EXECUTIVE SUMMARYA strategic plan with key long-term objectives serves as aframework for decisions and provides a basis for planning. Putting together astrategic plan can provide the insight needed to keep a company on track bysetting goals and measuring accomplishments. By analyzing the information inthe long-term plan, executives can make necessary changes and set the stage forfurther planning.As Pakhtunkhwa Energy Development Organization(PEDO) is an autonomous body of the Government of Khyber Pakhtunkhwa andresponsible for fast track and valuable development of the energy sector of theprovince, so PEDO has to produce power from all of the ways that have thevaluable potential in development of power. KP has immense potential in hydro,Thermal (Oil and Gas) and Solar.
IntroIn 1986 “Small HydelDevelopment Organization” was established to: Identify and develop Hydel potential upto 5MW Construct small Hydel stations for isolated load centers Operate and maintain off grid small Hydel stationsIn 1993 conversion ofSHYDO into an autonomous body under Act 1993 renamed as “Sarhad HydelDevelopment Organization”.In 2013 the name of theorganization was changed as “Pakhtunkhwa Hydel Development Organization”(PHYDO).In 2014through amendment in PEDO Act 2014 “Pakhtunkhwa Hydel DevelopmentOrganization” PHYDO converted and renamed as “Pakhtunkhwa EnergyDevelopment Organization” (PEDO).PakhtunkhwaEnergy Development Organization (PEDO) is an autonomous body of the Governmentof Khyber Pakhtunkhwa and responsible for fast track and valuable developmentof the energy sector of the province. PEDO is working to explore all possibleenergy avenues including renewables like hydro, solar and wind energy and Thermalpower generation based on natural-gas or coal also comes within the purview ofPEDO.
As the province of Khyber Pakhtunkhwa has immense potential fordevelopment of hydro power, so this area is being given the top priority, andprivate sector investment is being encouraged.Vision of PEDOEnergizing KP with affordable PowerObjectives of PEDOThe main objectives of the Power Policy are: To provide least cost power generation To encourage private sector investment through full cost recovery and attractive rates of return To ensure fast track and transparent development of power projects To encourage and ensure participation of investors in the development and implementation of hydro power projects. To ensure participation, development and welfare of all stakeholders To provide green energy.Long Term Goals of PEDO To develop Projects of 2600 MW (on grid).
To develop MMHPPs/ Solar of 150 MW (off grid). To develop Completion of Feasibility Study for sites – 3000MW.Scope of the Power PolicyØ Private SectorØ Public sectorunder the Independent Power Producer (IPP) model where relevant Concessions under Power Policy are applicableØ Public PrivatePartnerships where relevant concessions under Power Policy are applicableØ Captive PowerPlantsIssues faced by PEDO S.No Resource Estimated Cost per KWh 1 Hydroelectric power Rs. 1.25 2 Coal-fired power Rs. 12.5 3 Furnace oil-based electricity Rs.
16 4 Wind Power Rs. 14 5 Solar electricity Rs. 22 Issues faced by PEDOØ Ownership issueØ PEDO Corporization & RestructuringØ Power EvacuationØ No KP Transmission line policyØ Delays due to PESCO / NTDC / CPPA-GØ FBR restrictions – Income TaxØ Necessary changes in Sales Tax law to enable the KP Hydro Power policy2016 exemption Conclusion:Khyber Pakhtunkhwa acute energy crisis is posinga serious predicament for its feeble economy and volatile national securityenvironment.
The province energy problems are deep and complex, being rootedmore in shortages of governance and political will than of pure supply. Thisstems from (1) the absence of a comprehensive and integrated energy strategy,resulting in interagency turf wars and a lack of coordination, (2) insufficientrevenue to support energy generation and infrastructure, owing to low liquidityin KPK struggling economy and high rates of tax default, and (3) theleadership’s unwillingness to implement politically unpopular changes toaddress the situation. Resolving KPK Energy crisis will thus requirepolitical will, additional funding, and new power-generation sources. As theprovince lacks significant internal sources of revenue, opportunities exist forinternational donors to finance its energy recovery. The Government of KPK iskeenly promoting the development of vast hydel potential available onstreams/nallas/canals.
The project will benefit the people living in areaswhere WAPDA is unable to supply electricity or such areas where Wapda’s powersupply is mostly unreliable and these areas are exposed to excessive loadshedding and low voltages problems. Therefore the only option left behind isthe development and tapping of the unexploited vast Mini Micro Hydropowerproject (MMHPPs) potential sites located in these areas.Suggestion:Energy sector is considered an important sourceof revenue generation for the government. KPK Govt needs to work on formulatingstrategies to operate these dams on priority basis and also work on billcollections that will be helpful in generating revenue.Furthermore it can give happiness tothose needy houses waiting for electricity in their houses, and in the samearea hospitals are not functional as per requirement.By functionalizing these dams KPKGovt can also create multiple jobs and can make a source in reducingunemployment in the area. As PEDO in their approved PC1 (MMHP,s) agreed tostart these dams for generating electricity to the specified area of KPK tillJune 2017 but they failed to functional these dams.
PEDO has almost completed232/356 dams but not functional till the date.