PESHAWAR: The Khyber Pakhtunkhwa government’s hydel revenue is expected to grow to Rs30 billion annually by 2018 as some new hydropower units are slated to begin operations during the next five years, according to the relevant officials.

These officials say the government currently earns Rs2.5 billion annually on account of profit from its small hydropower units set up in Malakand, Pehur (Swabi), and Reshun and Shishi (Chitral).

An official of the provincial power and energy department told Dawn that Khyber Pakhtunkhwa’s hydropower generation capacity would grow to 648 megawatts by 2018.

The consistency with which expansion of hydel power sector in the province pursued was pursued by the last three elected governments over a decade has already begun bringing windfall benefit for the local kitty.

The provincial government’s revenue surged after the 81 megawatts Malakand hydropower plant began production a few years ago. The four hydropower units have been generating 105 megawatts.

The province, according to official, is expected to add three more small hydropower units to its assets list by Dec 2015, involving total generation capacity of 56.2 megawatts.

The 36.6 megawatts Daral Khwar hydropower project in Swat district is scheduled to start generation in December 2015 so is the under construction 17 megawatts Ranolia Khwar power plant in Kohistan district. Another small hydropower plant with 2.6 megawatts power generation capacity being installed on Machai Canal in Mardan district would be ready in June next year.

The total cost of the three power projects, said an official, came to Rs12 billion, which the provincial government, he added, was raising from its own resources.

The provincial power sector growth was pursued as a priority first by the last two elected governments and now by the current government, which assumed power in May this year and has decided to pursue all ongoing power projects and begin new ones.

Khyber Pakhtunkhwa, according to an official, has been working on a plan to install eight more hydropower

KP eyes fat hydel energy proceeds units by 2018 with a total investment of Rs130 billion. Once completed, they would add 626 megawatts to the power distribution system.

The project development plans of two of the projects have already been assented approval by the executive committee of national economic council and pre-construction activities have also been undertaken. A total investment of Rs27 billion will be made to set up an 84 megawatts hydropower unit in Matiltan area of Swat district, and another power plant of 69 megawatts would be set up in Lawi area of Chitral district.

Besides, the province has also undertaken preparatory work to set up 15 hydropower units on sites suitable for power generation in Chitral, Mansehra, Dir, Shangla, and Battagram district.

Feasibility studies are expected to be completed next year.

“Estimates prepared by experts suggest that these 15 sites have a combined potential of producing 1911 megawatts, requiring an estimated Rs668 billion investment,” said an official.

If everything goes well, these projects are expected to be ready by 2022, according to official estimates.

However, the economic benefits of producing inexpensive hydel power might start flowing in the next couple of years.

The province, said the official, intended to supply electricity at reduced rates from one of its upcoming electricity generating units.

“Khyber Pakhtunkhwa won’t need to look outside for economic assistance as the diversion of inexpensive hydropower to local industries would be sufficient to cure its limping economy,” said Sarwar Mohmand, a former president of the Khyber Pakhtunkhwa Chamber of Commerce and Industry and an incumbent member of the provincial Board of Investment.

He said this would propel local industries and encourage investors from other provinces to set up industrial units in Khyber Pakhtunkhwa, creating jobs and opportunities for small businesses.

The province, according to industrialists, has seen the economic benefits partly because of supplying cheap electricity to industries in late 1980s and early 1990s.