EXECUTIVE for isolated load centers Operate and

EXECUTIVE SUMMARY

A strategic plan with key long-term objectives serves as a
framework for decisions and provides a basis for planning. Putting together a
strategic plan can provide the insight needed to keep a company on track by
setting goals and measuring accomplishments. By analyzing the information in
the long-term plan, executives can make necessary changes and set the stage for
further planning.

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As Pakhtunkhwa Energy Development Organization
(PEDO) is an autonomous body of the Government of Khyber Pakhtunkhwa and
responsible for fast track and valuable development of the energy sector of the
province, so PEDO has to produce power from all of the ways that have the
valuable potential in development of power. KP has immense potential in hydro,
Thermal (Oil and Gas) and Solar.

 

Intro

In 1986 “Small Hydel
Development Organization” was established to:

Identify and develop Hydel
potential upto 5MW
Construct small Hydel stations for
isolated load centers
Operate and maintain off grid
small Hydel stations

In 1993 conversion of
SHYDO into an autonomous body under Act 1993 renamed as “Sarhad Hydel
Development Organization”.

In 2013 the name of the
organization was changed as “Pakhtunkhwa Hydel Development Organization”
(PHYDO).

In 2014
through amendment in PEDO Act 2014 “Pakhtunkhwa Hydel Development
Organization” PHYDO converted and renamed as “Pakhtunkhwa Energy
Development Organization” (PEDO).

Pakhtunkhwa
Energy Development Organization (PEDO) is an autonomous body of the Government
of Khyber Pakhtunkhwa and responsible for fast track and valuable development
of the energy sector of the province. PEDO is working to explore all possible
energy avenues including renewables like hydro, solar and wind energy and Thermal
power generation based on natural-gas or coal also comes within the purview of
PEDO. As the province of Khyber Pakhtunkhwa has immense potential for
development of hydro power, so this area is being given the top priority, and
private sector investment is being encouraged.

Vision of PEDO

Energizing KP with affordable Power

Objectives of PEDO

The main objectives of the Power Policy are:

To provide least cost power generation
To encourage private sector investment through full
cost recovery and attractive rates of return
To ensure fast track and transparent development of
power projects
To encourage and ensure participation of investors
in the development and implementation of hydro power projects.
To ensure participation, development and welfare of
all stakeholders
To provide green energy.

Long Term Goals of PEDO

To develop Projects of 2600 MW
(on grid).
To develop MMHPPs/ Solar of 150
MW (off grid).
To develop Completion of
Feasibility Study for sites – 3000MW.

Scope of the Power Policy

Ø  Private Sector

Ø  Public sector
under the Independent Power Producer (IPP) model where relevant  Concessions under Power Policy are applicable

Ø  Public Private
Partnerships where relevant concessions under Power Policy are applicable

Ø  Captive Power
Plants

Issues faced by PEDO

           

S.No

Resource

Estimated Cost per KWh

1

Hydroelectric power

Rs. 1.25

2

Coal-fired power

Rs. 12.5

3

Furnace oil-based electricity

Rs. 16

4

Wind Power

Rs. 14

5

Solar electricity

Rs. 22

 

Issues faced by PEDO

Ø  Ownership issue

Ø  PEDO Corporization & Restructuring

Ø  Power Evacuation

Ø  No KP Transmission line policy

Ø  Delays due to PESCO / NTDC / CPPA-G

Ø  FBR restrictions – Income Tax

Ø  Necessary changes in Sales Tax law to enable the KP Hydro Power policy
2016 exemption

 

Conclusion:

Khyber Pakhtunkhwa acute energy crisis is posing
a serious predicament for its feeble economy and volatile national security
environment. The province energy problems are deep and complex, being rooted
more in shortages of governance and political will than of pure supply. This
stems from (1) the absence of a comprehensive and integrated energy strategy,
resulting in interagency turf wars and a lack of coordination, (2) insufficient
revenue to support energy generation and infrastructure, owing to low liquidity
in KPK struggling economy and high rates of tax default, and (3) the
leadership’s unwillingness to implement politically unpopular changes to
address the situation.

Resolving KPK Energy crisis will thus require
political will, additional funding, and new power-generation sources. As the
province lacks significant internal sources of revenue, opportunities exist for
international donors to finance its energy recovery. The Government of KPK is
keenly promoting the development of vast hydel potential available on
streams/nallas/canals. The project will benefit the people living in areas
where WAPDA is unable to supply electricity or such areas where Wapda’s power
supply is mostly unreliable and these areas are exposed to excessive load
shedding and low voltages problems. Therefore the only option left behind is
the development and tapping of the unexploited vast Mini Micro Hydropower
project (MMHPPs) potential sites located in these areas.

Suggestion:

Energy sector is considered an important source
of revenue generation for the government. KPK Govt needs to work on formulating
strategies to operate these dams on priority basis and also work on bill
collections that will be helpful in generating revenue.

Furthermore it can give happiness to
those needy houses waiting for electricity in their houses, and in the same
area hospitals are not functional as per requirement.

By functionalizing these dams KPK
Govt can also create multiple jobs and can make a source in reducing
unemployment in the area. As PEDO in their approved PC1 (MMHP,s) agreed to
start these dams for generating electricity to the specified area of KPK till
June 2017 but they failed to functional these dams. PEDO has almost completed
232/356 dams but not functional till the date. 

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