According to a recent Pakistan Hydropower Potential Report of the Private Power and Infrastructure Board (PPIB), there exists a total hydropower potential of 41,722 mw additional power generation.

Out of this, as many as 570 schemes and sites, with a potential of cumulative capacity of above 2,165 mw have already been identified for setting up small-size hydropower stations.

These schemes of capacity varying widely from 0.014 mw (14 kw) to 40 mw, include solicited projects for which the technical and economic feasibility studies have been finalized, and also the raw sites that are technically feasible but for which the economic feasibility reports are to be prepared by the developers.

These schemes are summarized in the table. It is observed from the table that the established potential for developing power generation through additional small hydropower plants is to the level of over 2,000 mw and if harnessed, can contribute effectively to the future power needs.

The Northern Areas are the richest in hydropower as reflected in the above table, followed by NWFP. Total hydropower generation only in Chitral region is technically proven to be over 1,368 MW, out of which small size power projects account for 225 MW cumulative capacity.

Studies are being conducted on various other sites too in the country. Experts estimate that further potential exists to generate additionally 3,000 to 4,000 MW through small hydropower plants.

Efforts are therefore underway by various concerned agencies to exploit this potential optimally. There are many mini- and micro- hydropower projects under construction at present in the Northern Areas.

In addition, small hydropower projects are under construction in the Northern Areas, which include 12- MW hydropower station in Skardu, 18-MW power station in Jaglot and 3-MW station in District Astore.

Also, work is in progress on a 28-MW power plant in Basho at a cost of Rs2,300 million. A few other schemes have been approved for implementation by the NAPWD. A major project is a 28-32 mw Maltrur hydropower for which feasibility study is being finalized with the co-operation of the Chinese.

Also, Naltar III hydropower project of 18 mw capacity has been approved for installation in the Northern Areas. The provincial governments too have plans to develop many small hydropower schemes.

Government of the NWFP has recently received techno-commercial proposals from Chinese companies for undertaking the 18-MW capacity Pehur hydropower project on turnkey basis.

A project of 4.5 mw capacity is to be set up in Azad Jammu and Kashmir at Battar, District Bagh. Another hydropower station of eight mw capacity is to be installed at Jabori, Mansehra.

Likewise, Punjab government has recently approved 40 schemes of small power units on various canals and barrages that would be capable to generate a cumulative total of 65 mw electricity. Feasibility studies of the major projects have been conducted.

These are proposed at Bambanwala, Daska and Degfall, Sheikhupura, both on the Upper Chenab Canal, capacity 6.29 MW each, Pakpattan, 3.30 MW, on Pakpattan Canal Upper, two projects at Sahiwal, 4.56 MW and 2.43 mw, on Lower Bari Doab, two projects at Sheikhupura, capacity 3.5 MW each, on Upper Chenab Canal, and Gujrat, 2.34 mw, on Upper Gugera Canal.

Out of these, the provincial government would implement two projects, including Pak pattan hydropower, for which tender documents are almost ready. The remaining 38 projects however would be offered to the private sector for which Expression of Interest are expected to be invited before December 2005.

Realistically, the private sector plays vitally important role in any investment area. The involvement of private sector is required to develop small hydropower projects.,

SHYDO has taken a bold initiative to bring in private investment in a big way, and, besides handing over various mini- and micro- power stations in operation to private sector, a number of potential sites are also being leased out.

For example, out of 19 identified sites on canal falls of Machai Canal (Mardan), each of approx. one MW capacity, four have already been leased out, whereas another 10 sites are to be offered to private investors shortly.

The rest are to be developed by SHYDO itself. Feasibility studies for developing these sites are presently under preparation. Similarly, 18 sites are being offered at Abazai Canal, in the range of 30 kw to 450 kw, for lease.

Power policies of the governments of the NWFP and AJK provide simple procedures, fiscal and financial concessions and attractive tariffs, aiming at inviting private sector investment basically for captive power for industry.

The projects in the NWFP will be leased out for an initial period of 33 years, on a baseline reserve price of Rs550 per kw per annum of 70 per cent of the indicated power potential.

It is also reported that the provincial government may revise its power policy to make it more investor-friendly. There are four major projects in the NWFP for which feasibility studies have been completed and are identified for offering to the private sector as solicited proposals.

These include Daral Khwar, Swat of 35 mw, Batal Khwar, Swat of eight mw, Summargah, Kohistan of 28 mw and Ronalia, Kohistan of 11 mw capacity. A private investor has installed a one-megawatt unit, at Jarikas, Mirpur, to meet power requirements of his industry.

AJK Government has also issued Letter of Support (LOS) to two projects, namely Riali I of 1.60 mw and Madar Butdara of 10.20 MW capacity, and Letter of Interest (LOI) for another, Riali II, 4.9 mwW capacity project, to private investors.

Plans are in advanced stage to increase the installed capacity for power generation in Pakistan, primarily hydro and thermal to cover the growth in future demands.

Implementation of various medium and large hydropower projects, including Basha and Kalabagh multi-purpose schemes, however involve long construction periods and high capital costs.

Meanwhile, small capacity hydropower plants, which are cost-effective and require short construction time, will serve to meet electricity needs significantly.

Though there is no internationally recognized definition, small hydropower units are generally categorized as Micro (less than 100 kW capacity), 'mini' (100 kw to one mw) and 'small' (above 1 mw and up to 5 mw).

Small hydropower stations with installation of multiple turbo-generating units are stretched to a maximum total capacity of up to 30 MW in the USA and Canada, and up to 50 mw in the People's Republic of China.

Pakistan Power Policy 2002 categorizes projects up to 50 mw as Small Hydropower, and their development is within the purview of the provincial and AJK governments. At present a number of small-size hydro power plants are operating in the country, predominantly in the public sector, with a total installed capacity of approx. 242 mw.

For last many decades Water and Power Development Authority (WAPDA) is operating eight small hydropower plants having over 107 MW total installed capacity. These power stations are located at Dargai, Jabban and Karram Garhi in the NWFP, and at Rasul, Chichoki Mallian, Shadiwal, Nandipur and Renala in the Punjab.

Likewise, about one hundred mini- and micro- power stations, with a total installed capacity of over 93 MW, are in operation in far-flung localities of the Northern Areas, mainly to provide electricity for lighting purposes, developed and operated by the Northern Areas Public Works Department (NAPWD).

Similarly, Sarhad Hydro Development Organization (SHYDO) has developed 11 mini- and micro- hydropower stations in the NWFP with a total capacity of over 5 MW, a few of which have recently been leased out to the private sector.

In the Azad Jammu and Kashmir, there exist seven hydropower stations, in the range of 0.1 mw to 30.4 mw capacity, which are developed by the AJK Hydro Electric Board (AJKHEB).