Long term power system planning is required to meet fast growing electricity demand in Pakistan. Policy makers need to consider both environmental and economic concerns to make timely decisions about electrical power generation mix. In this paper, energy demand is predicted for the country from 2005 to 2030. In order to meet this demand; energy supply modeling is performed through software Long-range Alternative Energy Planning System (LEAP) for the same period. A baseline or Business As Usual (BAU) scenario is developed according to official government policies. However, three scenarios are assumed considering new strategies. This study simulates the electrical power supply model in order to find out economically viable fuel mix with limited impact on environment. In this regard, the policies discussed are chosen with respect to comparative cost benefit analysis and CO2 emissions related to the selected fuel mix.
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