ISLAMABAD: The Asian Development Bank has described the measures taken by the government to acquire electricity from rental plants as having ‘a limited impact.’

A report of the bank on the energy efficiency investment programme in Pakistan pointed out that as the power supply deficit was unlikely to improve in three to five years, electricity saved would make a corresponding amount of energy available to users who were otherwise deprived of power supply.

The investment programme, which will cost an estimated $1,180 million, will bring about major energy savings and cut Greenhouse Gas (GHG) emissions by 30 per cent during the 10 years of implementation (2009-2018). It will improve Pakistan’s energy security and economic competitiveness by lowering energy intensity and improving energy productivity.

Energy efficiency will help balance energy demand and supply, and optimise the energy mix by reducing oil imports.

It will slow energy demand and increase supply; and decrease large financial outlays; minimise uneconomical standby capacity required to cater for peak loads, reduce subsidies, and defer transmission and distribution system expansion needs.

Increasing supply capacity will take time and being expensive, while commission of major power generation and natural gas supply additions will begin in 2013.

Pakistan is attempting to change its energy mix by exploring its hydropower and coal resources; however these projects will take time, the report added.

Reliance on thermal generation with imported fuel oil is expected to go up in the short term. Energy efficiency thus is the least cost and most climate-friendly way of bridging the energy gap and security energy provision.

The report suggests that energy efficiency represents the least cost and quickest low-carbon solution to bridge the energy gap by cutting the high dependence on oil imports and avoids investment in expensive and inefficient rental power generation based on fossil fuels.

It ultimately strengthens energy security, contributes to the environment, creates jobs, and improves industrial competitiveness.