PMLN Energy Policy

As per PMLN’s Manifesto launched few months earlier, the Energy Security policy is highlighted in second chapter after the economic policy.

PMLN has summarized some key problems in the current system and has proposed short, medium and long term solutions to resolve the energy crisis and they are highlighted in the 16 points below:

l) Creation of a Ministry of Energy and Natural Resources through the merger of Ministries of Water and Power and Petroleum and Natural Resources

2) Reforms of National Electric Power Regulatory Authority (NEPRA):

a. Upfront / Feed-in tariffs for wind, solar, small hydel, and biomass projects.
b. Mandatory wheeling of electricity by DISCOs and the NTDC.
c. Net metering (sale guarantee) for small producers/consumers.
d. NEPRA determined tariffs to be the notified tariffs.
e. Deregulating and decentralizing the energy sector by allowing small power producers to sell power directly to consumers through the distribution systems of DlSCOs. NEPRA (or regional regulators) to allow and regulate prices.

3) Reforms of Distribution Companies (DISCOS):

a. Corporatization and privatization of DISCOs.
b. Ending of cross subsidy among DlSCOs.
c. Transmission and Distribution losses to be progressively brought under 10%.
d. Collection of electricity bills to be brought as close to 100°/o of billing as possible.
e. Introduction of prepaid billing system to improve bill collection and reducing bad debts.

4) Reforms of Generating Companies (GENCOs):

a. Corporatization and privatization of each GENCO under an independent Board.
b. Retrofitting of all equipment to ensure that thermal efficiency is raised to the original specification and where required converting all simple cycle plants to combined cycle technology. This will cost US$ 300 to USS 400 million only but increase production capacity by 600 MW, thus giving more than 3,000 GWh (or 3 billion units) of electricity at zero marginal cost. Payback period of this investment is about one year.
c. Replacement of all furnace oil boilers by coal fired boilers. This will cost around US$ 2 billion (for all GENCOs and IPPs furnace oil fired boilers) and again the payback period is less than two years. This will result in substantial reduction in the cost of energy production even if, at first, imported coal is used.

5) Permanent elimination of circular debt.

It is important to understand that what is called “circular debt” has very little circular component and much of the debt is due to system-wide losses incurred by GENCOs and DISCOs. Therefore we will take the following immediate measures:

a) Narrowly target tariff subsidies only to lifeline consumers who consume up to l00 units per month, and provide for this subsidy in the federal budget.
b) Notify electricity tariffs according to the average system wide cost.
c) Power dispatch to be strictly according to plant efficiency and generation cost.
d) Supply gas to all power plants that can run on natural gas to minimize generation on expensive fuels.
e) Convert all furnace oil-fired power plants to coal-fired boilers.
f) Reduce distribution and transmission losses and improve collection rates.

6) Rationalization of energy tariffs in line with international prices across all fuels.

7) Reforms of Oil and Gas Regulatory Authority (OGRA):

a) Blanket ban on the setting up of new CNG stations until the gas crisis is resolved.
b) Priority to public transport in the use of CNG.
c) Narrowly targeted subsidy for the poor for natural gas and LPG.
d) Tariff rationalization in gas sector.

8) Aggressive wellhead pricing for Oil and Gas exploration companies in order to substantially increase production of oil and gas.

9) High priority to import gas through pipelines.

10) Expeditious setting up of coal and LNG import terminals, and coal transportation facilities.

11) Development of Thar coal fields and setting up of at least 5,000 MW of new coal fired power plants under the lPP mode in Sindh. This will both create employment in rural Sindh and help solve our energy crisis. The plants to be designed on lignite quality coal and at first to be run on imported coal and when Thar coal is available, the plants to be switched to domestic coal.

12) Developing consensus among the various stakeholders to facilitate setting up hydropower projects by the Federal and Provincial Governments. This will augment and conserve our water resources and also generate less expensive and clean electricity.

13) Developing alternative renewable energy sources, such as solar, wind, bagasse, biogas, and biomass projects, especially for off-grid and micro-grid applications.

14) Setting up national energy efficiency standards.

l5) Introducing solar-thermal water heaters for domestic and industrial use.

16) Decentralizing and creating a wholesale market for electricity.

What we envisage is to tackle circular debt and system losses on priority in order to end load shedding in minimum time and in 5 years there will be a market for wholesale trade of electricity and most importantly consumers, using the distribution network of the local DISCOs and the transmission network of the national grid will be able to buy electricity from their preferred producer. And once there is enough competition in the market, neither government guarantees nor government subsidies will be required and prices will start to go down as they have in the mobile telephone market.

These measures will not only solve our lingering energy crisis but also shift the focus of the energy sector from high cost imported fuels to indigenous energy resources and reduce the total energy import bill and add at least 3.5% to the annual GDP. At the same time investment of about US$ 20 billion to generate 10,000 MW of electricity in the next 5 years will stimulate overall growth of the economy.

60 thoughts on “PMLN Energy Policy

  1. We also need to bring Solar feed back to Grid and negative billing like in Australia – where every other house make it’s own power using solar cells and sell it back to the Grid and the users gets -ve billing by selling the power back to the grid at good rates.

    • @binary-Zero.
      Solar power is very cheap almost close to grid, but teh upfront cost is the one that investor or financing must be available. I have done many solar farms forlast 2 years in Malaysia and also in USA.
      The feed in Tariff is good but who is going to guarantee the payment? Govt? that is a big question. Normal feed in Tariff now varies $0.20 to $0.35 per KWh, Pakistan consumer pay only $0.04 to $0.07. That means some one must subsidized it.
      The only advice i can give is to give incentive to people to set up manufacturing in Pakistan that will create job as well as it create service industry and soft loans. Can be done if they look at long term approach not Political approach like Ujaala progarm, dumping $25M for a 2 year life project.
      Other is work on conservation, reduce consumption , use LED light bulbs it will pay off in less then a year.

  2. Hope their plan works and Pakistan is set free from this energy crisis, Insha Allah.
    Its a good plan as far as ive read, Alhamdulillah, hope they really do act over it.

  3. @
    Qadam berhao Nawaz Shareef the whole nation is with you.

    And hopefully you will again deliver. Get rid of the most vicious crisis Pakistan is facing today i.e. power crisis.

    And PTI will diappear in thin air.

    Else, PMLN will disappear from political scene.
    May Allah Grant you success Inshallah. Ameen

    • True they have to be very careful. No gimmick but the results.
      One more things which they did not mention are sugar plants . Sugar plants can generate power by using their waste as this can increase their revenues as well (few more millions for Mian sahib)
      We all should stand united behind them for our country.

  4. Excellent effort by PMLN. This is what an educated, skilled and honest governance can produce. They are not yet into office, but the planing and analysis already underway. Well done PMLN !!!

  5. @Bilal, agreed for Hydel
    actually there are many potential areas in Northern & KPK, for small hydel like Run Of The River type, hopefully the KPK Govt(PTI) & National Govt (PLMN) can do it together

    also IK should prove that making such projects in provinces is doable as opposed to the tune he kept on in election campaign for Mr SS 🙂

  6. honestly, IK must prove his mettle in KPK Govt and do Education, Health & Police reforms as per his Promises else he will be wiped out in next elections

  7. @
    Dear Bloggers

    Wheter you belong to PTI, PPP or PMLN.

    I think time is ripe now that we should STOP our hostilities now that the nation has given its mendate.

    We should rather focus and pray for PMLN govt to perfrm in federal govt as well as in Punjab and Baluchistan. Likewise about PTI performance in KPK. remember challenges are turmendous and both these parties should do every bit to resolve and overcome these problems without any excuses. We should raise the standard of performance high so that atleast poor people of Pakistan should get relief.

    We are fuming our energies on bitterness which should have gone after people of Pakistan gave their mendate.

    Let us forget all ill will and high emotions and focus and watch carefully the govt forming process and later governance of respective parties.

    This would be much more healthy a debate than present one. If one does not agree to the commetns of some one, he should simply say, ” I do not agree to your commetns”. Thats all. As far as the debate is concerned, it leads to heated arguments and nothing else. Have you ever seen any one switching the loyalties as a result of any debate?

    Hope this idea gets acception?

    • @Deevav,
      I agree with you we should think about Pakistan and cHallenges.
      but i noticed you smartly leave a big part of the country. This is what u wrote…
      “We should rather focus and pray for PMLN govt to perfrm in federal govt as well as in Punjab and Baluchistan. Likewise about PTI performance in KPK.”

    • excellent suggestion after all supporters of al gore and Bush were united after election .
      I supported PMLN as I think IK is not politically mature yet but I do admire him for bringing together different faction of society.
      God bless Pakistan and its people .amin

  8. @Deevav

    😀 Why such a sudden change deevav?! Suddenly, you started thinking about the country, reasons, and justice 😀

    I’m not saying the above because you are wrong. No, that’s not the case. You are right. Problem is why you are so late in doing this? I have been told that baniyey ka bacha kuch dekh ke he girta hai. I have no reason to not to believe this change of heart. But, I’m just wary of your offer given your past trend of comments.

    I couldn’t say if you would have said the same if there were any other party in the power except PML-N.

  9. @

    You have shown your back ground by using still uncultured language.

    I will prefer better to ignore you. Thats what wisdom is.

    Werna jitna keecher me paaon maron ga itna he ganda ho jaounga.

    You keep living in the filth stupid. Naam bhe apny kaamon jaisa rakha hy.

  10. Yes stupidity,
    You heard it right, banya ka baccha kuch dekh ke he girta hai, isi liye ap bhe giray hain na pti ke taraf?
    Also, i also heard like you assumption is the mother of all …….. Now i have no reason not to believe this too.

    Beta, chalo jee, devav ne kuch to socha pakistan ke baray me, ap to imran khan aur us ke beti ke ilawa to kuch soch he na paye.

  11. @deevav

    a. It’s stupidity-shikan like ghazni was a ‘but-shikan’ (now please do not take it as butt shikan :D).
    b. But, you can call stupidity, because that’s what it is talking to you guys – a stupidity :D. I understand what i’m doing – a stupidity.
    c. Now, deevav, not that i care about you but i just want the records correct. The maxim (‘ the saying about baniyey ka bacha’ ) was not a pun nor it was written to degrade you. It’s was what it was – a maxim an old saying. The only reason I put it there was to convey/ say, ‘what is on and in your mind now’.

    now keep talking…
    but have you ever wondered that what does it do to other when you abuse one or the other. Actually, nothing. For e.g. I’ll go now – you will burn yourself :D. So, don’t do it. take it as fun. This is no life, sitting in front of a computer keep talking. The only reason i am doing it is because I’m on duty in a god forsaken place where i have nothing to do. But, now my family is about to arrive. I’ll be busy with them now. So, you keep writing and thinking whether ‘ hun aram ee’ or whatever 😀

    But, it was a pleasure playing with you all.

    ciao and have fun.
    @deevav dair ayed durust ayed ( even if you are late, you are right)

    @everyone most importantly please understand sheikh saadi has said, ‘ Jawab-e-Jahilaan bashed khamoshi’ {i.e. don’t retort/ reply in answer to uneducated people}. Now, I couldn’t do it. But, you all can try (i know i’m not taking educated :D)

    have fun and keeping praising PML-N or whatever the heck (who cares)

  12. We need to introduce the concept of Negative BILLING on australian model,to incentive’s people to make their own private electricity using solar and bio mass and sell it to the government.

  13. Pakistan Zindabad

    Pakistan has given its mendate. People will be forming their respective govts according to their mendate.

    Now we will have watchful eyes upon them and see whther they deliver or not. PMLN in Federal, Punjab and Baluchistan govt. PTI in KPK.

    If they served truly the people of their respective areas then People will vote for them in future else they will kick them out.

    So good luck all

  14. This plan will fail. It will lead to the total privatisation of distribution and power generation. Prices will rise significantly and rapidly.

  15. Even when they try to be sincere, their prejudices are too strong to hide.

    Pakistan is a fragmented nation of very sick people. There is a disease in the hearts of these people.

    May Allah (swt) cure them of this disease and make them think of all Pakistanis as one nation.

  16. @ MK Khan

    I also felt there was a big part missing.

    They are always thinking on party lines and not as Pakistanis. Since there are hardly any PPP supporters on this forum it was deemed unecessary to include Sind.

    Whethere the omission was deliberate or not, it just shows the mind set of our ‘brothers’

    • @abdullah,
      From my reading the next phase is Sind. With no mandate in Sind for PML N and SIND divided along urban and rural as well as ethnic lines. Every one want to control Karachi as without Karachi SIND cannot survive and also without Karachi it is hard to rule SIND. PPP and MQM as usual will play games but i see a trend, people were looking for alternative in Karachi and they see PTI as something they can trust.
      PML-N only knows one thing that is Military action and we know from History that will never work. People have to be on board. MQM knows that NA250 is critical if that goes then it can create domino effect. Lets see how it pan out but i see big bloodshed in the city.

  17. So basically this plan calls for removal of all subsidies and raising of energy and power prices. So what was wrong when same thing was tried by PPP and was blocked by SC and fiercely opposed by N-league? Did they not let this happen then only because they wanted to win the elections? Also, NS claimed during the campaign that there will be no ques at CNG stations during his tenure. Did he mean there will be no CNG stations during his tenure?

    • @Babar,
      When these incompetent SC judges want to impose things that they don’t even know or they do it for their ulterior designs thats what happen. No where in the world Judiciary try to fix prices of the commodity.
      Now lets see same judiciary what they do when subsidy goes off and prices have to be increased.

  18. @

    I think you seldom use ur brain. If PPP has been given the mendate in Sind then we already know what PPP is capable of doing so why talk about it. Wth Muzaffer Tappi as CM in S
    Nd, one can easily understand that Sind will remain where it has been as they have chose it themselves.

    PMLN has been working previously. PTI claims that it would work. So the competition is between the two.

    Hope u ulnderstand it?

  19. After implementation of this plan, the cost of production of electricity will go down at least 50%.

    Currently, majority of production in Pakistan is based on oil. Once all oil based IPPs are converted to coal based plant, the cost will go down 50% even if we are importing coal. Once Thar coal starts coming, the cost will go down even more.

    No country in the world is making electricity primarily based on oil other than the oil producing countries like Saudi Arabia.

    This is how US is producing its electricity:

    • @rasheed,
      The cost of gas in USA is so cheap now after Fracking technology. Plus many power producing companies start buying solar too. But u cannot compare USA, in USA unit cost is $0.05 to $0.12,
      The problem in pakistan is once you invest so much money , you need to pay back in interest over a period of time that will add to the bottom line.So if they say cost will go down thats true, the variable cost will go down but the cost to IPP will be high with the interest payment and as such the cost to the consumer will not go down. Our Politicians are known to tell half truth as that sells.

    • M Khan,

      It is indeed a step in right direction to move away from oil based production.

      The proposed plan does not replace the entire power plant, but I believe they are suggesting to replace the boilers from oil based to coal based.

    • @rasheed,

      The fact is that coal based plants required more maintenance then gas based. Plus the pollution factor. The coal liquification that they are trying in Thar will not work for teh existing plants. Plus teh efficiency of coal liquification and the quality of Thar coal is not that good.
      The true story is not all oil based plants can be retrofitetd with the gas or coal based. The boiler mechanism and other factors are too exoensive, its better to make dual purpose plant altogether. The $2B they propose to retrofit is just a wish.
      The best approach is to work on quick solar farms that can be done in less then 6 months – 1 year , give soft term loan bring solar panel manufacturing, give feed i tariif at higher rate and get almost 2000MW into teh system. Next is work on conservation, force all teh commercial enterprises with rebates to change lights to LED. That will also bring manufacturing sectpr going saving 1% wil go a log way.
      Retrofit to cola based in stages with condering teh pollution facyor too.

  20. @

    Coal based electricity generation is very cheap and we should go for it. However, we may have to import coal from Australia or Indonesia. But YES this is a solution. Private sector should be given incentive to go for such coal based pweor generation and also to the IPPs for conversion from FO to coal. All this can be done on EMERGENCY basis as a national agenda as lack of electricity is not only hrting common man but also closing industrial units resulting joblessness.

    i am confident that PMLN team under NS will be able to do another miraculous work in this crucial area. Else they will be thrown out of power by those who voted them in. Inshallah electricity crisis will be handled very efficiently. PMLN has never been oblivious about common problems of the masses and this is the reason that it enjoys the confidence of people of Pakistan.I wish them best of luck and also wait earnestly for PMLN govt to be sworn in without delay Inshallah.

  21. MKhan says:

    M Khan says:@Babar,
    When these incompetent SC judges want to impose things that they don’t even know or they do it for their ulterior designs thats what happen. No where in the world Judiciary try to fix prices of the commodity.
    Now lets see same judiciary what they do when subsidy goes off and prices have to be increased.

    Oey nikla na mush ka yaar. SCP ko galiyan deny walay sirf karachi walay hen.

    Definitely belonging to Karachi. Because only Karachites have been dying for the diictator.. Reason again ETHINICISM.

    Have a nice time khan with your beloved arrested and facing the wrath of the people and fate.

    • @Deevav,
      I pointed the facts. Tell me where in the world judiciary give prices of a commodity. Their job is to explain or interpret law and to provide the justice.
      One should never blindly follow any arom of the Givt be it the legislative, administrative or Judiciary.
      It has nothing to do with the Mush or CJP.
      remember , one day this will bite you also.

    • @Deevav,
      They did. Once they fix Sugar prices then ask the one man commission to take a look. In other case they force teh Givt to take back the CNG prices though CNG operators don;t agree.
      It does not matter if the prices high or NOT, it is not the job of SC to fix or ask to set prices. It is the executive branch. What Parliament is for then.

  22. I agreed with the earlier comments of Mr. Rasheed. All the strategies are in well direction but most importantly we need to change our energy mix. Instead o heavily depending on Furnance Oil to produce electricity we need to change/fund our IPPs to have coal based plants to produce electricity.

    Intially coal may be imported from Austrailla but at the same time That Coal facility may also be developed to take longer advantage.


  23. @

    Things relating to OGRA and NEPRA were taken up. Suger cartel was going out of hands and that could endanger the interest of common man.

    Any way do you own a suger factory or you own a CNG station that you are bothered?

    Loving dictator is quite evident. Dictator was mad when CJP syopped the loot sale of Pak Steel. So did his mentors and lovers. Keep crying. If catching Raja rRental, Riaz Seikh, Zardari, Gelani and his talented sons, Choudhries of Gujrat, Anjum Aqeel, Rehman Malik, Baber Awan, na dother corrupt mafias is a CRIME then I am proud of independant judiciary.

    Now your beloved mushy dictator is behind the bars and trying to use the shoulder of army to get out of the mess. People like you are rsponsible for this fate of dictator because you went on facebook and he got an idea every body was waiting for him. However, when he landed at the airport only LAW was waiting for him with no support from facebook.

    Same thling you did with IK and look what happended to him.

    • @Deevav,
      Typical answer, going personal.
      I pointed out the basic principal in all branches of the Govt.
      We agree to disagree thats ok.
      But you always bring the stuff that has nothing to do with this here.
      Hang Mush, Kill IK nothing will happen it will affect least on my life.
      May be that’s will soothe some people.

  24. Mkhan

    What about killing Altaf?
    You ignored him conviniently.

    After seeing your education level ihave decided not to reply to you.

    • @Devav,
      I don;t care if Altaf got killed. As it least affect my life. I remember teh day when Bhutto was hanged we thought thats the end but life goes on.
      As for the education, an omission on my part if make you happy , so be it.
      I tried to be decent and non personal but thats your choice.

  25. @ m Khan @ binary-zero
    100% agree with m Khan Comment that why Pakistan energy plan emphasis is less on solar power. There should be some kind of incentive from government to house hold consumers to go for solar panels. This action will be first nail to reduce the corruption and bribery demanded by WABDA officials and also reduces the pressure on demands in commercial sector or industry.
    We also know that in Pakistan politicians are corrupt and they will not facilitate the culture of action complete without establishment authority backed by corrupt leaders.
    I sincerely hope that current winners already made lot of money from their previous terms, for God sake serve this poor nation this time.

    • @Diamondpack,
      We can only pray they act better this time. Though i have 50% confidence only.
      If all policies are towards local manufacturing, that will help many things in long run. This import based policies will never stop. I remember Yellow cabs scheme so many cars were imported and tehn what happened, how many are on roads and how many jobs were created. Had they push to assemble it in Pakistan, we could have service sector many jobs.
      Now they want to import Coal and i can see this will continue and never stop. Pollution will increase. Go check China , cities as i have visited so often.
      Anyway, if we say more , they think it is biased…

  26. @Admin: I have visited this webpage after a long time. I used to be a regular visitor of this website, back in 2009-2010. It seems like this website has turned into PML(N) publicity forum, the name pkpolitics doesn’t suit it anymore.

  27. Every keeps putting extrra faith in Thar Coal as a source of unlimited power. I hear a lot of experts or so called experts. I do not hear the name Abdul Ghani Pathan who is close to THE expert on Thar Coal.

  28. تین سال تک بجلی کو بھول جائیں

    ہور چوپو

    😀 😀


  29. Policy can be made by anyone, actual practice is required to work on it till the problem is not solved. They had given the policy in benefit of Pakistan and government will not have to take such like rental power projects, everything will they, is under the availability of this land.

  30. With Kh Asif as Power minister, Insha Allah power crisis will be resolved completely during next 5 years time.

    Also Railways will be put back on track of progress too under Kh. Saad Rafique Insha Allah.

    I wish them best of luck as both are genuine political workers and are honest and hardworking.

  31. China experience in Railways has been very bad rather disastrous. Now PMLN should be double careful about China. Friendship is based on mutual trust not deception and fraud.

    Once bitten twice shy. Unless it is proven that chinese firm that supplied railway engines, was due to Zardari’s corruption, we should forgeta bout China in mega projects.

    Beware NS. Many Chinese firms are doing fake businesses and involved in cheating.

  32. net metering/negative billing is ultimate solution. Govt should ddo it as soon as possible. At this way ppl may Avoid betteries and invest smartly.

  33. @Anwar,
    In a country where so many people cheat on electericity, implementation of Net metering is hard. They will tamoer with the meter even as it is not that difficult.
    The best solution is prepaid , pay money and buy somuch power. If you want to buy more you will only get it if extra is available. Until power crisis , based onID sell power as prepaid..
    Solar is teh best option but our country just like to import so net result is we donot develop swervice industry.
    Givt should give short term financing at very low interest like 2% for thsoie who set up manufacturing plants for solar etc.
    Malaysia is doing that and i was invlved in one of that.
    Can be done if we get out of this import mentality.
    Solar Plant takes just 6 montsh to set up fully operational.

  34. So exactly what is the energy policy you seem so happy about? From what I just read it’s just a promise to release an energy policy – with no mention about what’s in the policy or whether it has any credibility. One thing for sure – it’s going to take money to purchase fuel and production facilities and so far the govt is unwilling to raise taxes or cut the military budget so chances are whatever “policy” you come up with may not be worth the paper it’s written on.

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