{"id":20080193,"date":"2021-10-26T12:30:00","date_gmt":"2021-10-26T07:00:00","guid":{"rendered":"https:\/\/www.thethirdpole.net\/?p=80193"},"modified":"2022-01-27T20:45:31","modified_gmt":"2022-01-27T15:15:31","slug":"china-coal-exit-will-not-end-pakistan-reliance","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/energy\/china-coal-exit-will-not-end-pakistan-reliance\/","title":{"rendered":"China\u2019s coal exit will not end Pakistan\u2019s reliance on dirty fuel"},"content":{"rendered":"\n

Just a few weeks ahead of COP26<\/a>, China, the world\u2019s biggest public financier of coal, announced<\/a> that it will end investments in overseas coal projects. It raised hope in countries that want to make low-carbon energy plans and panic among those who feel they cannot do without coal.<\/p>\n\n\n\n

The announcement could mean the cancellation of over 40 gigawatts (GW)<\/a> of pipeline projects in 20 countries, even though China has not invested<\/a> in any new coal projects since the beginning of 2021.<\/p>\n\n\n\n

Pakistan is one of the Belt and Road Initiative<\/a> countries where coal formed a major part of energy projects under the China-Pakistan Economic Corridor<\/a> (CPEC).<\/p>\n\n\n\n

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Of the 18 \u2018priority<\/a>\u2019 energy projects (11.87 GW) financed by China at around USD 19.55 million, nine (8.22 GW) were coal-fired.<\/p>\n\n\n\n

Of these, four \u2013 the Huaneng Shandong Ruyi-Sahiwal Coal Power Plant, the Port Qasim Coal-fired Power Plant, the HubCo Coal-fired Power Plant and Sindh-Engro Thar Coal Power Plant \u2013 are complete and have been supplying electricity to the national grid since 2017. Together, their energy output is 4.62 GW.<\/p>\n\n\n\n

Michael Kugelman, deputy director for the Asia programme at US-based think-tank the Wilson Center<\/a>, said China\u2019s exit from coal is a \u201cblessing in disguise\u201d with opportunities for \u201cbilateral clean energy cooperation\u201d a clear win for the environment.<\/p>\n\n\n\n

Even Muhammad Badar-ul-Munir, the chief executive of the 100 MW Quaid-e-Azam Solar Power Pvt Ltd (QASPL) plant, said the end of China\u2019s attachment to overseas coal projects is a \u201cgreat piece of news\u201d, as it may force the government of Pakistan to focus on the much-ignored area of solar power.<\/p>\n\n\n\n

Back in 2014, QASPL made headlines. As part of the China-backed 1,000 MW Quaid-e-Azam Solar Park in Punjab province, the company set up the first 100 MW of electricity in just under a year.<\/p>\n\n\n\n

Two years later, Chinese company Zonergy added another 300 MW of solar energy to the national grid.<\/p>\n\n\n\n

\u201cFor the last five years, work on this first energy project under the China-Pakistan Economic Corridor (CPEC) has been at a standstill, despite the infrastructure in place for the remaining 900 MW,\u201d Badar-ul-Munir told The Third Pole<\/a>.<\/p>\n\n\n\n

He added that now is a good time for the state to pursue new investment: currently solar energy in Pakistan is sold at USD 0.037 per kilowatt-hour (kWh), compared with the USD 0.14\/kWh tariff that the government is stuck with buying from solar projects set up in 2014-2016 under a 25-year agreement.<\/p>\n\n\n\n

The policies behind the talk<\/h2>\n\n\n\n

\u201cWe believe green is the way to go,\u201d Asad Umar, Pakistan\u2019s federal minister for planning, development and special initiatives, told The Third Pole<\/a>. \u201cWe have always been very critical of the imported coal plants that we inherited from the previous government,\u201d he said.<\/p>\n\n\n\n

\u201cEven before the recent announcement by China, greening the future development pathway was practically in motion. We had shelved two negotiated imported 2,400 MW coal projects<\/a> under CPEC,\u201d Malik Amin Aslam, the federal minister for climate change, added.<\/p>\n\n\n\n

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But the clean energy source Badar-ul-Munir has in mind is different from the one the government has its sights set on: hydropower.<\/p>\n\n\n\n

Umar, who also heads several CPEC committees, said the \u201cbig dams that are being set up will have massive hydel energy capacity\u201d and that his government favours them.<\/p>\n\n\n\n

Yet this in no way means the government is completely washing its hands of dirty fuel.<\/p>\n\n\n\n

The coal projects in the pipeline under CPEC \u201cwill continue\u201d, according to Umar. However, all \u201cfuture thermal projects will be using the indigenous coal from Tharparkar only\u201d, he said, adding this was reflected in the recently approved 10-year energy roadmap.<\/p>\n\n\n\n