Pakistan Energy 2035-FINAL 20th October 2014

Pakistan Energy Vision - 2035EXECUTIVE SUMMARYPakistan is undergoing an unprecedented energy crisis. There is a demand and supply shortfallof 8000MW in the country, resulting serve repercussions for the economy as a whole. In orderto address the mammoth of this power shortage, government needs to formulate a definitestrategy for the future. An overview of the energy sector reveals the predicaments that haveresulted in severe power cuts backs.Furthermore, the analysis underscores the need for immediate reforms in the sector to bringabout a relief in the future. This report aims to define the contours of a viable energy policy forPakistan.Other highlights of this report include a revolutionary solution to T&D losses through theintroduction of Micro Grid and Smart Grid. These will effectively help Pakistan meet itschallenge of reducing line losses, and this report also gives maps showing the distribution ofline losses in the country.Lastly, the long-term goal would be to fully utilize the potential of Pakistan’s Shale Gasreserves (105 TCF) and Shale Oil reserves (9.1 billion barrels). The report gives short-term,medium-term and long-term strategies regarding Shale Gas.Overall, the country will have to move towards high efficiency and lower emissions (HELE),which underscores the importance of natural gas for the country. Towards this goal, theretrofitting of thermal power plants to improve the efficiency of existing gas-fired power plantsand a fuel audit will have to be conducted. This audit will determine a merit order for gasallocation to thermal power plants.Moreover, when it comes to diversifying the energy mix, coal is an option that Pakistan isexploring, and this report recommends that ultra-super critical plants be installed in thecountry to achieve greater units of power generated, in relation to fuel consumed, againunderscoring the principle of efficiency which forms the umbrella of Pakistan’s Energy Vision2035.Some other recommendations that have been suggested in this report, after an in-depth studyof the aforementioned sector include:In the short-term, the domestic sector will have to make the following improvements in:7 | P a g e