ISLAMABAD: CPEC helped a lot to address Pakistan’s power
shortage woes, WealthPK reported on Thursday.
The report says, electricity is considered one of the most important vectors
for economic growth and development of any country. Industrial processes,
transportation, education systems, construction activities, household
appliances, as well as large businesses and small commercial services
heavily rely on the electric supply.
The global electricity consumption is growing rapidly with population
growth, and with lifestyle changes across the world. Electricity generation
is a serious challenge, especially for developing countries. Globally,
fossil fuels — coal, oil, and natural gas — are primary energy sources.
In Pakistan, electric power generation is one of the most imminent
challenges in economic uplift and industrial advancement. Unfortunately, for
the past couple of years, Pakistan finds itself stuck in a web of
electricity shortfalls and energy crisis.
The country faces hours of power outages daily. It’s an issue which the
government cannot ignore, as it impacts on the fabric of Pakistani society,
WealthPK reported.
Pakistan’s electric power generation sector comprises the power plants set
up in the public and private sectors.
The power generation plants comprise hydropower plants, thermal power
plants, nuclear power plants, renewable energy including wind, solar and
bagasse/biomass power plants.
Fiscal year 2020 was marked by a shift away from gas and furnace oil in
favour of hydropower and coal-based electricity generation. In fiscal year
2020, hydel power accounted for 32% of total power, up from 26% in fiscal
year 2019, while coal contribution increased from 13% in fiscal year 2019 to
21% in fiscal year 2020.
However, the share of gas-generated electricity fell from 18% in fiscal year
2019 to 12% in fiscal year 2020, while the share of furnace oil fell from 7%
last year to 3% this year. RLNG, or regasified liquefied natural gas, made
up 20% of the overall power mix, with nuclear power accounting for 8%, wind
power accounting for 2%, and ‘other’ (solar, bagasse) accounting for 2%.
The country is set to have as much as 50% extra electricity by 2023. It has
overcapacity but due to unreliable grids, it still faces power shortages for
several hours. The foreign direct investment under the umbrella of the CPEC
is a major opportunity for Pakistan to tackle its energy woes. The CPEC
includes many powers projects.
The total investment in Pakistan’s energy sector accounts for nearly $12.4
billion under the CPEC. So far, 12 energy-generating projects have either
reached the construction phase or have commenced their commercial
operations. The total installed capacity of these projects is approximately
7,240MW with the estimated investment cost of $12.4 billion.
The CPEC energy cooperation has helped improve Pakistan’s power supply. In
fiscal year 2018-2019, power generation from CPEC projects reached 17.728
billion kWh, accounting for 14.5% of overall output in the National
Transmission and Despatch Company (NTDC) system, WealthPK reported.
Under the CPEC, the Chinese companies are working on seven wind power
plants, three hydropower and two HVDC transmission line projects, five coal
projects in Thar and four imported coal projects along with a ±660 kV HVDC
transmission line between Sindh and Punjab. One of the key projects is
Matiari-Lahore HVDC transmission line project which will transmit 4,000MW
electricity.
The flagship project under the CPEC successfully achieved its commercial
operation on September 1, 2021 as per agreed timeline between the National
Transmission and Despatch Company Ltd (NTDC) and Pak Matiari-Lahore
Transmission Line Company (PMLTC).
This project includes two converter stations and two electrode-grounding
stations at Matiari/Lahore, three repeater stations and a transmission line.
The first ±660 kV HVDC Matiari Lahore Transmission Line will bring stability
in NTDC transmission network and will save energy consumption and transmit
cheap electricity from the CPEC’s southern power plants to the northern load
centres of the country, which will further address the issues of energy
shortage and inflated price of electricity.
The power plants built under the CPEC hold immense importance for the
country, as they have largely solved the serious problem of electricity
shortage in Pakistan, bringing advanced technology and creating job
opportunities.
Pakistan is able to meet this demand because of the Belt and Road Initiative
(BRI), which is injecting enough electricity into the country’s national
grid, thus enabling it to meet the demand of both domestic and industrial
consumers. -INP
