KARACHI: The country’s vast coal reserves in Thar, if harnessed properly, can provide reliable, affordable and large scale power generation that will reduce the burden of the energy import bill on the country’s meager resources. This was indicated in a position paper, recently prepared by the Thar Coal and Energy Board (TCEB) and the Sindh Engro Coal Mining Company.
80 percent of the national energy requirement could be met through power generated through the Thar coal deposits alone, within a short period of three to four years with an initial investment of roughly $1 billion only, it claimed.
The power shortfall in Pakistan reached monumental proportions, 5,000 MW, in the summer of the financial year 2008-9. There is an urgent requirement for large scale power generation capacity within a very short time frame to sustain economic growth and social development.
However, confusion prevails over the most economical option in developing power infrastructure. According to the report, which also weighed in on different fuel options for power generation, coal reserves of Pakistan remain one of the key hydrocarbon reserves which remain untapped. The total coal reserves of the country are approximately 186 billion tonnes, 94 percent of which are located in the Thar Desert.
In 2008, eight million tones of various grades of coal were consumed in the country and out of this, the power sector utilised a measly 1.3 percent. Imported coal, primarily consumed in the cement and steel manufacturing sectors, was 54 percent of the total consumption.
Coal is utilised worldwide to provide mass power generation in the largest economies of the world, the US, China, Japan and Germany (a total of 1,100 GW is generated) and therefore the potential lies in developing large scale and reliable power capacity from Pakistan’s coal reserves. The coal utilised by the power sector would be a domestic resource, it would simultaneously improve both the country’s energy security and reduce the drain of foreign currency reserves, the paper pointed out.
The report also analysed the current energy mix of the country and the potential of all major energy sources.
Furnace oil: The total furnace oil consumption in the country was 8.2 million tonnes in 2009, out of which, 90 percent was consumed by the power sector. Approximately, 62 percent of the country’s furnace oil consumption was imported last year. The import dependence is even greater if one considers the fact that the furnace oil produced domestically is refined from crude oil which has an import volume consumption of 70 percent. The report indicated that approximately $3.0 billion was spent last year in importing oil for the power generation sector.
Natural gas: Pakistan has an estimated natural gas recoverable reserve of 526 million tons of oil equivalent (MTOE), approximately half of the original recoverable reserves in place.
The power sector consumed eight MTOE of gas in 2009, which was 30 percent of all the gas sold in the country. No significant domestic gas reserves are available for allocation to future power projects. Without the discovery of new reserves or the development of marginal fields; import is the only realistic option for new gas based power projects. The government plans to import gas through a pipeline from Iran, and through an LNG import terminal. However, the viability of these projects remains doubtful. Gas imports for power generation would certainly add to Pakistan’s blotted energy import bill, the report noted.
Uranium: This mineral vital to nuclear power generation is currently mined in three sites in Pakistan – Qubul Khel, Taunsa and Nangar Nai. The country currently has stated uranium reserve base of 11,200 tonnes and further exploration is currently underway. No detailed information on nuclear fuel is available to private organisations.
Water: The Indus basin has been tapped for hydroelectric generation. Water flow through the country varies with the seasonal rainfall in the Himalayas and glacial melt. Hydroelectric projects have the lowest tariffs, but a major concern remains variability in power output due to seasonal water flow
Renewable energy: Studies conducted by USAID in 2007 identified considerable potential in Pakistan regarding the suitability of renewable technologies such as wind and solar. These power generation technologies are attractive in the context of fuel supply and their environmental impact.
In the absence of an economic solution of electricity shortage, the major disadvantage of wind and solar power projects is the intermittent nature of electricity supply from such projects, rendering them suitable only as a supplement to an established based and peak load power generation system, the report highlighted.
The report rounded up by noting that, “renewable energy technologies such as wind and solar are expensive power generation options primarily due to their high capital costs and low capacity factors. Power generation on imported fuel is expensive and compounds additional problems by reducing the country’s foreign exchange reserves which further devalues the national currency”.
A low-cost option which eliminates the problems is Thar coal. Among thermal power projects, Thar coal is the cheapest power generation option available to the country.
