Pakistan’s energy resources consist of fossil fuels (coal, gas and oil), uranium and renewable energy (hydropower, wind, solar, wood, etc). The fossil fuels reserves and potential renewable energy of Pakistan are reported in Table 3. Pakistan does not have adequate oil reserves and has to import large quantities of crude oil and petroleum products to meet more than 80% of its oil requirements. The natural gas reserves of the country are limited, however the coal reserves are large but yet undeveloped.

The hydro power potential of Pakistan is estimated to be 50,000 MW. Around 13.7% of the estimated potential has been exploited. The hydro potential is located in mountainous regions, away from load centers. High investment cost (for electricity generation and transmission), socio-political issues, such as water allocation among the provinces and resettlement of people, are some of the reasons for not exploiting the potential to its full capacity. Pakistan has a considerable potential for wind energy. The economically exploitable wind potential is about 50,000 MW.

TABLE 3. ESTIMATED ENERGY RESOURCES

n.a. not available

Notes:-

1. Specific units for solid & 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: (HDIP: 2013 and (WAPDA: 2011).

The energy supply statistics are given in Table 4. During the last decade, the indigenous oil production has been at a level of about 55,000-77,000 barrels per day (equivalent to about 16-21% of the country's oil consumption). Pakistan's natural gas production in year 2012-13 was 4,126 million cubic feet per day.

TABLE 4. ENERGY STATISTICS (EXAJOULE)

*Nuclear power was introduced after 1970.

- Less than 0.005 exajoule

** Growth rate during the period 2005-2013.

Notes:-

1. Years in this Table are financial (i.e. from 1st July – 30th June)

2. Energy consumption = Primary energy production + Net import (import – export).

3. Solid fuel consists of coal and lignite.

4. Import of electricity was started in the year 2003

Sources: (GoP: 1978) and (HDIP: 2013).

Coal Production in 2012-13 was 3.2 million tonnes, while 3.7 million tonnes of coal were imported to meet the industrial requirement. 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 the year 2012-13, hydropower provided 30.3% of electricity in Pakistan. Although Pakistan has relatively high endowment of hydropower potential, however only 6,826 MW (13.7%) has been exploited so far. Some small, mini and micro hydro projects are under construction and a number of medium and large size hydroelectric projects are either planned or proposed.

Nuclear power generation contributed 4.2% to the total electricity generation of Pakistan in the year 2012-13. The country has three operating nuclear power plants (NPPs); KANUPP, a Pressurized Heavy Water Reactor (PHWR) of 137 MW (de-rated 100 MW), and two Pressurized Light Water Reactor (PWR) namely CHASNUPP unit-1 (C-1) of gross capacity 325 MW and CHASNUPP unit-2 (C-2) of gross capacity 330 MW. Two more PWR type nuclear units C-3 and C-4 each of 340 MW gross capacity are under construction at the Chashma site and are expected to be commissioned in 2016 and 2017, respectively.

The energy sector, to a large extent, has been owned and operated by the Government of Pakistan (GoP). During the last two decades, GoP formulated various policies and programmes to reform the energy sector. Besides improving the efficiency of public sector institutions, policies have been formulated to increase the private sector participation in the development of the energy sector. The legal and institutional framework has been setup for restructuring of energy sector entities owned by the public sector and to create a market in which private companies can work under the regulatory authorities to provide energy/electricity on a competitive basis.

GoP formulated the Medium Term Development Framework (MTDF) 2005-10 (GoP: 2005). The Framework translates the vision of long-term (2005-30) sustainable development into a mix of actions and policies to decide the role of the public sector in the development process, and to facilitate the private sector to play its role. The Framework identifies issues in the energy sector to formulate strategies for development and policies for their implementation. The aim of current energy policy is to ensure sustainable supply of energy to all sectors of economy at a competitive price through development of indigenous energy resources (coal, hydro, nuclear and renewables) and a reduction in energy import dependence.

GoP is preparing ‘The Pakistan Vision 2025’. Major themes of the Vision include an integrated energy plan, modernization of infrastructure, mobilization of indigenous resources, institutional reforms and governance, value addition in production sectors, growth led by export and private sector.

The Pakistan power sector was owned and served by two public utilities; the Pakistan Water and Power Development Authority (WAPDA) and Karachi Electric Supply Company (KESC). Over the years it was observed that these institutions were not able to meet the electricity demands of the country that resulted in a supply-demand gap. The performance of the power sector was continuously deteriorating due to institutional weaknesses, an irrational tariff structure and subsidies. To improve the performance of the power sector, the Regulation of Generation, Transmission and Distribution of Electric Power Act was passed in 1997 and a new institutional framework was setup.

In the new setup, National Electric Power Regulatory Authority (NEPRA) was established to function as an independent regulator and to ensure a transparent, competitive, commercially-oriented power market in Pakistan. The Power Wing of WAPDA was unbundled into four Generation Companies (GENCOs), eleven Distribution Companies (DISCOs) and one National Transmission and Despatch Company (NTDC). The KESC was privatized which is currently renamed as K-Electric. Planning and development of nuclear power is the responsibility of Pakistan Atomic Energy Commission (PAEC). The NPPs are under the ownership of PAEC. The Private Power and Infrastructure Board (PPIB) was established to facilitate private investment in power sector. Alternative Energy Development Board (AEDB) was created for the exploitation of renewable energy resources.

Over the years, the GoP formulated many policies for power sector development. The aims of these policies were elimination of inefficiencies in existing generation, transmission and distribution system, 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 a supply demand gap of up to 4,500 -5,500 MW. The GoP formulated National Power Policy 2013 for strategically development of power sector on the basis of three principles efficiency, competition, and sustainability.

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. NEC is headed by the Head of the Government. Its members are some 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 and Energy Wing of the Planning Commission estimates energy demand on the basis of information obtained from all concerned entities. The Energy Wing also formulates unified short- and long-term national energy plans. The NEC approves all plans and policies relating to energy/electricity sectors 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 handles all issues related to electricity generation, transmission & distribution, pricing and consumption in the country. The Ministry exercises this function through respective organizations. It also performs certain specific functions such as coordination of power sector plans, formulation of policy and specific incentives, and liaisons with provincial governments on all related issues.

The following are the major stakeholders in the electricity sector.

Generation Companies (GENCOs)

Pakistan Water and Power Development Authority (WAPDA)

Pakistan Atomic Energy Commission (PAEC)

National Transmission and Dispatch Company (NTDC)

Distribution Companies

Private Power and Infrastructure Board (PPIB)

Alternative Energy Development Board (AEDB)

Regulators

Table 5 reports the data of electricity production and installed capacity in the country over the last four decades while Table 6 provides energy related ratios.

TABLE 5. ELECTRICITY PRODUCTION AND INSTALLED CAPACITY

* Nuclear power was introduced after 1970.

- Less than 0.01 TWh

Notes:-

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

2. Electricity transmission and distribution losses are not deducted.

Source: (NEPRA: 2013), (HDIP: 2013) and (NEPRA, 2013)

TABLE 6. ENERGY RELATED RATIOS

* Nuclear power was introduced after 1970.

- Less than 0.1 %

Notes:

1. Years in this table are financial years (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 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, 4 and 5.

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 & industry and the execution of development projects including NPPs for the generation of electric power. In the performance of its functioning, 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 7 reports the status and performance of NPPs in Pakistan. KANUPP completed its design life of 30 years in 2002. After necessary refurbishments and upgrades undertaken by PAEC, KANUPP is now operating on 15-year extended life at a de-rated gross capacity of 100 MW. The second NPP, C-1, completed thirteen years of safe commercial operation in September 2013. The third NPP C-2 is operating well since its commercial operation in May 2011. The three operating NPPs, KANUPP, C-1 and C-2, respectively sent 12.95 billion kWh, 26.19 billion kWh and 5.49 billion kWh of electricity to the grid up to 31 December 2013. The availability factor of these NPPs during (January to December) 2013 were; KANUPP (77.66%), C-1 (85.41%) and C-2 (72.0%).

TABLE 7. STATUS AND PERFORMANCE OF NUCLER POWER PLANTS

⁽ Target

The first NPP of Pakistan, KANUPP began commercial operation in 1972. Before the completion of design life of KANUPP in 2002, PAEC initiated work on its life extension. Plant monitoring and periodic inspection indicated that major plant equipment including fuel channels, steam generators, steam condensers, turbine, generator, primary heat transport pumping; feeders etc. were in good condition.

A project, “Safe operation of KANUPP” (SOK), was undertaken with technical support of International Atomic Energy Agency (IAEA) to ensure safe operation by averting plant degradation due to aging, introducing and adopting modern operational practices, and 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, KANUPP upgraded its conventional equipment, such as 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-gradation Project (TUP), under which 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, a license was granted to KANUPP at a reduced power level of 90 MW up to 31 December 2010. KANUPP operated safely since it was restarted in January 2004.

The plant was shut down on 20 November 2010 for planned maintenance outages. The shutdown period was later extended to 6 June 2011 to carry out license renewal jobs. The major jobs carried out were: Fuel Channel Integrity Assessment (FCIA), habitability of Emergency Control Centre (ECC), Steam generator water lacing and availability of critical safety parameter display system. After completion of the specific jobs, PNRA issued a permit on 6 June 2011 to allow KANUPP operating up to a power level of 98 MW. In May 2013, KANUPP gross capacity was formally de-rated from 137 MW to 100 MW with effect from January 2004.

After the accident at Fukushima Daiichi NPP, Fukushima Response Action Plan was formulated for all NPPs. Under the Plan; internal safety reviews have been carried out, design safety of future plants is being enhanced, safety against external hazards is being further upgraded and emergency response programs are being strengthened.

The Energy Security Plan of Pakistan set a target of 8,800 MW nuclear power generation capacity by 2030 (GoP: 2005). PAEC strategy for nuclear power programme is development of indigenous capability in NPP technology to reduce dependence on imported plants and fuel, conserve the foreign exchange component and to reduce total cost, by expanding the level of the nation’s industrial and technological base.

The existing and under construction NPPs of Pakistan are turn-key projects. During construction and installation of KANUPP, C-1 and C-2, PAEC has been involved in various project management activities. This experience will help PAEC to manage future NPPs. An Engineering Design Organization (EDO) has been established for providing design and engineering services to the operational and under construction NPPs which will act as Architect Engineer for future NPPs.

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

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

PAEC has conducted detailed studies for sites of existing NPPs; KANUPP, C-1 and C-2. These sites meet regulatory requirements of PNRA and can accommodate additional nuclear units. However, more sites are also being investigated for the expanded nuclear power programme.

• Research Institutes/Centers

PAEC has the following research institutes/centers.

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

• Instrumentation, Control and Computers Complex (ICCC) established for Instrumentation and Control of NPPs, simulators, plant computer systems, etc.

• Engineering Design Organization (EDO) has been established for providing design and engineering services to the operational, under construction and future NPPs.

• 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 contributing significantly in developing capacity building of Small and Medium Sized Reactor (SMR) technology. In this regards, so far three Cost Free Expert (CFE) from PAEC have been posted for 6-12 months at IAEA.

Recently Pakistan hosted a technical meeting (TM) on SMRs in Islamabad from 12-16 May, 2014 on Operating Fundamentals of Pressurized Water Reactor (PWR) – Small and Medium Sized Reactors (SMRs). Eight Participants from Member States and two IAEA officials attended the TM. The main purpose of the meeting was to enable developing countries embarking upon nuclear power programme to apprehend operating fundamentals of water cooled SMRs by understanding the general design features, systems/component descriptions, parameter and integrated plant operation training programme of 300 MW nuclear power plant.

Pakistan is a member of IAEA, World Association of Nuclear Operators (WANO) and Candu Owners Group (COG) and is getting assistance from their programmes for enhancement of safety and reliability of NPPs.

IAEA Operational Safety Review Team (OSART) missions to KANUPP were conducted in 1985 and 1989. WANO Peer Reviews of KANUPP were conducted in 1994, 1996, 2000, 2010 and 2013. IAEA OSART mission to C-1 was conducted in 2004 and 2006. WANO Peer Review of C-1 was conducted in 2006 and 2012. WANO pre-startup Peer Review of C-2 was conducted in July 2010 and follow-up in November 2010. The recommendations of these missions were very beneficial for improving safety and performance of the NPPs.

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

PNRA has very elaborate licensing process which includes following Nine (09) steps as per "Regulations for Licensing of Nuclear Installations in Pakistan-PAK/909 (Rev. 1)”.

1. Site Registration

2. Construction License

3. Permission for Commissioning

4. Permission to Introduce Nuclear Material into the Installation

5. Operating License

6. Revalidation of Operating License

7. Licensing Beyond Design Life

8. License for Decommissioning of a Nuclear Installation or Closure of a Waste Repository

9. Removal from Regulatory Control