Current Energy Crisis of Pakistan: Status, Impact and Potential Solutions

Abstract

Energy plays an essential role in the development and economic growth of a country. A balanced energy sector leads to social development and political stability. An efficient use of available resources as well as harnessing of environmentally friendly new resources is imperative for sustainable energy development and economic stability. Alternative and clean energy resources are required to meet electricity demand and to fight against the adverse environmental problems. This research is carried out to analyze the current energy scenario of Pakistan and to identify potential solutions. Pakistan has a vast potential of renewable energy that could be utilized to overcome the energy shortage. However, unfortunately, due to lack of proper energy policies and infrastructure, this vast potential remains underutilized. Discontinuity and reversal of various national energy policies has also compounded the problem. In power sector, increased generation costs due to increased dependence on thermal generation and high line losses have resulted into increased tariffs for the consumers. This, in turn, has increased the circular debt in the energy sector. Disagreement between various provinces on construction of large dams as well as water distribution disputes with India, are key factors that have reduced the share of cheap hydropower in the national grid. The establishment of a strong energy sector utilizing indigenous energy resources is must for a prosperous Pakistan as economic growth and energy availability are interlinked. Energy Intensity, Energy Diversity, Energy Import Dependence, and Energy Transportation determine energy security. The paper analyzes current energy crisis of Pakistan in the light of above mentioned energy security parameters and explores the potential of renewable energy resources as a worthwhile alternative to fossil fuels. The analysis is based on realistic data collected from various authentic sources.