I intend to write about all major Problems Pakistani Public faces and their solutions in a series of blogs. I want to start with the problem of our energy deficit.
On 26th May 2016, Secretary Water & Power Mr. Younus Dagha announced that Power Generation will rise to 33,000 MW in 2018 and all our energy problems will be resolved. Federal Secretary probably knows that it is unlikely to solve problems like billing collection and Circular debt but he is reiterating PM’s daily speech on this subject. Our tragedy is seeking shortcuts. This government’s strategy confuses me greatly when they are privatizing loss making government assets and building new loss making assets simultaneously like Metro Bus and Nandipur etc.
Here is how I think Federal Government & Ministry of Water & Power should tackle this issue with five actions not words. I know that the current Government neither has the capacity nor the will to implement this but what’s the harm in trying.
DISCOs: Turn around DISCOs (Distribution companies) or privatize them. Before Privatization of DISCOs at least make them autonomous and appoint professional CEO leaders in all DISCOs. These will also fetch a better price if they are run professionally. Secondly, privately owned Distribution companies should be allowed to compete with them and Government’s monopoly on power sector must end. Telecom sector is a classic example of it. Thanks to Allah Al mighty PTCL is not the only choice we have in this country. Why should IESCO, LESCO or K-electric be only my choice when it comes to my electric connection? Competition makes every one better.
Future of Power generation is distributed: Every building or industry will generate its own power in the future. This also helps take care of transmission and distribution losses. Federal and Provincial governments must first make all their offices and buildings grid independent. Through Federal and Provincial contracts Pakistan can build 50+ world class private companies specializing in PV and battery technology which can first electrify Pakistan and then export their services earning precious dollars. We need local solar and battery technology companies and this is the future of almost everything from automobiles to electronic gadgetry. Once these companies mature, after couple of years Government can stop issuing new electric connections and let Private sector electrify Pakistan. Government departments must Go Green and off Grid because they are also biggest defaulters when it comes to paying bills on time and add massively to Circular debt. Government departments can use existing grid as a backup connection. Renewable Micro Grids is the future for both urban and rural environments. Please also keep in mind that $1-a-Watt or 6 cents/kwh Solar is likely by 2020 (Only 4 years away) without subsidies. Global new investment in renewable power and fuels (excluding large hydropower) rose to $285.9 billion in 2015 from $273 billion in 2014.
Smart Grid & Internet of Things: Government must convert existing electric meters into pre-paid smart tamper-proof meters to improve billing, immediately. Start with grid stations where there is high theft and distribution losses. Government also needs to get Ministry of IT, Local home appliance manufacturers and tech companies involved to bring energy conservation, optimization and automation through effective use of Internet of Things technology. Internet of Things and cloud platforms can massively improve energy conservation by making locally manufactured home appliances energy efficient. Government needs to roll out tax concessions and invest in this sector if our local manufacturers intend to compete globally. Every dumb appliance will be smart in few years
Renewables Financing: We do have a purchasing power problem in Pakistan but Finance Ministry and State Bank of Pakistan can work with Commercial and Micro Finance Banks to work out mechanisms to provide renewables financing for houses, offices and industries. EasyPaisa in Pakistan is already doing it. In India, for example there are leasing companies which work out your energy installment based on your current electric bill. After 5 to 7 years when your loan is paid off, you can enjoy free energy for almost a decade.
Free Market Mechanism: I have never understood why government needs to be involved in the business of buying and selling energy. Government just needs to get out of the way. PTA doesn’t tell Telecom companies to sell data bundles at a specific price. Why should NEPRA tell this to electric companies? Competition and free market can automatically bring down the price of an electric connection or a solar installation.
If I had an hour to solve a problem I’d spend 55 minutes thinking about the problem and 5 minutes thinking about solutions” said Albert Einstein but perhaps he wasn’t as smart as our Power Policy makers.
Leave a Comment