MONEM FAROOQI
The PML-N government has planned to add 8,300 MW electricity generation till 2018 in addition to installed capacity of 24,900 MW, however, the evidence suggests that present transmission system has capacity to safely dispatch about 15,000 MW.
According to appraisal documents of $493 million National Transmission Modernization-I Project, completed in November, ready for World Bank Board approval by March 15, 2017, revealed that the government efforts have only concentrated on increasing generation capacity, but aging and increasingly unreliable transmission and distribution system also imposed severe constraints.
“Investment in generation will not have intended benefits without adequate and timely upgrading of transmission and distribution systems. Instead, the documents said that the government should have been working on strategy for the transmission segment, to create a cutting-edge national transmission network.
“Some substations commissioned before 1970s, may contain polychlorinated biphenyls (PCBs). Safe disposal of replaced equipment will require adequate mitigation measures to ensure environmental protection and avoiding contamination of natural resources like water and air, the documents stated.
The documents pointed out the aging and inadequate transmission and distribution systems exacerbated the problem. The documents mentioned that the evidence suggested that the transmission system has capacity to dispatch about 15,000 MW safely and there have been several instances of major system collapses which appeared to be increasing in frequency and severity. The appraisal documents pointed out that massive, well targeted and efficiently executed investment was needed throughout the electricity value chain.
There should have been a strategy involving (a) expansion and upgrading of the national grid to accommodate new large and small scale hydropower generation and to reduce losses; (b) optimizing management of the transmission system through a performance contract with National Transmission and Dispatch Company (NTDC) and using IT for optimizing economic dispatch, management and operation of the system; and (c) mobilizing private investment in transmission infrastructure through provision of incentives and an innovative regulatory regime.
The documents mentioned that the investment in high-priority transmission infrastructure, information communication technology (ICT) and technical assistance (TA) was needed to make the system effective. It stated that the infrastructure investments should be either transmission lines, transmission substations or a combination of the two.
Pointing to the proposed plan, the documents mentioned the proposed project would create new assets or rehabilitate existing parts of the system. The subprojects would be selected based on system planning conducted by NTDC that identified the highest priority improvements.
The NEPRA also reported that most distribution systems did not meet their investment targets for repair and maintenance. The NEPRA report also mentioned that most of the developmental works of NTDC were delayed. The commitment charges were being paid due to delay in execution of projects. Total of $3.385 million have been paid by NTDC in respect of commitment charges.
