The priority projects in energy sector under China Pakistan Economic Corridor (CPEC) would help Pakistan optimizing the energy structure by reducing dependence on expensive sources of energy such as Gas and Residual Fuel Oil (RFO) and contribution of wind and solar energy in the country’s total production would increase from 5 percent in 2013 to 10 percent in 2022.
According to sources in embassy of China here, the country’s energy production in 2013 was heavily dependent on Gas and RFO as 57 percent of total electricity production was based on Gas and RFO which would be significantly reduced to 25 percent in 2022 after completion of all priority energy projects under CPEC.
By optimizing the energy structure, Pakistan’s energy supply will be more stable and safe and the significant reduction of Gas, RFO imports would help the country saving foreign exchange reserves.
According to details, the energy production through domestic coal is also expected to increase from 0.14 percent of total energy production in 2013 to 9.08 percent in 2022.
The nuclear energy production would also increased from 4 percent in 2013 to 7 percent in 2022, whereas in 2022, 12 percent of total demand of country’s energy would be met through use of imported coal while energy production through bagasse would also increase from 1 percent in 2013 to 2 percent in 2022. Hydel production however, is projected to decrease from 33 percent in 2013 to 25 percent in 2022.
The seven projects have been installed with capacity of 3240 MW in only three years, since the first energy project groundbreaking ceremony in 2015. These projects accounted for 11 percent of total electricity generation in Pakistan.
The sources further added so far 7 energy projects had been completed under CPEC including 50 MW Dawood Wind Power Plant, 100 MW Pakistan Jhimpir UEP Wind power phase-I, Sachal 50 MW wind power project, Zonergy 900 MW solar project, Port Qasim 1320 MW coal fired power project, ahiwal 1320 MW coal-fired power plant, and three gorges second wind power porject (100 MW).
As many as five energy projects under CPEC are under construction including 720 MW Karot hydro-power project, 660 MW HUBCO coal power plant, Suki Kinari hydro-power project, 660 MW mine mouth coal fired power plant at Thar block-II, Sindh, and 3.8 Mta open cast lignite mine at Thar block-II, Sindh.
It may be mentioned here that all CPEC energy projects are funded by commercial loans which are borrowed and repaid by the Chinese companies. There is no foreign debt on Pakistan government.
Source: www.corridor.pk