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CPEC & Solarized Pakistan: Prospects & Constraints

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Undoubtedly, the CPEC has significantly contributed to sustainable development in Pakistan by enhancing infrastructure, boosting energy production and creating economic opportunities. However, many untapped sectors still need to be jointly explored under the flagship project of the CPEC in the country.

The development of new highways and railways under CPEC has improved connectivity, facilitating trade and economic growth. Additionally, CPEC projects in renewable energy, such as wind and solar power plants, have increased Pakistan’s energy capacity while promoting cleaner, sustainable energy sources. According to a published report of the Global Energy Monitor (GEM), China has 180 gigawatts (GW) of utility-scale solar power under construction and 159GW of wind power. This brings the total of wind and solar power under construction to 339GW, well ahead of the 40GW under construction in the US.

The researchers only looked at solar farms with a capacity of 20MW or more, which feed directly into the grid. This means that the total volume of solar power in China could be much higher, as small-scale solar farms account for about 40 percent of China’s solar capacity. The findings underscore China’s leading position in global renewable energy production at a time when the US is increasingly worried about Chinese overcapacity and dumping, particularly in the solar industry.

China has experienced a renewables boom due to strong government support, with President Xi Jinping emphasizing “new quality productive forces,” including green manufacturing. Between March 2023 and March 2024, China installed more solar capacity than in the previous three years combined and more than the rest of the world for 2023. China is on track to reach 1,200GW of installed wind and solar capacity by the end of 2024, six years ahead of its target.

Hopefully, the constructive wave of construction guarantees that China will continue leading in wind and solar installation in the near future, far ahead of the rest of the world. It is a good omen that the Chinese company expressed its willingness to provide Road King with technical support, product optimization, and marketing assistance for solar e-bikes in the country. Thus, it will jointly create high-quality transportation products that meet local market needs.

Optimistically, it will actively promote cooperation with the Chinese side and introduce solar e-bikes to the Pakistani market. The environmental friendliness and high-efficiency performance of solar e-bikes perfectly align with Pakistan’s current demand for green transportation. Moreover, Road King, a leading electric scooter brand in Pakistan, and AGAO Solar Mobility, a China-based startup specializing in solar-powered scooters, recently reached a preliminary cooperation agreement to introduce eco-friendly solar e-bikes to Pakistan.

Solar scooters are eco-friendly electric scooters equipped with solar panels. These panels harness solar energy to charge the scooter’s battery, reducing the need for traditional charging. The combination of solar energy and scooters is dedicated to short-distance travel with zero carbon emissions. During the meeting, both sides engaged in detailed discussions on Pakistan’s local transportation market demand, product development trends, and specific cooperation modalities.

The Chinese company expressed its willingness to provide Road King with technical support, product optimization and marketing assistance for solar e-bikes. The goal is to jointly create high-quality transportation products that meet local market needs. Eventually, it will actively promote cooperation with the Chinese side and introduce solar e-bikes to the Pakistani market, stated the delegation from Road King, noting that the environmental friendliness and high-efficiency performance of solar e-bikes perfectly align with Pakistan’s current demand for green transportation.

Interestingly, a delegation of a Chinese private sector investment group called on Khyber-Pakhtunkhwa Chief Minister Sardar Ali Amin Khan Gandapur and discussed with him matters related to investment in different sectors of the province. The delegation expressed its willingness to invest in the industrial and mineral sectors of the province, saying that the company will submit its viable proposals very soon.

The Chief Minister directed the relevant officials to closely examine the proposals to be submitted by the company and come up with an action plan for further progress. While highlighting the extensive investment opportunities in different potential sectors of the province, CM Gandapur invited them to invest in agriculture, livestock, solar energy and other important sectors, adding that the government will not only encourage foreign investment but also provide all possible facilities to them. He said that the provincial government plans to utilize China’s advanced technology for the sustainable development of the agriculture sector and looks forward to cooperation in this regard.

In summary, the policymakers of Pakistan should follow the recommendations of Pakistan’s National Electricity Policy 2021, which pledges that a “sustainable renewable energy market shall be developed, with a progressively increasing share in power generation as per the Indicative Generation Capacity Expansion Plan (IGCEP) based on the least cost principle.” As per the World Bank’s “Variable Renewable Energy Integration and Planning Study,” the US National Renewable Energy Laboratory estimates the theoretical potential for wind generation in Pakistan at 340GW, mainly in Sindh and Balochistan, vividly reflecting the rich potential of renewables in the country.

Unfortunately, no solar or wind projects have been installed in Balochistan despite the immense solar and wind integration potential of 1050MW and 1850MW, respectively, at interconnection-ready sites requiring no grid strengthening and no capacity additions. According to the World Bank study, Balochistan’s realizable solar and wind potential when grid strengthening measures are in place could be as high as 3.5GW and 6GW, respectively, by 2030.

Focusing on hydropower and conventional power sources limits renewable energy opportunities in Sindh and Balochistan. Urgent action is needed to utilize the renewables potential in these provinces, including grid upgrades and strategic placement of solar and wind power near substations and transmission lines. Policymakers in Pakistan must revisit their renewables policy to ensure a balanced and inclusive energy and economic development approach. This would enable Sindh and Balochistan to harness their renewable energy potential, driving regional development and contributing significantly to Pakistan’s overall energy landscape.

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