Inefficient electricity production major cause of energy crisis: SDPI


The inefficient electricity production and chronic line losses are the major cause for energy crisis in Karachi Electric Supply Company (KESC) mostly because of inept national power regulator National Electric Power Regulatory Authority (NEPRA).
A recent study conducted by Sustainable Development Policy Institute (SDPI) suggests the only way out of this crisis was to invest and buy affordable electricity from hydro power, improve fuel efficiency of power plants and introduce ‘smart grid’ with advanced metering system.
The report underpins the causes of chaotic energy situation in Pakistan while discussing KESC as a case study. The findings, conclusions and recommendations of the report are equally applicable to all thermal power plants of the country, the author claims.
It adds that role of NEPRA had been curtailed only to tariff determination which could be carried out through a simple software application. The report further suggested that as per the mandate, NEPRA was supposed to act independently and exercise autonomous decisions.
The report calls upon NEPRA to broaden its role from tariff determination to formulate standards, regulate energy sector, give incentives for improving fuel efficiency and play its due role in addressing energy crisis in Pakistan.
It is the first ever study that comprehensively assesses the performance of KESC since its nationalization in early fifties.
The report illustrated that thermal power plants in Pakistan, particularly of KESC, operated at extremely low efficiency and consume very high quantity of fuel to generate per unit of electricity.
The report recommends going for cheap and green hydro and wind power projects which were not functioning due to lack of investment.