Electricity supply-demands to remain balanced for next 11 years: study

ISLAMABAD: Pakistan and China in a joint study on power sector have found that Pakistan’s power sector supply-demand will remain balanced over next 11 years (from 2019 to 2030), so both side agreed to readjust list of power projects under China Pakistan Economic Corridor (CPEC).

Top official sources disclosed to The News on Tuesday that Pakistan and China undertook Joint Study on Pakistan Power Market in order to take evidence-based decisions making for future CPEC projects.

Both sides noted that the joint expert panel reached consensus on the report of joint study that was finalised on November 3, 2019, which indicates that the power supply-demand will be basically balanced in Pakistan from 2019 to 2030. “After 2025, apart from minor surplus in specific years due to concentrated commissioning of power generation projects, Pakistan may enjoy balance generally in all the other years,” the joint study found.

Both the sides agreed in principle that the project list may be reviewed and adjusted based on the Supplementary Protocol to Agreement on the CPEC energy projects cooperation between the China and Pakistan governments (signed on February 3, 2016) and the recommendations by expert panels with regard to the project list adjustment in line with the report of joint study.

Guided by an overarching plan at the top level, energy cooperation has maintained steady progress and projects have been advanced with full speed. As of September 2019, 12 power generation projects have either started construction or been in commercial operation already, with a total installed capacity of 7,240 MW and a total investment of about $12.4 billion.

CPEC energy cooperation has promoted economic and social development of Pakistan. According to statistics, COD CPEC projects as of the fiscal year of 2018-2019 have paid about $250 million in taxes during the construction period and provided over 10,000 jobs.

Both sides agreed on the need to ensure CPEC policy stability for sustainable development of projects. The two sides agreed that all CPEC projects had been strictly reviewed and granted approvals by the Pakistani side on a case-by-case basis. These projects are consistent with and fall within the policy and regulatory framework of Pakistan. The current CPEC policies and agreements shall be jointly executed by both the Chinese and the Pakistani side. The Chinese side proposes that the Pakistani side maintains stability in its taxes and power tariffs while establishing a better regulated and more efficient power market.