INP-WealthPk

Power Projects Under CPEC to Alleviate Pakistan’s Energy Crisis

June 07, 2022

By Abdul Ghani ISLAMABAD, June 07, (INP-WEALTHPK): The power projects initiated under China-Pakistan Economic Corridor (CPEC) can play a pivotal role in overcoming the prevailing energy crisis in Pakistan, WealthPK reported. The gap between the supply and demand of energy has brought investment, trade, and domestic production in Pakistan to their lowest ebb. According to the World Bank, Pakistan’s per capita energy demand has increased to 417.99 kilowatt-hours. However, this scourging demand can be met through energy projects initiated under CPEC. The generation of solar power at a larger scale can help Pakistan to control the prevailing energy crisis. Currently, the 1000-megawatt Quaid-i-Azam Solar Power Plant in Bahawalpur is the sole facility of its kind operating in the country under CPEC. The solar power plant has produced 7.9 percent more energy from the year 2020 to 2021 than the target set for it by National Electric Power Regulatory Authority (NEPRA). Addressing the 7th CPEC Media Forum in Islamabad, Chinese chargé d'affaires Pang Chunxue said that the recent developments in the project showed that Pakistan was set to overcome that looming crisis. She said that 7,000 solar panels were installed in Gwadar so far, helping the local community to overcome the decades-old energy crisis. “The CPEC, a vital part of the Belt and Road Initiative (BRI), has the potential to  alleviate Pakistan’s energy crisis and that will eventually prove to be a greater source of industrial and economic growth in the country,” she said. She also mentioned the Karot Hydropower Project and termed it the manifestation of a successful advancement of CPEC. “The second phase of CPEC, which mainly comprises special economic zones, will help improve Pakistan’s economy through production and trade,” she added. The envoy said that the Karot Hydropower Project under CPEC was expected to reduce 3.5 million tonnes of carbon dioxide emissions per year. “It will fulfil the power demand of about five million local population,” she added. Speaking on the occasion, Senator Mushahid Hussain Syed, the chairman of the Pakistan-China Institute, said that CPEC added 10,000 megawatts of electricity national grid to decrease the supply deficit of energy in Pakistan. “Solar power production is cost-effective. It is a need of the hour for Pakistan,” he added. Dr Abdul Jalil, a prominent economist, said that solar power production would enhance the generation of low-cost energy in Pakistan. He told WealthPK that the solar panels imported under CPEC could benefit Pakistan to a great extent. “However, Pakistan also needs to negotiate with Chinese companies to start assembling the solar panels locally and reduce the transport and other miscellaneous costs of import,” he added. The continuation of CPEC schemes irrespective of the change of governments in Pakistan manifests the commitment of both the countries to gain shared benefits of the mega project and ensure the prosperity of both the nations. The cooperation in the energy sector under CPEC between Pakistan and China in the form of solar power plants is important for the global agenda of clean energy mechanisms. Pakistan needs to get engaged with the Chinese solar panel production companies and broaden the scope of already installed solar power plants in the country to benefit from the energy projects initiated under CPEC.