CHPGC Power Plant: Genesis of “Energy Independent Pakistan“

CPHGC 1320MW power plant in Hub [photo/CPHGC]

by Yasir Habib Khan

Energy Independent Pakistan is no more just a dream rather is becoming a tangible reality soon. Under CPEC, Pakistan’s first joint venture CPHGC’s Hub coal-fired power plant producing 1320MW is another breakthrough that has begun helping Pakistan overcome its electricity crisis in true letter and spirit.

On the inaugural ceremony of Hub Power plant, a clear message has been given that Pakistan-China strategic and cooperative partnership under CPEC will power up Pakistan to let economy, business and industry thrive on fast-track. It is good omen to over 50 million people of Pakistan who still don’t have adequate access to electricity and auspiciousness is that it meets electricity needs of four million households in Pakistan.

Pakistan remained an energy deficit country over the last two decades, suffering acute power deficiency. This severe acute shortfall offsets economic growth and cut GDP growth. According to Sustainable Development Policy Institute (SDPI) 2014 report, Pakistan underwent an unprecedented energy crisis. Demand and supply shortfall surged to 8000MW resulting serve repercussions for the economy as a whole. This grave energy crisis cost approximately to Rs 52billion. World Bank Report 2015 said that Pakistan’s power sector suffered from inefficiencies that cost the economy $18bn or 6.5 per cent of GDP in the fiscal year 2015.

No doubt, CPEC energy projects made a turnaround healing electricity deficit. According to the Pakistan Economic Survey 2018-19, the installed electricity generation capacity went to 34,282 megawatts in Jul-Mar 2018-19 compared to 33,433MW in the corresponding period of previous year, registering a rise of a 2.5 percent growth.

This much needed relief has been possible solely CPEC power initiatives, especially coal-fired power plants. It is pertinent to mention that share of coal in power generation had remained in single digit over the past two decades. However, in the current fiscal year, it reached to the height of 12.7 percent.

Story of feat to power up Pakistan commenced when at least 18 to 19 projects out of 39 Earlier Harvest Projects (EHP) worth around US $34 billion, equivalent to 70 percent of the CPEC funding basket, were earmarked for energy projects. The targeted emphasis signifies resilient commitment of Imran Khan led government to fix energy crisis. Most of the energy projects in the CPEC portfolio are coal based. Out of the 19 energy projects, 10 projects are based on coal. Approximately 4666MW to 5000 MW electricity has been pumped into national grid so far.

Work on 13 energy projects having capacity to generate 8,995MW electricity under China Pakistan Economic Corridor (CPEC), throughout the country is in full swing. Under CPEC, completed energy projects are Hubco Coal Power Plant, Port Qasim Coal-fired Power Plant ,Sahiwal Coal-Fired Power Plant, Engro Thar Coal-fired Power Plant and Surfice Mine in Block II of Thar Coal Field, Dawood Wind Farm, Quaid-i-Azam Solar, UEP Wind Farm, Sachal Wind Farm, Port Qasim Power plant and three gorges second and third wind farms.

In process are 720MW Karot Hydro-Power Project by China Three Gorges South Asia Investment Ltd, 873MW Suki Kinari Hydropower Project by China Gezhouba Group Corporation International Ltd ( CGGC), 2x660MW Rahimyar Khan Coal Power Plant, Thar Coal Block I and 2x660MW Mine Mouth Power Plant by Shanghai Electric, 300 MW Gwadar Power Plant, Matiari-Lahore Transmission Line by China State Grid, Matiari-Faisalabad Transmission Line by China State Grid,

Meanwhile actively promoted projects to be producing 17045 MW are 2x660MW Gaddani Powerplant at District Lasbela, Balochistan, 1100MW Kohala Hydro-Power Station by China Three Gorges South Asia Investment Ltd, 2x50MW Wind Farm Phase II of Pakistan by China Three Gorges South Asia Investment Ltd, 660MW HUBCO Coal Power Plant by China Power International Holding Ltd, 300MW Salt Range Mine Mouth Power Plant including Mining China Machinery Engineering Corporation (CMEC), 2x660MW Thar Mine Mouth Coal Fired Power Plant by Oracle, 2x660MW Muzaffargarh Coal-fired Power Plant by China Machinery Engineering Corporation, 525 MW Gas Fired Power Plant.

Energy plays a dominant role in the economic development and is also a fundamental part of any nation’s economy. It relates to energy security, economic development, and social stability. Electricity possesses vital value, and is considered the source of energy that supports every aspect of the economy. If it is claimed that Hub coal-fired power plant is another feather in the cap of CPEC will not be exaggerated.