Trap of surplus power capacity

AS the government procrastinates to make public bankable studies on the energy demand and supply, the debate continues if the nation may be entering a ‘capacity trap’ followed by another cycle of shortages few years down the road.

That path appears well known in Pakistan. After successful implementing the upfront tariff-based energy policy in 1994, the then PPP government contracted thousands of additional capacity that not only overcame serious shortages but also appeared to create a capacity trap.

Published in Dawn, 19th February, 2018