By Ayesha Saba

ISLAMABAD, Aug 17 (INP-WealthPK): Pakistan's second coal-based power plant under the China -Pakistan Economic Corridor (CPEC) has been launched in Tharparkar with 330 megawatts of generation capacity.

The project is expected to start full commercial operations by the end of the current month. With the new power plant, the country will be able to generate 990MW electricity based on Thar coal.

According to Sindh Chief Minister Murad Ali Shah, his government always considered Thar to be the cornerstone of the energy security for Pakistan. Thar coal prices are two to three times lower than the imported lignite while saving billions of dollars in foreign exchange.

He also highlighted that the government had provided continuous support to the independent power producers (IPPs) using Thar coal as well as mining companies, besides provision of necessary infrastructure, including roads and bridges so that those projects could function smoothly.

Talking to WealthPK on the condition of anonymity, a research officer in the energy finance and economic section under the planning ministry said, “Although the CPEC energy portfolio has included a few ground-breaking renewable energy projects, Pakistan prioritized larger-scale coal-fired power plants because these plants would provide the most effective means to tackle the local energy crisis.”

“A key feature of the CPEC energy projects is to incorporate coal, hydropower, and renewable energy into the energy mix, as envisioned by the government.”

“The country has an enormous amount of untapped coal reserves; the government aims to increase domestic coal production from 4.5 to 60 million tons annually. Thus, to reduce its reliance on imported fuel, the government is looking to explore cheap indigenous sources of energy, particularly coal. It is anticipated that if properly exploited, Pakistan’s coal resources may generate more than 100,000MW electricity for the next 30 years.”

Sharing his concerns, the official said, “Although the coal-related power projects may reduce the supply and demand gap in the country, on the other side it is expected that these power projects could also have quite harmful effects on the environment in the long run. But the Pakistani officials would ensure to make CPEC environmentally sustainable with its Chinese partners. Chinese and Pakistani officials have pledged on different forums to implement a clean coal combustion technology that adheres to the international standards.”

Sindh Engro Coal Mining Company (SECMC) General Manager Admin and External Affairs Ahmed Muneeb said, “Pakistan has 175 billion tons of coal reserves in Tharparkar alone. They are equivalent to 50 billion tons of oil equivalent (TOE) which is more than Saudi and Iranian oil reserves. The reserves are equal to 2,000 trillion cubic feet (TCF) of gas which is 68 times higher than Pakistan’s total gas reserves.”

The National Electric Power Regulatory Authority (NEPRA) reports that 14 energy projects with a combined capacity of 11,648MW and an investment of $18.6 billion had begun under CPEC. While some projects have completed, others are in various stages of development.

Out of this total capacity of 11,648MW, coal-fired power generation accounts for 8,220MW (nine projects) with an insured debt of $8.7 billion provided by major Chinese banks such as the Industrial and Commercial Bank of China, Export-Import Bank of China, and China Development Bank. Out of nine coal-based power projects, five projects having with a capacity of 3,960MW are based on Thar coal, while the remaining four projects having with a capacity of 4,260MW are based on imported coal.

Credit: Independent News Pakistan-WealthPk