CPEC Energy Projects in Pakistan: Impact and Future Prospects

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CPEC Energy Projects in Pakistan
28Jun

Pakistan and China have a long-standing friendship, which resulted in the signing of one of the biggest projects between the two countries. In 2015, China signed CPEC, the China-Pakistan Economic Corridor with Pakistan. It was one of the biggest pacts between the two countries and included several projects. This pact included multiple projects in different sectors of Pakistan, but in this article, we are going to explore CPEC energy projects in Pakistan.

Let’s explore the details of the current situation of CPEC energy projects in Pakistan and whether they have helped the country mitigate its energy crisis or not.

What is CPEC?

CPEC is a flagship project under the China-proposed Belt and Road Initiative. Chinese President Xi Jinping and Pakistani Prime Minister Nawaz Sharif signed 51 agreements and memorandums of understanding valued at $46 billion. It was signed to transform Pakistan’s economy and energy transportation systems. This project connected the Pakistani ports of Gawadar and Karachi to the Xinjiang Uygur Autonomous Region in China.

Since 2015, several mega projects have been completed under this pact, including Gwadar Port’s infrastructure improvement, the Orange Line Metro Train, motorways, and railway stations. Under CPEC, many energy projects have also been completed which played a major role in the energy sector of the country.

Major CPEC Energy Projects

Here are the details of some of the major CPEC energy projects in Pakistan;

  • Karot Hydropower Project

Under CPEC Energy projects in Pakistan, a Karot hydropower project was started, which included the development of a 720 megawatt (MW) hydropower plant on the Jhelum River in Pakistan. It generated a total of 3.1 billion kilowatt hours of electricity in 2023, significantly contributing to the national grid.

  • Nuclear Power Projects

CPEC has also contributed to the expansion of Pakistan’s nuclear energy capabilities. The Karachi Nuclear Power Plant’s K2 and K3 units, equipped with China’s Hualong One reactors, collectively generate 20 billion kilowatt hours per year. This project is meeting the electricity demands of 2 million people while saving energy equivalent to 6.24 million tons of standard coal. This project has greatly helped the country meet its energy demands and has also reduced Pakistan’s reliance on fossil fuels.

  • Renewable Energy Initiatives

The emphasis of CPEC has not only been on hydropower and nuclear energy, but a major focus has been on promoting renewable energy sources, such as the adoption of solar energy. Projects like the Quaid-e-Azam Solar Park in Bahawalpur and wind power projects in Jhimpir are the biggest examples of these renewable energy initiatives in Pakistan. 

  • Coal Power Projects

To meet the increasing energy demands in Pakistan, under CPEC, multiple coal power projects have also been established. A 300 MW Gwadar Coal Power Project is established to meet the energy demands of the port city of Gwadar. The excess availability and affordability make coal one of the useful sources of energy and through this project, it will be used to mitigate the energy crisis in Pakistan.

  • Transmission and Distribution Enhancements

CPEC has not only focused on launching new energy projects to mitigate the energy crisis in Pakistan but has also worked on the country’s transmission and distribution infrastructure. To ensure efficient electricity distribution across the country, the existing grids have been upgraded, and new transmission lines have been established as well.

Impact on Pakistan’s Energy Sector

These CPEC energy projects have played a crucial role in helping Pakistan resolve its energy crisis. While the energy issues have not completely been resolved, there have been major benefits from these projects for the country’s energy sector. The country has been facing these issues for decades, which has hindered not only the daily lives of the residents but also the economic growth of the country. CPEC’s energy projects have helped Pakistan bridge this gap by helping the country generate more electricity.

Additionally, by improving the energy infrastructure of the country, CPEC energy projects in Pakistan have also boasted economic development. CPEC’s emphasis on renewable and clean energy sources has also contributed to environmental sustainability.

Challenges and Future Prospects

Despite these projects, the problem of the energy shortage in Pakistan is still persistent, specifically the electricity shortage. Delays in project execution, funding issues, and technical complexities have been hindering most of these projects. The next phase of CPEC projects will be expanding beyond energy and infrastructure and advancing industrial zones. 

Moreover, to deal with the energy crisis in Pakistan, people are now turning to solar energy. In Pakistan, Doart Energy is a subsidiary of the Chinese solar manufacturing company, Doart RockCore, providing world-class solar products so the residents of Pakistan can find a better solution to deal with electricity issues. These efforts are expected to further help the country meet its energy demand and promote the development of its various sectors.

Bottom Line

The CPEC energy projects in Pakistan have played a crucial role in helping the country mitigate its energy issues. Hopefully, in the future, more strategic plans will be made to balance the supplier-demand balance of energy in Pakistan. As more initiatives are taken and the previous CPEC projects are completed, these are expected to shape Pakistan’s energy landscape and promote energy stability, ultimately driving the socio-economic progress of the country.

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