Pakistan to phase out furnace oil usage for power generation by 2031

The National Electric Power Regulatory Authority (NEPRA) on Friday announced approval ofe Indicative Generation Capacity Expansion Plan 2022-31 (IGCEP-2022) which notably says that the country will gradually stop using furnace oil, RLNG and imported coal for electricity generation by 2031.

“The IGCEP-2022 builds on the plans laid down by the preceding iteration and proposes a gradual shift from an energy mix heavily dominated by imported fossils like Coal, Furnace Oil and RLNG towards one pillared by indigenous sources of energy, including Hydel, Thar Coal, Wind and Solar. Furnace oil is expected to be phased out by 2031. Similarly, electricity generation from RLNG and Imported coal will drop to 2% and 8%, respectively, in 2031. At the same time, there will be a substantial increase in the electricity generated by hydel, wind and solar PV. The contribution of hydel, wind and solar PV which currently stands at 28%, 4% and 1% respectively will be increased to 39%, 10% and 10% respectively, thereby increasing the total share of green electricity to around 59%,” reads a statement issued by NEPRA.

The authority is satisfied that the IGCEP-2022 is based on the utilization of indigenous and Renewable Energy resources for generation of low cost, environment-friendly electricity. The IGCEP-2022 also provides details for six additional scenarios, simulated to cater for any unforeseen events in the future. These include scenarios dealing with lower and higher electrical demands as well as four sensitivity scenarios dealing with early commissioning of Diamer Bhasha Hydropower Project in 2029, commissioning of Chashma Nuclear (C-5) in 2029, inclusion of local coal power projects in 2027 and 2030 and unconstrained addition of projects based on renewable energy.

It is pertinent to mention that IGCEP is a dynamic document covering a planning horizon of ten (10) years and will be revised annually. It will act as a primary document for adding new capacity for generation to meet future electrical demand in a scientific and systematic manner, thus avoiding the boom and bust cycles that have become a recurring issue in the country.