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 are 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 2020)

na : 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 2019 20, around 349 million MMBTU of LNG, worth around US$ 2.6 billion was imported, corresponding to around 23.8% 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. Reliance on local coal based on Thar mines will increase and according to Indicative Generative Capacity Expansion Plan (IGCEP) developed by NTDC, 5 more units with 2 970 MW will become operational by the year 2030.

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. High investment cost for the setting up a hydroelectric plant, development of an electricity transmission network and resettlement of the affected population are a few hurdles in the way of hydropower development. IGCEP envisages an additional committed capacity of 13 446 MW by the year 2030, consisting of 14 hydro units.

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 from the year 2000 are given in Table 2. During the period from 2000 to 2020, total energy consumption (including bio energy) of the country has more than doubled, at an average growth rate of 3.57%, while electricity consumption increased at an average growth rate of 4.42%.

Since the turn of the century, indigenous oil production hovered around the 60 000 barrels a day mark (peaking at 95 000 in 2015), barely enough to cater for one fifth of the total oil demand in the country, while the rest was met by importing crude oil and refined products. The heavy dependence on imported oil severely dented the economy when international oil prices soared, forcing policy makers to replace the use of oil with indigenous natural gas in every sector of the economy. During the period from 2000 to 2010, the use of natural gas doubled while that of oil reduced by 5% putting immense pressure on gas infrastructure especially during winters when shortage of gas paralyzed the industrial and transport activity as a result of transferring the supply of gas where it was desperately needed, the residential sector. In the recent past, domestic gas fields have been showing gradual decrease in production and while the demand of gas has been rising steadily, the output that once stood at more than 4 000 MCF per day in 2012, dropped to almost 3 500 MCF per day in 2020. Import of liquefied natural gas (LNG) was allowed at that time to compensate for the shortage of gas in the system.

Use of coal saw double digit average growth of almost 11% in the past two decades owing to demand from the industrial and construction sectors. During 2019 2020, 8.7 million tonnes of coal were produced by domestic coal fields (dominated by the Thar field that solely produced 3.7 tonnes), while 16.4 million tonnes of coal was imported.

Industrial and construction sectors will continue to push gas and coal demands in the near future while demand for electricity is also expected to grow with growing urbanization, increasing access to electricity/modernisation in rural areas and increasing share of electricity in the transport sector.

TABLE 2. ENERGY CONSUMPTION DATA

* The number is an estimate based on UN RDS-1 data growth rate.

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. WAPDA was unbundled into four Generation Companies (GENCOs), a Transmission and Despatch Company (NTDC) and eight (later rearranged into ten) Distribution Companies (DISCOs). KESC was privatized in 2005 and rebranded later as K-Electric.

Pakistan Electric Power Company (PEPCO) also came into existence, responsible for restructuring and preparation for privatization. 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 (PAEC)

1.2.2.4. National Transmission and DespatchCompany (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 in the country over the past two decades and Table 4 provides energy related ratios.

TABLE 3. ELECTRICITY PRODUCTION

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

Source: Ref. [1].

TABLE 4. ENERGY RELATED RATIOS

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

Sources: Based on Tables 1, 2 and 3.

PAEC 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 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 5reportsthe status and performance of nuclear power plants in Pakistan.

TABLE 5: STATUS AND PERFORMANCE OF NUCLEAR POWER PLANTS

* Net capacity factors for the year 2021 (from 1 January to 31 December)

After the accident at the Fukushima Daiichi nuclear power plant, 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.

At CNPGS, review comments of PNRA on Ageing Management Review Reports, (Safety Factor-04) for Periodic Safety Review of C-1 and C-2 were discussed with PNRA and responses were generated. Work on agreed corrective action plan is in progress. Ageing management programs of switch gears, batteries, spent fuel pool and boric acid corrosion control were prepared. Ageing management programs of cables, CRDM, containment, WUH cooling towers, pressurizer, steam generator, oil immersed transformer were revised. Inspection of civil structures containing cooling towers and containment of C-1 and C-2 were conducted for evaluation of aging. Trending reports of chemistry parameters across steam generator and turbines were developed on quarterly basis.

At KNPGS, ageing management database of important System Structures and Components (SSCs) were updated. Ageing management programs of transformer, emergency diesel generator, steam generator, Reactor Pressure Vessel, cable, chemistry control program, corrosion monitoring and control program were prepared.

The following are some of the latest design modifications performed on CNPGS:

• Replaced residual heat removal system isolation valves and associated piping of C-1;

• Replaced manual valve with motorized valve on WDS pumps header recirculation line of C-1;

• Fixed supports (sliding plates) on main steam and main feed-water systems piping of C-1;

• Segregated and re-routed drain lines of high pressure (HP) heaters of C-1;

• Enlarged bypass piping and valve of condensate system of C-1;

• Changed the support scheme of LP turbines cavity/ slop drain lines of C-1;

• Changed material of turbine extraction steam piping/ fittings of C-1;

• Provided exhaust hoods for new equipment in chemistry laboratory of C-2;

• Provided additional supports on recirculation piping of condensate pump of C-3;

• Enlarged drain piping of gland housings of DCW pumps of C-4;

• Provided permanent nitrogen gas supply to VWN chillers of C-4;

• Shifted plant to house load operation on grid under-frequency transient at C-4;

• Eliminated SPV of main feed water pumps of C-1;

• Provided separate power supply to pressure transmitters of DEH system of C-1;

• Changed pressure monitors on cross-over piping of C-1;

• Changed data acquisition instruments in CIT system of C-1;

• Provided parameters of CMC031CB on CPC system of C-1;

• Changed oil level instrumentation of RCPs bearing housings of C-1;

• Installed dual linear variable differential transformer (LVDTs).

After successful completion of PSR 2, a plant operating license has been granted by PNRA to C-1 for next ten years on 31 December 2020. The license is valid until 31 December 2030.

Fuel load permit to K-2 was issued on the 28 November 2020. Initial criticality permission to K-2 was issued by PNRA on 26 Feb 2021. Provisional acceptance was approved after completing all performance tests on 21 May 2021. Application for the operating license was submitted to PNRA in November 2021. Fuel loading permit for K-3 was issued by PNRA on the 16 December 2021.

Pakistan´s first nuclear power plant, KANUPP, was permanently shut downed on1 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 human resources 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.

All existing nuclear power plants of Pakistan are 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.

C-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 government allocations for the power sector and self-financing.

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

PAEC conducted detailed site study of many probable sites that could house a nuclear power plant in the country. Sites that met stringent PNRA regulatory requirements and were able to accommodate cluster of multiple nuclear units were selected to install nuclear power generating stations. Site studies on different locations are being conducted to accommodate extension of 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 organizations of PAEC 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. 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).