By Muhammad Mudassar ISLAMABAD, Feb. 10 (INP-WealthPK): The establishment of hydropower plants is needed in Pakistan keeping in view the increasing demand for energy. According to the Ministry of Energy, Pakistan generated a total of 102,742 GWh of electricity (July-April 2021). The highest share of electricity generation came from thermal energy (59.4 percent), followed by hydel energy with 30.5 percent. For thermal power plants, Pakistan imports fossil fuel pernicious for the environment and the country’s economy, augmenting the trade deficit. Pakistan spent around $2.5 billion on the import of coal and $20 billion to import crude petroleum, liquified natural gas (LNG), liquified petroleum gas (LPG), and petroleum products in FY 2021. So, the price of per unit electricity also increased. Moreover, circular debt also reached Rs2,300 billion in 2021. To overcome deficits, there is a need to shift towards cheap and clean energy sources. Hydroelectricity is the best option. Due to the up and down in electricity demand, the shortfall also fluctuates. The shortfall is less in winter and more in summer. During the peak season (June 2021), the shortfall reached 6,500MW. Out of 37,261 MW generation capacity, Pakistan generated 29,000MW in 2021. In addition to operational plants, some plants are under construction and some are being proposed. Thanks to an auspicious geographical location, Pakistan has the potential of developing renewable energy sources like solar, hydel, wind, biogas, and biodiesel energies, etc. In the mountainous areas of Khyber Pakhtunkhwa province and Azad Jammu and Kashmir, the potential of solar energy is minimum as compared with hydel energy. Small hydroelectric stations provide an alternative source to overcome energy shortage. Among all electricity generation technologies, hydel power has the lowest life cycle cost. However, water resources are not utilised efficiently. According to Water and Power Development Authority (WAPDA), Pakistan has the potential of 60,000MW hydropower of which only 7,320MW or  12 percent has been developed. Pakistan can fill the demand-supply gap by installing new hydel power plants. Pakistan's undiscovered hydropower potential to a great extent lies in the north along the Indus River in the region of Gilgit-Baltistan and KP, as well as Jhelum River in the territories of Punjab and Azad Jammu and Kashmir. The major hydropower plants in Pakistan are Tarbela Dam (3,478MW), Ghazi Brotha Hydropower project (1,450MW) and Mangla Dam (1,150MW). Larger hydroelectric power plants cost more in construction and maintenance than smaller ones. Around 103 micro hydel power plants are operating in northern areas (Chitral, Gilgit Baltistan region) and 307 in Khyber Pakhtunkhwa. According to the Ministry of Energy, the mini plants with 187MW potential are under construction. Hydroelectric power provides many benefits mainly in the form of electricity. A small hydroelectric power plant is a homegrown energy source, allowing each state to generate its energy without relying on imported fuel. It also helps to carry the power supply to remote areas of Pakistan. Hydroelectric plants have some environmental impacts, such as damaging wildlife habitats, degrading water quality, restricting fish migration, and reducing river recreational advantages. Hydroelectric power plants can be affected by drought. When water is not available, the plant cannot produce electricity. The government should attract investment from private investors, foreign governments, and multilateral development banks by providing facilities. The government should ensure the availability of water before the construction of hydroelectric power plants.