Experts call for nuclear investment to tackle Pakistan’s energy crisis

ISLAMABAD: Energy experts, academicians and international practitioners gathered on Thursday to advocate for Pakistan’s increased investment in nuclear power projects to mitigate energy price volatility, reduce geopolitical risks and decrease reliance on fossil fuel imports. They argued that nuclear energy offers a reliable, long-term solution for the country’s energy crisis, ensuring economic stability and clean energy production.

Speaking at an international seminar on “Pakistan’s Energy Crisis: Role of Nuclear Power,” the participants highlighted the advantages of nuclear energy, including its long lifecycle — up to seven or eight decades — and high efficiency rates compared to other sources of energy. Nuclear power plants can achieve 80 to 90 percent efficiency, while the cost per megawatt is approximately $4.5 million. In comparison, hydropower, which costs around $2.5 million per megawatt, operates at a much lower efficiency of about 40 percent.

The seminar, organized by the Center for International Strategic Studies (CISS), attracted attendees from national and international organizations, including Pakistan Atomic Energy Commission (PAEC), International Atomic Energy Agency (IAEA), think tanks, and universities. The discussions centered on nuclear energy’s potential to transform Pakistan’s energy landscape, with experts calling for its greater integration into the national energy mix.

Former senator and eminent politician Mushahid Hussain Syed, the chief guest, paid tribute to the scientists behind Pakistan’s nuclear program, including the late A.Q. Khan, whose third death anniversary was observed on October 10. He also acknowledged the contributions of diplomat Agha Shahi. “They secured Pakistan’s defence,” Syed said, adding that nuclear power is crucial for the country’s transition away from fossil fuels.

Syed emphasized nuclear energy’s clean, green and reliable nature, describing it as a stimulus for socio-economic growth. He also highlighted the alignment of Pakistan’s nuclear program with the United Nations’ Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action).

Dr. Henri Paillere, Head of Planning and Financing Studies at IAEA, addressed the seminar virtually, emphasizing the long-term sustainability of nuclear power despite its high capital costs. He referenced the International Energy Agency’s (IEA) stance that “without nuclear, it is very hard to reach our target of emission and carbon-free energy.”

Dr. Khaqan Hassan Najeeb, a former adviser to the Ministry of Finance, advocated for a reorganization of Pakistan’s energy framework. He suggested abandoning the slab-based tariff system and incentivizing electricity consumption. Pakistan’s current generation capacity stands at over 45,000 MWs but demand is low, especially in industrial and domestic sectors.

Khaqan said that while he supports the International Monetary Fund, the Fund’s three-year facility will not resolve Pakistan’s core issues, but it provides room to stabilize amid global economic shifts. With the US cutting interest rates and oil prices hovering between $70 and $75 per barrel, now is the time to decide how to capitalize on these favorable conditions, he said.

“The strategy is feasible, but it requires political will,” he added, highlighting several fiscal challenges. Provinces collect about Rs800 billion in revenue, but they have avenues to boost this, including GST on services, property taxes and agricultural income taxes. The energy sector faces trillions in debt, with declining power demand, Rs600 billion in line losses, theft, and non-recoveries in distribution companies, along with high transmission losses.

Referring to the setup of independent power producers (IPPs), Khaqan said, “Pakistan issued bonds in the form of IPPs at 17% in 1994 and 2002. We didn’t conduct open bidding or price discovery and now this overshadows our thinking.” Energy is key to growth, he said, and tariffs must be reduced to encourage consumption. A dynamic model and pricing strategy is needed. He noted that the IMF is not preventing Pakistan from making such decisions, and suggested the government outsource loss-making power feeders.

Former chairman of the National Electric Power Regulatory Authority (Nepra) Tauseef H. Farooqi, echoed these sentiments, calling nuclear energy “affordable, reliable, and sustainable.” He suggested that Pakistan’s expertise in operating nuclear power plants could be exported to other countries developing civilian nuclear programs. Farooqi pointed to global commitments to triple carbon-free energy, noting nuclear power’s increasing importance.

Qureshi also said that there is a problem of interest groups. We should accept those electrons which are affordable, reliable and sustainable, no matter of the source.

He said that last year, 593,000 MWs of solar capacity installed globally, with China alone with 364,000 MWs. The day the energy storage price reduces, all will go toward solar power and will discontinue grid connections.