ISLAMABAD, Nov 20: The government is facing difficulties to meet the challenge of generating 18,468 MW of electricity by 2007-08 with a view to fulfil the growing power needs.

Sources told Dawn here on Saturday that the ministry of water and power has been directed by President Gen Pervez Musharraf and Prime Minister Shaukat Aziz to work out comprehensive short-, medium- and long-term plans to meet power requirements.

The ministry was told that electricity tariff needed to be stabilised by enhancing power generation, especially through hydroelectric power generation. The contribution of hydel power generation into the National Grid will help reduce/maintain the tariff "that is increasing due to larger thermal share".

It was said that escalating prices of fuel oil and its scarcity had made it difficult to use it (fuel oil) for power generation. The cheapest renewable natural resource is the hydel energy which is abundant in Pakistan and needed to be exploited.

The exploitation of natural resources would help meet the growing power demand, besides reducing the load-shedding problem. With the induction of Independent Power Producers (IPPs), the share of thermal energy has increased and the ratio between hydel and thermal energy production is now 35:65.

The president and the prime minister, sources said, were informed that pace of work had been accelerated to enhance power generation and that three important hydropower projects in the Indus valley, namely Allai Khwar hydropower project (121 MW), Khan Khwar hydropower project (72 MW) and Duber Khwar hydropower project (130MW) in Kohistan area were at an implementation stage.

The power generation from identified projects in these streams would be provided to the National Grid, which would improve system reliability as well as decrease the power rates for consumers. A memorandum of understanding (MoU) has been signed for the development of potential hydel site on Keyal Khwar with China and negotiations were underway for finalising the project and determining its cost.

Potential schemes on small tributaries were identified for the purpose of rural electrification. Roughly 174 schemes on tributaries were identified with an aggregate capacity of 677 MW of electricity. In addition to small schemes, medium-sized schemes were also identified and optimised for their connection with the National Grid. These schemes were identified on Indus-Kohistan, Swat, Kaghan and Chitral valleys.

Also, the authorities concerned were told, that another project - Spath Gah Hydropower Project- is being included in the Wapda's 2025 programme to enhance power generation capacity. This is considered one of the most promising hydropower projects to be completed at a cost of Rs177 million over a period of 24 months.

The consumption of electricity is regarded as an index of economic prosperity and the present per capita electricity consumption in Pakistan is about one-tenth of the world's average and, therefore, official concerned admitted, that a lot more needed to be done in the field of power generation.

The installed capacity as on March 2002 was 15,555 MW, out of which 5,009 MW is being generated through hydel stations and 10,221 MW through thermal power stations and 325 MW through Chashma Nuclear power station.