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Chinese experts place faith in coal for power woes in Pakistan

Analysing the on-going energy shortage as the core reason behind the stagnant growth, Chinese power experts have asserted authorities to focus more on indigenous resources for power generation rather than relying on imported fuel – the most incentivised solution by authorities.

“Pakistan should accomplish a perfect balance of hydropower and coal-based power projects to maintain a minimum power tariff,” said Global Mining Limited China CEO Weikai Gao, while talking to The Express Tribune. “Both natural resources are in abundance and are vital for Pakistan’s long-term energy plan.”

Investors from China visited Pakistan keeping long-term energy plans in mind. For them, the current energy mix of the country is the main reason behind power outages and the seemingly-unending circular debt.

Hydel power, which accounted for 60% of the total energy mix in 1980, dropped to 29% in 2013. Similarly, thermal power, which accounted for 40% in 1980, has increased to 68% in 2013, indicating increased reliance of imported fuel in power generation.

Apart from the hydropower potential, which according to Wapda officials, is around 60,000MW along the River Indus alone. Chinese experts said that the untapped 185 billion tons of coal reserves would be the key to obtain energy security in Pakistan.

“These massive reserves are the sole reason why Tharparkar is important for attaining energy security,” said Gao. “However, demographics of this part of the country are difficult and we will need help of the federal and provincial governments to establish a future energy centre.”

Need of the hour

With the gap in demand and supply of energy exponentially increasing in Pakistan, China, under the Pak-China Economic Corridor, is planning to increase the share of coal in the energy mix.

In comparison to China (78%) and India (68%), coal accounts for only 0.1% of Pakistan’s current energy mix.

Weikai said that the Sindh government has supported the project in capacity of developing the road infrastructure and availability of water, though they require much more development in this area if it has to become an energy centre for Pakistan. China, in later stages, also plans to start coal-gasification projects.

“Infrastructure and water are the basic necessities required in larger proportions for power plants and human consumption,” said Sino-Sindh Resources CEO Abdul Qayyum.

No one can pinpoint the exact benefits of coal for the people of this region; hence it is imperative that China and Pakistan should plan to establish related industries. “This will generate employment for skilled labour, which will potentially urbanise this city in coming years,” he said.

Currently, Sino-Sindh is mobilising heavy machinery to start on-ground work for coal mining in Thar, whereas SECMC has already started work at Block-II.

Both companies will initially generate 1,400MW and 660MW from coal-fired power plants respectively. This will cost $3.5 billion for Sino-Sindh and approximately $2 billion for SECMC. However, in the future, Sino-Sindh will enhance the electricity generation up to 6,000MW and SECMC will upgrade to 4,000MW.

“We have set the foundation and now it will be easier for newcomers to initiate coalmining and power generation projects in the region,” added Qayyum.

source: http://tribune.com.pk