The root of all the devastation in power industry, other than crowning transmission and distribution losses, is the unsolicited expensive energy mix. Out of total 22,797 MW installed capacity, only 6,556 MW is Hydel power. The rest of capacity is mostly thermal projects with little contribution of 3% from nuclear production.
Out of total 95,364 GWh produced during year 2011-12, only 30% has been generated by Hydel resources, 29% has been produced using natural gas while the 35% generation was dependable on expensive furnace oil. The nuclear energy contributed 5.5%, whereas a minor part of energy also came through diesel and coal.
Average cost of the energy delivered to Discos was PKR 7.11 per kilowatt hour. The average cost of delivery from furnace oil was PKR. 15.94. While the cost from coal generation came around PKR 3.18, the Hydel generation cost only PKR 0.16 per kilowatt hour.
The government plans to replace the expensive furnace oil projects with coal technology to reduce the overall cost of production. On the other hand the power policy 2013 is focusing on the control of inefficiencies in transmission and distribution infrastructure.
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