Decision support framework for developing cost-effective fuel-mix for power generation in Pakistan

The electricity generation in Pakistan is predominantly based on oil and gas. Three major hydroelectric power stations cater for the base load. Sky rocketing oil prices warrant the adoption of a balanced fuel mix for power generation based on indigenously available and exploitable fuel sources. The framework for the development of most economic, least cost fuel mix for power generation in Pakistan is presented. The framework builds upon the indigenous availability, technical and commercial feasibility, capital and fuel costs, environment impact, and indigenous capabilities to handle various power generation technologies. The framework suggests that price distortions between different categories of consumers be removed and import of oil for power generation be considered only after exhausting the locally available options.