Power Generation Policies, Governance Mechanism and Utilization of Indigenous Resources: A Case of Pakistan

Abstract

Energy has been playing a vital role in the socio-economic development of the country. Pakistan’s energy security holds paramount importance as it is essential for enhancing socio-economic development. Pakistan is currently facing a rising electricity demand and contending with a substantial deficit in natural gas supply. Most of the power generation plants in Pakistan are thermal and generate electricity from oil and gas. Pakistan is not an oil-producing country and natural gas reserves will be died out after 12 years. Under the Power Generation Policy 2015, most of the plants generate electricity from imported coal instead of utilization of national indigenous reserves i.e. local coal. Under the PGP 2015, all the power plants operated under the PPP model known as (BOO). Over the last three decades Government of Pakistan has announced seven energy policies to attract the foreign investors in the power generation sector that have led to acute governance, admirative and implementation problems in the energy sector. This study explores the intricate relationship between energy security, energy crises, demand and supply, and renewable potential in Pakistan. Using qualitative analysis, it addresses the ongoing energy crises and proposes the development of national indigenous resources, presenting a policy framework to achieve power generation goals. The energy status in Pakistan, including supply and demand aspects, is discussed, along with major challenges such as electricity theft and circular debt annually. By considering various approaches, the study identifies key challenges for policy development and implications to create a comprehensive policy framework, incorporating domestic energy resources, policy actors, criteria, and tools. This study highlights Pakistan’s significant non-renewable energy potential, advocating for tapping into domestic resources, optimizing energy planning, and policy development to ensure a secure and sustainable energy future for the nation, promoting prosperity and progress.