Nation Plagued by Power Shortages Suddenly Has Too Much Electricity

[Morpheus]

Nation Plagued by Power Shortages Suddenly Has Too Much Electricity

27 January 2021, 08:52 GMT+3

• Chinese financing helped boost power output to surplus
• Government to pay power producers $2.8b by Dec. to cut tariffs

After spending decades tackling electricity shortages, Pakistan now faces a new and unfamiliar problem: too much generation capacity.


The South Asian nation’s power supply flipped to a surplus last year after a flurry of coal- and natural gas-fired plants were built, mostly financed by the Belt and Road Initiative launched by Chinese President Xi Jinping in 2013. Pakistan is slated to have as much as 50% too much electricity by 2023, according to Tabish Gauhar, special assistant to Prime Minister Imran Khan for the power sector.




That is problematic because the government is the sole buyer of electricity and pays producers even when they don’t generate. To help tackle the issue, the government has negotiated with producers to end that system, lower their tariffs and asked them to delay the start of new projects, according to Gauhar. It is also trying to convince industries to switch to electricity from gas.




“We have a lot of expensive electricity and that is a burden,” he said.



While the Chinese financing and the surplus is a welcome change after years of shortages that left exporters unable to meet orders and major cities without electricity for much of the day, two main problems remain. The first is a creaking network, and the second is the need to supply cheaper power while keeping emissions in check.


“Pakistan has overcapacity, yet it still has power shortages because of the unreliability of the grid,” said Simon Nicholas, an analyst at the Institute for Energy Economics & Financial Analysis. “They haven’t invested in the grid the same way they’ve invested in power plants.”

The last nationwide blackout happened just last month after an outage at the country’s largest facility. While the new plants have also boosted coal generation to a record fifth of the power mix, Pakistan plans to increase the share of wind and solar to 30%, while another 30% will be generated from river-run dams.

Pakistan will pay private power producers 450 billion rupees ($2.8 billion) in overdue electricity bills in a deal to reduce future tariffs. The government targets to pay 40% of that bill by the end of February, with the second payment slated before December, according to Gauhar. A third of the payment will be made in cash, with the rest in fixed income instruments, he added.


About 8 gigawatts worth of government-owned power plants will also have tariffs reduced. And Pakistan plans to negotiate lower tariffs for mining and power generation at the Thar coalfield, said Gauhar.

The government aims to delay about 10 gigawatts worth of planned power projects, including coal and wind plants, since there won’t be any need for them next year, said Gauhar.

Nation Plagued by Power Shortages Suddenly Has Too Much Electricity

After spending decades tackling electricity shortages, Pakistan now faces a new and unfamiliar problem: too much generation capacity.

www.bloomberg.com

++++++++++++++++++

 

[TheSnakeEatingMarkhur]

Nation Plagued by Power Shortages Suddenly Has Too Much Electricity

27 January 2021, 08:52 GMT+3

• Chinese financing helped boost power output to surplus
• Government to pay power producers $2.8b by Dec. to cut tariffs

After spending decades tackling electricity shortages, Pakistan now faces a new and unfamiliar problem: too much generation capacity.


The South Asian nation’s power supply flipped to a surplus last year after a flurry of coal- and natural gas-fired plants were built, mostly financed by the Belt and Road Initiative launched by Chinese President Xi Jinping in 2013. Pakistan is slated to have as much as 50% too much electricity by 2023, according to Tabish Gauhar, special assistant to Prime Minister Imran Khan for the power sector.




That is problematic because the government is the sole buyer of electricity and pays producers even when they don’t generate. To help tackle the issue, the government has negotiated with producers to end that system, lower their tariffs and asked them to delay the start of new projects, according to Gauhar. It is also trying to convince industries to switch to electricity from gas.




“We have a lot of expensive electricity and that is a burden,” he said.



While the Chinese financing and the surplus is a welcome change after years of shortages that left exporters unable to meet orders and major cities without electricity for much of the day, two main problems remain. The first is a creaking network, and the second is the need to supply cheaper power while keeping emissions in check.


“Pakistan has overcapacity, yet it still has power shortages because of the unreliability of the grid,” said Simon Nicholas, an analyst at the Institute for Energy Economics & Financial Analysis. “They haven’t invested in the grid the same way they’ve invested in power plants.”

The last nationwide blackout happened just last month after an outage at the country’s largest facility. While the new plants have also boosted coal generation to a record fifth of the power mix, Pakistan plans to increase the share of wind and solar to 30%, while another 30% will be generated from river-run dams.

Pakistan will pay private power producers 450 billion rupees ($2.8 billion) in overdue electricity bills in a deal to reduce future tariffs. The government targets to pay 40% of that bill by the end of February, with the second payment slated before December, according to Gauhar. A third of the payment will be made in cash, with the rest in fixed income instruments, he added.


About 8 gigawatts worth of government-owned power plants will also have tariffs reduced. And Pakistan plans to negotiate lower tariffs for mining and power generation at the Thar coalfield, said Gauhar.

The government aims to delay about 10 gigawatts worth of planned power projects, including coal and wind plants, since there won’t be any need for them next year, said Gauhar.

Nation Plagued by Power Shortages Suddenly Has Too Much Electricity

After spending decades tackling electricity shortages, Pakistan now faces a new and unfamiliar problem: too much generation capacity.

www.bloomberg.com

++++++++++++++++++

We shouldnt have had invested in coal and non renewable generation... but I dont think that Pakistan will have too much as Pakistani industry will start using more and more..

 

[FuturePAF]

We shouldnt have had invested in coal and non renewable generation... but I dont think that Pakistan will have too much as Pakistani industry will start using more and more..

It’s a global bargaining chip, especially if climate change record becomes a metric for attracting FDI.

besides Coal can be a backup in case oil/gas prices sky rocket as a base power generation option when renewables are not producing as much as needed.

 

[khansaheeb]

Nation Plagued by Power Shortages Suddenly Has Too Much Electricity

27 January 2021, 08:52 GMT+3

• Chinese financing helped boost power output to surplus
• Government to pay power producers $2.8b by Dec. to cut tariffs

After spending decades tackling electricity shortages, Pakistan now faces a new and unfamiliar problem: too much generation capacity.


The South Asian nation’s power supply flipped to a surplus last year after a flurry of coal- and natural gas-fired plants were built, mostly financed by the Belt and Road Initiative launched by Chinese President Xi Jinping in 2013. Pakistan is slated to have as much as 50% too much electricity by 2023, according to Tabish Gauhar, special assistant to Prime Minister Imran Khan for the power sector.




That is problematic because the government is the sole buyer of electricity and pays producers even when they don’t generate. To help tackle the issue, the government has negotiated with producers to end that system, lower their tariffs and asked them to delay the start of new projects, according to Gauhar. It is also trying to convince industries to switch to electricity from gas.




“We have a lot of expensive electricity and that is a burden,” he said.



While the Chinese financing and the surplus is a welcome change after years of shortages that left exporters unable to meet orders and major cities without electricity for much of the day, two main problems remain. The first is a creaking network, and the second is the need to supply cheaper power while keeping emissions in check.


“Pakistan has overcapacity, yet it still has power shortages because of the unreliability of the grid,” said Simon Nicholas, an analyst at the Institute for Energy Economics & Financial Analysis. “They haven’t invested in the grid the same way they’ve invested in power plants.”

The last nationwide blackout happened just last month after an outage at the country’s largest facility. While the new plants have also boosted coal generation to a record fifth of the power mix, Pakistan plans to increase the share of wind and solar to 30%, while another 30% will be generated from river-run dams.

Pakistan will pay private power producers 450 billion rupees ($2.8 billion) in overdue electricity bills in a deal to reduce future tariffs. The government targets to pay 40% of that bill by the end of February, with the second payment slated before December, according to Gauhar. A third of the payment will be made in cash, with the rest in fixed income instruments, he added.


About 8 gigawatts worth of government-owned power plants will also have tariffs reduced. And Pakistan plans to negotiate lower tariffs for mining and power generation at the Thar coalfield, said Gauhar.

The government aims to delay about 10 gigawatts worth of planned power projects, including coal and wind plants, since there won’t be any need for them next year, said Gauhar.

Nation Plagued by Power Shortages Suddenly Has Too Much Electricity

After spending decades tackling electricity shortages, Pakistan now faces a new and unfamiliar problem: too much generation capacity.

www.bloomberg.com

++++++++++++++++++

What, there are still blackouts in some Pakistani cities, where is the surplus going?

 

[FuturePAF]

What, there are still blackouts in some Pakistani cities, where is the surplus going?

Before they squander more money and sink the nation deeper into debt, there definitely needs to be a full audit.

 

[TheSnakeEatingMarkhur]

It’s a global bargaining chip, especially if climate change record becomes a metric for attracting FDI.

besides Coal can be a backup in case oil/gas prices sky rocket as a base power generation option when renewables are not producing as much as needed.

Bahi your are right on one thing but if Pakistan uses the artificial griding system we wouldn't have had to be reliant this much coal...

And new studies have suggested that coal can be converted to Graphene which would have been a better use..

What, there are still blackouts in some Pakistani cities, where is the surplus going?

Being wasted in grid and power lines because they can only hold a limited amount...

 

[Indus Pakistan]

Naya Pakistan.

@VCheng @Norwegian

 

[VCheng]

Naya Pakistan.

@VCheng @Norwegian

Right. Please also see: Circular Debt.

 

[PakSword]

What, there are still blackouts in some Pakistani cities, where is the surplus going?

Distribution system!

 

[FuturePAF]

It’s good the government is biting the bullet and ending contracts that keep the nation in a circular problem; pay whether we use the electricity or we don’t. After auditing where and how the electricity is being used. The government should at least convert over government facilities to electric power to minimize the waste and encourage as many people to use electric options rather then gas or oil based ones. (Especially considering the problems buying gas from abroad, due to the mismanagement or bad contracts, or some such nonsense)

Pakistan should try to get investors (and possibly funding through global climate change initiatives) to pivot to a smart grid and pumped hydro. We need dams for water storage and electricity generation, but they can also be built a two stage dams as giant batteries, decreasing the need for massive polluting power plants.

The economics for this pivot can be made very easy if China allows us to sell our excess electricity to their regions of Southern Xinjiang and western Tibet (and they can sell their excess electricity to us when we are in need and they have excess).

Their economy is still growing and we have excess electricity, it can be seen as almost an export that will help recoup our investments in electricity generation and use the natural geography of Gilgit Baltistan and Azad Kashmir for the benefit of all involved. Solving this debt issue will speed up CPEC projects, such as electric railways through out the country, and the many more dams we need, so it’s win win for both Pakistan and China.

A smart grid through out the nation and all the way to China, would allow delivery of just the right amount of electricity to where it is needed, but also allow electricity to be sent back from users (such as those with solar panels or giant batteries) to the grid. The US plans to do this over the next 15-20 years, and if we are going to build up the grid it should be a forward thinking plan like this with a market built in to take our excess production.

This will also accelerate the demand for lithium ion batteries and bring investors, which can set up local battery production plants, especially considering the huge reserves of lithium next door in Afghanistan. It would also free us from the need to buy as much oil and gas from the Persian gulf nations, and motivate us into an industrial modernization. The experience will give our local companies some expertise and manufacturing capability to export the products (such as batteries) and services (building and maintaining smart grids of all sizes) they develop to sell to other developing nations at a competitive price.

The smart grid in the North, especially with pumped hydro will help the people in those cities develop their own businesses which will attract tourism and can help the military use electric options, minimizing the need to haul oil and gas supplies during winter months during heightened tensions, minimizing loss of life.

Solar panel owners selling their electricity back to the Smart grid could be part of other initiatives of recycling (compositing gardens, and selling recyclable waste) to help people maintain a minimum income, and not send that money overseas or spend it on IPPs. It would circulate in the economy speeding up recovery and employing lots of people, and funding local services (especially waste management, keeping streets and drainage canal as clean, decreasing the cost of rehabilitation after floods)

This is the time Recycling programs should be invested in

 

[Indus Pakistan]

Right. Please also see: Circular Debt.

Are you lot still killing Negros for being Negros? Yes you are. And you will continue long after walking corpse has been buried. Moral of the story. Change in a nation takes time. It took USA over a century to give rights to the Black Man ~ even now some would say is a goal not achieved despite placing house negros like Obama or Harris in WHITE house.

 

[El Sidd]

This seems to be one of those misleading articles.

There can never be energy surplus, there can only be utilisation in negative.

Tariff hikes suggest Pakistan is still short of energy needs to industrialize her most urgent industrial needs.

 

[peagle]

Nation Plagued by Power Shortages Suddenly Has Too Much Electricity

27 January 2021, 08:52 GMT+3

• Chinese financing helped boost power output to surplus
• Government to pay power producers $2.8b by Dec. to cut tariffs

After spending decades tackling electricity shortages, Pakistan now faces a new and unfamiliar problem: too much generation capacity.


The South Asian nation’s power supply flipped to a surplus last year after a flurry of coal- and natural gas-fired plants were built, mostly financed by the Belt and Road Initiative launched by Chinese President Xi Jinping in 2013. Pakistan is slated to have as much as 50% too much electricity by 2023, according to Tabish Gauhar, special assistant to Prime Minister Imran Khan for the power sector.




That is problematic because the government is the sole buyer of electricity and pays producers even when they don’t generate. To help tackle the issue, the government has negotiated with producers to end that system, lower their tariffs and asked them to delay the start of new projects, according to Gauhar. It is also trying to convince industries to switch to electricity from gas.




“We have a lot of expensive electricity and that is a burden,” he said.



While the Chinese financing and the surplus is a welcome change after years of shortages that left exporters unable to meet orders and major cities without electricity for much of the day, two main problems remain. The first is a creaking network, and the second is the need to supply cheaper power while keeping emissions in check.


“Pakistan has overcapacity, yet it still has power shortages because of the unreliability of the grid,” said Simon Nicholas, an analyst at the Institute for Energy Economics & Financial Analysis. “They haven’t invested in the grid the same way they’ve invested in power plants.”

The last nationwide blackout happened just last month after an outage at the country’s largest facility. While the new plants have also boosted coal generation to a record fifth of the power mix, Pakistan plans to increase the share of wind and solar to 30%, while another 30% will be generated from river-run dams.

Pakistan will pay private power producers 450 billion rupees ($2.8 billion) in overdue electricity bills in a deal to reduce future tariffs. The government targets to pay 40% of that bill by the end of February, with the second payment slated before December, according to Gauhar. A third of the payment will be made in cash, with the rest in fixed income instruments, he added.


About 8 gigawatts worth of government-owned power plants will also have tariffs reduced. And Pakistan plans to negotiate lower tariffs for mining and power generation at the Thar coalfield, said Gauhar.

The government aims to delay about 10 gigawatts worth of planned power projects, including coal and wind plants, since there won’t be any need for them next year, said Gauhar.

Nation Plagued by Power Shortages Suddenly Has Too Much Electricity

After spending decades tackling electricity shortages, Pakistan now faces a new and unfamiliar problem: too much generation capacity.

www.bloomberg.com

++++++++++++++++++

This is the most obvious proof, that we have stupid and incompetent civilian leadership. They even allowed the use of imported coal, when Pakistan has one of the largest coal reserves in the world.

But, the sad thing is, civilian rule is the only sensible future. We have to bear with their incompetence till they improve. It takes time, and there are no shortcuts. If we keep switching from civilian to non-civilian, we will be stuck in the same position forever.

Let's hope they learn fast, I must admit, Imran is introducing interesting policies and reforms, I have not known a single government in the last 30 years that has given so much emphasis on exports.

 

[Samlee]

Liberalize Consumer Financing For ACs and Electrical Appliances Like In Shaukat Aziz Era To Stimulate Local Industry Also Promote EV And Charging STations Try To Increase Consumption

 

[BoggedDown]

Stupid article from some idiotic journalist who does not have an iota of knowledge of electric generation. The theoretical installed capacity is always higher than actually produced which is less that demand in Pakistan. For example hydro is 20%-30% during winter due to shortage of water. Solar is 30%-40% depending sun shine, wind is 0% when it is not blowing...but in paper they all be counted for installed capacity.

Pakistan has not even started electric car, rail, metro as well as home appliances are still luxury for riches...Electric demand will rise many ford in future...