The Government of Pakistan (herein referred to as the Government) has formulated several policies for the development of the power sector in the past. The aims of these policies were elimination of inefficiencies in existing generation, transmission and distribution systems, as well as diversification of the energy generation mix, with maximum utilization of indigenous energy resources to supply reliable, affordable and clean electricity to the general public.

The National Power Policy 2013 issued by the Government aimed to develop an efficient and consumer-centric power generation, transmission and distribution system that could meet the needs of the people and boost the economy of the country in a sustainable and affordable manner. The goals of the policy were explicitly defined, as were the resulting targets and the extent of meeting the targets, which would gauge the success of the policy. Targets of the prescribed policy included complete elimination of load shedding; decreasing the average cost of electricity generation to below 10 Pakistani rupee/kWh; a decrease in transmission and distribution losses from 23–25% to 16%; an increase in the revenue collection from the current 85% to 95%; and a reduction in the time required for decision making at the ministry level or other related departments to a minimum.

In 2015, the Government introduced the Power Generation Policy 2015 to facilitate private investment in the power sector. The policy offers the private sector incentives to not only set up new power generation projects but also to invest in public sector power generation projects in a different phase of development or already developed and looking for divestment. The objectives of this policy are to have sufficient least cost power generation capacity in the country, prioritizing utilization of indigenous resources, facilitating all stakeholders involved in the transaction and safeguarding the environment.

In 2019, the Alternative and Renewable Energy Policy was introduced to assist the development of renewable resources in the country. The main objective of the policy is to produce a conducive development environment for renewable power projects, increase the share of ‘green’ energy capacity by 20% by 2025 and 30% by 2030 and introduce private capital in the area.

Pakistan’s energy resources consist of fossil fuels (coal, gas, oil), uranium and renewables (hydropower, wind, solar, biomass, etc.). The fossil fuel reserves and the potential of renewable energy of Pakistan are listed in Table 1.

TABLE 1. ESTIMATED ENERGY RESOURCES (AS OF END JUNE 2019)

—: data not available.

Notes:

1. Specific units for solid and liquid: million tonnes; gas: trillion cubic feet; hydro and wind: GW.

2. Solid consists of only coal. It has been converted to energy at 19.8 GJ/t.

3. Liquid consists of crude only. It has been converted to energy at 44.2 GJ/t.

4. Natural gas has been converted to energy at 950 GJ/million cubic feet.

5. Hydro power potential has been converted to annual energy resource at 50% plant factor and 10 550 GJ/GW·h.

6. Wind power potential has been converted to annual energy resource at 30% capacity factor and 10 550 GJ/GW·h.

Sources: Refs [1] and [2].

The country has meagre oil reserves and the indigenous oil production is barely enough to meet around 22% of domestic oil needs. This necessitates import of crude oil and other oil products in large quantities to meet around 80% of demand.

The natural gas reserves of the country are also limited and quickly regressing to increasing demand. This has forced the Government to develop new exploratory wells to increase the national gas cache and, in parallel, look for both short term and long term alternatives such as import of liquefied natural gas (LNG) and piped gas. In the fiscal year 2018–19, around 373 million MMBTU (MM stands for million) of LNG, worth around US $3.4 billion, was imported. This corresponds to around 30% of the total natural gas consumption in the country.

In the past decade, coal has been the fuel of choice for electricity generation in Pakistan, with its capacity jumping from almost zero in 2016 to currently touching the 4 670 MW mark. The current coal based electricity generation configuration is relying heavily on imported coal. This trend is likely to change as units based on the Thar field are added to the electricity generation mix. Thar has the largest coal reserves in the country and has been actively developed in recent years. The first Thar plant, with a capacity of 660 MW, became operational in the first quarter of 2019–2020.

The estimated total hydropower potential of Pakistan is around 60 000 MW, of which nearly 16% is currently exploited. The hydropower potential is concentrated in the northern mountainous region of the country, located far from load centres. The high investment cost for the installation of hydroplants, development of an electricity transmission network and resettlement of the affected population are a few reasons for hydropower not being exploited to its full capacity.

Pakistan has wind corridors that can accommodate about 50 000 MW [3] of wind based capacity and the potential for solar power is also high, as sunlight is available abundantly almost throughout the country. Currently, the capacity share of these renewable resources is small, but it is expected to increase sharply, as reflected in the Alternative and Renewable Energy Policy 2019.

Energy consumption statistics are given in Table 2. During the past two decades, the energy consumption (including bioenergy) of the country almost doubled, at an average growth rate of 4.4%. During the past decade, 2000–2010, oil consumption remained almost static while the consumption of natural gas increased significantly. During 2009–2019, indigenous oil production remained at a level above 65 000 to a maximum of 95 000 barrels per day (equivalent to about 16–21% of the country’s oil consumption) while the natural gas production in the fiscal year 2018–19⁽¹⁾ was 3 936 million cubic feet per day.

Coal consumption saw the highest growth rate during the year 2018–19, due to an increase in its use in cement and other industries. During 2018–19, local coal production was 5.5 million tonnes, while 15.7 million tonnes of coal was imported.

During 2018–19, the residential sector consumed almost half of the total electricity consumed, while hydropower provided 21.3% of the electricity in Pakistan.

Nuclear power contributed 8.4% to the total electricity generation of Pakistan in 2020–21 while its share in the total installed capacity was 6.3%. One unit of KANUPP-2/KANUPP-3, out of the two, became operational on 18 March 2021, making it the country’s sixth operational nuclear power plant and increasing the cumulative generating capacity to 2 530 MW, while the other unit of 1100 MW is under construction.

TABLE 2. ENERGY CONSUMPTION

*Latest available data, please note that compound annual growth rate may not be representative of actual average growth.

**Total energy derived from primary and secondary generation sources. Figures do not reflect potential heat output that may result from electricity co-generation.

—: data not available.

Source(s): United Nations Statistical Division, OECD/IEA and IAEA RDS-1

Historically, the power sector of Pakistan has been under the ownership of two public utilities: the Water and Power Development Authority (WAPDA) and Karachi Electric Supply Corporation (KESC). KESC was responsible for the generation, transmission and distribution of electric power for the city of Karachi and its surrounding areas, and WAPDA was responsible for the country’s remaining electricity supply system. The sharply rising demand for electricity at the turn of the past century surpassed all expansion expectations and the electricity generation infrastructure became inadequate

To improve the performance of the power sector, a new institutional framework was set up. The National Electric Power Regulatory Authority (NEPRA) was established in 1997, as an independent regulator, to ensure a transparent, competitive and commercially oriented power market in Pakistan.

The Private Power Infrastructure Board (PPIB) was established to facilitate private investment in the power sector. The Alternative Energy Development Board (AEDB) was created to oversee the development of renewable energy resources. Development of nuclear power remained the responsibility of the Pakistan Atomic Energy Commission (PAEC).

The overall planning of the electricity system is under the control of the National Economic Council (NEC), which is the supreme body responsible for development activities in the country. It was created in December 1962 under Article 145 of the Constitution of Pakistan. The NEC is headed by the Prime Minister. Its members include Federal Ministers, the Governors/Chief Ministers of the provinces, and the Deputy Chairman of the Planning Commission.

The Planning Commission is the chief instrument for formulating the national plans, while the Energy Wing of the Planning Commission formulates energy plans based on information obtained from all concerned entities. The National Transmission and Despatch Company (NTDC) formulates detailed short and long term national electricity system expansion plans. The NEC approves all plans and policies relating to development of the energy and electricity sector. The Executive Committee of the National Economic Council (ECNEC) supervises the implementation of the energy policy laid down by the Government, and approves any energy sector project to be built by the public sector.

The Ministry of Water and Power has recently been divided into the Ministry of Energy, responsible for development of power resources, and the Ministry of Water Resources, responsible for water resources in the country. The Ministry of Energy (Power Division) handles all issues related to electricity generation, transmission, distribution and pricing, exercising this function through respective organizations. It also performs specific functions such as coordination of power sector plans and formulation of policies and specific incentives, and liaises with provincial governments on all related issues.

The following entities are major stakeholders in the electricity sector of Pakistan.

1.2.2.1. Public Sector Generation Companies (GENCOs)

1.2.2.2. Pakistan Water and Power Development Authority (WAPDA)

1.2.2.3. Pakistan Atomic Energy Commission

1.2.2.4. National Transmission and Despatch Company

1.2.2.5. Distribution companies

1.2.2.6. Private Power and Infrastructure Board

1.2.2.7. Alternative Energy Development Board

1.2.2.8. Regulators

Table 3 reports the data of electricity production in the country over the past two decades and Table 4 provides energy related ratios.

TABLE 3. ELECTRICITY PRODUCTION

*Latest available data, please note that compound annual growth rate may not be representative of actual average growth.

**Electricity transmission losses are not deducted.

—: data not available.

Source: United Nations Statistical Division, OECD/IEA and IAEA RDS-1

TABLE 4. ENERGY RELATED RATIOS

*Latest available data.

Source: RDS-1 and RDS-2

—: data not available.

PAEC was established in 1955. The Ordinance for Pakistan Atomic Energy Commission was promulgated by the President of Pakistan and later approved by the National Assembly in 1965. The functions of PAEC include research work necessary for the promotion of peaceful uses of nuclear energy in the fields of agriculture, medicine and industry, and the execution of development projects, including nuclear power plants for generation of electric power. The Commission is guided by the instructions, if any, given to it by the Government.

PAEC has a Chairman and nine full time members.

Table 5 reports the status and performance of nuclear power plants in Pakistan.

TABLE 5: STATUS AND PERFORMANCE OF NUCLEAR POWER PLANTS

* Net capacity factors for the year 2020 (from 1 January to 31 December)

KANUPP, the oldest of the nuclear fleet of Pakistan, was designed to operate for 30 years. PAEC started working on life extension of KANUPP well before its design life came to an end, in 2002. Plant monitoring and periodic inspection indicated that major plant equipment, including fuel channels, steam generators, steam condensers, turbine generators, primary heat transport pumps and feeders, were all in good condition.

The project Safe Operation of KANUPP (SOK) was undertaken with the technical support of the IAEA to ensure safe operation by averting plant degradation due to ageing by introducing and adopting modern operational practices, in addition to improving the design to some extent. The scope of this project was later extended to include subproject Improve Safety Features of KANUPP (ISFK) and subproject Long Term Safety of KANUPP (LSFK).

Under a comprehensive balancing, modernization and rehabilitation (BMR) project, conventional equipment of KANUPP was upgraded (e.g. building chillers, service air compressors, power cables, condenser tubing, boiler cleaning and rehabilitation, etc.). KANUPP also replaced its obsolete regulating computers, control and instrumentation under the Technological Upgrade Project (TUP). Under TUP, most of the critical control and instrumentation loops and computers were replaced.

Various inspections and reviews of KANUPP were carried out after rehabilitation by international experts. On fulfilling the regulatory requirements of PNRA, KANUPP was granted a license to operate until 31 December 2010, but at a lower reference unit power level of 90 MW. The operation of KANUPP restarted in January 2004 and the refurbished plant operated safely after its makeover.

The plant then was shut down on 20 November 2010 for planned maintenance. The shutdown period was later extended to 6 June 2011 to complete tasks required for another license renewal. The major jobs carried out during this outage were: a fuel channel integrity assessment, an assessment of the habitability of the emergency control centre, water lancing of the steam generator and the creation of a critical safety parameter display system. After completion of these specified jobs, PNRA issued a permit on 6 June 2011 to allow KANUPP to operate up to a power level of 98 MW. In May 2013, KANUPP’s gross capacity was formally de-rated from 137 MW to 100 MW, effective from January 2004. The plant was permanently shut down on 1 August 2021.

After the Fukushima Daiichi accident, the Fukushima Response Action Plan was formulated for all the nuclear power plants in the country. Under the plan, internal safety reviews were carried out, the design safety of future plants was enhanced, safety against external hazards was upgraded and emergency response programmes were strengthened.

Pakistan’s first nuclear power plant, KANUPP, was shut down on 1 August 2021, after 50 years of successful operation.

TABLE 6. STATUS OF DECOMMISSIONING PROCESS OF NUCLEAR POWER PLANTS

The government, realizing the importance of nuclear power in securing electric supply, fuel diversity, environment, technological advancements, job creation etc., is keen to maintain a significant share of nuclear electricity in the energy mix of Pakistan. In line with these objectives, PAEC plans to improve the existing nuclear infrastructure and manpower to keep up with future nuclear power requirements. The plan also puts an impetus on nuclear technology indigenization that in turn will reduce import dependence and nuclear electricity generation cost.

TABLE 7. PLANNED NUCLEAR POWER PLANTS

The existing nuclear power plants of Pakistan and those under construction are considered turnkey projects. During construction and installation, PAEC has been involved in various project management activities. This experience will help PAEC to manage the construction phase of future nuclear power plants. The engineering and design offices of PAEC provide design and engineering services to the operational nuclear plants and those under construction, and will contribute to the construction of future nuclear plants in the country.

CHASHUPP-1 was funded through government funds only. All other operating and under construction nuclear power plants were funded through net revenues from operating power plants, government funds and loans from banks. The funding for future nuclear power plants will be available from (i) government allocations for the power sector, (ii) income from sale of electricity from operational nuclear power plants, and (iii) loans from banks/ financial institutions.

The construction, expansion and upgrading of the national electric grid are the responsibilities of NTDC.

PAEC has conducted detailed studies for all sites of existing nuclear power plants and those under construction. The sites meeting regulatory requirements of PNRA were selected and have the capacity to accommodate additional nuclear units. Additional sites are being investigated to extend the nuclear power programme.

Public awareness is enhanced through seminars, workshops and electronic/print media.

1. Research institutes/centres

   PAEC has the following research institutes/centres:

• Pakistan Institute of Nuclear Science and Technology (PINSTECH) engages in basic and applied research in physics, chemistry, materials, safety, radioisotope applications and radiation protection;

• Instrumentation, Control and Computers Complex (ICCC) oversees instrumentation and control of nuclear power plants, simulators, plant computer systems, etc.;

• Engineering Design Organization (EDO) provides design and engineering services to operational, under construction and future nuclear power plants.

2. Research reactor facilities

   Pakistan has two research reactors:

• PARR-1, swimming pool type, 10 MW;

• PARR-2, tank in pool type, 30 kW.

Pakistan is a member of the IAEA, World Association of Nuclear Operators (WANO) and CANDU Owners Group (COG) and receives assistance from their programmes for enhancement of the safety and reliability of nuclear power plants.

2.9.1.1. Pakistan Institute of Engineering & Applied Sciences (PIEAS)

2.9.1.2. Karachi Institute of Power Engineering (KINPOE)

2.9.1.3. CHASNUPP Centre of Nuclear Training (CHASCENT)

2.9.1.4. National Centre for Non-Destructive Testing (NCNDT)

2.9.1.5. Pakistan Welding Institute (PWI)

2.9.1.6. School of Mineral Technology (SMT)

2.9.1.7. Pakistan Institute of Nuclear Science and Technology (PINSTECH)

With the promulgation of the PNRA Ordinance in January 2001, the PNRA was established as an independent nuclear regulatory body for regulation of nuclear safety and radiation protection in Pakistan. The PNRA Ordinance empowers it to devise, adopt, make and enforce regulations for the protection of workers, the public and the environment against the harmful effects of ionizing radiations.

PNRA has an elaborate licensing process that includes the following steps as per its Regulations for Licensing of Nuclear Installations in Pakistan-PAK/909 (Rev. 1):

• Site registration;

• Construction license;

• Permission for commissioning;

• Permission to introduce nuclear material into the installation;

• Operating license;

• Revalidation of operating license;

• Licensing beyond design life;

• License for decommissioning of a nuclear installation or closure of a waste repository;

• Removal from regulatory control.

• Pakistan Nuclear Regulatory Authority Ordinance 2001.

• Pakistan Nuclear Safety and Radiation Protection Regulation 1990;

• Regulations on Licensing Fee by Pakistan Nuclear Regulatory Authority (PAK/900);

• Regulations on Transaction of Business of Pakistan Nuclear Regulatory Authority (PAK/901);

• Regulations on Radiation Protection (PAK/904);

• Regulations for Licensing of Nuclear Safety Class Equipment and Components Manufacturers (PAK/907);

• Regulations for Licensing of Nuclear Installation(s) in Pakistan (PAK/909);

• Regulations on the Safety of Nuclear Installations — Site Evaluation (PAK/910);

• Regulations on the Safety of Nuclear Power Plants — Design (PAK/911);

• Regulations on the Safety of Nuclear Power Plants — Quality Assurance (PAK/912);

• Regulations on the Safety of Nuclear Power Plants — Operation (PAK/913);

• Regulations on Management of a Nuclear or Radiological Emergency (PAK/914);

• Regulations on Radioactive Waste Management (PAK/915);

• Regulations for the Safe Transportation of Radioactive Material (PAK/916);

• Regulations on Physical Protection of Nuclear Material and Nuclear Installations (PAK/925)

• Regulations on Security of Radioactive Sources (PAK/926)

• Regulation on Decommissioning of Facilities using Radioactive Material (PAK/930);

• Pakistan Nuclear Regulatory Authority Enforcement Regulation (PAK/950);

• Trade Policy: 2012–15, Ministry of Commerce, Import Policy Order 2013, Export Policy Order 2013 and Import and Export Control Act 1950.

• National Policy on Safe Management of Radioactive Waste, Decommissioning and Spent Fuel in Islamic Republic of Pakistan (RWP-01/2018).

• National Safety Policy (NP-02/2020).

• Regulations on Dispute Resolution (PAK/949).

• Regulations for The Safe Management of Spent Nuclear Fuel (PAK/918).