MANILA - The Asian Development Bank (ADB) is helping Pakistan develop an energy model that would enable the South Asian nation pursue an energy sector development plan that will meet the needs of an expanding economy. ADB is extending a $2 million grant for Pakistan's Integrated Energy Model project, estimated to cost $2.5 million. The government of Pakistan will cover the balance.
"The outcome will be a functioning energy planning unit producing regular integrated analysis of strategic energy options," said Jim Liston, principal energy specialist of ADB's Central and West Asia Department.
A trained energy planning team will manage the unit and propose strategies for meeting energy requirements at the least cost and in a sustainable manner for consideration by national policy makers.
The factors that will be addressed by the unit cover finance, economics, energy supply, national resources, energy use, environmental impacts, technologies, energy efficiencies, and sociopolitical impacts.
Pakistan's Medium-Term Development Framework 2005-2010 sets out to achieve an 8 percent annual growth in gross domestic product, while energy consumption is estimated to expand 12 percent a year for the same period.
This expected growth will put pressure on Pakistan's energy supply.
Country energy analysts believe Pakistan needs to come up with an integrated, optimal energy sector plan. For one, the country's energy sector is made up of various ministries, with no single body having a dominant role in managing the industry.
The country is also a net energy importer, with its energy needs supplied by multiple sources.
Advanced computer software applications can model a country's overall energy demand and supply situation, and these integrated energy models can help planners assess the impact of various policy scenarios and support good decision making.
Pakistan currently does not use such an integrated energy modeling tool. Pakistan's primary energy supplies totaled 58 million tons of oil equivalent in 2005-2006.
All domestic natural gas production is consumed and, without higher production, growth will need to be met through imports.
Rising oil consumption and flat oil production have led to rising oil imports.
A lack of refining capacity also leaves Pakistan heavily dependent on petroleum product imports.
© The Saudi Gazette 2007
