Pakistan's power sector faces significant challenges in terms of capacity, governance and financial sustainability. In May 2012, with a demand of 15,000 MW and a supply of 9,000 MW, the shortage of electricity generation reached 6,000 MW. Since then, several power generation plants have been commissioned, but even in 2017 the power deficit was around 400 MW. The new power generation under CPEC approved by NEPRA in March 2017 includes coal, wind, solar and hydro power projects with a total installed capacity of 9,887 MW. Of this approved capacity, the coal-based capacity is 6,600 MW and the hydrogen-based capacity is 2,690 MW. Solar and wind power capacity represents only 6 percent of total capacity. Since 2014, sources of electricity generation have shifted from oil/gas to coal, gas and renewable energy. Increased consumption of conventional energy sources such as fossil fuels (oil, coal and gas), particularly coal, causes greenhouse gas emissions and other adverse effects on the environment. The different forms of electricity generation in the country differ in terms of differences in their energy sources but also in terms of production costs, both fixed and variable. There are also several other distinctive features. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”? Get the original essay Some power plants are baseload (oil/gas/coal) plants and can provide uninterrupted electricity throughout the year ; plants that rely on solar energy are forced to provide electricity only during the day (assuming no storage); and electricity production from hydroelectric plants varies depending on the season. Some form of production depends on imported fuels, with possible constraints on imports; others rely on local fuel and still others on renewable energy. Therefore, there is a need to explore a long-term energy mix for power generation in Pakistan that takes into account both standard production cost as well as environmental costs, balances imported fuel with local fuel and takes take into account seasonality and time of day variations. electricity production. There is still a lack of models to ensure a production mix at the lowest cost over a long period. Pakistan relies on different forms of electricity generation. Thermal electricity generation in Pakistan accounts for 64% of the total electricity generation. This over-reliance on thermal generation, particularly oil-based generation, has made the cost of electricity highly dependent on imported oil and fluctuations in international oil prices. Coal-based production is less dependent on imports due to large domestic reserves, but coal-based production involves high environmental costs. Coal-based power generation is the other major form of power generation (29%) and although it involves no fuel costs, the initial investment cost is very heavy; Additionally, electricity generation from hydropower sources varies significantly from summer to winter, requiring backup power generation during the winter months. With these alternative forms of energy production, it would be politically fruitful to develop.