By kamran Raja
Energy has remained the core focus of China-Pakistan Economic Corridor (CPEC) and helped to reduce power shortage in Pakistan. CPEC is expected to have a significant impact on the energy sector in Pakistan. The corridor includes a number of energy projects, including hydropower plants, coal-fired power plants, and wind farms.
These energy projects have a number of benefits for local people. First, they are helping to reduce Pakistan’s reliance on imported energy. Currently, Pakistan imports a significant amount of its energy, which is a drain on the country’s economy. The energy projects under CPEC will help to reduce this reliance, which will save the country money.
Second, the energy projects under CPEC are creating jobs. The construction and operation of these projects require a large number of workers, which will provide employment opportunities for local people.
Third, the energy projects under CPEC are helping to improve the lives of people in rural areas. Many people in rural areas do not have access to electricity. The energy projects under CPEC have helped to bring electricity to these areas, which will improve the quality of life for many people.
In addition to these benefits, the energy projects under CPEC are also expected to have a number of positive social changes. For example, they are expected to help to reduce poverty and improve education and healthcare.
Overall, the energy projects under CPEC are expected to have a significant positive impact on the lives of local people in Pakistan. They will help to reduce reliance on imported energy, create jobs, improve access to electricity, industrial growth and bring about positive social changes.
CPEC is making ways for Pakistan to achieve its sustainable energy needs, especially to build its renewable energy power generation capacity from the current 4 percent to 30 percent in 2030. The energy cooperation on CPEC is ongoing between China and Pakistan. Overall, there are 21 energy projects under this fate-changing project initiative between both countries. Among these, around a dozen been completed, and the rest are in the process of completion and are at different stages of development progress.
In fact, Pakistan was a country that experienced an acute energy crisis previously. Electricity shortages exceeded 7,000MW in the year of 2011. The energy shortage emerged because Pakistan had lacked the power generation capacity. The energy shortfall emerged largely due to the failure of attracting the investment at a level required for expansion and maintenance of power generation on pace with the growing demand.
However, after the launch of CPEC, Pakistan has constructed new power generating plants which has drastically enhanced the country’s energy generation capacity. At present, Pakistan has acquired the capacity to produce more electricity than its requirement. According to the statistics of Pakistan Economic Survey 2019-2020, Pakistan acquired the installed capacity of 35,972MW in 2020. In the same year, Pakistan’s consumption capacity stood around 25,000MW. Previously, the primary structural problem of power sector was expansion of power generating units which has already been addressed under the CPEC energy framework and installation of power plants outside of CPEC cooperation.
In total, around 12,000 megawatts of energy would be generated through 21 energy projects envisioned under the ambit of CPEC energy projects. The 21 energy projects will cost around USD $ 25 billion. At the moment, over a dozen energy projects have been completed and operationalised at full capacity.
Energy projects completed under CPEC featuring advanced technologies and lower cost not only provided a solution to Pakistan’s electricity shortage, which was a historic achievement for the country but also helped Pakistan improve its energy structure and reduce the cost of power generation.
According to official sources, the total installed capacity of CPEC energy projects, including that of coal, wind, solar and hydropower, stands at 6,570 MW. They generated 28,549.94 Gwh and 25,772.48 Gwh power respectively in FY 2020-21 and FY2021-22, accounting for 22.03% and 18.37% of the total generation in Pakistan.
As the CPEC energy projects replaced the costlier energy production from furnace oil and diesel to coal and renewable energy resources in the last five years, the energy needs of Pakistan have been fulfilled at lower prices, driving growth in the export-oriented industries.
The Karot Hydropower Plant, the first hydropower investment project under CPEC, and the second phase of the Thar Block II power station project both went into commercial operations in succession in year 2022. The hydropower plant provides Pakistan with clean yet low-priced electricity while the coal-power project taps into Pakistan’s coal resources for power generation, economizing local precious foreign exchange resource.
Additionally, there are many other hydropower projects which are under construction. Suki Kinari Hydropower project with an installed capacity of 870MW is almost complete and will be operational at the end of this year.
Other CPEC-related hydropower projects include Kohala Hydropower Project and Azad Pattan Hydropower Project. Furthermore, Diamer Bhasha, Neelum Jehlum, Mohmand, and Dasu Dams are also contributing towards Chinese commitment to provide clean and affordable energy in Pakistan.
When renewable energy is talk of the town across the world, Belt & Road Initiative of China is not behind in contributing towards green revolution. On similar lines, CPEC energy investments from China are now focusing on green energy. It won’t be an exaggeration if we say that 2023 brought a new era in Sino-Pak cooperation in renewable energy, as we have witnessed extremely encouraging signs in green energy sector between the two friendly nations.
Until now, renewable energy sources make up a very minor fraction of Pakistan’s overall power generation mix. According to a recent report of the National Electric Power Regulatory Authority, the installed capacity for wind and solar accounts for roughly 4.2% (1,831 MW) and 1.4% (630 MW) of a total of 43,775 MW, respectively.
China is already the biggest investor in green energy in Pakistan. Currently, out of the $144 million in foreign investment in solar PV plants in Pakistan, $125 million is from China, accounting for nearly 87% of the total.
Thanks to Chinese investments, a few weeks ago Federal Power Minister Khurram Dastgir Khan inaugurated two new wind energy projects in Jhimpir, Thatta District, Sindh, with an aim to produce cheaper and clean electricity through indigenous energy sources. Wind projects in this region have been one of several renewable energy projects to have received Chinese investment in recent years. Around 90 kilometers from Karachi, Jhimpir is the heartland of the country’s largest ‘Wind corridor’, which has the potential to produce 11,000 megawatts (MW) of energy from green resources.
Another major development took place in Wind Energy promotion when Beijing-based multinational wind turbine manufacturer, Goldwind Corporation launched the first-of-its-kind solution factory in Pakistan. The Solution Factory aims to develop localized solutions for Pakistani wind power plants.
In conclusion, CPEC energy projects have improved the power industry in Pakistan and contributed to economic growth by increasing power supply with high efficiency at lower cost.
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