Pakistan Ranks Among World's Top 3 Nations For New Hydroelectric Capacity Added in 2018

Pakistan ranked third in the world by adding nearly 2,500 MW of hydropower in 2018, according to Hydropower Status Report 2019.  China added the most capacity with the installation of 8,540 megawatts, followed by Brazil (3,866 MW), Pakistan (2,487 MW), Turkey (1,085 MW), Angola (668 MW), Tajikistan (605 MW), Ecuador (556 MW), India (535 MW), Norway (419 MW) and Canada (401 MW).

New Installed Hydroelectric Power Capacity in 2018. Source: Hydroworld.com

Pakistan's Water and Power Development Authority (WAPDA) says commissioning of the 108-MW Golen Gol 2, 1,410-MW Tarbela 4th Extension and 969-MW Neelum Jhelum hydropower projects in 2018 boosted its hydroelectric generating capacity of 9,389 MW, an increase of 36% in just one year, according to Hydro Review. Hydropower now makes up about 28% of the total installed capacity of 33,836 MW as of February, 2019.   WAPDA reports contributing 25.63 billion units of hydroelectricity to the national grid during the year, “despite the fact that water flows in 2018 remained historically low.” This contribution “greatly helped the country in meeting electricity needs and lowering the electricity tariff for the consumers.”

Top 20 Countries by Newly Installed Hydropower Capacity. Source: IHA

Pakistan has the potential to generate 59,000 MW of hydropower, according to studies conducted by the nation's Water and Power Development Authority (WAPDA). Currently, it's generating only 9,389 MW of hydroelectric power, about 16% of the estimated potential. Media reports indicate that China is prepared to finance and build another 40,000MW capacity as part of the development of the Northern Indus Cascade region which begins in Skardu in Gilgit-Baltistan and runs through to Tarbela, the site of Pakistan’s biggest dam, in Khyber-Pakhtunkhwa province.

Pakistan Power Generation Fuel Mix. Source: Third Pole

Pakistan has made only a small contribution to climate change through carbon emissions.  And yet, it counts among the dozen or so nations considered most vulnerable to its damaging effects. These include rising temperatures, recurring cycles of floods and droughts and resulting disruption in food production.

One of the ways Pakistan can help reduce carbon emissions is by realizing its full hydroelectric potential by building more dams. The development of the Northern Indus Cascade region to generate 40,000MW of hydropower is a significant part of this effort.

Haq's Musings

South Asia Investor Review

Recurring Cycles of Drought and Floods in Pakistan

Pakistan's Response to Climate Change

Massive Oil and Gas Discovery in Pakistan: Hype vs Reality

Renewable Energy for Pakistan

Digital BRI: China and Pakistan Building Fiber, 5G Networks

LNG Imports in Pakistan

Growing Water Scarcity in Pakistan

China-Pakistan Economic Corridor

Ownership of Appliances and Vehicles in Pakistan

CPEC Transforming Pakistan

Pakistan's $20 Billion Tourism Industry Boom

Riaz Haq's YouTube Channel

PakAlumni Social Network

Comments

Riaz Haq said…
Combined capacity of 10 biggest #BRI #power projects funded by #China is 20.97GW, out of which #Pakistan’s share is 9.57GW (45%): Suki Kinari #Hydro, Quaid-e-Azam #Solar, Kohala Hydel , Thar #Coal, CPHGC Hub Power. Sahiwal Coal, Port Qasim. #CPEC https://www.power-technology.com/features/biggest-power-plants-chinas-belt-road-initiative/

Eight of the ten biggest power projects under China’s ambitious Belt and Road Initiative (BRI) as of 2019 are in Pakistan, within the China Pakistan Economic Corridor (CPEC). The combined capacity of the ten biggest BRI power projects is 20.97GW, out of which Pakistan’s share is 9.57GW (45%). Power-technology lists the biggest power projects under the BRI, based on capacity.


Riaz Haq said…
#India (rank 8) falls behind #Pakistan (rank 3) among top 10 countries by new #hydropower capacity added in 2018. #India added only 535 megawatt (MW) in 2018, as compared to Pakistan’s 2,487 MW in 2018. #power #electricity ET EnergyWorld https://energy.economictimes.indiatimes.com/news/renewable/india-falls-behind-pakistan-in-top-10-countries-by-new-hydropower-capacity/69413440

Out of the top 20 countries, China topped the list with the highest installation of 8,540 MW, followed by Brazil at second position with 3,866 MW.

Pakistan was ranked third, followed by Turkey with 1,085 MW new capacity addition and Angola with 668 MW, the report titled ‘2019 Hydropower Status Report’ showed.

The bottom five comprised Tajikistan at 605 MW, Ecuador at 556 MW, India with 535 MW, Norway with 419 MW and Canada with 401 MW, according to the report by the International Hydropower Association.

“Electricity generation from hydropower projects achieved a record estimated 4,200 terawatt hours (TWh) in 2018, the highest-ever contribution from a renewable energy source. Worldwide installed hydropower capacity climbed to 1,292 GW,” the report added.

Pumped hydropower storage capacity reached 160.3 gigawatt (GW) in 2018, up from 1.9 GW in 2017, it said. In total, at least 48 countries worldwide added hydropower capacity in 2018.

“Four years on since the Sustainable Development Goals were agreed at the United Nations in 2015, governments increasingly recognise hydropower as playing a vital role in national strategies for delivering affordable and clean electricity, managing freshwater, combating climate change and improving livelihoods,” said IHA Chief Executive Richard Taylor and IHA President Ken Adams.

More than 21.8 GW of renewable hydroelectric capacity was put into operation in 2018, according to the report.
Riaz Haq said…
#Chinese VP visits Pakistan. #China #Pakistan launch 4 joint projects: 660kv Matiari-#Lahore transmission line to carry 2000 MW, Rashakai Special Economic Zone in KP, #Huawei Technical Support Center, Confucius Institute at the University of #Punjab. #CPEC https://www.geo.tv/latest/238443-pm-khan-chinese-vp-launch-four-mega-cpec-projects

Prime Minister Imran Khan and Chinese Vice President Wang Qishan Sunday launched four mega development projects in the fields of energy, technology, and education under the China-Pakistan Economic Corridor (CPEC).

The dignitaries unveiled the plaques of the four projects at a ceremony held here in the capital during the three-day visit of the Chinese VP. It was also attended by Foreign Minister Shah Mahmood Qureshi, Planning Minister Khusro Bakhtiar, Finance Advisor Abdul Hafeez Sheikh, and members of the Chinese delegation.

Under the first project, a transmission line of 660kv would be laid between Matiari and Lahore to transmit power from coal-based plants located at Thar, Port Qasim, and Hub. It would have the capacity to supply 2000 MW with 10 percent overloaded capability for two hours.

The two leaders unveiled the plaque for Rashakai Special Economic Zone (RSEZ) project to promote industrialisation through optimally priced, world-class industrial infrastructure in Khyber Pakhtunkhwa.

The RSEZ is situated centrally in the CPEC at the junction of Karakoram Corridor and ML-1 development corridor. It is set to become — and will be designed — to be the key trade and logistics hub connecting Kashgar, Kabul, and Gwadar on the Belt and Road and a high-end host of international commercial, technological, and manufacturing hub.

The two leaders inaugurated the Confucious Institute at the University of Punjab. The institute mainly provides Chinese education, cultural promotion and exchanges, and other projects and activities.

The ceremony also marked the launching of Huawei Technical Support Center to be established in Pakistan as part of Chinese tech giant’s commitment to make massive investment in Pakistan.
Riaz Haq said…
#Hydropower accounts for more than 18% of all #renewable #energy employment worldwide. #China at 15%, #Brazil at 10%, #Vietnam at 6%, #Pakistan at 5%, the #EuropeanUnion and #Russian Federation at 4% each, and #Iran and the #US at 3% each.- HydroWorld
https://www.hydroworld.com/articles/2019/06/hydropower-accounts-for-more-than-18-of-all-renewable-energy-employment-worldwide.html

Worldwide, the renewable energy technologies sector employed 11 million people at the end of 2018, according to the Renewable Energy and Jobs – Annual Review 2019 from the International Renewable Energy Agency (IRENA).

Leading markets like China, the U.S. and the EU hosted the greatest concentration of jobs in renewables, IRENA says.

The report says hydropower has the largest installed capacity of all renewables, accounting for almost 50% of renewable energy in the world, but is now expanding slowly. The sector employs 2.05 million people, directly, nearly three quarters of whom are in operations and maintenance. Construction and installation represent 23% of the total. Manufacturing is characterized by lower labor intensity and contributes 5%. Employment in the hydro sector has grown from 1.66 million in 2012.

By country, India accounts for 17% of the total employment, followed by China at 15%, Brazil at 10%, Vietnam at 6%, Pakistan at 5%, the European Union and Russian Federation at 4% each, and Iran and the U.S. at 3% each.

IRENA points out that previous editions of this report provided separate employment estimates for small and large hydropower. However, this edition combines both as “differentiating between them is difficult because of the scarcity of data and for lack of a universally agreed threshold.”

With regard to trade and supply chain dynamics, the report says that for hydropower, China represented a quarter of global exports, while European firms commanded a 46% share and the U.S. and India contributed just under 5% each.

The report also covers tide, wave and ocean energy, with 1 million jobs in 2018.

IRENA is an intergovernmental organization that supports countries in their transition to a sustainable energy future and promotes the widespread adoption and sustainable use of all forms of renewable energy, including bio-energy, geothermal, hydropower, ocean, solar and wind energy.

Riaz Haq said…
#Pakistan's #Karachi #nuclear #power plant (KANUPP), is undergoing a $10 billion 2,200MW capacity extension, with two 1,100MW pressurized water #reactor (PWR) units. Project includes 220kV and 550kV transmission lines to connect it to the national #grid. https://www.power-technology.com/projects/karachi-nuclear-power-plant-expansion/

Pakistan’s first nuclear plant, Karachi nuclear power plant (Kanupp), is undergoing a 2,200MW capacity extension, with two 1,100MW pressurised water reactor (PWR) units of Chinese design under construction at the site.

The $10bn project is being built with financial assistance from China, the biggest energy and infrastructure investor in Pakistan.

Karachi nuclear power plant is located on the Arabian Sea coast, approximately 18km east of Karachi and has been in service with a single 137MW reactor unit (Kanupp-1) since 1972. It is owned and operated by Pakistan Atomic Energy Commission (PAEC).

Construction of the Kanupp-2 and Kanupp-3 reactor units started in August 2015 and May 2016, with the start of commercial operations scheduled for 2021 and 2022, respectively.

Reactor units will have a design life of 60 years and account for roughly 10% of the country’s total generation capacity.

Karachi nuclear power plant’s new units and reactor design details
Kanupp-2 and Kanupp-3 will each consist of a nuclear island, conventional island, and balance of plant.

Each nuclear island will house a Hualong One or HPR1000 (formerly ACP-1000) reactor from China.

The HPR1000 is a generation III+ three-loop PWR based on the design improvements over the China General Nuclear Power Group (CGN)’s ACPR-1000 and China National Nuclear Corporation (CNNC)’s ACP-1000 reactor models.

In 2014, the Chinese Government asked the two state-owned reactor builders to merge their two third-generation reactor designs and to market as a unified Chinese brand abroad.

“Reactor units will have a design life of 60 years and account for roughly 10% of the country’s total generation capacity.”
The Hualong One advanced reactor design comes with a single stack layout, 177 nuclear fuel assemblies, a double containment structure, and a combination of active and passive safety systems.

Each new reactor unit at Kanupp will have 1,100MWe gross electrical output and 3,060MWt gross thermal output.

The reactors are designed to provide emergency cooling for 72 hours in the absence of electricity supply.

The International Atomic Energy Agency (IAEA) completed the Generic Reactor Safety Review (GRSR) of the HPR1000 reactor in January 2015.

The Fangchenggang nuclear power plant (NPP) in the Guangxi province, China, and the Fuqing NPP in the Fujian Province, China, are also being built with two HPR1000 units each.

Financing for Karachi nuclear power plant expansion
More than 80% of the estimated project cost is being financed through a loan from China’s state-owned Export-Import (Exim) Bank.

The remaining cost is being funded by the Public Sector Development Programme (PSDP) of the Pakistan Government.

Electricity transmission
The electricity transmission infrastructure works for the Karachi nuclear power plant expansion include the development of 220kV and 550kV transmission lines connecting to the national grid.

The National Transmission and Despatch Company (NTDC) of Pakistan will be responsible for the construction, operation and maintenance of the electricity transmission infrastructure for the project.

Contractors involved
China National Nuclear Corporation (CNNC) is involved as the general contractor and reactor supplier for the project through its overseas nuclear project platform China Zhongyuan Engineering Corporation (CZEC).

The reactors are jointly developed by CNNC and China General Nuclear Power Corporation (CGN) using the ACP-1000 technology.

Riaz Haq said…
Pakistan Nuclear Power Profile

https://cnpp.iaea.org/countryprofiles/Pakistan/Pakistan.htm



Energy supply statistics are given in Table 2. During the past decade (2007–2017), indigenous oil production has been at a level of about 64 000–95 000 barrels per day (equivalent to about 17–21% of the country’s oil consumption). Pakistan’s natural gas production in fiscal year 2016–17(1) was 4 032 million cubic feet per day.

In 2016–2017, coal production was 4.2 million t, while 7 million t of coal was imported to meet the industrial requirements of the country. The development of the coal mining industry in Pakistan, particularly for power generation, is hampered by constraints relating to the quality of coal, mining difficulties and other organizational constraints.

In 2016–2017, hydropower provided 26% of the electricity in Pakistan. Additional hydro projects varying in size, ranging from medium to micro, are under construction and the capacity of some existing hydro projects is being extended. Meanwhile, there are medium and large hydroelectric projects, awaiting official decision, are either proposed or are being planned.

Nuclear power generation contributed 6.2% to the total electricity generation of Pakistan in 2017. At present, the country has five operational nuclear power plants that have a cumulative generating capacity of 1 430 MW, while two reactors are under construction.



-------------------



Pakistan started construction of its first nuclear power plant, KANUPP, in 1966 in Karachi. The plant was connected to the national grid on 18 October 1972. KANUPP, a pressurized heavy water reactor of 137 MW gross capacity was constructed by Canadian General Electric under a turnkey contract. In 1976, vendor support for spare parts and fuel was withdrawn. The PAEC undertook the task of indigenously manufacturing the required spare parts and nuclear fuel on an emergency basis and, since 1980, KANUPP has successfully operated using fuel manufactured by the PAEC.

Despite the keen interest of Pakistan in building additional nuclear plants, it took more than two decades before the second nuclear power plant started construction. This delay was due to Pakistan’s lack of access to international nuclear technology coupled with a lack of indigenous industrial infrastructure. The construction of Pakistan’s second nuclear plant, C-1, a pressurized water reactor (PWR), was made possible in 1993 with the help of the China National Nuclear Corporation (CNNC). The plant was connected to the national grid on 13 June 2000 and has a gross capacity of 325 MW. A third nuclear power plant, C-2, with 325 MW gross capacity started commercial operation on 18 May 2011. The fourth unit, C-3, started commercial operation on 6 December 2016. It has a gross capacity of 340 MW and a similar plant, C-4, sited beside C-3, was connected to the grid on 25 June 2017. The first concrete pours to mark the start of construction of Karachi Coastal Power Project, a project containing two nuclear units, K-2 and K-3 (1100 MW each), based on an improved PWR design, were 20 August 2015 and 31 May 2016, respectively.
Riaz Haq said…
Pakistan to set 30 percent plus 30 percent Renewable Energy Target by 2030

The new government in Pakistan plans to increase the share of renewable energy in total power generation to 30 percent by 2030, particularly power from wind, solar, small hydro and biomass, with an additional 30 percent from large scale hydropower.

https://www.renewableenergymagazine.com/panorama/pakistan-to-set-30-percent-plus-30-20190403

Currently, the share of renewable energy stands at a meagre 4 percent, despite the fact that the country holds huge renewable energy potential particularly wind and solar. Large hydro currently provides around a fourth of the country’s electricity supply.

During the last week of February, The Cabinet Committee on Energy (CCoE), chaired by the Finance Minister, approved proposals from the Ministry of Energy (Power Division) for all future renewable energy projects to be treated under the Renewable Energy Policy 2019. The new policy, whose guiding principles have already been approved by CCoE, is being reviewed by different stakeholders and will be formally taken by CCoE later.

CCoE decided to permit renewable energy projects possessing a letter of support from the Alternative Energy Development Board to proceed towards achieving their required milestones in accordance with the Renewable Energy Policy 2006. The decision marks a positive effort by the government, which favours future renewable energy deployment. The Power Minister announced last week that the country will raise the share of renewable energy in the total power mix to 30 percent by 2030. The government also plans to increase the share of hydro power to 30 percent by the same period. This would translate into 60 percent overall share of renewable energy in the total power mix of the country. The targets set by the government are significant and in line with international climate change commitments, setting an example for other developing countries to follow.

“It is quite encouraging to observe that the government plans to set higher targets for renewable energy deployment for which he have been advocating for over a decade now” said Air Marshall Shahid Hamid (Retd.), Honorary Vice President of WWEA and Chair of WWEA Pakistan. “The main mission of WWEA Pakistan Office is to create a bridge between the efforts of the government, the private sector and development partners to advance renewable energy development in the country and beyond. WWEA will play its part in establishing concrete roadmap for smooth transition towards achieving the target of 30 percent renewable energy in Pakistan by 2030.”

The announcement comes against the backdrop of WWEA’s successful 17th World Wind Energy Conference that was organised in November 2018 in Karachi where more than 600 participants from 30 countries participated. The conference objectives included, inter alia, reviving blocked renewable energy projects in Pakistan and asking the government to set a fresh trajectory for renewable energy development in the country to meet its growing energy demands without aggravating climate change risks.

The government’s plan to generate around 18,000 MW of renewable energy by 2030 could hit a roadblock in the shape of a pipeline of more than 5 GW of coal fired projects. The previous renewable energy policy of 2006 provided multiple incentives to the private sector to develop renewable energy projects. However, the policy stopped short of achieving desirable results due to the absence of an action plan complementing the policy framework. The new policy should follow a strategic plan of action by creating a favourable environment for coordination mechanism between various departments dealing the renewable energy sector.

WWEA Secretary General Stefan Gsänger added that the groundbreaking decision to increase the renewable energy share to 30 percent plus 30 percent will bring Pakistan to the forefront of renewable energy countries. Such focus on a renewable energy based economy will be very beneficial for the country, its citizens, its industry and its environment.
Riaz Haq said…
Azad #Kashmir: 102 MW Gulpur #hydropower plant starts production. The project financing has been provided by Korea Exim Bank, Asian Development Bank (ADB), International Finance Corporation (IFC), Islamic Development Bank and ECO Bank.https://profit.pakistantoday.com.pk/2020/07/08/102mw-gulpur-hydropower-plant-starts-production/ via @Profitpk

Gulpur Hydropower Project has achieved certified commercial operation and has started producing cheap electricity for the national grid, said NESPAK Managing Director Dr Tahir Masood in a press communiqué on Wednesday.

NESPAK, in a joint venture with MWH Inc USA, has provided consultancy services as ‘owner’s engineer’ to Mira Power Limited, a subsidiary of KOSEP South Korea, for the 102MW Gulpur Hydropower Project.

“NESPAK has played a very vital role in the successful completion of Gulpur Hydropower Project, as it provided complete technical support to Mira Power Limited in getting approvals from different government agencies as well as supporting the EPC contractor in resolving complex issues that arose during construction,” said a statement issued by the company.

The successful completion of this project has added another feather in NESPAK’s cap, as the company had recently played a major role in the development and completion of 84MW New Bong Escape Hydropower Project.

Gulpur Hydropower Plant is a run-of-the-river hydroelectric generation project located on Poonch River, a major tributary of Jhelum River near Gulpur in Kotli District of Azad Kashmir. The project financing has been provided by Korea Exim Bank, Asian Development Bank (ADB), International Finance Corporation (IFC), Islamic Development Bank and ECO Bank.

The project is developed under the federal government’s ‘Policy for Power Generation Projects 2002’ as adopted in Azad Jammu & Kashmir.

The project has the capability of generating average annual energy of 102MW. It was developed in the shortest possible time and would play an important role in Pakistan’s national vision.

The project was completed at a total cost of Rs52 billion.
Riaz Haq said…
Pakistan has recently re-entered into some important hydropower project deals with Chinese companies.

https://thewire.in/south-asia/pakistan-china-hydropower-projects-cpec-debts


On May 13, 2020, Pakistan signed a deal worth 442 billion Pakistani Rupees (USD 2.64 billion) with the Chinese state-run firm China Power for building the 272 meters high DBD. The total financial outlay of the DBD is PKR 1,406 .5 billion (USD 8.3 billion). This project is on the river Indus in Gilgit-Baltistan (GB) – which India claims is illegally occupied territory – and Khyber Pakhtunkhwa. It is likely to be completed by 2028.

Earlier, it was a part of the China Pakistan Economic Corridor (CPEC) project but the tough conditions, particularly regarding the transfer of ownership, were unacceptable and not “doable” for Pakistan. Afterwards, the Pakistani government tried to raise money for the DBD along with the Mohmand dam through crowdfunding. However, Pakistan then re-entered into a deal with the Chinese firm.

Under the new terms of the deal, China Power will hold 70% of the share while the remaining 30% will be with Frontier Works Organisation – a commercial arm of the Armed Forces of Pakistan. The DBD’s construction is expected to create about 16,500 jobs. Once in operation, it will irrigate around 1.23 million acres of agriculture land and generate 18.1 billion units of electricity annually.


The second project the Chinese are constructing in Pakistan is at Kohala. It was listed under the China Pakistan Economic Corridor since August 2014. The Kohala project is on the Jhelum river on the Pakistani-administered side of Kashmir which India claims is illegally occupied territory since 1947-48. This 1,124-Megawatt project was to be developed by the Kohala Hydropower Company Private Limited. Disputes over this project took place in 2019 between Pakistan and China, which they tried to resolve but the Chinese firm refused to accept the dispute resolution plan approved by the government of Pakistan.

---

On June 25, 2020, a “tripartite” agreement for implementing the Kohala project was signed between the China Three Gorges Corporation, the government of Pakistan-occupied Kashmir (PoK) and Private Power and Infrastructure Board. The project is likely to cost USD 2.4 billion. International Finance Corporation and Silk Road Fund are also sponsors of this project.

The third hydropower project agreed upon between Pakistan and China was in July 2020 and is at Azad Pattan. It is located on the River Jhelum near the village of Muslimabad in the district of Sudhnoti, in Pakistan-occupied Kashmir (PoK). This will be carried out by the Power Universal Company Limited which is owned and controlled by the China Gezhouba group.


The Indus at the site of the proposed Diamer-Basha dam. Photo: Water and Power Development Authority, Pakistan

-------

For the government of Pakistan, both the Kohala and the Azad Pattan projects are likely to bring about USD 4 billion in the form of investments, produce around 1800 MW of hydel power and create 8,000 jobs.

----

One of the major reasons Pakistan is entering into such a deal is to use the available water efficiently, as the country is experiencing water shortage and its yearly water availability is now less than 1000 cubic meters per person. Through dams, it is trying to manage its water resources, mainly for agricultural purpose on which the country’s economy depends.

Second, Pakistan faces a shortage of electricity. In 2019, the transmission and distribution capacity of Pakistan was stalled at approximately 22,000 MW while the maximum demand from the residential and industrial areas was about 25,000 MW. This implied a deficit of 3000 MW. Hydroelectricity will add to the total electricity generated and will help in reducing the supply-demand deficit.
Riaz Haq said…
#Pakistan to issue a $500 million green bonds to boost #hydropower. Engages JP Morgan to underwrite as part of #investment in #renewableenergy for #green #economic stimulus. It’s banning new #coal power plants and planting 10 billion #trees https://www.bloomberg.com/news/articles/2021-02-18/pakistan-plans-first-green-bond-to-fund-hydropower-projects via @business


Pakistan’s government is planning to issue a $500 million green bond in the next few months to help boost its development of hydroelectric power.

The bond, denominated in euros, will be the government’s first to fund environmental goals, Malik Amin Aslam, an adviser to Prime Minister Imran Khan on climate change, said in an interview. It is set to be issued through the country’s state-owned Water & Power Development Authority, with JPMorgan Chase & Co. advising, he said.

“We’ve got a lot of hydro potential in Pakistan,” he said on Thursday. “The bonds are there to accelerate this.”

Khan’s government is investing in renewable energy to ramp up its economic stimulus in the wake of the pandemic. It’s also promised to ban new coal power plants and is looking to plant 10 billion trees. The nation’s cities rank among the worst globally for air pollution, according to IQAir.

The South Asian nation has a fragile economy that goes through regular boom and bust cycles. It received debt relief during the pandemic, restoring its $6 billion bailout program that it secured from the International Monetary Fund in 2019 to avoid bankruptcy.

Issuance of green bonds globally is seen surging to $375 billion in 2021 by Moody’s Investors Service, after record sales last year. While Europe has led the way, countries from Singapore to Brazil plan to sell their first to tap buoyant investor demand.

JPMorgan, the world’s top arranger of green debt, declined to comment.
Riaz Haq said…
Overall, Pakistan attracted more than 50% of renewable energy investments (47% of which in hydropower), while Russia and Indonesia received predominantly fossil fuel related energy investments. (Green Belt and Road BRI Initiative)

https://green-bri.org/china-belt-and-road-initiative-bri-investment-report-2020/


Among the BRI countries, investments were spread broadly across the continents. The countries that received most investments were Vietnam, Indonesia, Pakistan and Chile. Particularly Vietnam saw a strong increase of Chinese investments – an increase of over 200% compared to 2019, possibly driven by near-shoring to avoid American sanctions. Other BRI countries that saw increases of Chinese investments despite the COVID-19 pandemic include Poland, Bulgaria, Serbia, Zimbabwe, Zambia and Chile, as well as Thailand.


Analyzing Chinese energy investments in different countries, we find that Pakistan was the country, which received most energy investments from 2013 to 2020, followed by the Russian Federation and Indonesia. Pakistan is both the largest recipient of coal-related investments and also the largest recipient of investments in hydropower. Overall, Pakistan attracted more than 50% of renewable energy investments (47% of which in hydropower), while Russia and Indonesia received predominantly fossil fuel related energy investments.


----------

Rail: Rail investments included high-speed rail projects connecting China through Thailand and Malaysia to Singapore (Kunming-Singapore rail). A deal of the first 40km segment of the China-Thailand high-speed rail linking Bangkok to Thailand’s border with Laos was signed in December 2020. China is also building a US$6 bn high-speed rail connecting 142 km between Jakarta and Bandung in Indonesia. Furthermore, China has been engaged in building several railway projects on the African continent (e.g. Standard Gauge Railways in Kenya and Ethiopia). China also invested in rail in Europe, such as the Budapest-Belgrade railway. China also invested in several urban rail transport projects, such as US$900 million in a subway in Hanoi, Vietnam (which has been delayed) or the US$1.6 billion metro line in Lahore, Pakistan opened in October 2020.

Road-transport: China invested across all countries with investments including road construction in Pakistan (e.g. Karakoram Highway connecting China and Pakistan all the way to Pakistan’s Gwadar Port). In 2020 investments in road infrastructure decreased by close to 70% to about US$4 billion.

Ports: Pakistan is also one of the largest recipients of Chinese investments in port infrastructure, such as the Gwadar port operated by China Overseas Port Holding Company, which is a strategically important and also contested investment for China. Other strategic port investments can be found in Piraeus, Greece or in Lamu and Mobasa, Kenya, as well as in Djibouti. A recent US$3 billion agreement to commission Croatia’s largest port (Rijeka Port) to a consortium of three Chinese contractors has been cancelled at the beginning of 2021.
Riaz Haq said…
Fitch Ratings Affirms Pakistan Water and Power Development Authority (WAPDA) Credit at 'B-'; Outlook Stable. WAPDA makes up 95% of #Pakistan's #hydroelectric #power capacity and 24% of total capacity in 2020. #electricity #water https://www.fitchratings.com/research/international-public-finance/fitch-affirms-pakistan-water-power-development-authority-at-b-outlook-stable-17-03-2021


KEY RATING DRIVERS
'Very Strong' Status, Ownership, and Control: We maintain our 'Very Strong' assessment regarding WAPDA's ownership structure and control mechanism. WAPDA is a parastatal entity that operates based on the government's guidelines. The government owns 100% of WAPDA and has a tight grip on its overall operation, including financing. The Committee on Public Accounts conducts annual audits of WAPDA.

'Very Strong' Support Track Record: A favourable tariff scheme that covers financing and operating costs helps financial stability. WAPDA expects its fixed charges, which were equivalent to 95% of sales in 2020, to rise significantly in 2021, driven by an increase in capex. The government provides strong financial support, such as government guarantees (30% of debts) and loans that are ultimately incurred by the government, to ensure the entity's financial stability.

'Strong' Socio-Political Implications of Default: WAPDA is Pakistan's largest hydropower supplier. It accounted for 95% of the hydropower capacity in the country and is responsible for flood control and water supply. NEPRA plans to expand hydropower's share of total electricity generation to 35% by 2028, which will bolster the socio-implications of a default by the entity. We expect a severe service disruption should WAPDA fail because there is limited alternative hydroelectric capacity available.

'Very Strong' Financial Implications of Default: We view WAPDA as a proxy funding vehicle for the government in the power sector. The government currently provides a large share of financing for power-related capex, but the policy direction for WAPDA is to expand its own indebtedness without the government's commitment. This will increase the financial implications for the state should it default. The entity's parastatal status means a default will affect future lending and increase borrowing costs significantly for other government-related entities.

Funding Structure to Change: The entity plans significant capex in 2021-2023, while the funding structure will shift towards market sources, away from the government. WAPDA will contribute around 10% of total funding required for projects. We expect leverage to remain under 7x by 2025 from 4.9x in 2020, assuming that the periodic tariff reset is made without significant delay as planned each time. We expect WAPDA's net debt to equity to reach 1.0x by 2025 (2020: 0.2x) without equity injections.



DERIVATION SUMMARY
WAPDA's ratings are equalised with those of Pakistan (B-/Stable), reflecting our assessment of the four factors in our Government-Related Entities Rating Criteria, which results in a weighted score of 50. The ratings of entities with scores of 50 or more are equalised with those of the sovereign, regardless of their Standalone Credit Profile (SCP).

WAPDA's SCP is capped at the sovereign's IDR, given the central role of the government as a counterparty.



RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:

An upgrade of Fitch's credit view on the sovereign may trigger positive rating action on WAPDA.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

A sovereign rating downgrade, weaker government links or lower socio-political and financial implications of a default may lead to negative rating action.



Riaz Haq said…
Fitch Ratings Affirms Pakistan Water and Power Development Authority (WAPDA) Credit at 'B-'; Outlook Stable. WAPDA makes up 95% of #Pakistan's #hydroelectric #power capacity and 24% of total capacity in 2020. #electricity #water https://www.fitchratings.com/research/international-public-finance/fitch-affirms-pakistan-water-power-development-authority-at-b-outlook-stable-17-03-2021


KEY RATING DRIVERS
'Very Strong' Status, Ownership, and Control: We maintain our 'Very Strong' assessment regarding WAPDA's ownership structure and control mechanism. WAPDA is a parastatal entity that operates based on the government's guidelines. The government owns 100% of WAPDA and has a tight grip on its overall operation, including financing. The Committee on Public Accounts conducts annual audits of WAPDA.

'Very Strong' Support Track Record: A favourable tariff scheme that covers financing and operating costs helps financial stability. WAPDA expects its fixed charges, which were equivalent to 95% of sales in 2020, to rise significantly in 2021, driven by an increase in capex. The government provides strong financial support, such as government guarantees (30% of debts) and loans that are ultimately incurred by the government, to ensure the entity's financial stability.

'Strong' Socio-Political Implications of Default: WAPDA is Pakistan's largest hydropower supplier. It accounted for 95% of the hydropower capacity in the country and is responsible for flood control and water supply. NEPRA plans to expand hydropower's share of total electricity generation to 35% by 2028, which will bolster the socio-implications of a default by the entity. We expect a severe service disruption should WAPDA fail because there is limited alternative hydroelectric capacity available.

'Very Strong' Financial Implications of Default: We view WAPDA as a proxy funding vehicle for the government in the power sector. The government currently provides a large share of financing for power-related capex, but the policy direction for WAPDA is to expand its own indebtedness without the government's commitment. This will increase the financial implications for the state should it default. The entity's parastatal status means a default will affect future lending and increase borrowing costs significantly for other government-related entities.

Funding Structure to Change: The entity plans significant capex in 2021-2023, while the funding structure will shift towards market sources, away from the government. WAPDA will contribute around 10% of total funding required for projects. We expect leverage to remain under 7x by 2025 from 4.9x in 2020, assuming that the periodic tariff reset is made without significant delay as planned each time. We expect WAPDA's net debt to equity to reach 1.0x by 2025 (2020: 0.2x) without equity injections.



DERIVATION SUMMARY
WAPDA's ratings are equalised with those of Pakistan (B-/Stable), reflecting our assessment of the four factors in our Government-Related Entities Rating Criteria, which results in a weighted score of 50. The ratings of entities with scores of 50 or more are equalised with those of the sovereign, regardless of their Standalone Credit Profile (SCP).

WAPDA's SCP is capped at the sovereign's IDR, given the central role of the government as a counterparty.



RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:

An upgrade of Fitch's credit view on the sovereign may trigger positive rating action on WAPDA.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

A sovereign rating downgrade, weaker government links or lower socio-political and financial implications of a default may lead to negative rating action.
Riaz Haq said…
Renewable energy is the cornerstone of our future energy needs. In particular, solar energy is beingutilized at a faster pace than ever. Floating Solar Photovoltaics (FSPV) has recently gained traction as asuitable alternative of land-based large scale PV installation. It is a promising technology to utilize watersurfaces for placing solar plants. Not only it utilizes the water as real estate but it has several otheradvantages as well. For example, FSPV can use the existing transmission and distribution infrastructurethat is the part of hydroelectric power plants. In this paper, we evaluate an FSPV plant and its integrationwith the existing hydroelectric power station of a small reservoir in Pakistan. We have investigated the500 kV, 132 kV and 11 kV voltage levels for the integration of FSPV plant. Moreover, we have devised ahydro-solar optimization model for the efficient utilization of energy. The combined system consisting ofhydroelectric and 200 MWp FSPV produces more than 3.5% additional power overall when comparedwith production of only hydroelectric power. More importantly the FSPV generation coincides with thedaily mid-day peak load thus works as a peaker plant for the national grid

https://www.researchgate.net/publication/331808150_Integrating_Floating_Solar_PV_with_Hydroelectric_Power_Plant_Analysis_of_Ghazi_Barotha_Reservoir_in_Pakistan

--------------

Integrating Floating Solar PV with Hydroelectric Power Plant:
Analysis of Ghazi Barotha Reservoir in Pakistan

Temperature function for a long-term district heat demand forecast

Introducing a Floating Solar PV plant in a huge hydroelectric dam reservoir can be a revolutionary step in the field
of renewable energy systems. Floating Solar PV, having a reasonable power generation potential, if implemented on
Ghazi Barotha dam reservoir, can play a vital role in sufficing the peak load demand encountered by Ghazi Barotha
hydroelectric power plant.
The Dam has two heads with a storage capacity sufficient for daily requirement of 4 hours peak demand. On
average three out of five generating units operate for normal load conditions, and according to WAPDA records[14],
on average individual unit produces around 150 MW. The storage capacity of hydroelectric reservoir is utilized when
demand is at peak and according to daily load curves we have two peaks in 24 hours a day. First peak is around 10:00
- 15:00 and the second is 19:00 - 22:00, in some cases we cannot provide our peak demand because the storage has
already been used in the previous peak hours, a solution of the problem of not having stored capacity for peak demand
is to add one more generating unit connected to a floating photovoltaic power source of 200 MW (which is the
estimated output of Ghazi Barotha Dam reservoir I & II, covering 20% of the total area) installed on the Dam reservoir,
during day we could meet our peak demand with FSPV and night peak with hydro power. Moreover, no new
infrastructure is required in terms of transmission line. The same transmission line can be used for the peak demand.
Adding a 200 MW at this site will solve our problem of peak demand in morning and such solar plant could save the
additional costs associated with installing solar power plant any place else i.e. transmission and distribution costs. It
is assumed that the base load demand is always catered by the power from the hydroelectric plant. Floating Solar PV
plant becomes a peak demand source during daytime

Riaz Haq said…
Pakistan Water and Power Development Authority (WAPDA) is executing the biggest-ever portfolio of development projects in Pakistan including Diamer Basha Dam, Dasu Hydropower Project and Mohmand Dam worth $26 billion after a span of almost five decades by adopting an innovative financing strategy on the back of a robust capital structure and strong balance sheet footing.

https://nation.com.pk/11-Nov-2021/wapda-executing-projects-worth-dollar-26-billion-says-chairman


WAPDA Chairman Lt Gen Muzammil Hussain (retd) highlighted this in the meeting with a delegation of JP Morgan comprising senior representatives namely Asif Raza, Managing Director Global Corporate Bank CEEMEA, Imran Zaidi, Managing Director Global Corporate Bank covering Middle East and North Africa (MENA) and Amin M Khawaja, Chief Executive Officer Pakistan. WAPDA Member (Finance) Naveed Asghar was also present on the occasion.

Giving a run-down of 10 under construction WAPDA projects, the chairman said that these projects would enhance water storage capacity by more than 11 MAF and add another 9,000 MW of hydel electricity to the system. WAPDA has unparalleled institutional capacity to identify and implement multipurpose hydropower projects. It has adopted a multi-pronged strategy including Green Eurobonds and Syndicate loans etc for implementation of its projects. This was a radical shift from entire reliance on the Government of Pakistan. WAPDA’s business model has an important role to play in the development of a sustainable and lower-carbon economy in Pakistan, he said. The chairman said that WAPDA would continue to approach the international financial and capital market in a staggered mode, to minimise financing cost, in line with its financing requirements and would look forward to bring further investments in the hydropower sector which would go a long way to reduce carbon footprint in the power generation sector of Pakistan. He appreciated the role played by JP Morgan as the lead arranger for WAPDA’s debut Green Eurobond issuance alongside Deutsche, Standard Chartered and HBL Bank.
Riaz Haq said…
Karot generator ready for commissioning - International Water Power

https://www.waterpowermagazine.com/news/newskarot-generator-ready-for-commissioning-9392677


The first generator at the Karot hydropower plant in Pakistan is ready for commissioning, paving the way for the project’s full operation this year.

The 720MW project was funded and constructed by China Three Gorges Corporation (CTG). Once in full operation, the station will provide 3.206 billion kWh of clean energy for Pakistan every year, reducing carbon dioxide emissions by 3.5 million tons.

Karot is part of the China-Pakistan Economic Corridor initiative. The scheme forms part of a five-project cascade that will help manage the vital water resource of the Jhelum River and provide much needed generation capacity to the country. The project includes the construction of a 95m high dam, four headrace tunnels and a new public bridge across the river, as well as a substantial spillway structure to manage flood flows.
Riaz Haq said…
NTDC completes second phase of transmission line

https://www.dawn.com/news/1669700

LAHORE: The National Transmission and Despatch Company (NTDC) has completed and energised the second phase of the 133km long 500kV Neelum-Jhelum Double Circuit Transmission line.

The completion of the line will enable the authorities to directly dispatch the 969MW power, generated by Neelum-Jhehlum Hydropower Project, directly to 500kV Nokhar (New Ghakkar) Grid Station which is closer to the load centres. The company has also connected 720MW Karot Hydropower Project with this line for the purpose of power evacuation, transmission and dispatch to the 132kV distribution system operated by the distribution companies.

Riaz Haq said…
Fitch Affirms Pakistan Water and Power Development Authority at 'B-'; Outlook Stable


https://www.fitchratings.com/research/international-public-finance/fitch-affirms-pakistan-water-power-development-authority-at-b-outlook-stable-14-03-2022



WAPDA is established under a special statute. The Authority has close operational and administrative linkage to the government and is mandated to develop water and power resources in Pakistan. The government exercise strong influence over WAPDA's corporate governance and debt, sanctioned by the government, shall be transferred to the government according to the Pakistan Water and Power Development Authority Act.

KEY RATING DRIVERS
Status, Ownership and Control: 'Very Strong'


Our 'Very Strong' assessment of 'Status, Ownership and Control' remains unchanged, given the strong statutory support, stable government ownership - which we do not expect to change - and high level of government control. Employees of WAPDA are deemed to be public servants when acting in pursuance of WAPDA activities. The government has strong influence on WAPDA's corporate governance, including budget, accounts, financing activity and new power station investment plans, because the Authority is mandated to execute the government's responsibility of utilising Pakistan's water and power resources.

Support Track Record: 'Very Strong'


The build-up of circular debt in the energy sector exposes WAPDA to external funding. The government aims to mitigate the circular debt issue by providing financial support; it had guaranteed 22% of WAPDA's interest-bearing debt as of June 2021 and 56% of the debt comprises of government loans. The government will be liable for loans passed by the Authority with the sanction of the government under the WAPDA Act. Supportive policies, such as corporate tax exemptions, land acquisitions and a tariff mechanism, also enhance WAPDA's operational stability.

Socio-Political Implications of Default: 'Strong'


Pakistan's policies aim to boost the hydropower generation mix and reduce reliance on fossils. WAPDA's hydropower generation accounted for 27% of the generation mix in 2021, while other renewable energy only accounted for 3%. The government aims for hydro power to contribute over 40% of Pakistan's energy demand by 2030, implying that the development of hydropower generation is of significant strategic importance to the country. We believe WAPDA's installed capacity would be difficult to substitute and that any transition process would lead to severe service disruption.

Financial Implications of Default: 'Very Strong'


We deem WAPDA as a proxy financing vehicle for the government in the energy sector. The Authority still relies on the government to fund its investments, although it is expanding its borrowing capacity, including via recent bond issues. We believe the government's borrowing ability would be significantly impaired if WAPDA come under financial stress due to the high level of funding it receives from international development finance institutions and its debt mix - 78% of interest-bearing debt comprised loans or was guaranteed by the government.

Derivation Summary

WAPDA's ratings reflect our assessment of government linkage and support incentive and results in a weighted score of 50, based on our Government-Related Entities Rating Criteria. We adopt a top-down approach and equalise WAPDA's rating with those of Pakistan (B-/Stable), regardless of WAPDA's Standalone Credit Profile.

Riaz Haq said…
Shehbaz Sharif, the newly installed prime minister of Pakistan, has ordered the completion of the $2.8bn Diamer Bhasha Dam in Kashmir three years earlier than scheduled.

https://www.globalconstructionreview.com/new-pakistan-pm-calls-for-completion-of-2-8bn-dam-three-years-early/

An element of the China-Pakistan Economic Corridor (CPEC), the dam is being built by a joint venture between China Power and the Frontier Works Organisation, an engineering arm of Pakistan’s army.

When work began in 2020, it was expected to finish in 2028. Sharif now wants this to happen in 2026.

He made the call during a speech delivered to the Water and Power Development Authority (WAPDA) at the site of the project on Sunday, newspaper Dawn reports.

He said the electricity and irrigation produced by the dam would help to make Pakistan “prosperous and progressive”.

Claiming to understand the difficult terrain of the area and Pakistan’s difficulties in raising funds for construction, he added: “I am sure that all of you are going to work as a team and make efforts for the biggest energy project and complete it as early as possible.”

He also urged international investors to come forward and invest in the project.

The project is to build a roller-compacted gravity dam with a barrier some 272m high, making it the tallest of its type in the world.

The reservoir will contain 10 cubic kilometres of River Indus water, and its two powerhouses are expected to generate 4.5GW of electricity, equivalent to 12% of Pakistan’s total installed capacity.

The dam is being built in mountainous terrain between Kohistan district in Khyber Pakhtunkhwa and Diamer district in Gilgit Baltistan.

According to Dawn, engineers who have completed hydropower projects in the region suggested that it was more likely that the project would take longer than nine years to complete, rather than fewer.

However, the Lahore Chamber of Commerce & Industry welcomed the expedited schedule.

Its president Mian Nauman Kabir said on Monday that the project would serve as a “lifeline” for the country by improving its energy mix, cutting its huge oil import bill and bringing down the cost of doing business.
Riaz Haq said…
New hydel projects to produce over 11,000MW
Will enhance overall hydroelectric power capacity to 20,684MW

https://tribune.com.pk/story/2382074/new-hydel-projects-to-produce-over-11000mw


ISLAMABAD:
The Water and Power Development Authority (Wapda) is pursuing six hydroelectric power projects that will add 11,241 megawatts of environment-friendly electricity to the existing hydel generation capacity of 9,443MW in the coming years.

Talking to APP, Wapda officials said that at present total installed capacity of 24 hydel power stations of Wapda stood at 9,443MW and the addition of 11,241MW would enhance it to 20,684MW.

The existing hydel power stations included Tarbela, Mangla, Ghazi Barotha, Neelum-Jhelum and Warsak, which contributed about 25% to the total system capacity of 36,166MW from all sources.

The net electricity output of those power stations was about 32,000 gigawatt-hours (GWh) per annum.

Sharing details of the upcoming hydel power projects, the officials said that the Dasu Hydropower Project would contribute 4,320MW, Tarbela 5th Extension 1,510MW, Mohmand Dam 800MW, Diamer-Bhasha Dam 4,500MW, Keyal Khwar Power Project 128MW and Kurram Tangi 83.4MW to the national grid system.

Meanwhile, Pakistan Atomic Energy Commission has developed several nuclear power projects to support economic uplift in Pakistan.

Total installed capacity of the nuclear power plants connected with the national grid was 3,530MW, which included 1,330MW Chashma nuclear power project and 2,200MW Karachi nuclear power project.
Riaz Haq said…
Until about a decade ago, the Jhimpir region in 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.

https://www.dawn.com/news/1722458


Around 90 kilometres from Karachi, Jhimpir is the heartland of the country’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 Prime Minister Shehbaz Sharif’s visit to China on Nov 1-2, the premier 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 per cent (1,831 MW) and 1.4pc (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 the country’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, 60pc 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.

‘Greening’ CPEC
As Beijing tries to rebrand the BRI as an eco-friendly initiative, Chinese officials have promoted the idea of a ‘green’ CPEC. But Hina Aslam, research fellow at the Sustainable Development Policy Institute (SDPI), a think tank in Islamabad, points out that “in the energy sector, it has meant a greater focus on hydro rather than wind and solar”.

Besides wind energy in Jhimpir, China Three Gorges Corporation is investing heavily in what it is globally known for: hydropower (the company is behind the Three Gorges Dam in China, the world’s biggest power station).

In June 2022, it completed a 720 MW project in Karot in northern side of the country.


Work is advancing on a 1,124 MW hydropower plant near Muzaffarabad, and a third 640 MW project has recently been approved in Mahl. The same company is behind both projects.
Riaz Haq said…
Put together, China Three Gorges aims to produce 2,500 MW of renewable energy in Pakistan, mostly through hydro. The Pakistan government – like many others – includes hydropower under the umbrella of renewable energy, but this is disputed by many environmentalists due to the often high environmental, social and financial costs of hydropower, including disruption of important riverine ecosystems. In Pakistan, dams are also politically contentious and a source of discord between upstream and downstream provinces. Yet, both Beijing and Islamabad appear keen to pursue hydropower.

But there are huge challenges facing Pakistan’s shift to renewable energy. “A lack of consistency in policy has been the biggest issue,” says Noman Sohail, senior business manager at China Three Gorges South Asia Investment Ltd.

“Arranging lenders and finance for renewable projects is not a problem. But it’s disorienting when policies are reversed, tariffs renegotiated and unpaid capacity payments allowed to pile up.”

Growing popularity of solar
There is one form of renewable energy in particular that presents immense potential for Pakistan, but which has seen little investment to date: solar. A World Bank study in 2020 urged Pakistan to urgently expand solar and wind “to at least 30 per cent of electricity generation capacity by 2030, equivalent to around 24,000 MW”.

As of 2022, the proportion is 5.6pc according to the National Electric Power Regulatory Authority’s State of Industry 2022 report.

Pakistan’s slow take-up of solar energy is evident from the fact that of the 21 energy projects completed or in development under CPEC, only one is solar: the 1,000 MW Quaid-i-Azam Solar Park in Cholistan Desert, Punjab, built by Chinese company Zonergy.

This project, promoted as one of the world’s biggest solar parks, was meant to be completed by 2017. But only 40pc of this capacity has been implemented so far.

Suleman Rehman, chief executive of Burj Capital, a Dubai-based investment company focused on renewable energy in Pakistan, says that regardless of the government’s apparent lack of focus, the demand for affordable solar power is growing exponentially.

“The competition is getting intense. More and more local players are coming up every month. Installing a 4MW solar project is no longer a big deal for us,” says Rehman.

According to Rehman, the private sector is not waiting for policymakers to facilitate the energy transition. Those who can are turning to the solar option. That explains the recent proliferation of rooftop photovoltaic panels in big cities, as well as in off-grid villages across the country.

The solar future
Costly fuel imports have already had a crippling effect on Pakistan’s economy. This year, the volatility of global energy prices, exacerbated by Russia’s invasion of Ukraine, took a damaging toll on Pakistan’s foreign exchange reserves. The country was on the verge of a default before the International Monetary Fund agreed to step in to help it stay afloat.

In an attempt to reduce dependence on imported fuel, on 1 September 2022 Prime Minister Shahbaz Sharif announced the rapid deployment of 10,000 MW of solar power in the country. But details of how this will be achieved, and by when, are sketchy.

The plan reportedly involves transitioning all public sector buildings to solar power. The proposal also encourages power plants running on coal, oil and gas to partially shift to solar power.

China will have a crucial role to play if this shift to solar is to happen, says Rehman, though it may come in a different form than the mega-projects seen under CPEC.

“China will still have a big role because they are producing the cheapest [solar] equipment worldwide. But I really hope the government won’t put this under CPEC because that would put local players at a disadvantage,” says Rehman.
Riaz Haq said…
Gwadar Pro Official
@Gwadar_Pro

China state-affiliated media
The Chinese company is working 24 hours a day according to three shifts on Dasu Hydropower Project. After the completion of Dasu Dam project, 4320 MW electricity will be generated. Thousands of employment opportunities have already been created on the project.

https://twitter.com/Gwadar_Pro/status/1610941378862940160?s=20&t=Skr5PQ-x7X-8EiVxL2GqMg

-----------

Wapda, KP districts sign deal to build transmission line


https://www.dawn.com/news/1726085


The Water and Power Development Authority (Wapda) and a united jirga from three districts in Khyber Pakh­tunkhwa’s Kohistan region signed an agreement on Monday to facilitate the construction of a transmission line for evacuation of 4,300 megawatts electricity to be generated by Dasu dam and other hydropower projects.

The “Confidence-Buil­ding Mea­s­ures’ Agree­ment (CBMA) was sig­ned between Wapda, the ad­­m­inistration of Hazara division, and notables from the three districts — Upper Kohistan, Lower Kohis­tan and Kolai Palas Kohistan.

Under the agreement, Wapda committed to implementing development schemes — to be selected through a yet to be conducted field survey — as CBMs under its Corporate Social Responsibility (CSR) in consultation with the civil administrations and the locals, Wapda said in a statement.

“Most importantly, this agreement will pave the way for smooth execution and completion of long-delayed 132kV transmission line from Duber hydel power station to Dasu, direly needed for stable supply of electricity during peak construction period of Dasu project,” it added.
Riaz Haq said…
CPEC Suki Kinari project nears completion | The Manila Times

https://www.manilatimes.net/2023/06/12/business/foreign-business/cpec-suki-kinari-project-nears-completion/1895652

The Suki Kinari Hydropower project in northwest Pakistan achieved the hoisting of a core component on Saturday, as a 413-ton rotor, crucial to turning water into electricity, was smoothly installed on the last of four generating units.

The successful hoisting of the last rotor will help advance the construction progress of the power station under the China-Pakistan Economic Corridor (CPEC), located in the Mansehra district of the South Asian country's Khyber Pakhtunkhwa province.

Noting the hoisting of the last rotor as a key milestone of the 884-megawatt hydropower project, Yu Zhiliang, assistant general manager of the Suki Kinari Hydropower project of the Overseas Investment Co. of China Gezhouba Group, which invests in and implements the project, said that it marks the installation of the unit body of the hydropower station is coming to an end.

It is also a solid step for the waterless commissioning of four generating units in the coming six months, said Yu.

The hydropower project started construction in January 2017. Once getting functional, the CPEC project will annually generate some 3.21 billion kilowatt-hours of clean electricity, replacing 1.28 million tons of coal and reducing 2.52 million tons of carbon dioxide emissions per year, said Yu.



It will significantly optimize Pakistan's energy structure, boosting the country's economic and social development, he added.

Launched in 2013, the CPEC is a corridor linking Pakistan's Gwadar port with Kashgar in northwest China's Xinjiang Uygur Autonomous Region, highlighting energy, transport and industrial cooperation.
Riaz Haq said…
Pakistan will add up to 10 GW of new hydropower capacity by 2030 | Enerdata

https://www.enerdata.net/publications/daily-energy-news/pakistan-will-add-10-gw-new-hydropower-capacity-2030.html

In July 2022, Pakistan commissioned the 720 MW Karot hydropower plant, one of five projects on the Jhelum River (northern Pakistan), alongside the Azad Pattan plant (700 MW), the Mangla Dam (1.1 GW), the Neelum-Jehlum plant (969 MW) and the Kohala plant (1.1 GW).

----------

700MW Azad Pattan hydropower project ready for construction: Energy China - Profit by Pakistan Today

https://profit.pakistantoday.com.pk/2023/06/14/700mw-azad-pattan-hydropower-project-ready-for-construction-energy-china/

Wang Huihua, Managing Director of China Energy Int’l Group’s Pakistan Branch, announced that the 700-megawatt Azad Pattan hydropower project, run by Energy China, is ready for construction after the completion of a feasibility study and land acquisition.

Wang made these remarks at the ‘Pakistan Energy Sector Landscape: Challenges & Opportunities’ conference held at NUST University, Islamabad.

He explained that the project would provide cheap, clean energy to Pakistan. “We have been developing this project for six years. We hope the government will give it more priority in the China-Pakistan Economic Corridor (CPEC) initiative to expedite financial closure,” he said.

He further stated that Energy China believed that investing in renewable energy in Pakistan was financially viable. “We are committed to setting up our long-term operation in Pakistan and investing more,” he said.

He highlighted that China Energy Engineering Corp. (Energy China) has been present in Pakistan for the past 20 years. “Energy China considers Pakistan as its favored investment destination,” he added.

Wang also pointed out some of the challenges faced by foreign investors in Pakistan, underscoring the importance of resolving them quickly to foster win-win cooperation.

Popular posts from this blog

Pakistani Women's Growing Particpation in Workforce

Bill Gates and BMW Back Pakistani-American Mujeeb Ijaz's Battery Startup

Project Azm: Pakistan to Develop 5th Generation Fighter Plane