INP-WealthPk

Thanks to China, Pakistan is Now A Power-Surplus Country

November 10, 2021

By Abrar Saeed ISLAMABAD, Nov 10 (INP-WealthPK): China has launched a number of power projects under the China-Pakistan Economic Corridor (CPEC) to help Pakistan meet its domestic and industry energy needs. Some of these projects are completed and contributing 5,920MW of electricity to the national grid, while work on some plants with 3,870MW capacity is underway. Another 3,244MW project is being contemplated. The power projects completed under CPEC are somewhat an energy mix, but the coal-fired plants dominate both in terms of numbers and quantum of the power generated. As power transmission system also needed an improvement and refurbishing, so a project of 4,000MW evacuation capacity (Matiari-to-Lahore 660KV HVDC transmission line) was also completed. The addition of thousands of megawatts of additional electricity to the national grid has transformed Pakistan into an energy-sufficient country from an energy-deficient one, thus opening new vistas of industrial growth in the country. Especially, with the initiation of work on industrial zones along CPEC route in the second phase of the multi-billion-dollar project and foreign direct investment coming in the growth in power sector would help bring economic turnaround in the country. According to the Pakistan Economic Survey 2019-20, the installed electricity generation capacity reached 37,402MW in 2020. The maximum total demand of residential and industrial sectors stands at nearly 25,000MW, whereas the installed transmission and distribution capacity is approximately 22,000MW. This leads to a shortfall of about 3,000MW when the demand peaks. This additional 3,000MW requirement cannot be transmitted even though the peak demand of the country is well below its installed generation capacity of 37,402MW. With the commissioning of power projects initiated under CPEC in the first phase, some 5,920MW of power was added to the national grid. As per the data shared by CPEC Authority, which operates directly under the Ministry of Planning, Development and Special Initiatives, the major chunk of power generation came from four coal-fired projects, which collectively generated 4,620MW, while 1,000MW were contributed by two solar energy units and the rest of 300MW came from three wind-based power plants. The total cost of these projects stood at $10.337 billion. These projects generated thousands of jobs during the course of their construction, while several thousands more were hired for the plants’ regular functioning and upkeep. According to the details shared on the website of CPEC Authority, the fully functional 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, Thatta, 100MW UEP Wind Farm, Jhimpir, Thatta, 50MW Sachal Wind Farm, Jhimpir, Thatta, and 100MW Three Gorges Second and Third Wind Power Project. Another project initiated for laying 4,000MW evacuation capacity was also completed under the CPEC funding. Under the project, a 660KV HVDC transmission line was laid from Matiari to Lahore with a cost of $1.6 billion. With the completion of the under-construction power projects, some of which are already at completion stage, an additional 3,870MW of electricity would be added to the national grid. Out of these projects four are coal-fired with an estimated capacity of 2,280MW, while the other two hydropower projects have an estimated capacity of 1,590MW. The under-construction power projects include 1,320 SSRL Thar Coal Block-I 7.8 mtpa & Power Plant (2×660MW) (Shanghai Electric),  330MW Hubco Thar Coal Power Project (Thar Energy), 330MW Hubco Thal Nova Thar Coal Power Project, 300MW Coal-fired Power Project Gwadar, 884MW Suki Kinari Hydropower Project in Mansehra district of Khyber Pakhtunkhwa, and 720MW Karote Hydropower Project in AJK/Punjab. Some five projects with the expected capacity of 3,244MW are at the consideration stage. Out of these projects only one is coal-fired with the expected capacity of 1,320MW, and the rest are either hydropower or wind-based. These projects include 1,124MW Kohala Hydropower Project, AJK, 700MW Azad Pattan Hydropower Project, AJK/Punjab, 1,320MW Thar Mine Mouth Oracle Power Plant & surface mine, 50MW Cacho Wind Power Project and 50MW Western Energy (Pvt) Ltd. Wind Power Project. With the enhanced power production, Pakistan is now in a position to cater to the energy needs of the industrial zones being set up along the CPEC routes and transfer of industry from China. The excess power would also cushion the power needs of the industries where direct foreign investment is likely made in coming years.