ISLAMABAD: The Pakistan Muslim League-Nawaz (PML-N) government on Thursday claimed to have added 39 power projects with a total generation capacity of 12,230 megawatts during its five-year term ending on May 31, but fell short of telling that the majority of these schemes are yet to start commercial operations.

The Pakistan Economic Survey 2017-18 boasts that the government has also reduced the country’s dependence on expensive oil by improving the energy mix through the addition of coal and (imported) gas-fired generation, and encouraging investment in renewable energy. But it admits that the share of hydropower in overall energy mix has decreased in the last five years. The survey blamed lower water availability for the reduction in the share of hydropower in the energy mix but fails to mention very low investments made in this sector.

“As [a] substitute, the government showed commitment for electricity generation capacity through renewable energy sources. Currently, renewables constitute only two per cent in power generation, though it is expected to increase in the coming years.”

Energy shortages, especially in Punjab, are believed to have played a major role in the victory of the PML-N in 2013 elections.

Majority of the energy schemes mentioned in PES 2017-18 are yet to start commercial operations

The addition of new generation, the survey said, had increased installed capacity by 30 per cent to 29,573 megawatt from 22,812 megawatt in 2013. The overall generation has posted a growth of 22pc during the same period, it added.

However, it is not clear as to how much of the additional generation is being obtained from the new power stations completed during the PML-N government’s present tenure. For example, the three RLNG-fired plants being set up in Punjab (funded by federal and provincial governments) with an installed capacity of 3,561MW have already been delayed because of a variety of factors and have yet to achieve their CODs (commercial operations dates). Similarly, the commercial operation of the 969MW Neelum Jhelum hydropower plant has again been delayed.

The consumption patterns indicate the rising trend of the industry shifting away from the national grid to self-generation based on gas as its share in the total electricity consumption has decreased by 1pc from 26pc to 25pc in last one year because of higher tariffs.

Speaking at the ceremony held to launch the survey, Minister for Interior and Planning Development and Reforms Ahsan Iqbal insisted that the availability of (energy (electricity and gas) had pushed economic growth to 5.78pc this fiscal year from less than three per cent in 2013 when the PML-N returned to power.

“When we took over the reins of the country the economy was in a bad shape owing to severe energy shortage. Long hours of power and gas blackouts had resulted in large-scale industrial closures and unemployment. Today we have excess electricity and gas, which is boosting private investment in the economy and growing the economy at a fast pace.”

Neither the planning minister nor the Prime Minister’s Adviser on Finance Miftah Ismail responded to questions regarding the every growing stock of unpaid bills of power producers and fuel suppliers. They also chose to ignore a question about the hefty increase in the electricity prices.

Answering a question, the adviser on finance said that the government was supplying uninterrupted power and (imported) gas to the industry, which had spiked industrial growth and new investments in the economy. “The consumers on around 60pc of the total feeders (across the country) where line losses and power theft was below 10pc are getting electricity round the clock. But in areas where power theft is very high, the uninterrupted supply of electricity will only result in increased financial losses to the government,” the adviser added.

Published in Dawn, April 27th, 2018