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Power generation capacity tilts to expensive thermal resources

The Planning Commission and the National Electric Power Regulatory Authority (Nepra) have informed the President and the Prime Minister that the public concern about shortages would soon turn into a question of unbearable increase in cost of production and affordability, informed sources reveal.

The sources said the ratio of hydroelectric power generation capacity would decline to less than 20 per cent by 2010 from the current 28 per cent because of an increasing number of contracts being signed for thermal power generation.

They said the government had been advised to be careful in increasing generation capacity through the short-term solution of thermal power generation at exorbitant tariffs and strive for maintaining a ratio of 70:30 between thermal and hydel power generation. While the generation in winter would remain more or less at the current level in the next few years, the power supply from thermal plants will increase substantially as new projects come on line by 2010.