Investing in hydro power sector for Pakistan´s energy security

Hydro power is currently the most widely used source of renewable energy in the world. It has a global installed capacity of more than 1000 GW (Giga Watts), and the capacity is expected to grow to 1680 GW by the year 2035, with non-OECD countries accounting for more than 90% of the said growth. This paper evaluates the historical account of the evolution of Pakistan´s power market, current market scenario, the key power market participants and presents the case for development of hydro-power projects to solve the cotemporary energy crises of the energy starved country. Furthermore, the paper looks into the investment opportunities in context of enforced regulations by the authorities including tariff setting mechanism and financial modeling for an independent hydro power producer.