June 29, 2020 Read More →

Increased coal, ignored renewables help fuel Pakistan’s economic downturn

Energy Central:

Massive build-up of coal power projects in Thar and ignoring renewable energy both at policy and operational level have been intensifying Pakistan’s financial burden amidst the economic downturn induced by COVID-19, reveal two studies launched on Friday.

High capacity payments to thermal and coal power generators coupled with surplus installed generation capacity have been adding to increasing cost of electricity and worsening power sector’s circular debt, state the studies conducted by Institute for Energy Economic and Financial Analysis (IEEFA) and World Wind Energy Association (WWEA).

Both the studies launched at a webinar – titled as “Pakistan’s Power Crisis: Imperatives for Renewable Energy in Sindh” and organized by Alliance for Climate Justice and Clean Energy (ACJCE) – underlined the significance of using the renewable energy of Sindh as the cheapest and the most cost competitive source of power that does not receive any capacity payments.

Simon Nicholas, author of IEEFA’s study titled ‘Thar Coal: Locking Pakistan into Unsustainable Capacity Payments’, said the government of Pakistan had already realized the gravity of capacity payment issue and raised it with the government of China, which had been sponsoring coal power projects in the country under China Pakistan Economic Corridor (CPEC).

“Premier Imran Khan has noted that total capacity payments to power generators could reach an entirely unsustainable Rs1.5 trillion (US$9bn) in the next few years. The government of Pakistan has now asked China for easier repayment terms on 12GW of CPEC power projects totaling US$30bn of investment,” he said.

[Pakistan Press International]

More: Capacity charges, neglecting renewables intensifying Pakistan’s financial burden: Reveal studies

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