Pakistan and Iran to sign 3,000 MW power supply deal
Three power import deals are expected to be linked by the two countries
Dunya News Report (Jibran Dost)
Pakistan and Iran are all set to sign an agreement for the supply of 3,000 Megawatt of electricity to meet the increasing energy demand of Pakistan. The deal is expected to take place during the Iranian President Hasan Rouhani’s visit to Islamabad.
“Three power import deals are expected to be linked by the two countries including supply of 100 MW, 75 MW and 1,000 MW,” a diplomatic source stated while talking to the media.
Currently, 73 MW of electricity is being imported by Pakistan from the neighbouring Iran for Gawadar area. However payments for the import of electricity have not been made to Iran since 2011.
The two countries are expected to discuss all areas of mutual interest and bilateral assistance in the field of energy, trade, business and defence. At the same time, Minister of Water and Power Khwaja Asif expressed that Pakistan was looking forward to the visit of Iranian president with great significance in the view that it would lead to further deepening of bilateral ties.
With regard to the increasing energy demand in the country, Minister of State for Water and Power Chaudhry Abid Sher Ali has stated that Tarbela 4th and 5th extension power projects will add 2820 Mega Watt (MW) low cost hydel electricity to the national grid system.
The minister stated that both projects in Tarbela would improve the current generation capacity of 3478 MW to 6298 MW. At the same time, 49 per cent work on Tarbela 4th generation extension project has been completed and the project would begin supplying 1410 MW to the national grid system in July 2017.
Furthermore, the 5th extension power project would also add another 1410 MW to the system, the minister added.
With regard to the 4th extension power project, the minister said that the project was expected to complete in 2018, but on the direct orders of Prime Minister Nawaz Sharif, the project will be operational by June 2017.
The World Bank has offered financial assistance to the total cost of the project which is $ 929 million.
Chaired by Prime Minister Nawaz Sharif, Federal Secretary Water and Power Mohammad Younus Dagha briefed the cabinet committee on energy last month.
During the meeting, the committee was told that 2015 was a peak year for electricity generation of 17,000 Mega Watt (MW). Moreover, an additional 9090 MW of electricity will be added to the national grid by the end of next year.
A total increase of Rs 51 billion was observed in recoveries while as much as Rs 10 billion were saved due to decrease in the line losses.
The secretary expressed that line losses were reduced by 5.8 per cent because of better examining and strategy to eradicate corruption and theft.
Pakistan needs around 15,000 to 20,000 MW electricity per day, however, currently it is able to produce only 11,500 MW per day hence there is a shortfall of about 4000 to 9000 MW per day.
In Pakistan, there has been an enormous increase in the demand of energy as a result of industrial development and population growth, compared to the enhancements in energy production. Therefore the supply of energy is falling behind the actual demand and because of that, crisis has emerged.
For years, the matter of balancing Pakistan’s supply against the demand for electricity has remained a largely unresolved matter. The country faces big challenges in altering its networks that are responsible for the supply of electricity. Electricity generation in Pakistan has shrunk by up to 50% in the recent years, primarily because Pakistan’s energy infrastructure is not well developed
