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How Can Pakistan Diversify Its Energy Mix to Reduce Dependence on Imported Oil and Gas What are the Key Barriers?

CSS Current Affairs | Pakistan Diversifying Its Energy Mix to Reduce Dependence on Imported Oil and Gas

The following assignment question for CSS Current Affairs is solved by Hunza Arshad under the supervision of Howfiv’s Pakistan Affairs and Current Affairs Coaches: Miss Iqra Ali and Sir Ammar Hashmi. She learnt how to attempt 20 marks question and essay writing from Sir Syed Kazim Ali, Pakistan’s best CSS and PMS English essay and precis teacher with the highest success rate of his students. This solved question is attempted on the pattern taught by Sir to his students, scoring the highest marks in compulsory and optional subjects for years.

Outline

11-Introduction

2-Diversification of Energy Mix to Avoid Dependence on Imported Oil and Gas

  • ✓Existence of High-Potential Solar Zones in Pakistan through the Expansion of Existing Ones and Development of New Solar Zones
  • ✓Selective Modification of Working Hydro Power Plants and Installing New Hydro Power Plants on Micro and Macro Level
  • ✓Installing Wind Integration Power Plants, Unveiling the Wind Shortage Problem
  • ✓Upgradation from Bio-Mass Hub to Bio-Methan Systems
  • ✓Local Reservoirs of Coal, Oil, and Gas Replacing Imported Oil and Gas

3-Key Barriers in Diversification of Energy Mix

  • ✓Infrastructural Discrepancies and Negligence in Maintenance
  • ✓Economic Instability and Lack of Investment in Energy Mix Projects
  • ✓Lack of Technical and Skilled Man-Power
  • ✓Political Instability and Fluctuating Government Policies
  • ✓Unpredictable Climate Change and Natural Hazards

4-Critical Analysis

5-Conclusion

Answer to the question

Introduction

Energy mix is a specific combination of primary energy sources a country relies on to meet its total energy needs. Pakistan is heavily dependent on imported oil and gas, which places a significant burden on foreign exchange reserves and the national budget. To address this challenge, diversification of the energy mix through renewable and alternative energy sources has become an urgent priority. However, the transition is not without obstacles, as Pakistan has faced several structural, financial, and technical barriers that slow progress across different energy sectors.

Diversification of Energy Mix to avoid dependence on Imported Oil and Gas

  • Existence of High-Potential Solar Zones in Pakistan through the Expansion of Existing Ones and Development of New Solar Zones

To avoid dependence on imported oil and gas, the government has tried several times to diversify the energy mix; consequently, it installed 11 solar power plants across the country, which provide 680 MW out of the installed capacity of 46,605 MW. There is a great need for expansion of old ones and installation of new solar zones in places like the Cholistan desert, the Thar region, Jhimpir-Gharo corridor, and Baluchistan Plateau. Moreover, the rooftops of urban buildings such as universities, hospitals, and other public institutions could be utilized to install solar systems and meet their energy needs through renewable power. Through this, solar power plants can increase their share in diversifying the energy mix and help the country avoid imported oil and gas.

  • Selective Modification of Working Hydro Power Plants and Installing New Hydro Power Plants on Micro and Macro level

Likewise, in Solar Power Plants, Pakistan has worked on Hydro Power Plants as well. Currently, 22 state-owned hydropower plants are operating across the country, with a combined installed capacity of 11,368 MW out of the total national capacity of 46,605 MW. However, this capacity is insufficient to meet the country’s energy needs. Therefore, these hydropower plants require targeted modernization, including removing sedimentation, which has reduced their effective capacity by approximately 40%, upgrading outdated turbines, and repairing transmission lines, which currently result in energy losses of approximately 18% to 19%.Moreover, several hydropower plants can be installed on the Indus River in Diamer, Bunjin, Skardu, and Kohistan zones; on the Swat River in Mingora, Kalam, Dir, Chitral Region, Neelum Jhelum Basin, and Kunhar and Kaghan Region. These hydropower plants will govern energy generation at the local level at a micro scale.

  • Installing Wind Integration Power Plants Unveiling Wind Shortage Problem

Pakistan is not facing wind storage problems; rather, it is facing wind integration problems. Already, 36 Wind turbines are operating as power plants in the country, producing approximately 22,000 MW out of 46,605 MW installed capacity. By addressing transmission line quality and storage problems, the existing power plants could be modified. Moreover, wind power plants could be expanded where they already exist; the Gharo-Jhimpir Wind Corridor has the capacity to produce 40,000 to 50,000 MW of energy; due to poor storage, it is not working satisfactorily. Besides this, the Thatta-Badin Coastal Belt, Karachi Coastal Zone, Gwadar-Lasbela Belt, and Keti Bandar Region could be expanded and improved to increase electricity generation.

  • Upgradation from Bio-Mass Hub to Bio-Methan Systems

In Pakistan, biomass hubs have been established at the local level to meet the energy needs of farms, industries, and households in rural areas. However, at the national level, biomass contributes less than 1% to the country’s energy mix. To streamline the energy mix and make biomass an effective component of it, local biomass hubs should be developed into centralized biogas clusters that process crop, industrial, and household waste into biomethane, which can then fuel turbines to generate electricity. Meanwhile, maintenance training should be provided at local levels. Thus, it is possible that the expected potential of producing approximately 10,000 MW can be achieved.

  • Local Reservoirs of Coal, Oil, and Gas Replacing Imported Oil and Gas

Imported oil and gas are increasing Pakistan’s energy import bill and contributing to the country’s circular debt crisis, which has already reached significant levels. Therefore, it has become essential to reduce dependence on imported fossil fuels and explore the country’s indigenous energy resources. For example, the Thar Desert contains one of Pakistan’s largest coal reserves, while the coal belts of Balochistan and Punjab also offer considerable potential. According to estimates cited in various research papers, Pakistan has approximately 175 billion tons of coal reserves, which could potentially support the generation of around 100,000 MW of electricity. Currently, around 18–20 power plants in Pakistan are reportedly operating on indigenous fuels and generating approximately 8,000 MW of electricity. By expanding the use of indigenous energy resources, Pakistan can reduce its dependence on imported oil and gas, strengthen energy security, and help mitigate the circular debt crisis.

Key Barriers in Diversification of Energy Mix

The above measures can help Pakistan diversify its energy mix; however, this transition also presents several challenges. The following are the potential problems Pakistan may face as it diversifies its energy mix.

  • Infrastructural Discrepancies and Negligence in Maintenance

Several solar, hydro, wind, biomass, and indigenous fuel projects are already working in Pakistan; however, there is no doubt that the failure is poor infrastructure and negligence in maintenance. Damaged and inefficient transmission lines are the core problem of every power plant, which wastes almost 18%-19% of electricity in transit. Moreover, the grid in solar systems and turbines of hydro and wind power plants demands maintenance.

  • Economic Instability and Lack of Investment in Energy Mix Projects

Pakistan’s chronic economic decline constrains its ability to invest in long-term energy generation projects; moreover, the circular debt crisis is also putting pressure on the country’s foreign exchange reserves. Furthermore, delayed payments to Independent Power Producers (IPPs), coupled with mounting debt-servicing obligations, are placing significant pressure on Pakistan’s economy and exacerbating low industrial productivity. Expansion and development of projects without using a penny is no more than daydreaming. Hence, this economic instability and lack of investment in the energy mix are not changing the position of Pakistan in any domain of energy management.

  • Lack of Technical and Skilled Manpower

Whether micro energy projects or macro energy projects, there is great demand the technical trained manpower who can manage energy supply at the local as well as state level. Unfortunately, Pakistan is settling for a handful of technical and skilled man-power due to corruption and deployment of interceded staff. Moreover, a few institutions provide training in the energy field. There is a need to develop institutes to train manpower and then deploy them to ditch circular debt in the energy crisis.

  • Political Instability and Fluctuating Government Policies

Pakistan is famous for its political instability on the international level; therefore, it is not considered suitable for foreign investors. As it is politically unstable, its policies fluctuate. The government launched a policy to work on the energy crisis; the government changed, and the new government brought up new policies to deal with the energy crisis, as it has witnessed in Pakistan’s repeated shifts between thermal expansion, IPP agreements, renewable-energy targets, and net-metering reforms under successive governments.

  • Unpredictable Climate Change and Natural Hazards

Last but not least, unpredictable climate change and natural hazards are one of the barriers to diversifying the energy mix. For example, irregular monsoon patterns reduce the predictability of hydro power plants and damage solar panels. Moreover, floods damage dams’ infrastructure and transmission lines, reducing power output. Temperature extremes reduce the efficiency of solar and thermal power plants.

Critical Analysis

Diversifying the energy mix is a tempting way to break the chains of circular debt and improve the energy supply. But it will not work without proper technological and economic investments. Moreover, the state should promote regional and local power plants and buy surplus energy from them to promote local structures, encourage them to contribute at the state level, and thus gradually reduce their dependence on IPPs.

Conclusion

As the energy mix comprises solar, wind, thermal, biomass, hydropower, and other alternative energy sources, Pakistan must reduce its dependence on imported oil and gas, which place a significant burden on the national exchequer. Diversifying the energy mix through renewable energy resources offers a sustainable path forward. However, this transition is not without challenges, as structural, financial, and technical barriers continue to impede the development of different energy sectors.

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