Pakistan is blessed with hydel potential of above 60,000 MW, mostly located in Khyber Pakhtunkhwa, Gilgit-Baltistan and Azad Jammu and Kashmir. Out of this only 12% has been exploited so far. In the years 1960-70 the share of hydel & thermal power generation was 65% to 35% which has almost gone reverse in the power system due to non-construction of any mega hydel project. The imbalance between hydel and thermal has increased the demand of imported fuels and severely affected balance of payment. The high tariff rates of IPPs are consuming major share of revenue and have also caused immense increase in overall electricity tariff rates. Despite major share in power mix system, the thermal plants are unable to cope with electricity demand due to de-rated capacity as a result of shortage of fuels (gas and furnace oil) and spare parts for old plants. In the prevailing situation of sever load shedding even in winter season warrants construction of mega hydel projects like Dasu, Diamer Bhasha and Bunji Hydropower Project in the near future.
Dasu Hydropower Project will have an installed capacity of 5400 MW and provide annual energy of 21,700 GWH. The implementation of the project will increase the generation capacity and the hydel share in the generation mix system which is presently dominated by thermal power. Induction of Dasu HPP in the power system contributes to achieve an affordable electricity tariff objective. This will also help to ease the energy crisis in the country and improve the closed working units of industry and balance of payment.