Federal Cabinet Approves 23,964MW Power Generation Plan

The Federal Cabinet has approved the next power generation plan with an effective operational capacity of 23,964 megawatts (MW).

Out of the total capacity, 5,696 MW will be produced through regasified liquified natural gas (RLNG), 4674 MW through hydroelectric power plants, 4,639 MW through coal, and 3,074 MW through nuclear energy. Other major contributors include furnace oil gas and wind energy.

The cabinet was briefed regarding the projects that have been delayed to preserve energy. These include Punjab thermal project which has been delayed for 26 months and Nova Base Shanghai Electric Power for 20 months.

It was briefed that 60 percent of Pakistan’s import bill is spent on electricity from abroad, for which the suggests Ministry of Energy suggested that local sources should be used instead of imported fuel to generate electricity.

The Ministry of Energy sought permission to formulate a policy on the use of local resources for power generation.

The government seems hopeful for a reduction in load shedding by the end of the week following the addition of 2,000 megawatts in the system. Hydel power from Tarbela dam is likely to enhance as water inflow was increasing and stated that the government was cognisant of the suffering of the people but some factors such as fuel prices in the international market were not in its control.

In the cabinet meeting, Prime Minister Shehbaz has sought the formulation of a detailed plan for handing over power distribution companies to the provinces as the provincial governments have a better distribution strategy and enforcement capability.

The prime minister directed in the cabinet meeting on Monday to Minister for Energy Dastgir to visit the two best-performing distribution companies and the two worst-performing distribution companies and submit a detailed report to the Cabinet on the performance gap between the two companies.

The meeting was told that in June 2022, the demand for electricity touched 30,000 MW. The cabinet meeting was further informed that there is a difference between installed capacity and operational capacity of electricity. Punjab Thermal 1263 was supposed to be completed in December 2019 but was completed in July 2022 after a delay of 26 months.

Thar Energy, which was to be completed in March 2021, would now be completed in August 2022 with a delay of 17 months. The meeting was further informed that Thal Nova is a 330 MW project that was supposed to be completed in March 2021.

However, it will be completed in December 2022 with a delay of about 20 months and Shanghai Electric Power 1320 MW project instead of March 2021 would now be completed in December 2022 following a delay of 20 months. Krut 720 MW power plant was to be completed in August 2021 and it would now be completed in June 2022 with a delay of about 10 months.

The federal cabinet, on the recommendation of the Finance Division, appointed Crowe Hussain and Co for the Securities and Exchange Commission of Pakistan (SECP), approved the appointment of External Auditors for the financial year 2021-2022. The prime minister directed the Federal Adviser on National Food Security to work out a plan for the conversion of tube-wells to solar energy as soon as possible.

While citing to the earlier decisions, regarding the energy mix of Indicative Generation Capacity Expansion Plan 2021-30, the prime minister directed that no power plant running on imported fuel would be installed in future.

The Federal Cabinet ratified the decisions of the Cabinet Committee on Legislative Cases (CCLC) 29 June 2022 and considered the decisions of the Cabinet Committee on Privatization (CCoP) 24 June 2022.



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