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China should invest US$15bn in coal-fired power projects in Pakistan

According to the Ministry of Water and Power of Pakistan, Chinese companies and their partners are expected to invest around US$15bn to build nearly a dozen coal-fired power projects of various sizes across Pakistan over the next 15 years.



The coal-fired power projects are part of the US$54bn China Pakistan Economic Corridor (CPEC), which will include US$33bn of investments in 19 power projects (coal-fired and renewable power plants, transmission lines and other energy infrastructure). This should raise Pakistan's power generation by 6 GW by the end of 2018 and should eventually add 16 GW of power capacity, of which 1/4 from renewables (3,900 MW from three hydropower projects, four wind projects and a solar park) and 3/4 from coal-fired power plants.



This future surge in coal-fired power generation is expected to raise its greenhouse gas (GHG) emissions, which are already rising by 3.9%/year and reached 405 MtCO2eq in 2015. The new coal-fired power plants will use the latest supercritical technology, somehow reducing emissions.



Pakistan is estimated to have a 4,000 MW power shortage, with electricity demand soaring during peak summer months (May to July) and with 2/3 of the population having access to electricity according to the World Bank. The Bank estimates that Pakistan needs to invest 3.7% to 5.5% of its GDP every year to boost power generation.

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