IT is ironic that the hub of national hydropower generation — Azad Jammu and Kashmir — suffers long and persistent power outages, ranging from four to 12 hours.

Wapda, National Transmission and Dispatch Company and the Islamabad Electric Supply Company are responsible for supplying power from the national grid to about 70pc of AJK’s population of over 3.68 million that is connected to the grid. Currently, the total power demand is just 400MW. Still, the power supply does not meet the present demand.

Nonetheless, the AJK government is not totally dependent on NTDC and IESCO for power supply, and has constructed a number of power stations over time. At present, 12 small, mini and minor hydropower stations are in operation, with cumulative installed capacity of about 45MW.

Nine hydropower projects of a cumulative capacity of 15.25MW in Azad Kashmir are scheduled to start commercial operations by December 2014

The AJK government has has also launched a comprehensive plan to accelerate the pace of hydropower development and to construct a number of additional small hydropower plants through its own resources and with private investments.

Despite the poor law and order situation, mountainous terrain, lack of infrastructure and skilled workforce, the government has attracted significant private investment. Currently, 22 hydropower projects by the AJK Private Power Cell, of a cumulative capacity of 268MW, are under various stages of progress. These are being developed under public-private partnership mode; though the progress has remained very slow in the recent past.

Nine hydropower projects by the AJK Power Development Organisation, of a cumulative capacity of 15.25MW, are in advanced stages of completion and scheduled to start commercial operations by December 2014. These are Battar (Haveli, 4.8MW), Sharda (Neelum, 3MW), Rehra (Bagh, 3.2MW), Dhannan (Kotli, 1.7MW), Keel (Neelum, 0.75MW), Hillan (Haveli, 0.6MW), Patikka (Muzaffarabad, 0.5MW), Rangar-II (Poonch, 0.45MW) and Guin Nullah (Poonch, 0.25MW). In addition, under-construction Jari-II (Mirpur, 4MW) and Jagran-II (Neelum, 48MW) are expected to be completed by 2016 and 2017, respectively.

The medium-term plan covers the development of five medium-size hydropower projects of a total capacity of 145MW, which are to be completed by or beyond 2018. These projects, for which approval of PC-1 is in process, include Shounter (48MW), Dowarian (40MW), Naghdar (35MW) and Jagran IV (22MW).

Detailed feasibility studies have already been initiated under the Annual Development Programme 2013-14 for small projects, including Chamm Fall (6.4MW), Sandoa Cross (1.75MW), Bhedi Doba (1MW) and Galetar (1MW), and for the upgradation of the existing Kundal Shahi power station. Pre-feasibility and feasibility studies are under preparation for a number of raw sites as well.

The AJK has tremendous potential for hydropower generation, estimated at over 18,000MW. Wapda is also working on various hydropower schemes here, while the Neelum-Jhelum project of 969MW capacity is in advanced stage of construction. A private sector project, Patrind of 147MW at Kunhar River (AJK/KP), sponsored by the Private Power and Infrastructure Board (PPIB), is under construction, and is scheduled for completion by April 2017.

Likewise, the 100MW Gulpur project is now achieving financial close and is expected to be operational by December 2017. Other PPIB projects under implementation are 1,100MW Kohala, 720MW Karot and 500MW Chakothi Hattian — all scheduled to achieve commercial operation by December 2020.

Wapda and PPIB are working on another five projects of a cumulative capacity of 1,210MW, including Mahl (590MW), Sehra (130MW), Kotli (100MW), Azad Pattan (640MW) and Athmuqam (350MW). Major solicited AJK projects identified for future investment are Dudnial of 960MW and Ashkot of 700MW.

The federal government needs to address some genuine grievances of AJK in the context of power sector. Firstly, it has never been paid any royalty for hydropower generation, which is being given to the KP. Secondly, displacement/replacement issues as a result of the Mangla Dam raising project have not been settled. Thirdly, electricity made available to the AJK residents is inadequate and expensive. The cost of generating power from hydropower stations installed in the AJK works out at around Rs2.59 per kWh, whereas the federal government sells power to AJK at Rs12 per unit to consumers.

The writer is a former chairman of the State Engineering Corporation.

Published in Dawn, Economic & Business, June 30th, 2014