VZCZCXRO6268
RR RUEHLH RUEHPW
DE RUEHIL #2379/01 1961116
ZNR UUUUU ZZH
R 141116Z JUL 08
FM AMEMBASSY ISLAMABAD
TO RUEHC/SECSTATE WASHDC 7753
INFO RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUEHNE/AMEMBASSY NEW DELHI 3506
RUEHLO/AMEMBASSY LONDON 8276
RUEHML/AMEMBASSY MANILA 2999
RUEHKP/AMCONSUL KARACHI 0009
RUEHLH/AMCONSUL LAHORE 5752
RUEHPW/AMCONSUL PESHAWAR 4528

UNCLAS SECTION 01 OF 02 ISLAMABAD 002379 
 
SENSITIVE 
 
SIPDIS 
 
E.O.  12958:  N/A 
TAGS: ENGY EFIN ECON EINV EAID PK
SUBJECT: GOP ANNOUNCES ENERGY CONSERVATION STRATEGY 
 
¶1. (SBU) SUMMARY. The Government of Pakistan has drafted an energy 
conservation strategy to gain short and long term increases to 
Pakistan's national gird.  With current energy shortfalls of up to 
4500 mega-watts per day, impacting all regions of the country, 
Pakistan desperately needs to make changes to spur efficiency. 
USAID will launch a USD 30 million/ 3 year program in October 2008 
which will assist with implementation of the proposed measures.  END 
SUMMARY. 
 
¶2. (SBU) Deputy Chairman of Pakistan's Planning Commission Mr. 
Salman Faraqui shared Pakistan's Energy Conservation strategy with 
EconOffs.  Proposed steps include switching over to energy saver 
bulbs, use of solar energy for bill boards and neon signs, reduction 
in transmission and distribution losses, converting to daylight 
savings time and staggering of the traditional "weekly holiday," 
early closure of commercial establishments at 9:00 PM.  Other steps 
include implementing energy efficient building codes in 2009 and 
implementing efficiency standards for electric appliances. The GOP 
proposes to form an "Energy Services Company" to undertake energy 
conservation measures in the public and private sectors.  The GOP 
also proposes to pass an Energy Conservation Act reportedly approved 
by the late Benazir Bhutto. 
 
¶3. (SBU) Efficient Lightbulbs: Hoping to save 500 MW, incandescent 
bulbs will be replaced by energy saver bulbs.  Pakistan Electric 
Power Company (PEPCO) will import 10 million bulbs through 
international competitive bidding and distribute the bulbs with 
PEPCO meter readers going door to door.  The GOP estimates that the 
program cost will be recovered from consumers in 6 monthly 
installments through increases in electricity bills.  The World Bank 
will reportedly pay for the initial procurement of the bulbs. 
 
¶4. (SBU) Domestic Lightbulb Production:  Incandescent bulbs will be 
phased out over the next 5 years.  The GOP plans to ban imports and 
withdraw tariff concessions to local manufacturers of the 
traditional incandescent bulbs.  The import of compact fluorescent 
light bulbs (CFL) will be duty free until domestic manufacturing of 
high quality CFLs is established.  Existing mercury streetlights are 
to be replaced by more efficient bulbs. 
 
¶5. (SBU) Reducing Consumption: Proposals also call for billboards 
and neon signs to be converted to solar panels within two years and 
will be switched off nightly at 10:00 pm.  Banquet halls and 
marriage halls will be allowed only minimal electricity, all public 
buildings will be without air-conditioning till 11:00 am and all new 
construction will be required to use solar water heaters. 
 
¶6. (SBU) Reducing Losses: The plan proposes to reduce transmission 
and distribution losses by dividing the country into 150 zones. 
Each zone will be required to publish quarterly figures of 
electricity shipped and billed.  Zones with less than 10 percent 
technical losses will be recognized and rewarded but the other zones 
will be placed under "enforcement directorates" for closer 
monitoring. 
 
¶7. (SBU) Daylight Savings Time: To maximize the use of daylight, the 
GOP switched to daylight savings time and advanced by one hour on 
June 1.  In order to level out the power demand over the course of a 
typical week, the GOP is proposing to stagger the "weekly holiday" 
with shopping center closures recommended on Friday, the traditional 
shopping day, rather than Sunday.  The GOP plan further proposes 
that commercial centers close at 9:00 PM every day. 
 
¶8. (SBU) Building Codes: Effective January 2009, all commercial and 
industrial facilities as well as larger homes must be built 
according to a "Building Energy Code" which will include technical 
specifications to conserve energy and solar designs.  Electric 
appliances are also expected to meet minimum efficiency standards 
starting in January 2009. 
 
¶9. (SBU) Energy Audits: The GOP has also proposed the formation of 
Energy Saving Companies (ESCOs) to conduct energy audits of public 
and private sector installations.  The ESCOs will charge a 
percentage of the savings as their fee.  The GOP also proposes to 
pass an Energy Conservation Act to provide legal backing to the 
conservation measures. 
 
¶10. (SBU) Comment: The Energy Conservation and Energy Efficiency 
component of USAID's USD 30 million/3 year Pakistan Energy 
Development Program (PEDP) will provide technical support and 
project assistance to support and further refine the Planning 
Commission's strategy.  The USG currently favors interventions that 
 
ISLAMABAD 00002379  002 OF 002 
 
 
address rationing, ESCOs, grid losses, and public information 
campaigns but the final program areas will be determined by PEDP 
based on their estimation of the amount of energy conserved and 
coordination with other donors.  USG support for these measures will 
begin in October 2008. End Comment. 
 
PATTERSON