ISLAMABAD: The priority projects in the energy sector under China Pakistan Economic Corridor (CPEC) would help Pakistan optimize the energy structure and reduce its dependence on expensive sources of energy such as gas and residual fuel oil (RFO), while the contribution of wind and solar energy in the country’s total production would increase from 5pc in 2013 to 10pc in 2022.
Sources in the Embassy of China said on Friday that Pakistan’s energy production in 2013 was heavily dependent on gas and RFO, as 57 per cent of total electricity production was based them, adding that this dependence would significantly reduce to 25pc in 2022 after completion of all priority energy projects under CPEC.
By optimising the energy structure, Pakistan’s energy supply will become more stable while the significant reduction of gas, RFO imports would help the country save its foreign exchange reserves, they added.
According to details, the energy production through domestic coal is also expected to increase from 0.14pc of total energy production in 2013 to 9.08pc in 2022.
The nuclear energy production would also increase from 4pc in 2013 to 7pc in 2022, whereas 12pc of the total demand of the country’s energy would be met through the use of imported coal while energy production through bagasse would also increase from 1pc in 2013 to 2pc in 2022.
Hydel production, however, is projected to decrease from 33pc in 2013 to 25pc in 2022.
Embassy sources said seven projects have been installed with a capacity of 3,240MW in three years only, since the first energy project groundbreaking ceremony in 2015. These projects accounted for 11pc of total electricity generation in Pakistan.
The seven completed energy projects under CPEC included 50MW Dawood Wind Power Plant, 100MW Pakistan Jhimpir UEP wind powerplant phase-I, Sachal 50MW wind power project, Zonergy 900MW solar project, Port Qasim 1,320MW coal-fired power project, Sahiwal 1,320MW coal-fired power plant, and three gorges second wind power project (100MW).
As many as five energy projects under CPEC are under construction, including 720MW Karot hydropower project, 660MW HUBCO coal powerplant, Suki Kinari hydropower project, 660MW mine-mouth coal-fired power plant at Thar block-II, and 3.8Mta open-cast lignite mine at Thar block-II, Sindh.
It may be mentioned 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 the Pakistan government.