ISLAMABAD: To meet ever-increasing demand for energy and avert any future nightmare for the industry in Pakistan, the energy efficiency investment plan requires $8.161 billion during the span of ten years (2010-2019), the Asian Development Bank (ADB) informed this in a workshop on “3rd Consultative Group of the Planning Commission” here on Thursday.

These amounts were required under Multitranche Financial Facility (MFF). The timeline of the investment is planned: for the year 2010 an investment of $34 million, $266 million in 2011, $464 million in 2012, $1.133 billion in 2013, $1.479 billion in 2014, $1.660 billion in 2015, $1.075 billion in 2016, $1.089 billion in 2017, $700 million in 2018 and $260 million in 2019.

After completion of the plan the government would be able to save 2880 GWh in industrial, residential, and public sector electricity use.

The ADB official expressed the need for integrated approach to tackle the energy issue in Pakistan. All the ministries relating to energy sectors, planning commission and donors agencies involved in this sector should work from a single platform, then the matters would be resolved easily. He also stressed for energy conservation and increase competition in this sector. “The ADB seeks sustainability both in generation and distribution of power so as to get ride of frequent power break down,” he maintained.

The seminar was held under the chairmanship of Member (Energy) Planning Commission Pervaiz Butt and was attended by key government officials including development partners from Asian Development Bank (ADB), French Development Agency (AFD), United States Agency for International Development (USAID), GTZ and the World Bank. The meeting was informed that the Government of Pakistan (GOP) was struggling to resolve the crisis. The CDWP had already cleared the concept for energy efficiency investment plan of $1.15 billion for the next 8-10 years to be financed by ADB, AFD and GOP.

A diagnostics assessment of the energy sector was conducted and found that it had large untapped energy efficiency potential. The past efforts to mainstream and implement energy efficiency projects in Pakistan could not get desired results due to lack of sustainable management, discipline and financing. The government of Pakistan was keen to implement a systemic energy efficiency investment programme and was looking for a flexible public sector financing mechanism and to make a mechanism for private sector financing to (i) scale up the deployment of proven energy efficiency technologies in energy supply and use, and (ii) establish a dynamic energy efficiency market.

Improving energy efficiency and energy productivity were key components of Pakistan’s energy strategy. Reducing unproductive and volatile demand can result in immediate energy savings and lower energy intensity would boost energy access and meet social development goals. “The government is determined to pursue a sustained long-term plan to optimize the energy mix and consumption across all sectors of the economy,” member energy of the Planning Commission maintained.

Pakistan’s energy demand would continue to increase in the next 20 years. The overall cost to the economy, businesses and consumers would be huge unless there is a concerted shift in policy and consumption.