Khyber Pakhtu-nkhwa (KP), rich in water resources, has tremendous potential for hydropower generation, estimated to be 24,000MW or around 60 percent of Pakistan’s total identified hydropower generation resources. The province is home to Warsak hydropower station of 243MW capacity, the first among the medium and large hydropower plants in the country, and Tarbela, the largest hydropower station of 4,888MW capacity, besides a large number of other medium capacity power plants operated by the Pakistan Water and Power Development Authority (WAPDA).
Khyber Pakhtu-nkhwa (KP), rich in water resources, has tremendous potential for hydropower generation, estimated to be 24,000MW or around 60 percent of Pakistan’s total identified hydropower generation resources. The province is home to Warsak hydropower station of 243MW capacity, the first among the medium and large hydropower plants in the country, and Tarbela, the largest hydropower station of 4,888MW capacity, besides a large number of other medium capacity power plants operated by the Pakistan Water and Power Development Authority (WAPDA).
Yet, the province remained short of electricity for many years, and its major cities experienced long hours of load-shedding on a daily basis sometime until 2016.The province only gets its respective share of electricity, which does not help meet its growing power needs for agriculture, industry, trade and household consumers. Reportedly, the then federal government did not allow, for some time, its power purchasing agencies to purchase electricity generated by the province’s Malakand-III hydropower project of 81MW, which was completed in November 2008, but started its commercial operations only in 2010. This seriously impacted KP’s growth of industrial and commercial activities in the past.
The Eighteenth Amendment to Pakistan’s Constitution of 2010 enhanced the authority of the provinces giving them control over economic resources of the province. Thus, the provincial governments could venture into new areas that were hitherto the exclusive domain of the federal government. Nonetheless, KP could not take due advantage of it until the government of Pakistan Tehreek-e-Insaf was formed again in the province in 2018. In the wake of persistent electricity shortages and future demand projections, the government is keen to be self-reliant in power generation by optimally harnessing untapped hydropower potential on fast-track. Hydropower is renewable, clean, reliable and low-cost electricity. The National Electric Power Regulatory Authority (NEPRA) had determined levelised tariff for Malakand-III project at Rs2.6143 per kWh, the lowest tariff among all hydropower plants in the country, which has recently been revised to Rs4.7336 per unit.
In recent years, the provincial government has taken salutary initiatives for exploitation, development and utilisation of hydropower generation in a big way through its own resources as well as private investment. The provincial government has achieved major milestones, expanding its scope of activities in the energy sector. The development of Balakot hydropower project of 300MW capacity has been launched, which, on completion in 2027, would be the largest power station to be operated by the province itself, and will generate a revenue of Rs14 billion annually. On March 9, the contract for construction of the project valuing Rs85 billion was awarded to a Chinese contractor on turn-key basis. Also, the government has attracted private sector in investing significantly in the hydropower projects, and these proposals are currently being processed.
An agreement has been signed with Korea Hydro and Nuclear Power Co for developing 496MW Lower Spat Gah hydropower project under the Public Private Partnership (PPP) mode. Various international donor agencies, like the Asian Development Bank (ADB) and the World Bank, are providing technical and financial assistance for developing hydropower projects and also for the capacity-building in the hydropower and other renewables, on the pattern of extending support to the WAPDA. Balakot project is partly being financed by the ADB. International Finance Corporation (IFC) will provide transaction advisory services for arranging funding for Batakundi hydropower project of 96MW being constructed in Kaghan Valley (Mansehra) under the PPP mode.
Most remarkably and importantly, the KP government has been successful in obtaining license to set up a company for constructing transmission lines and grid stations, primarily to facilitate transmission and distribution of electricity to its industrial sector. On February 26, the National Electric Power Regulatory Authority (NEPRA) has licensed the Khyber Pakhtunkhwa Transmission and Grid System Co (Private) Ltd to act as Provincial Grid Company. These actions will have multiplier effect on socioeconomic development in the province.
Today, the total installed capacity for hydropower generation developed by the provincial government is around 162MW, and this also supplements power generation at the national level. The major power stations include Malakand-III (Dargai) of 81MW, Pehur (Swabi) of 18MW, Ranolia (Kohistan) of 17MW and Daral Khwar (Swat) of 36.6MW, which are connected to the national grid. It has recently been decided by the government to operate and manage Daral Khwar power plant too in public sector instead of private sector, which was completed in September 2018. Other hydropower stations, namely Reshun (4.2MW) and Shishi (1.8MW), both in Chitral, and Machai (2.6-MW) in District Mardan are standalone units to provide electricity to remote areas of the respective districts. In addition, a number of mini and micro hydropower stations are operational across the province. The Pakhtunkhwa Energy Development Organisation (PEDO), responsible for the development of hydropower projects, also acts as a utility company for remote rural localities. Meanwhile, most powerhouses with capacities from 0.1MW to 0.4MW each have been leased out to local entrepreneurs. Remarkably, the net profit from hydropower generation of all the power stations of the provincial government was over Rs21 billion in 2019-20.
Hydropower projects of cumulative installed capacity of 216MW are at present under various stages of construction in public sector. These projects are Gorkin Matiltan (Swat) 84MW, which is scheduled for completion by July 2023, Lawi (Chitral) 69MW, which is to achieve commercial operations by September 2023, Koto (Dir) 40.8MW, Jabori (Mansehra) 40.2MW, Karora (Shangla) 11.8MW and Balakot hydropower project.
This month NEPRA has determined and announced the tariff for Lawi and Koto projects. More than one-thousand mini and micro power stations, of total 85MW capacity, are being developed in various districts. A large number of prospective sites have meanwhile been identified, and technical and economic parameters defined, with the help of national and international consultants. The availability of high, medium and low water-heads could economically develop hydropower projects to 3,900MW cumulative capacity, mainly run-of-the-river type, with some as daily storage projects.
Enabling environment has been created for private investment in the medium and large hydropower projects. Subsequently, PEDO has awarded solicited sites for development by private sector.
The list includes 230MW Laspur Marigram, 144MW Shushgai Zhendoli and 132MW Shego Sin in Chitral district, and 28MW Samar Gah in Kohistan. The provincial government also offers 157MW Madian (Swat) and 88MW Gabral Kalam (Swat) power projects for constructing in private sector, with the financial assistance of the World Bank. Likewise, seven power projects of about 2,000MW cumulative capacity have been launched for development in Chitral under the China-Pakistan Economic Corridor (CPEC) framework.
These are 350MW Toren More Kare, 377MW Gahrit-Swir Lasht, 260MW Jameshil Toren More, 72MW Istaro-Booni and 64MW Marigram-Saghere. Bankable feasibility studies have been conducted and available for these projects. Other projects are 409MW Torcamp-Guddurbar and 446MW Kari Mushkur. PEDO has awarded 47 raw sites to the developers that total 22MW installed capacity. Besides, there are another 24 raw sites allocated to private sector with potential for developing over 300MW projects. There are 356 mini and micro schemes to be developed and operated by the private sector. These are commendable achievements by any standards.
It is worthwhile to mention that various hydropower projects are being developed in the province by private sector as Independent Power Producers (IPPs) under the umbrella of the Private Power and Infrastructure Board (PPIB).
The first hydro IPP in the province is 147MW Patrind (located bordering Mansehra district and Muzaffarabad AJ&K), which was commissioned in November 2017, already supplying electricity to national grid. Suki Kinari project of 870MW (Mans- ehra) is in advanced stage of construction, under the CPEC framework, scheduled for commercial operations in December 2022. Other upcoming projects are 215MW Asrit-Kedam (Swat) and 548MW Kaigah (Kohistan).
The writer is retired chairman, State Engineering Corporation
