Energy Resources of Pakistan

Thermal energy, which includes electricity generated from natural gas, furnace oil, and coal, remains the dominant source in Pakistan's energy mix. As of 2024-25 data, it accounts for more than 50% of the total installed capacity, although the government is actively working to increase the share of hydel and renewable energy to reduce import costs.

Thar Coal reserves are estimated at around 175 billion tonnes, making them one of the largest lignite coal deposits in the world. These reserves have the potential to meet Pakistan's energy requirements for centuries and are being utilized through projects like the Sindh Engro Coal Mining Company (SECMC) to generate cheap base-load electricity.

Tarbela Dam, located on the Indus River, is the largest producer of hydroelectricity in the country. With the completion of its various extension projects (T4 and T5), its total capacity exceeds 4,800 MW, providing a critical source of low-cost, clean energy to the national grid during the peak summer months.

The Quaid-e-Azam Solar Park (QASP) is designed for a total capacity of 1,000 MW. It was one of the first major solar energy initiatives under the China-Pakistan Economic Corridor (CPEC) framework, aimed at utilizing the high solar irradiance in Southern Punjab to diversify the energy mix.

The Jhimpir-Gharo-Keti Bandar wind corridor in Sindh is the most viable region for wind energy in Pakistan. It has the potential to generate over 50,000 MW of electricity. Several wind farms are already operational here, contributing hundreds of megawatts of renewable energy to the national grid.

K-2 and K-3 are advanced Generation III nuclear power plants located at the Karachi Nuclear Power Complex (KANUPP). Each plant has a capacity of 1,100 MW, significantly increasing the share of stable, carbon-free nuclear energy in Pakistan's total power generation profile.

Circular debt is a chronic liquidity crisis where power distribution companies (DISCOs) fail to collect enough revenue from consumers to pay power producers (IPPs), who in turn cannot pay fuel suppliers. This cycle of unpaid bills creates a massive financial burden on the national exchequer.

The Sui gas field in Balochistan was discovered in 1952 and laid the foundation for Pakistan's gas industry. While its production has declined over the decades, it remains a symbolic and vital resource, supplying natural gas to industrial, commercial, and domestic sectors across the country.

The government's 'Alternative and Renewable Energy Policy' aims to increase the share of variable renewable energy (wind and solar) to 30% by 2030. When combined with hydel power, the goal is to have 60% of Pakistan's electricity generated from clean, indigenous sources.

The Engro Thar Block-II power plant is a 660 MW project that specifically uses indigenous lignite coal mined from the Thar desert. Unlike the Sahiwal or Port Qasim plants, which originally relied on imported coal, this project focuses on reducing foreign exchange outflow.

The Neelum-Jhelum Hydropower Project is a major run-of-the-river scheme that diverts water from the Neelum River to a powerhouse on the Jhelum River in Azad Jammu & Kashmir. It has a capacity of 969 MW and is considered an engineering marvel due to its extensive underground tunnel system.

The National Electric Power Regulatory Authority (NEPRA) is the independent regulator for Pakistan's power sector. Its responsibilities include issuing licenses for generation, transmission, and distribution, as well as ensuring fair competition and determining consumer tariffs.

Residual Furnace Oil (RFO) is one of the most expensive and least efficient fuels for power generation. High global oil prices directly impact the cost of production for RFO-based plants, which is then passed on to consumers through the monthly Fuel Price Adjustment (FPA) on electricity bills.

Diamer-Bhasha Dam is a multi-purpose project located on the Indus River. It is designed to store 6.4 MAF of water for irrigation, which will increase the life of Tarbela Dam by trapping silt, and generate 4,500 MW of clean hydropower.

Balochistan, particularly its volcanic regions and tectonic plate boundaries near the Chagai district, has significant potential for geothermal energy. While not yet commercially exploited, studies suggest it could provide a sustainable energy source for remote areas.

RLNG refers to Liquefied Natural Gas that has been imported via sea terminals and converted back to gas. It is a crucial bridge fuel for Pakistan, used extensively in high-efficiency gas turbines to meet the electricity demand and bridge the gap caused by depleting domestic gas reserves.

The Dawood Wind Power Project in Jhimpir, Sindh, was the first CPEC project to achieve commercial operation. However, the Sahiwal Coal Power Plant is often cited as the first major 'fast-track' thermal project completed under the framework.

TAPI stands for Turkmenistan-Afghanistan-Pakistan-India. It is a trans-country pipeline project aimed at bringing natural gas from the Galkynysh gas field in Turkmenistan to the energy-hungry markets of South Asia.

CASA-1000 (Central Asia-South Asia power project) is designed to allow Tajikistan and Kyrgyzstan to export 1,300 MW of surplus summer hydroelectricity to Afghanistan and Pakistan, helping to lower electricity costs during the peak summer demand in Pakistan.

The National Transmission & Despatch Company (NTDC) is responsible for the high-voltage transmission system and the Dispatch of power from generators to distribution companies. It ensures the stability of the national grid and manages the load flow across the country.