Government to save $1.5 billion in capital cost by saving 1000MW

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Faced with the daunting task of supplying power, with dwindling fuel supplies due to the increase in prices, depleting gas reserves and above all failure to make timely recoveries from defaulters, the government has been advised to follow energy efficiency aggressively and take suitable measures by promulgating the energy conservation bill 2011 that is already on the floor of the parliament.
An official source said this recommendation has been made by the Planning Commission keeping in view the ever increasing demand for power growing presently at the rate of eight per cent per annum. According to official estimates overall power demand is projected to rise to 26,000 MW by 2015 and a shortfall in supply of 4200 MW is anticipated. The energy conservation bill has already been cleared by the respective standing committees and the government’s support for its early passage and promulgation will pave way for the introduction of energy efficiency policies and program.
The plan estimates that conserving 1000 MW would help save $1.5 billion capital costs in power generation, while $500 million will be saved in transmission and distribution costs. The impact of the last conservation initiative helped save $250 million in fuel costs per month and lead to substantial benefits to the industry. It would help in ending forced load shedding and continuous power supply to industries except power looms in Faisalabad which will have to bear 5 hour outages.
All these recommendations on energy efficiency and conservation will be presented for approval before a special cabinet committee to be attended by the provincial chief ministers along with recommendations of the ministerial committee on energy, the source said.
He said there are several energy conservation measures entirely within the domain of the federal government that can be immediately implemented by notification and involve no financial costs. Implementation of energy efficiency standards and labeling regime by ENERCON and PCSQA are necessary for energy conservation in the guzzling inefficient electric and gas appliances made in the country.
Conservation measures stress the introduction of two weekly holidays in government departments that will reduce energy consumption, automotive fuel, gas and power.
The physical equipment like street lights could be replaced with solid state or solar and this can be implemented through performance based contracts with Energy Service Companies (ESCOs). This will help in saving 2500 MW, no new street lighting may be installed unless it is solid state or solar. Energy conservation could also be done by converting the telecom towers and billboards on solar lights.
For reducing the energy demand in the medium and long term, the government is recommended to order immediate incorporation of the building energy code in the Pakistan building code. The bill is pending with the Pakistan Engineering Council and requires only formal notification. The replacement of billboard and hoardings will help save 700 to 850 MW.
The replacement of the gas guzzler water geysers with solar geysers or instant water geysers will reduce the domestic and commercial demand by around 500 mmcfd. Implementation of tubewell efficiency program will help in saving 1500 MW. The Ministry of Water and Power is already implementing a program with the assistance of USAID that will convert 11,000 tube wells to efficient pumps.
It also recommends strengthening of the institution of motor vehicle examiners for higher fuel efficiency in vehicles. The program will help in saving 15 per cent fuel requirements.