Investor Presentaiton

ANNUAL REPORT P Private Power and Infrastructure Board ANNUAL REPORT Private Power and Infrastructure Board Types of Hydropower Benefits Implementation of Hydropower IPPs A sustainable energy supply has both direct and indirect impact on all sectors of the economy. Pakistan is successfully overcoming energy crisis through increase in generation as well as in transmission capacity of the system. The current gap between the demand-supply needs to be filled up alongwith improvements in the energy mix at a lower cost. The country's dependence on RFO and natural gas in the overall energy-mix is gradually declining which may be attributed to depleting natural gas reserves as well as due to the introduction of LNG since 2015, while RFO being expensive imported fuel. On the other hand, the share of hydro and nuclear has increased in the energy-mix in FY 2020. Such historical variability for each energy source in the energy-mix of the country has been used to formulate the Integrated Energy Plan which will not only help in envisioning energy demands and respective supply paths of the future but also to formulate evidence based long term policy options. Energy security demands expansion, diversification and localization of energy sources for a sustainable energy system. To have sustainable energy supply, an increased access to modern forms of energy is required for fostering development and to curb natural resource degradation. Hydropower is one of the more important renewable energy resources for generating electricity, decarbonizing the power system and improving system flexibility. Though hydropower is a mature technology and expected to remain the world's largest source of renewable electricity generation, yet it continues to evolve. As the world's largest source of renewable electricity with unique storage and flexibility services to support the integration of variable renewables, hydropower can play an integral role in the recovery effort and the clean energy transition. Looking ahead, hydropower is key to the energy plans of many countries including Pakistan to address energy poverty and increase access to reliable, affordable and •Low-cost base-load energy Reliable Flexible .CO₂ emission reduction Clean Synergic •Storage •Peaking energy Firming and Balancing cleaner electricity. Besides electricity, hydropower projects deliver a range of benefits to the society and the environment. Over and above electricity generation, power-related benefits include flexible generation and storage, as well as reduced dependence on fossil fuels and avoidance of pollutants. Situated in remote places, hydropower projects uplift these areas by promoting economic development, creating employment and improving livelihoods. Such projects deliver investment in transportation, education and health services, tourism and recreation, while boosting national macroeconomic growth and opportunities for trade. Communities benefit from safely managed water for homes, industry and agriculture, and flood and drought mitigation. Thus, a hydropower project designed and built for power generation will often find multiple other uses over its lifetime. It is a globally established fact that hydropower projects are characterized with a variety of technical and economic constraints and bottlenecks; these include hydrological risks, resettlement, land acquisition and environmental issues, longer development and construction periods, seasonal reduction and variation in generation capacity and financing problems etc. However, despite such challenges, significant attention is being given both at federal as well as provincial levels for harnessing maximum potential and PPIB as a key department of the GoP is playing lead role in tapping maximum potential, thus bagging significant laurels. The hydropower resources in Pakistan are mainly located in the mountainous areas in northern region of the Country. The hydropower resources in the south are being scarce and mainly comprise of small to medium schemes on barrages and canal falls. Hydropower resources of Pakistan can be divided into following six regions 47 ▸ Khyber Pakhtunkhwa ▸ Punjab ▸ Azad Jammu & Kashmir ▸ Gilgit-Baltistan Sindh Balochistan 48

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