The Power Games, Artificial shortage being created to justify LNG import, new power projects.
Islamabad: The government is creating an artificial shortage of electricity to justify the import of LNG and the installation of new power projects in the country, The Nation has learned. The Ministry of Water and Power has either choked or completely shut down power plants with 2,000 MW of generation capacity for this purpose, a top official of the ministry claims.
The official, who spoke on condition of anonymity, said that AES Pakgen (with a capacity of 350 MW) generated zero electricity during the first three weeks of September. Similarly, 110 MW of SEPCOL, 134 MW of Saba, 135 MW of Japan, 213 MW of Orient, and 24 MW of RKYML also produced no electricity during the ongoing month.
"In IPPs, Kapco produced 347 MW less electricity as compared to its installed capacity, while HUBCO cut its production by 318 MW, FFCEL 35 MW, UCH2 78 MW, Halmore 96 MW, HUBCO Narowal 70 MW, Halmore 111 MW, and Atlas Power 46 MW as compared to their installed capacities," the official said, sharing official data. About the plants working under public sector Gencos, he said during the first three weeks of this month, Jamshoro produced 304 MW less electricity than its installed capacity, Kotri 24 MW, Genco-1 327 MW, Genco-2 1172 MW, Muzzafargarh 288 MW, while Guddu (747 MW) produced 397 MW less energy than the installed capacity.
Multan, GTPS Faisalabad, SPS Faisalabad, Shahdra, and Nandipur power plants contributed zero electricity to the national grid this month.
The IPP plants, which were shut or partially closed, include 1638 MW of KAPCO, which is producing only 998 MW. Interestingly, the official revealed that all the plants that are not producing any electricity are being paid capacity charges.
During the month of September, Hydel generation increased considerably while demand decreased due to changing weather, but the electricity deficit still looms around 5000 MW. Ministry officials, when contacted, said that only those plants that produce costly electricity have been shut down, while others were closed for maintenance or a shortage of fuel."It’s a lame excuse," the senior official said, adding that around 2000 MW of plants have been closed on the pretext of cost factors. Hydel sources generated around 1000–1500 MW more electricity during the first weeks of September, and it could have easily absorbed any additional costs, he maintained. Pakistan has a total installed capacity of over 21000 MW, more than its peak demand, but the country continues to face at least 5 hours of loadshedding in urban areas and up to 8 hours of outages even in off-peak season, besides the unannounced blackouts. This artificial shortage of power has been badly affecting the country's economy.
Due to a shortage of electricity, many of the textile units have been shifted to Bangladesh, and many more are considering shifting elsewhere.
The analysis of Central Power Purchase Authority data confirms the allegations of the senior official that the closed plants can be run without burdening the consumer with additional costs and that loadshedding can be brought to zero. The maximum load generated during the first three weeks of September remained between 14,369 and 15,500 MW, compared to the peak generation of 16,500 MW in July and August.
Despite the fact that hydroelectric generation increased by 1,000–2,000 MW and generated more than 6,850 MW owing to ample water, the power deficit remained at around 5,000 MW. During July to August, water levels are high and peak electricity is generated; however, after September, when rains subside and the melting of glaciers halts, the water flow in rivers decreases.
Sources claim the plants were shut down on the orders of Federal Minister Khawaja Asif, who wants at least 5-8 hours of loadshedding in the country to justify new power projects. The spokesman of the water and power ministry, however, denied the allegation that the plants were shut down to justify LNG or the installation of new plants and said that the move was to ensure the supply of low-priced electricity to consumers.
"We are strictly following merit orders," the spokesman said. "The demand has decreased and the hydroelectric generation has improved; that’s why some of the plants, which produce costly energy, have been shut down," he said. But no official of the ministry was ready to comment about what benefit the consumers would get or if there would be any relief for them in the billing.
The sources claim that after working on the import of LNG for the last two years, the ministry of petroleum is running short of buyers when the import of the fuel finally starts. The CNG sector is reluctant to buy the expensive fuel, which costs almost as much as petrol. Resultantly, the petroleum ministry, through high-ups, pressured the water and power ministries to buy LNG and continue creating artificial shortages to justify the fuel.
A few months ago, National Transmission and Dispatch Company, an affiliate of the power ministry, refused to buy the imported fuel due to a cost factor, stating that LNG costs more than or equal to furnace oil, which is easily available on credit. But now the power ministry itself is interested in buying it. "Things have changed now as we have at least some idea of the price, so now we can use LNG in the power plants," said the spokesman of the water and power ministry.
However, he did not reveal the price. Nor has the petroleum ministry revealed the price of imported LNG to the public, not even to lawmakers who have repeatedly asked the government to lift the curtain on this secret. After coming into power, the present government advocated for new power projects, claiming it was the only solution to the crippling energy crisis in the country.
Nandipur and Quid-e-Azam solar parks are two of the new initiatives, but both of these power projects have earned charges of corruption, poor planning, and ill execution. Despite being inaugurated in May this year, the 425 MW Nandipur power project is producing zero megawatts, while the 1,000 MW Quid-e-Azam solar park too is not contributing any power to the national grid due to the non-availability of transmission lines that could connect distant solar panels to it.
Likewise, a 300 MW coal-fired plant in Salt Range was offered a special tariff, reportedly on request of the Punjab government, ignoring the fact that the very costly power produced by the plant will disturb the whole energy mix.
https://www.nation.com.pk/23-Sep-2015/govt-producing-loadshedding
