The National Power Policy 2013 issued by the Government of Pakistan (herein referred to as Government) aims to develop an efficient and consumer-centric power generation, transmission and distribution system that meets the needs of the people and boosts the economy of the country in a sustainable and affordable manner. The goals of the policy are explicitly defined, as are the resulting targets and the extent of meeting the targets, which will gauge the success of the policy. Targets of the prescribed policy include complete elimination of load shedding; a decrease in the average cost of electricity generation; a decrease in transmission and distribution losses from 23–25% to 16%; an increase in revenue collection from 85% to 95%; and a reduction in the time required for decision making at the ministry level or other related departments to a minimum.

Over the years, the Government formulated many policies for power sector development. The aims of these policies were elimination of inefficiencies in existing generation, transmission and, distribution systems and diversification of generation mix with maximum utilization of indigenous energy resources, including hydro, coal, nuclear and renewable. However, shortcomings in implementation of these policies resulted in a supply demand gap and load shedding.

In 2015, the Government issued a 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 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.

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 2015)

—: 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/tonne.

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

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

5. Hydro power potential has been converted to energy at 50% plant factor and 10 550 GJ/GWh.

6. Wind power potential has been converted to energy at 30% capacity factor and 10 550 GJ/GWh.

Sources: Refs [1] and [2].

The country has meagre oil resources and indigenous oil production is inadequate to meet domestic demand, requiring import of crude oil and other oil products in large quantities to meet more than 80% of oil requirements.

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 national gas cache and in parallel, look for short -term and long term alternatives such as import of liquefied natural gas (LNG) and piped gas.

Development of a large coal reserve, discovered in the early 90s at Thar, is under way and will play a vital role in the energy scene of Pakistan somewhere in the year 2020. Import of coal for electricity generation also kicked off recently.

The total hydropower potential of Pakistan is estimated to be nearly 60 000 MW, around 11.7% of which has been exploited, and around 53 000 MW of which is still not harnessed. Hydropower potential is concentrated in the northern mountainous region of the country which is located far from load centres and is generally tough terrain. The high investment cost for the installation of hydro plants, development of an electricity transmission network from scratch and resettlement of the affected population are a few reasons for this potential 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. The role of these renewable resources is expected to gradually increase.

Energy supply statistics are given in Table 2. During the past decade (2005–2015), indigenous oil production has been at a level of about 66 000–95 000 barrels per day (equivalent to about 19–21% of the country’s oil consumption). Pakistan’s natural gas production in fiscal year (FY) 2014–15⁽¹⁾ was 4 016 million cubic feet per day.

Coal production in 2014–15 was 3.7 million tonnes, while 5 million tonnes of coal was imported to meet the industrial requirements of the country. The development of the coal mining industry in Pakistan, particularly for power generation, is hampered by many constraints relating to the quality of coal, mining difficulties and organizational constraints.

During 2015–16, hydropower provided 29% of the electricity in Pakistan. Some small, mini and micro hydro projects are under construction and a number of medium and large hydroelectric projects are either planned or proposed.

Nuclear power generation contributed 3.6% to the total electricity generation of Pakistan in 2015–16. At present, the country has four operational nuclear power plants that have a cumulative generating capacity of 1 090 MW, while 2 540 MW is under construction.

TABLE 2: ENERGY STATISTICS (EXAJOULES)

• Less than 0.005 exajoule.

Notes:

1. Years in this table are fiscal (i.e. from 1 July–30 June).

2. Energy consumption = primary energy production + net import (import–export).

3. Solid fuel consists of coal and lignite.

Source: Ref. [1].

Since its inception, 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). While KESC is responsible for generation, transmission and distribution of electric power for Karachi city and its surrounding areas, WAPDA oversees the rest of the country’s electricity business. The sharply rising demand for electricity at the turn of the past century surpassed all expansion expectations and the electricity generation infrastructure became inadequate. Among other factors responsible for this failure were financial limitations and management incompetence. The performance of the power sector continuously deteriorated due to institutional weaknesses and an irrational tariff structure plagued with subsidies. To improve the performance of power sector, a new institutional framework was set up.

Under a new set-up, the National Electric Power Regulatory Authority (NEPRA) was established, as an independent regulator, to ensure a transparent, competitive and commercially oriented power market in Pakistan. The Power Wing of WAPDA was unbundled into four Generation Companies (GENCOs), ten Distribution Companies (DISCOs) and one National Transmission and Despatch Company (NTDC). The KESC was privatized and rebranded as K-Electric.

The Private Power and Infrastructure Board (PPIB) was established to facilitate private investment in the power sector. Creation of the Alternative Energy Development Board (AEDB) allowed the entity to oversee development of renewable energy resources.

Development of nuclear power is the responsibility of the Pakistan Atomic Energy Commission (PAEC).

Decision Making Process:

The overall planning of the electricity system is under the control of The National Economic Council (NEC), which is the supreme body responsible for ensuring balanced 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. NTDC formulates detailed short and long term national electricity system expansion plans. The NEC approves all plans and policies relating to energy and electricity sector development. The Executive Committee of the National Economic Council (ECNEC) supervises 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 is responsible for development of water and power resources in the country. It also handles all issues related to electricity generation, transmission, distribution and pricing. The Ministry exercises this function through respective organizations. It also performs certain specific functions such as coordination of power sector plans, 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.

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 (PAEC)

1.2.2.4. National Transmission and Despatch Company (NTDC)

1.2.2.5. Distribution Companies

1.2.2.6. Private Power and Infrastructure Board (PPIB)

1.2.2.7. Alternative Energy Development Board (AEDB)

1.2.2.8. Regulators

Table 3 reports the data of electricity production and installed capacity in the country over the last four decades while the Table 4 provides some vital energy related ratios.

TABLE 3: INSTALLED CAPACITY, ELECTRICITY PRODUCTION AND CONSUMPTION

• Less than 0.01 TWh

  Notes:

• Years in this table are fiscal (1 July–30 June).

• Electricity transmission and distribution losses are not deducted.

Sources: Refs [1], [3] and [5].

TABLE 4: ENERGY RELATED RATIOS

* Energy data for the year 2016 not yet available.

- Less than 0.1 %

Notes:

1. Years in this table are fiscal (1 July–30 June).

2. Energy consumption does not include wood.

3. Self-generation is not included in electricity production and consumption.

4. Electricity has been converted to energy by using the conversion factor 1 GWh=3.6 TJ.

5. External dependency is the ratio of net import to total energy consumption.

Sources: Based on Tables 1, 2 and 3.

The Pakistan Atomic Energy Committee was established in 1955. The Ordinance for PAEC 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 the 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. The organizational chart of PAEC is shown in Figure 1.

Fig. 1. Organizational Chart of PAEC.

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

TABLE 5: STATUS AND PERFORMANCE OF NUCLEAR POWER PLANTS

KANUPP, the oldest of the nuclear fleet of Pakistan, was designed to operate for 30 years. While its design life ended in 2002, PAEC worked on its life extension well before that time. Plant monitoring and periodic inspection indicated that major plant equipment, including fuel channels, steam generators, steam condensers, turbine generators, primary heat transport pumping and feeders, was in good condition.

A project, “Safe Operation of KANUPP” (SOK), was undertaken with technical support from the International Atomic Energy Agency (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. This project later extended to “Improve Safety Features of KANUPP” (ISFK) and finally to “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 undertook the replacement of its obsolete regulating computers, control and instrumentation under the technological up-grade 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 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, assessing the habitability of the emergency control centre, steam generator water lancing and making available 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 derated from 137 MW to 100 MW effective from January 2004.

After the Fukushima accident in Japan, 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.

No nuclear power plant has yet been permanently shut down or is decommissioning in Pakistan.

The Energy Security Plan formulated by the Government set a target of 8 800 MW of tangible nuclear power generation capacity by the year 2030 (Ref. [6]). PAEC went about this target with the core idea of improving indigenization capability in nuclear power technology. This will not only reduce costs and save foreign exchange but also reduce dependence on external elements and expand the nation’s industrial and technological foundations.

TABLE 6. PLANNED NUCLEAR POWER PLANTS

The existing nuclear power plants of Pakistan and those under construction are turnkey projects. During construction and installation of operating plants (KANUPP, C-1, C-2, C-3) and plants currently under construction (C-4, K-2, K-3), PAEC has been involved in various project management activities. This experience will help PAEC to manage the construction phase of future nuclear power plants. An Engineering Design Organization (EDO) was also established for providing design and engineering services to the operational nuclear plants and those under construction, which will act as architect engineer for future plants.

The existing nuclear power plants of Pakistan and those under construction were funded through the Public Sector Development Programme (PSDP) of the Government. The funding for future nuclear power plants will be available from (i) PSDP allocation for power sector, (ii) income from sale of electricity from operational nuclear power plants, and (iii) export credit from the supplier(s).

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 have been selected and they have the capability to accommodate additional nuclear units. Additional sites are being investigated for the expanded 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 and future nuclear power plants as well as those under construction.

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 developing capacity building of small and medium sized reactor (SMR) technology. In this regard, cost free experts from PAEC are posted for 6–12 months at the IAEA.

In December 2016, the IAEA Technical Meeting on Design and Operation Aspects of Pressurized Water Reactor (PWR)–Type Small and Medium Sized Reactors (SMRs) was held in Islamabad. Seven foreign and 35 Pakistani participants from various establishments of PAEC attended the technical meeting.

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 safety and reliability of nuclear power plants.

1. Pakistan Institute of Engineering & Applied Sciences (PIEAS) is one of the leading engineering universities of Pakistan. It provides the core human resources that have allowed PAEC to develop its programmes in science, engineering and nuclear medicine. PIEAS offers postgraduate and PhD programmes in many engineering and science disciplines of nuclear technology. It also offers Bachelors level programmes in electrical, mechanical and computer engineering. Besides its degree programs, PIEAS also conducts management courses for both middle and senior management officials and organizes training courses in various specialized areas. In 2014, PIEAS was ranked the no. 1 engineering institution by the Higher Education Commission of Pakistan and ranked 106th in QS Asian University Rankings.

2. Karachi Institute of Power Engineering (KINPOE) offers a postgraduate degree programme in nuclear power engineering and a one-year diploma in nuclear technology to engineering and science graduates. It also offers a post-diploma training program in nuclear technology for technicians.

3. CHASNUPP Centre of Nuclear Training (CHASCENT) conducts one-year training in nuclear power plant technology to engineers and technicians. It also provides post-diploma training programs to technicians and retraining of plant operation personnel to meet licensing requirements.

4. National Centre for Non-Destructive Testing (NCNDT) provides training in non-destructive testing techniques to engineers and technicians of PAEC and industry.

5. Pakistan Welding Institute (PWI) provides training in industrial welding techniques to professionals of PAEC and industry.

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, public and the environment against the harmful effects of ionizing radiation.

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 the Licensing of Radiation Facilities other than Nuclear Installations – (PAK/908);

• 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 Plant 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 the Safety of Nuclear Research Reactor (s) Operation – (PAK/923);

• 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.