Come to know about CPEC Energy Sector Projects
God has blessed with many natural resources however we have been unable to generate the energy that can meet the full potential of our land. The current capacity of Pakistan’s energy generation is 24840 MW. So CPEC’s main focus is the generation of more and more renewable and non-renewable energy. Almost $33 billion is expected to invest in the project of a generation of energy. The Early Harvest project was witnessed to consume more than 10000MW energy in March 2016.
The independent Power Producers will be hired by CPEC to construct these Power generation projects rather than the governments of Pakistan or China. A Chinese bank is contractually going to provide funds for these constructions while Pakistan is obliged to buy electricity from those firms and also paying back at 5 to 6 percent interest.
Renewable Energy Projects
Pakistan has announced a few years back that the Pakistan government will prioritize the hydropower projects over the other energy generation projects. The focus of Pakistan is to generate at least 25 percent of its energy generation through renewable energy resources.
A famous Chinese company completed the world’s biggest project of solar power plant Quaid e Azam the solar power plant which is spread across 6500 acres and was expected to generate 1000MW in December 2016. The first phase that was completed early is capable of generating 100MW energy while the rest of 900MW generation will be completed by Zonergy company of China.
Diamar Bhasha Dam is also under discussion or Pakistan and China governments though no confirmed decision has been made Pakistan government is positive about the happening of this event. Similarly, many small and average-sized dams are also under discussion and some are already under construction. These projects can help Pakistan and China to generate the ultimate amount of renewable energy.
Even after having so many renewable energy projects, many of the new energy generation projects will be coal-based projects considering the existence of the immense amount of coal in Pakistan. $5.8 billion of coal energy projects were already completed in 2019. On May 26, it was unveiled that a transmission line of 660 KV would be laid between matiari and Lahore. The electricity would be produced from coal-based power plants at Thar, Port Qasim and Hub. It would have the capacity to supply 2000MW with a 10 percent overloaded capability for 2 hours.
In Baluchistan province near Karachi, A $900 million worth of project with the capacity of generating 660MW will soon be built by Pakistani company Power hub Company and a Chinese company China power investment corporation and it will be a part of the major project that will have the capacity of generating more than 1000MW. In the city of Gwadar, a $300 million worth of the project is also being developed.
The coal power plant that is in Sahiwal in fully operational since 2017. It worth $1.8 billion and is capable of generating more than 1300MW. It was built by two Chinese firms and it is jointly be operated by both of them while Pakistan buys electricity from them at a decided price. Another project of $589 million with a capacity of 300MW is also being built at Pind Dadan Khan. The Chinese firm argued that coal transportation costs had greatly raised due to the non-availability of coal from closely situated mines which had in beginning been considered as the primary coal source for the project. The company discussed that coal would rather have to be moved from distant Sindh province, which along with inefficiencies in mining processes, increased the cost of fuel by 30.5%.
As a part of Thar 1 project many new power plants will be built by a Chinese company while all the projects of Thar 2 will be developed by another consortium. This facility was operated by locally discovered coal and was initiated in 2018. For the first 330 MW NEPRA has agreed to buy the electricity from both Thar 1 and Thar 2 a project with some tariffs. And for the next 660 MW with different rates. Near the Thar 1 project, another new power plants are built as a part of Thar 2 project by the Chinese machinery Engineering Corporation.
Liquified Natural Gas
LNG projects also hold vital and essential importance for CPEC as they decide to build 711km a long pipeline which is estimated to be $2.5 billion. This pipeline is designed in such a way to proportionately become a part of a 2780km long Pakistan Iran pipeline with 80km from Gwadar to Iran borders. While Iran already has finished his side of a pipeline which is 900km long. Pakistani side of the pipeline is yet to be completed China Petroleum Pipeline Bureau which will have the potential of transferring 1×109 cubic feet. The project will not only give gas exporters with access to the market of Pakistan but will also provide China to secure a route for its own goods. Other LNG projects are presently being built with Chinese support and funding that will augment the scope of CPEC, but are neither financed by nor officially recognized a part of CPEC. Similarly, many small projects of gas pipelines are under construction at many different locations.
Early Harvest Projects
As part of the “Early Harvest” plan of the CPEC, over 10,000 megawatts of electricity-making capacity is to be developed between 2018 and 2020. While some “Early Harvest” projects will not be completed until 2020, the government of Pakistan decided to add almost 10,000 MW of energy-generating capacity to Pakistan’s electric grid by 2018 through the completion of projects.
Although not officially under the scope of CPEC, the 1,223 MW Balloki Power Plant, and the 1,180 MW Bhakki powerplants have both been completed in mid-2018, which along with the 969 MW Neelum-Jehlum hydro powerplant completed in summer 2018 and 1,410 MW Tarbela 4 extension project, completed in February 2018, will result in an additional 10,000 MW being added to Pakistan’s electricity grid by the end of 2018 with a combination of CPEC and non-CPEC projects. A further 1,000 MW of electricity will be imported to Pakistan from Tajikistan which is expected to be launched in 2018.