise, detailed engineering design of Munda dam (660MW) is being undertaken.

Chor Nullah System or Palas Valley project (1,176MW) is to be constructed in three phases, while feasibility study of first phase (Lower Palas Valley project, 665MW) is in hand. Similarly, Spat Gah project (1,341MW) is also planned for phase-wise development, commencing with Lower Spat Gah project of 496MW. SHYDO is developing 13 projects of total capacity of 370MW, whereas five projects with total capacity 24MW are being implemented by the Government of Punjab. Similarly, the government of Azad Jammu and Kashmir is constructing 22 medium and small projects of total capacity of 262MW. Many small, mini and micro projects of 248-MW cumulative capacity are in various stages of planning and construction in the G-B.

For a variety of factors, the present share of private sector in hydropower electricity generation is nominal. Jari-kas ( Mirpur) and Machai (Mardan), each of one megawatt, are the only hydropower stations operating in private sector. Upcoming projects in KP include Mahandri 13-MW, Tangar 13-MW and Machai-2nd phase of less than 3-MW. Thirty small hydropower projects of 308MW are planned for development in Punjab. Likewise, 11 projects of total 92MW are under implementation in AJ&K and a project (Hanzal) of 40MW in Gilgit. Progress on these projects, which are governed under the policies of the respective governments, is however very slow.

The federal government had launched in May 1995 a policy framework and package of incentives for private sector hydropower generation projects, but none of the projects could materialise and, subsequently, Power Policy 1998 was introduced that also somehow failed to attract investment.

It was only under the Power Generation Projects Policy 2002 that many foreign and local investors showed interest in developing hydropower projects. Laraib Energy/New Bong Escape (97MW) is the first and sole IPP project, which is scheduled for commissioning in May this year.

Hydropower projects currently under implementation are the under-construction Patrind (130MW) in KP, scheduled for commissioning by 2017, Gulpur (100MW), Kotli (100MW) and Sehra (130MW) to be completed by 2018, all located in the AJ&K. Other projects at various stages of implementation in the AJ&K are Suki Kanari (840MW), Karot (720MW), Azad Pattan (640MW), Chakothi-Hattian (500MW) and Kohala (1100MW), all scheduled for completion by 2020.

While there are many benefits, development of hydropower projects pose numerous technical and economic challenges to the investor and developer. The projects are site-specific; sites located in far-flung, isolated and high-altitude areas lacking basic infrastructural facilities and connectivity to transmission network. Detailed studies of topography, hydrology, site geology and engineering geological conditions are required. Hydropower project thus involves high capital cost and long gestation period. There are other problems too, such as extreme weather conditions, non-availability of labour, housing and open land for project.

Compliance of environmental requirements and resettlement of population are also of prime importance. Developer of Karrang project (458MW), which entails an underground powerhouse requiring special technology and expertise, has backed out. Financing is another issue.

Undertaking detailed site investigations and preparing a bankable feasibility report of international standard requires placing substantial capital and other resources at risk. From the viewpoint of the investor, law and order situation is of vital importance. Madian (157MW) and Asrit Kedam (215MW) projects in KP have been suspended due to security. Similarly, Munda dam project in private sector could not come up because of resistance from the locals against their relocation.

Due to these constraints and risks, hydropower development is undertaken the world over either in public sector or by large utility companies. Realising long delays in take-off of the IPP projects for these reasons, Wapda and the KP government have recently decided to implement Lower Palas Valley and Lower Spat Gah projects under Public-Private Partnership mode associating South Korean companies. KP has already adopted policy of disinvesting small and mini hydropower plants, which is a success story.

The writer is Chairman of The Institution of Engineers, Pakistan-RIC