Renewable Energy to Tackle Pakistan's Electricity Crisis

In June 2007, the power cuts in Pakistan lasted no more than 3 or 4 hours a day. Today, in extremely hot weather, Pakistanis have to endure without electricity for 8 to 10 hours a day. Industrial production is suffering, exports are down, jobs are being lost, and the national economy is in a downward spiral. By all indications, the power crisis in Pakistan is getting worse than ever.

Extended Load-shedding:
Extended electricity load shedding in Karachi's five major industrial estates is causing losses in billions of rupees as the production activity has fallen by about 50 per cent. KESC, Karachi's power supply utility, is dealing with with a shortfall of around 700MW against a total demand of 2200MW. Almost all forms of power generation from fossil fuel to hydroelectric to nuclear are down from a year ago. The economy, major exports and overall employment are also down and the daily wage earners are suffering. The government owes over Rs. 10b to the independent power producers (IPPs) and paying them will help bring them into full operation and ease the crisis at least partially.

Electricity Demand:
As discussed in an earlier post, Pakistan's current installed capacity is around 19,845 MW, of which around 20% is hydroelectric. Much of the rest is thermal, fueled primarily by gas and oil. Pakistan Electric Power Company PEPCO blames independent power producers (IPPs) for the electricity crisis, as they have been able to give PEPCO only 3,800 MW on average out of 5,800 MW of confirmed capacity. Most of the IPPs are running fuel stocks below the required minimum of 21 days. IPPs complain that they are not being paid on time by PEPCO.

Per capita energy consumption of the country is estimated at 14 million Btu, which is about the same as India's but only a fraction of other industrializing economies in the region such as Thailand and Malaysia, according to the US Dept of Energy 2006 report. To put it in perspective, the world average per capita energy use is about 65 million BTUs and the average American consumes 352 million BTUs. With 40% of the Pakistani households that have yet to receive electricity, and only 18% of the households that have access to pipeline gas, the energy sector is expected to play a critical role in economic and social development. With this growth comes higher energy consumption and stronger pressures on the country’s energy resources. At present, natural gas and oil supply the bulk (80 percent) of Pakistan’s energy needs. However, the consumption of those energy sources vastly exceeds the supply. For instance, Pakistan currently produces only 18.3 percent of the oil it consumes, fostering a dependency on imports and that places considerable strain on the country’s financial position. On the other hand, hydro, coal, wind and solar are perhaps underutilized and underdeveloped today, as Pakistan has ample potential to exploit these resources.

Gilani Government's Response:
Neelum-Jhelum hydroelectric project, first formally announced by former Minister Omar Ayub on June 10, 2007, is finally starting in earnest under the PPP government of Prime Minister Yousaf Raza Gilani. This hydro project is expected to add 963MW power generating capacity at a cost US $2.2 billion, according to Business Wire. Prior to this project, the new Pakistani Prime Minister signed a deal with a Chinese company, Dong Fong, for setting up 525 MW thermal power plant with an investment of $450 million at Chichoki Mallian (Sheikhupura). Both of these projects are expected help partially close the 3000 MW gap that exists today between supply and demand in Pakistan.

Renewable Energy Opportunities:
In response to the warnings of energy crisis in Pakistan, President Musharraf's government recognized the need and the potential for renewable alternatives and, in 2006, created Alternative Energy Development Board to pursue renewable energy. In particular, AEDB is focusing on wind and solar as viable alternatives. AEDB is facilitating setting up of small renewable energy projects in line with government’s policy of promoting the use of renewable energy in the country’s power generation mix, says the board’s chief executive officer Mr Arif Alauddin. AEDB has recently issued Makwind Power Private Ltd (MPPL) a Letter of Intent for the setting up of 50MW wind farm at Nooriabad in Sindh, as part of its efforts to facilitate 700 MW wind energy by 2010.


According to data published by Miriam Katz of Environmental Peace Review, Pakistan is fortunate to have something many other countries do not, which are high wind speeds near major centers. Near Islamabad, the wind speed is anywhere from 6.2 to 7.4 meters per second (between 13.8 and 16.5 miles per hour). Near Karachi, the range is between 6.2 and 6.9 (between 13.8 and 15.4 miles per hour). Pakistan is also fortunate that in neighboring India, the company Suzlon manufactures wind turbines, thus decreasing transportation costs. Working with Suzlon, Pakistan can begin to build its own wind-turbine industry and create thousands of new jobs while solving its energy problems. Suzlon turbines start to turn at a speed of 3 meters per second. Vestas, which is one of the world's largest wind turbine manufacturers, has wind turbines that start turning at a speed of 4 meters per second. In addition to Karachi and Islamabad, there are other areas in Pakistan that receive a significant amount of wind.

In only the Balochistan and Sindh provinces, sufficient wind exists to power every coastal village in the country. There also exists a corridor between Gharo and Keti Bandar that alone could produce between 40,000 and 50,000 megawatts of electricity, says Ms. Katz who has studied and written about alternative energy potential in South Asia. Given this surplus potential, Pakistan has much to offer Asia with regards to wind energy. In recent years, the government has completed several projects to demonstrate that wind energy is viable in the country. In Mirpur Sakro, 85 micro turbines have been installed to power 356 homes. In Kund Malir, 40 turbines have been installed, which power 111 homes. The Alternative Energy Development Board (AEDB) has also acquired 18,000 acres for the installation of more wind turbines.

In addition to high wind speeds near major centers as well as the Gharo and Keti Bandar corridor, Pakistan is also very fortunate to have many rivers and lakes. Wind turbines that are situated in or near water enjoy an uninterrupted flow of wind, which virtually guarantees that power will be available all the time. Within towns and cities, wind speeds can often change quickly due to the presence of buildings and other structures, which can damage wind turbines. In addition, many people do not wish for turbines to be sited near cities because of noise, though these problems are often exaggerated. Wind turbines make less noise than an office and people comfortably carry on conversations while standing near them.

As is painfully evident in summers, Pakistan is an exceptionally sunny country. If 0.25% of Balochistan was covered with solar panels with an efficiency of 20%, enough electricity would be generated to cover all of Pakistani demand. In all provinces the AEDB has created 100 solar homes in order to exploit solar energy.

Solar energy makes much sense for Pakistan for several reasons: firstly, 70% of the population lives in 50,000 villages that are very far away from the national grid, according to a report by the Solar Energy Research Center (SERC). Connecting these villages to the national grid would be very costly, thus giving each house a solar panel would be cost efficient and would empower people both economically and socially.

Coal Power and Hydroelectricity
In addition to high winds and abundant solar potential, Pakistan has the fifth largest coal deposits in the world. The negative environmental effects of coal burning can be be mitigated by making use of the latest clean coal technologies that limit noxious gas exhaust into the atmosphere.

Pakistan also has some deposits of natural gas in the Potwar Plateau region and near the border between Balochistan and Sindh, but these are likely to disappear within 20 years.

Because of the presence of many rivers and lakes, it makes sense for Pakistan to build dams to support water management and electricity generation projects. However, it must be done with care to avoid damage to the environment or loss of farmland.

Financial and Policy Incentives
Despite the fact that Pakistan is so well endowed with wind and solar potential, only a few projects such as those mentioned above have been completed. One of the reasons why this has occurred is that Pakistan does not have major financial incentives available for those who want to install wind turbines or solar panels. Let us look at the case of India, Pakistan's neighbor. Despite having less potential for wind, India now has the world's fourth largest number of wind turbines installed at 7,093 MW, according to India: Renewable Energy Market report. Ahead of India are Germany at 21,283 MW, Spain at 13,400 MW and the US at 12,934 MW. In Germany, Spain and India, those who install wind turbines and solar panels are guaranteed a certain rate per kilowatt hour. In India, this varies according to the technology and the area. The Ministry of New and Renewable Energy, India reports that in most areas, between 2500 and 4800 rupees are guaranteed for solar panels, and for wind turbines, between 250,000 and 300,000 rupees are awarded.
Because of the above incentives, the cost of wind in India is between 2 and 2.5 cents per kilowatt hour while in Pakistan, the cost is 7 cents. In December 2006, President Musharraf announced a national renewable energy policy. This policy means that small projects do not need approval and that any person can put up their own project. However, there are no financial incentives for doing so. At the moment, all renewable energy equipment has no sales or income tax and is free of custom duty, but these incentives are not enough to stimulate major growth in the renewable energy market where ROIs and other financial ratios have a long gestation or breakeven period. In certain situations, such as the textiles and other Karachi industrial units losing production and export opportunities due to power cuts, it may make sense for the owners to join hands and build power generation capacity they can rely on.

Conclusion
In addition to coal and hydro electricity generation, Miriam Katz argues that it is clear that Pakistan is a suitable country for the installation of wind and solar: due to high winds near cities; the presence of rivers and lakes as well as the availability of wind turbines from nearby India. There are also other reasons for installing renewable energy. It is quite normal for extended power outages to happen on a daily basis in the country, but this cannot continue if the Pakistani economy is to grow. In March 2007, President Musharraf stated that renewable energy should be part of the push to increase energy supplies by 10 to 12 percent every year. The government also set a target of 10 percent of energy to come from renewables by 2015. If the new PPP-led government follows through with aggressive renewable energy push, Pakistan could be an Asian leader in renewable energy given its natural resources of wind and solar as its strategic endowments.

Related Links:

Renewable Energy Businesses in Pakistan

Pakistan Council of Renewable Energy Technology

Pakistan Policy on Renewable Technology

Sugarcane Ethanol Project in Pakistan

Community Based Renewable Energy Project in Pakistan

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Comment by Riaz Haq on March 14, 2015 at 10:18pm

The private sector arm of the French Development Agency will infuse USD 20 million (EUR 18.8m) into Gul Ahmed Wind Power Ltd, which is developing a 50-MW wind project in Pakistan’s Sindh province.

Finance institution Proparco’s investment in this independent power producer will support the construction and operation of the plant that will be located to the northeast of Karachi. The move is part of attempts to back renewable power generation and drive economic development across the country, according to a Tuesday press release.

“This project will contribute not only to reducing pressure on the country’s power grid, but also to encouraging the development of strong, reliable and clean energy in the region,” said Claude Periou, CEO of Proparco. He went on to say that this is the entity’s third investment in Pakistan’s energy sector.

The planned wind farm will help the country reduce the use of polluting and expensive fossil fuels and will create 50 long-term job positions.

http://renewables.seenews.com/news/proparco-to-back-development-of-...

Comment by Riaz Haq on March 18, 2015 at 10:14pm

The China Three Gorges Corporation has official wrapped up construction work on its first wind farm in Pakistan, as part of vigorous efforts by the state-owned renewable energy giant to expand into the South Asian market.

Total investment for the Three Gorges wind farm in Pakistan was $130 million, for the creation of total installed capacity of 49.5 MW. The project has taken just over two years to complete, with work commencing at the end of January in 2013 and initial commercial operation beginning on November 25, 2014.

Three Gorges Corporation has touted the project as the first wind farm that a Chinese company has funded and built in Pakistan, as well as the only wind farm in Pakistan to be completed ahead of schedule.

At a completion ceremony held on March 11, China Three Gorges chairman Lu Chun said that Pakistan was a key strategic investment market for the company due to its close strategic ties with China, as well as its abundance of clean energy resources and strong market demand.

In order to foster its expansion into the Pakistani market, China Three Gorges has established China Three Gorges South Asia Investment Limited (CSAIL) an investment holding company in Pakistan that aspires to become the country’s largest renewable energy company.

The company has over 2 GW of solar, wind, and hydropower projects in the pipeline, with key projects that have already entered the construction phase including two hydropower plants with expected capacities of 720 MW and 1.1 GW respectively.

CSAIL has already obtained the support of some heavyweight backers, including the World Bank’s International Finance Corporation, which has acquired a 15% equity stake in the company.

China’s $40 billion Silk Road infrastructure fund, whose establishment was announced by Beijing in November of last year, has also expressed strong interest in either investing in or cooperating with CSAIL in the South Asian market.

http://cleantechnica.com/2015/03/18/china-three-gorges-builds-first...

Comment by Riaz Haq on March 21, 2015 at 1:15pm

The National Transmission and Despatch Company Limited (NTDCL) of Pakistan signed three agreements for the output of 129.5 MW of energy from Jhimpir wind farm.

The plan calls for Tapal Wind Energy to build a 30 MW facility, Master Wind Energy to install a 49.5 MW plant and Gul Ahmed Wind Power construct an additional 50 MW wind park.

The PPAs have received the green light from NTDCL authorities and all three wind power producers will close their financing till 31 March 2015. The farm will start production by the end 2016.

NTDC, incorporated in 1998 operates and maintains twelve 500 KV and twenty nine 220 KV Grid Stations, 5077 km of 500 KV transmission line and 7359 km of 220 KV transmission line in Pakistan.

The main functions of NTDCL are categorized as central power purchasing agency, system operator, transmission network operator, contract registrar and power exchange administrator for the energy portfolio of Pakistan.

As a Central Power Purchasing Agency (CPPA), the utility works on procurement of power from GENCOs, Hydel & IPPs on behalf of Distribution Companies (DISCOS) for delivery through 500 kV, 220 kV and 132kV Network.

Current projects undertaken by NTDCL include D. G Khan 500 kV sub -station and transmission line, New Okara 220 kV Sub-Station Transmission Line and Dispersal of Power from Jarwar IPP Jarwar – Sadiqabad 132 kV Double Circuit Transmission Line.

The Jhimpir Wind Power Plant is a wind farm located at Jhimpir in Thatta District of Sindh province in Pakistan, 120 kilometres North-East of Karachi.

The project has been developed by Zorlu Energy Pakistan at a total cost of $143 million.

Recently, Pakistan Meteorological Department has conducted a detailed Wind Power Potential Survey of Coastal Areas of Pakistan.

This study finds that Sindh coastal areas have greater wind power potential than Balochistan coastal areas. Potential areas cover 9700 sq.km in Sindh.

In Pakistan, first wind power generation plant of 50 MW was inaugurated in December 2012 and started full production in 2013. The wind power potential in Pakistan that has been identified in Sindh and Balochistan is more than 50,000 MW while Punjab has potential of producing almost 1,000 MW.

http://www.greentechlead.com/wind/ntdcl-of-pakistan-signs-3-deals-f...

Comment by Riaz Haq on April 21, 2015 at 1:54pm

Pakistan's Environmental Protection Agency announced this week that it has awarded a US$1.4 billion contract for development of the 720-MW Karot hydroelectric project on the Jhelum River in the Rawalpindi district of Pakistan, to a group of Pakistani and Chinese investors that includes China Three Gorges South Asia Investment Ltd. (CTGC).

Published information indicates 93% of the project’s funding is through CTGC and the remaining 7% from Pakistan-based Associated Technologies (Private) Ltd. The National Transmission and Dispatch Company Ltd. (NTDC) of Pakistan plan to complete the project by 2020.

Karot Power Co. (Private) Ltd. will operate the run-of-river hydroelectric power plant, which includes an underground powerhouse that will generate electricity from four 183-MW Francis turbine units. The powerhouse will be located in the province of Punjab and the Karot Dam, a concrete gravity dam, will be built on the Jhelum River.

Initially, Pakistan’s Water and Power Development Authority (WAPDA) planned the scheme, but the project was privatized and taken over by the Private Power Infrastructure Board (PPIB), which then subsequently granted operation responsibility to Karot Power Co. (Private) Ltd.

PPIB has authority to "handle" the operation of 12 hydroelectric power projects in Pakistan, according to the agency.

PPIB said the project is expected to generate 3,436 GWh annually and connect to the government-owned National Grid of Pakistan, which is operated by WAPDA. WAPDA has a 30-year Power Purchase Agreement with NTDC.

According to Pakistan’s 2002 Power Generation Policy, private sector-developed hydroelectric projects must be developed on the basis of Build-Own-Operate-Transfer. In this case, NTDC must transfer to the government of Pakistan, free of charge, the Karot hydroelectric project after operating it for 30 years. 
 

Comment by Riaz Haq on August 22, 2015 at 6:07pm

Pakistan plans to commission nine wind power projects with a combined capacity of 479 megawatt under deals signed since Prime Minister Nawaz Sharif’s government took office two years ago, an official said.
Joudat Ayaz, director general of finance in Pakistan’s Alternative Energy Development Board, said the projects are are worth $1.1 billion and are located in Sindh province stretching from Karachi up the Indus River.
Lenders such as the International Finance Corp., Asian Development Bank, Overseas Private Investment Corp. and Habib Bank Ltd. are among those financing the projects.
The Alternative Energy Board is in talks for projects totaling another 774 megawatts for wind and 711 megawatts from solar installations. The country currently has 255 megawatt of commissioned wind farms.
The board estimates that the power-starved south Asian country can produce as much as 50,000 megawatts from wind projects. The country currently has a power generation capacity of 22,000 megawatts, though shortages are leading to blackouts that disrupt homes and businesses.
“Power shortfall is causing about $2 billion loss per year to the economy,” Ayaz said in an interview.
Pakistan’s power regulator Nepra has approved an average tariff of 14.5 U.S. cents per unit of solar power and 10.5 U.S. cents per unit of wind energy.

http://www.bloomberg.com/news/articles/2015-07-27/pakistan-plans-47...

Comment by Riaz Haq on November 5, 2015 at 12:53pm

to Invest $50 Million to Set Up & Digital Center in

GE has announced that it’s going to invest $50 million in Pakistan to set up a first of its kind technology and Digital Center in Pakistan. The Center will introduce its Industrial Internet solutions for its partners to support them in accelerating productivity and operational efficiency.

The Center will be grounds for customer and developer collaboration on development of software solutions and Industrial Internet applications and will deliver training to build the skills of Pakistan’s technical and skilled professionals.

The announcement was made on the sidelines of GE Chairman and CEO Jeffrey Immelt’s visit.

The new GE Pakistan Technology and Digital Center also marks GE’s focus investment in local manufacturing and will serve as proof of GE’s commitment to building local talent, lean manufacturing capability and indigenization of technology.

Nabil Habayeb, GE’s President and CEO for the Middle East, North Africa and Turkey said GE is at the cutting edge of digital innovation, having transformed their businesses to leverage the potential for growth offered by the digital industrial economy.

The meshing of big data and advanced analytics with heavy machinery, which we call as Industrial Internet, is today a game changer for businesses world-wide. With the new investments, GE is underlining its commitment to bring greater digitization that will help enhance the operational efficiency and productivity of partners in the country, he said.

GE harnesses the power of the Industrial Internet and delivers value to its customers via Asset Performance Management (APM), a category of software and technology that optimizes machines and operations to maximize business performance across industries including aviation, manufacturing, energy, transportation and healthcare.

GE’s Industrial Internet applications and solutions are powered by Predix, the world’s first and only cloud-based operating system built exclusively for industry. GE has also unveiled its dedicated environment for industrial developers, Predix.io, which will lay the foundation for the world’s first and largest marketplace for industrial applications.

Pakistan is already at the vanguard in embracing Industrial Internet solutions by GE. A great example is the integration of Predix by Sapphire Electric Company Limited. It drives a suite of APM applications which allows industrial assets from any vintage or vendor to talk seamlessly with each other in a secure manner and uses analytics to deliver outcomes for our customers.

Pakistan’s young and vibrant talent pool of software professionals is uniquely positioned to leverage the opportunity provided by GE’s Industrial Internet using Predix.io.

Besides, GE has two major areas for this investments plan including local manufacturing sector and clean energy projects.

Comment by Riaz Haq on August 10, 2018 at 5:51pm

Community-built #hydropower projects lighting up remote areas in #Pakistan, generating 5 to 100 kilowatts of power. Most micro-hydropower projects have a shelf life of up to 20 years but it's extendable. #renewable #energy #electricity https://scroll.in/article/888241/in-pakistans-mountains-community-b... via @scroll_in


Two winters ago was the best winter Zulekha Begum can remember in her 42 years in Swat valley, 150 kilometres northeast of Peshawar, the capital of Khyber Pakhtunkhwa province. “It was the most comfortable winter; our rooms were nice and warm and we had hot water anytime of the day.”


For the first time last winter, her village of Jukhtai, in the idyllic alpine valley, received an uninterrupted supply of electricity thanks to the 65 KW of the micro-hydropower project that the Sarhad Rural Support Programme, an independent development organisation, helped install in their village of 2,300 people.

The Sarhad Rural Support Programme has been working in the Khyber Pakhtunkhwa province since 1989 with the aim of reducing poverty and ensuring sustainable means of livelihood. And since 2004, it has built more than 250 micro-hydro units supplying off-grid communities with cheap, environmentally-friendly and uninterrupted power supply. With financial support from the European Union to produce over 19 MW of electricity, it has benefitted over 570,000 people.

Six years ago, in 2012, the EU (in collaboration with the Pakistan government) started a four-year programme to “revitalise” rural economy and promote renewable energy for sustainable livelihoods in Malakand division of Khyber Pakhtunkhwa province. This was later extended to 2018.

Pumping in 40 million Euros into areas affected by conflict and natural disasters, the project planned to cover 100 union councils of seven districts (Swat, Shangla, Buner, Lower Dir, Upper Dir, Chitral and Malakand) to benefit 2.7 million people affected by conflict and floods.

This fitted closely with the work of the Khyber Pakhtunkhwa government, which was also planning on initiating over 350 units to produce 35 MW of electricity benefiting over 700,000 people by 2017.

In Pakistan, micro-hydropower projects have been led and popularised by the Aga Khan Rural Support Programme and the Sarhad Rural Support Programme, both of whom have been recipients of the Ashden international award for their work in Khyber Pakhtunkhwa, Gilgit-Baltistan, and Pakistan’s Kashmir region.

“The way we work with the community is that the latter provides us with land, labour, time even local material like stone, and earth which comes to 20% of the cost while 80% is borne by the SRSP [Sarhad Rural Support Programme],” said Dildar Ahmad, Sarhad’s district programme manager. The micro-hydropower project at Jukhtai (in Swat), cost Pakistani rupee 8,152,154 ($64,275) and provides connections to 315 households and some shops.


According to the Sarhad Rural Support Programme, the Khyber Pakhtunkhwa government gave them 105 micro-hydropower projects to be completed by December 2018, of which they have completed 90, and the rest are 78% complete. All the EU funded projects were completed by March 2018. Overall, the Sarhad Rural Support Programme says that, since 2009, it “has constructed 332 micro hydro projects, as of July 2017, benefiting approximately 900,000 population in rural areas of Malakand Division and Northern Districts of Khyber Pakhtunkhwa.” (Oddly, the graphic accompanying this claim suggests only 331 projects have been completed.)

Comment by Riaz Haq on December 16, 2019 at 7:32am

In #Pakistan around 1237 MW #windpower farms are installed out of which a major share contained by the coastal wind corridor in #Sindh province with the installed capacity of about 935 MW. #renewableenergy #cleanenergy https://aip.scitation.org/doi/abs/10.1063/1.5115376

Pakistan is a country with massive potential of clean and green renewable sources of energy, wind energy holds a significant position in it, 50 GW of wind energy farms have been installed throughout the world. In Pakistan around 1237 MW wind power farms are installed out of which a major share contained by the Sindh province with the installed capacity of about 935 MW. This paper analyses the positive steps taken in the wind power sector of our country and Sindh province. Moreover, some recommendations are also presented regarding wind power potential which will be beneficial for insertion of the huge amount of cheap power in the national grid mix to lean the looming issues of Pakistan’s energy sector.

Comment by Riaz Haq on December 16, 2019 at 7:43am

#Pakistan govt inks deals for 560 MW of fresh #windenergy. Move in line with the country’s 30% national #renewables goal by 2030 https://renewablesnow.com/news/pakistani-govt-inks-deals-for-560-mw...

Pakistan’s Alternative Energy Development Board (AEDB) on Friday signed contracts with the developers of projects that will see the country expand its wind power capacity by 560 MW.

The government agency, which is tasked with promoting renewables installation in Pakistan, has inked implementation and guarantee direct agreements with independent power producers (IPPs) regarding 11 projects. The move is in line with the country’s 30% national renewables goal by 2030 and efforts to cut dependence on fossil fuel imports. The new capacity is expected to lead to the production of over 1.8 billion kWh of clean power per year, AEDB said.

Six of the schemes will be supported by the International Finance Corp (IFC), which on Friday signed agreements to finance the so-called Super Six project portfolio with USD 450 million (EUR 406.9m) in debt. Those power plants, with a combined capacity of 310 MW, will be installed in the Jhimpir wind corridor in Sindh province and will be able to generate enough electricity to cover the annual needs of 450,000 homes while offsetting around 650,000 tonnes of carbon dioxide (CO2) emissions annually, IFC said in a separate statement. It will provide some USD 86 million in funds from its own account and USD 234 million mobilised from other lenders.

The 11 projects are expected to become operational by 2021.

(USD 1.0 = EUR 0.904)

Comment by Riaz Haq on December 16, 2022 at 8:07am

Analysis: China’s shifting energy investments in Pakistan, from coal to renewables

https://www.thethirdpole.net/en/energy/analysis-chinas-shifting-ene...


China’s energy investments in Pakistan have so far focused on coal and hydropower projects. But several China-backed wind projects are now underway, and Islamabad says it is ready to go big on solar.


Until about a decade ago, the Jhimpir region in Pakistan’s southern province of Sindh was a dry, barren stretch of land, inhabited by nomadic tribes. Today, it is home to hundreds of mammoth rotating blades in about two dozen wind farms.

Around 90 kilometres from Karachi, Jhimpir is the heartland of Pakistan’s largest ‘wind corridor’, which has the potential to produce 11,000 megawatts (MW) of clean energy. Among early investors was the China Three Gorges Corporation, a Chinese state-owned power company, operating under an investment holding company, China Three Gorges South Asia Investment Limited.

The company has funded and built three wind projects with a combined capacity of nearly 150 MW. The first of these began construction in 2012. The latter two projects, completed in 2018, were funded under the China Pakistan Economic Corridor (CPEC), an integral part of Beijing’s flagship multibillion-dollar Belt and Road Initiative (BRI). In an official statement following Pakistan’s prime minister Shehbaz Sharif’s visit to China on 1-2 November 2022, Sharif reaffirmed the importance of CPEC to Pakistan’s development.

For the time being, renewables represent only a small portion of Pakistan’s power generation mix. Of a total of 43,775 MW, installed capacity for wind and solar represent around 4.2% (1,831 MW) and 1.4% (630 MW) respectively, according to the National Electric Power Regulatory Authority’s State of Industry 2022 report. In terms of CPEC, the November 2022 joint statement from China and Pakistan listed oil and gas as among the “priority areas of CPEC cooperation”.

But a recent shift in the direction of Chinese investment may be hugely significant for Pakistan’s energy future, and the climate.

The shift from coal?
In the years before the launch of CPEC in 2015, Pakistan was desperate to end its long, crippling power shortages. The country was keen to develop its untapped indigenous coal in Thar desert, but multilateral financial institutions were not interested. Along came China in 2013, with an offer to lend massive amounts for infrastructure development and coal mining.

Details of the financing deals are a closely guarded secret, but multiple Chinese-funded coal projects followed. Eight completed or under-construction coal projects are listed as part of CPEC, totalling 6,900 MW, which include four on Thar coal.

Then in 2021, after growing pressure on China – currently the world’s biggest polluter – to curb its greenhouse gas emissions, Beijing announced it would not build new coal-fired power plants overseas, and would increase support for low-carbon energy.

In December 2020, Pakistan announced that it would not build any new power projects that depend on imported coal, and pledged that by 2030 60% of its energy will come from clean and renewable sources. The government has since scrapped a number of potential coal projects, including a 300 MW plant at the Chinese-controlled Gwadar sea port in Balochistan. Reportedly, it is to be replaced by a solar plant.

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