The total investment under the China-Pakistan Economic Corridor (CPEC) will reach $62 billion by 2030, with $27.4 billion projects having already been realized, according to an annual report on renewable energy released by Sustainable Development Policy Institute (SDPI).

The energy sector (power generation, coal mining and transmission lines) represents 76% of the total investments made so far under the project. The power generation projects cover both fossil fuel and renewables of about 11GW. To date, the report says, about 5,520MW energy projects have been completed. More than half of these projects are coal-based power plants. 

The report says the completed projects include 1,320MW Sahiwal coal-fired power plant, 1,320MW coal-fired power plant at Port Qasim, Karachi, 1,320MW China Hub coal power project, Hub, Balochistan, 660MW Engro Thar coal power project, 1,000MW Quaid-i-Azam Solar Park, Bahawalpur, 50MW Hydro China Dawood wind farm, Gharo, 100MW UEP wind farm, Jhimpir, Thatta, 50MW Sachal wind farm, Jhimpir, Thatta, 100MW Three Gorges second and third wind power project, Matiari to Lahore ±660KV HVDC transmission line project, and 720MW Karot hydropower project, AJK/Punjab.

The projects that are under construction include 1,320 SSRL Thar Coal Block-I (2×660MW), 330MW Hubco Thar coal power project, 330MW Hubco Thal Nova Thar coal power project, 884MW Suki Kinari hydropower project, KP, and 300MW coal-fired power project, Gwadar.

Similarly, the CPEC projects under consideration include 1,124MW Kohala hydropower project, AJK, 700.7MW Azad Pattan hydropower project, AJK/Punjab, 1,320MW Thar Mine Mouth Oracle power plant, 50MW Cacho wind power project, and 50MW Western Energy (Pvt.) Ltd wind power project.

The SDPI annual report says Pakistan had committed in NDC 2021 (Nationally Determined Contributions) that no new coal plant would be financed. Balance of payment crisis, along with high circular debt and surplus capacity have already scaled back future CPEC investment, as indicated by the shelving of the 1,320MW Rahim Yar Khan coal power project in 2019.

In November 2020, Pakistan announced suspending coal-based power projects under planning and initial construction stages as part of Pakistan’s climate action efforts. The decision was a follow-up to a report from an independent nine-member committee set up in 2019-20 to review the independent power project contracts, including CPEC contracts, which offered higher returns compared with global standards, the SDPI report adds.

Credit: Independent News Pakistan-WealthPk